Forex trading - what are the negatives?

[>Apocalypto<]

No, I usually trade the 4hr or slower these days, and don't have much experience scalping forex. You said that you would have made half trading the E/U, but is that trading the same size?

yeh mate same size 100K lot. if I doubled up then it would compensate...

 

[caribean]

I agree with TH on this,

after spending months on the u/j and the cable, they just don't deliver in a consistent basis like the G/J does. It's personal preference guys, I am not sitting on a time frame above 1min so volatility matters to me. With out it I am dead in the water, also 4 hours a day is all I am interested in spending glued to a screen.

I run into the same arguments in Forex Factory all the time. we all trade different ways in different times. there's no right way only your way.

good piping!

I would be the first to say: There's no right way, only your way...
but, having made that statement, how could i say then:" i agree with TH",
and: "i have got a new way to trade the E/U" ?
There may well be better contracts or instruments to trade out there, oil perhaps?? i don't know, nor do i pretend to know.
But at least i don't attack someone else's preferences as inadequate...
One of the pro traders (or was he a pro? you just don't know in this business do you?) i was talking to a couple of years back was also finding forex boring, compared to SIF's or just stocks...how does that quote go again?
"there's no right instrument, there's only your instrument".

 

[>Apocalypto<]

I would be the first to say: There's no right way, only your way...
but, having made that statement, how could i say then:" i agree with TH",
and: "i have got a new way to trade the E/U" ?

What the hell are you on about? I simply said that TH made a point I agreed with, since when did you have to agree with it?

what??? I have a new idea for the euro that looks washed up and that was a comment I made to Mr J...

what's going on,... you smoking crack again?

 

[caribean]

What the hell are you on about? I simply said that TH made a point I agreed with, since when did you have to agree with it?

what??? I have a new idea for the euro that looks washed up and that was a comment I made to Mr J...

what's going on,... you smoking crack again?

Since i'm the one smoking crack, i must have got the point TH was making completly wrong, and you right.
I must have got the idea that TH was pointing out that Forex is an overleveraged, slow moving, black swan seating duck inducing, underfunded account traders, wrong.
But simply saying that somehow all of that has been overcome by trading the larger ranging (is it really, compared to GBP/USD?) GBP/JPY, is not.
"what do you mean you are a vegetarian???.....ohh it's ok, we're having lamb"
Don't mind me, i'm on crack.

 

[Kremmen]

That's why i limit my trading to a section of the day. I trade a 4 hour block.... trying to trade 24/7 leads to other problems.

Even then, it seems like a big time investment. Has anyone ever done a proper analysis of the different investment vehicles available and what their comparative return is like, while including the cost of the time and effort? I wonder if there is a value you can put on time to make them match, or whether one is intrinsically better than another?

 

[>Apocalypto<]

Even then, it seems like a big time investment. Has anyone ever done a proper analysis of the different investment vehicles available and what their comparative return is like, while including the cost of the time and effort? I wonder if there is a value you can put on time to make them match, or whether one is intrinsically better than another?

if you can earn $200 - $500+ a day for 4 hours work I would say you had a good job, wouldn't you?

If you have that opinion, and it's fine mind you. I would say short term trading or scalping may not be for you Kremmen.

after watching the aud since March I sometimes ask my self is it worth it!

good investing to you!

 

[>Apocalypto<]

Since i'm the one smoking crack, i must have got the point TH was making completly wrong, and you right.

I am still trying to work out what you're on about.

I must have got the idea that TH was pointing out that Forex is an over leveraged, slow moving, black swan seating duck inducing, underfunded account traders, wrong.

over leveraged, yes it is. slow moving, not at all. new traders are under funded most the time. I learned this the hard way down CFD road.

But simply saying that somehow all of that has been overcome by trading the larger ranging (is it really, compared to GBP/USD?) GBP/JPY, is not.

here's your issue, it's what i found worked, not you, ME. this has nothing to do with you. I agreed with TH on a few points not u. Why attack me? Hence my crack call.

"what do you mean you are a vegetarian???.....ohh it's ok, we're having lamb"
Don't mind me, i'm on crack.

LOL, again get off the crack

lol...... come on sharkie London is about to open, go make some pips instead of wasting time and energy on me.

 

[Wysiwyg]

if you can earn $200 - $500+ a day for 4 hours work I would say you had a good job, wouldn't you?

I would like to tap your thoughts on some things. Is there a cut off limit where X amount of profit or loss is the end of the session?

The reason I ask is because these figures will occur at any stage in the 4 hour session. Seems like it would be a constant battle between the greed and fear demons.

 

[caribean]

I am still trying to work out what you're on about.



over leveraged, yes it is. slow moving, not at all. new traders are under funded most the time. I learned this the hard way down CFD road.



here's your issue, it's what i found worked, not you, ME. this has nothing to do with you. I agreed with TH on a few points not u. Why attack me? Hence my crack call.



