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Forex Trading


RobAde

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Out of curiosity, what time frames do you guys use trading the forex. I would be inclined towards wanting to use 1m because of the speed by with the markets can reverse, and would want to pick reversals quickly.

 

The problem with this is that we might read false signals. Any thoughts?

 

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Happy, I started using 1 min which I found was appropriate for data events. They tend to be explosive moves which can revert within a 5 min timeframe. I find the 1 min the easiest to judge momentum or lack thereof.

 

I've found the 5 min to be good for trading the undulations of the London session (approx 5 hour period). The 1 min I found to be a little sharp. I tended to trade smaller moves and found the spread to be a more significant factor.

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I use 15min and try to catch the longer trends..

 

Trav I'm pretty open with my exits. Either look for resistance or whole numbers

Or else just a generic number take profit.

When I shorted the pound on monday night (18983 after the break downwards) I set a take profit at 18953 (30pips and also round number resistance). Thankfully the news release pushed the market down enough for me to lock in the cash.

 

 

 

I'm in sydney by the way.

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I generally aim for 30-40 pips.

That way with a 25pip stop then more often than not I'll end up in front.

With the GBP often moving around 70pips in a session then sometimes if the I have the time to watch it all night, I will move my stops to B/E or slight profit and then try and ride for something bigger.

 

I only trade here and there though..

 

My main aim is to keep trading small time until I start making enough that if I were to do it full time I'd pocket around 150 pips a week - which is only 30 a night and quite reasonable.

If you can get that consistenly then you could live fine off the profits trading a full size (US$10/pip) contract.

 

Has anyone ever used spread betting (like igindex.com.au) companies to trade? For tax advantages..

I only heard about it the other night, so am still looking into it. If I ever trade full time it'd certainly be a consideration. It's classified as gambling, so is tax free.

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Happy, I have been trading data events, only noticed the relationships with the london session a short while ago so still working out a plan for it. The largest problem I have with that time period is the clash with work and family commitments. So If anyone knows about a good portable/mobile device the info would be appreciated.

 

Ross, Have you worked out the stats for your win/loss & profit/loss ratios for your trading? I have a similar plan though my goal is 20 pips per night trading tue-thur. I'm happy to leverage up such that it is a good income.

 

You may find the article at the following link interesting. It is about trading hours and trading days.

 

http://www.babypips.com/forex-school/market-hours-2.html

 

I've opened an IG Index account mainly so I could trade live cattle futures. They tend to be very cyclical. Gambling doesn't attract tax in England hence spread betting. However I'm not sure what the status is in Aust. IG has asked the ATO for a ruling but it hasn't been forthcoming. I'm having a guess that if people are making money the ATO will eventually want a slice. Apart from that the platform is the same as IG Index just a different colour.

 

The only complaint I have with IG's platform is they don't offer a trailing stop and their contract execution is slower than some other providers. I trialed CGMA's platform and was pretty impressed. They offer trailing stops, trade on the chart, one click trades and the trade execution time in normal market conditions is very good. They also have a longer data history than IG. The issues I found was the account statement was difficult to read, I'm not sure if they offer mini's, the trendlines sometimes do not resize correctly if you change scales (eg between 1 week to 5 min) and the response time at extreme events (eg NFP) isn't good.

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In reply to: rossw on Wednesday 08/11/06 09:00am

QUOTE
I generally aim for 30-40 pips. That way with a 25pip stop then more often than not I'll end up in front.

 

Have you been trading forex like this for a while? Any idea how many times out of 10 you'd pick the direction and power of the move correctly?

 

Just curious, but I'd be a little nervous with a risk/reward like that.

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