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Forex Trading


RobAde

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In reply to: happy2 on Saturday 04/11/06 01:08am

Happy, is she a long term or short term scaper? If her calls are worth following, I'll subscribe to it. Thanks.

 

I just like the amount of rollover interest that CMC pays on these longs against the Yen. Can make a living out of it sitting on it every night, provided the trend continues to go up.

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In reply to: crowman28 on Saturday 04/11/06 06:35pm

QUOTE
"I believe in her. She gives you the tools to help you become a great trader. When I first opened an account, she made me paper trade first. She can always tell my growth. And when I first started trading, I doubled my account on the first three trades. You could never know how much I appreciate what she's done for me." Cecil G.

 

This guy raves about her, Crow.

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Happy. There was a massive spike at 12.30am sat due to NFPs. (I'm talking GBP/USD here).

I didn't manage to get in on the short side until 19028 because my clock was 2mins slow and I was reading another website (it moved down from 19080ish). Closed out at 18990. That's about 40 pips. I was trading the mini contract with IG, which is US$1/pip.

 

I don't actually think about how much exposure I have (as in, is my position worth xxxGBP) because I only trade for a short term. Same as if you're trading indicies, you don't think you're exposed to 4200 x 5 = $21,000.

Margin for forex is also very low.

 

TA works quite well in FX, but you also need to be well aware of any news releases. There's a good calendar at forexfactory.com, and you can change the timezone, so you don't have to work it out in your head. dailyfx.com also has some decent news articles.

 

 

 

Also, when trading FX, a good idea is to have a 25-30 pip stop. For example, with the volatility on sat morning, I saw spikes up to 19045 which could've closed me out if my stop was too tight.

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Ross, when you are trading NFP with IG do you set a stop entry order or just fast click? I've tried both methods and they were successful for Aug & Sept http://www.sharescene.com/html/emoticons/king.gif however they epitomised worst case senario for Oct http://www.sharescene.com/html/emoticons/puke.gif . I got whipsawed and closed out on both a long and short stop entry and a long fast click. I found that I suffered alot of slippage on the stop entries and that it took 3 mins to process the order. I would be interested to hear if you traded Oct NFP and what your experience was?

 

I've also noticed the tendancy of GBP/USD consolidate prior and breakout around the open of the London trading session. I've also noticed a tendancy for it to trend until the data events at the open of the US trading session. Ross I'd be interested to hear more about your trading plan around this period.

 

Crow, apart from extreme data events such as NFP, IG has a 3 pip spread on GBP/USD and 2 pips on most other Majors. So if you are paying up to 15 pips spread elsewhere you may wish to check IG out.

 

Also GBP/USD has a greater daily range than EUR/USD. So a 2 pip spread on EUR/USD is not necessarily better than a 3 pip spread on GBP/USD. To do a comparison, check out the amount of pips the above pairs moved because of NFP.

 

I've also found forex factory to be a good source of info for impending data events and I like the volatility rating.

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Trav, no I didn't trade October.

I traded with 'fast click'. Although not fast enough. I had considered trading with a sell stop, but didn't end up putting one in. I'm glad I didn't, because it looks like I would've just got whipped out.

 

All I did was have the (free) AFX news window open, and a chart open. Massive red candle + positive news = sell.

 

 

I've read a lot about how once currencies find their direction in the London hours, they just trend away nicely. From what I've watched it seems to be the case. It was better before with only a 9hr time diff, 7am London = 3pm here. So I could get on it as I was leaving work, and then watch it once I got home. Now it opens when I'm on the train, but still there's opportunities to trade. Just have to stay up a bit later.

 

 

I am still very much a beginner, but I have been much more consistenly profitable with currencies, than I ever was try to scalp the indices. And with a smaller contract size I can afford to set a decent sized stop.

I mainly trade with a 15min chart, and look for either breakouts or crosses on the DMI.

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The problem I have found with stop entries on fast moving events is that you usually suffer major slippage and get filled just before price reverts. Another entry method I have thought of, but haven't tried out, is force open both a buy AND a sell position with a GSL set at breakout point. So basically, rather than being stopped in and suffering slippage, you are stopped out and because of the GSL don't suffer slippage (just pay a pre-determined larger spread). Can't vouche for that method working in practice, just sharing ideas. My experience is that I've traded Aus equities for a couple of years, however only focused on FX since the May correction.

 

Sounds like you are based in Perth as well. Unfortunately my work blocks streaming data on the work computers so I can't access the IG platform from work. Which means the first opportunity I have to view a chart is at 5.30pm. I have been considering purchasing a Palm or smartphone. Just want to establish that I have a profitable system before outlaying the dosh.

 

I mainly trade with a 5 min chart except for data reports which I use a 1 min chart. I look for a breakout or continuation pattern. I exit when there is break of trend, break of a consolidation zone or a candlestick reversion. Can't say I have perfected the exit yet. Ross, what do you use for an exit signal?

 

BTW one of my practices before data events is to synchronise the computers clock with the internet so I know I am trading the report rather than the rumour.

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