LOL, again get off the crack

lol...... come on sharkie London is about to open, go make some pips instead of wasting time and energy on me.

LOL, you either will not work it out, or you have, but refuse to acknowledge it, don't worry about me making the pips

 

[Mr J]

yeh mate same size 100K lot. if I doubled up then it would compensate...

That's what I'm getting at. My view is that if we risk $1000, range will be considered and the risk amount in terms of pips, points, shares, cents, etc will all be adjusted to give similar results. It may just be the way I look at it, as my methods don't require understanding behaviour unique to any specific market. TH on the other hand is far more focused and operates on a fast timeframe, so maybe he has a very different experience.

I must have got the idea that TH was pointing out that Forex is an overleveraged, slow moving, black swan seating duck inducing, underfunded account traders, wrong.

That's the impression that I got as well. TH seems to be puts this on the market, but I'd put it on the trader.

Even then, it seems like a big time investment. Has anyone ever done a proper analysis of the different investment vehicles available and what their comparative return is like, while including the cost of the time and effort? I wonder if there is a value you can put on time to make them match, or whether one is intrinsically better than another?

Analysis of investment vehicles? What exactly are you looking to compare, as this doesn't seem to be a trading question, but a question for investment in products, cash, gold, property etc. Regarding trading, I don't think any market, timeframe, strategy etc is better than another - that comes down to the trader. For example, I've found that trading medium timeframes is just as profitable for me as trading faster timeframes, but others make far more on faster timeframes. Some won't do any better than buy and hold. I think it's a question you can only answer yourself based on your own experience.

 

[caribean]

That's the impression that I got as well. TH seems to be puts this on the market, but I'd put it on the trader.



Exactly, the instrument is the vehicle, and we the driver, if we can only afford a VW Beetle, we better drive it to the best of our ability and its limitations.
TH is no doubt a very good trader, and probably a good person,but the way he attacked this market is not a clever thing to do, it displays an arrogance that an experienced person in anything, would find a constant battle to suppress, the sort of "guru" attitude of: trust me i know better than you, and will not even bother to explain why!!
Ok no more from me, over and out.
I'll go and sniff some crack

 

[>Apocalypto<]

I would like to tap your thoughts on some things. Is there a cut off limit where X amount of profit or loss is the end of the session?

The reason I ask is because these figures will occur at any stage in the 4 hour session. Seems like it would be a constant battle between the greed and fear demons.

No cut off for profits, only for losses. If I have two losses in a row I pack up for the day. I take every valid signal in the 4 hours. When you’re 3 up and you have a loss close but not on your stop that can really test your discipline to stick with the trade and not cut early...

Part of the game!

 

[>Apocalypto<]

That's what I'm getting at. My view is that if we risk $1000, range will be considered and the risk amount in terms of pips, points, shares, cents, etc will all be adjusted to give similar results. It may just be the way I look at it, as my methods don't require understanding behavior unique to any specific market. TH on the other hand is far more focused and operates on a fast time frame, so maybe he has a very different experience.

If I double up on the euro sure I make the same but I pay double spread and com. Yes I know trading the GBP/JPY is about double the cost anyway but the E/$ does not run like the G/J. On many a time the G/J will push 3-8 pips more which allows me to reach profit target and exit. The euro will not run as hard and I will end up at loss or at break even.

I spent 1.5 months on the euro and found it did not give the same success rate as the cable. The cable does not give the same success rate as the G/J. U/J is a low ranger like the euro but tends to move when it signals it will, about half of what the G/J range gives out.

The E/$ is a much more liquid pair, hence it does not behave like the G/J which has a lot less liquidity in comparison. As a short term trader I need that extra push.

They’re very different markets

It all depends on how you're approaching it I guess, for a 1 min trader I need volatile markets.

 

[>Apocalypto<]

I'll go and sniff some crack

sniff? I thought you smoked it!

 

[lasty]

Forex trading - what are the negatives?

Your Losses :

 

[Wysiwyg]

Forex trading - what are the negatives?

Your Losses :

Hahahahah that is hilarious man.

 

[caribean]

sniff? I thought you smoked it!

The crack you're referring to i know nothing about, on the other hand you appear to know it well....
that explains a lot, come to think of it.
Hey, I may only be here for a short time, it would not worry me at all, but the way you're going you may hurt your god status, what would you do then?
I don't think you realize how much ammo i have,
ohh, i suppose there's always FF left....easier there huh?
Adiós whipper snipper

 

[>Apocalypto<]

The crack you're referring to i know nothing about, on the other hand you appear to know it well....
that explains a lot, come to think of it.
Hey, I may only be here for a short time, it would not worry me at all, but the way you're going you may hurt your god status, what would you do then?
I don't think you realize how much ammo i have,
ohh, i suppose there's always FF left....easier there huh?
Adiós whipper snipper

I have moved this to PM as mainly due to my own actions, this has gone way off topic.

 

[Temjin]

You are implying that because the FX markets are so big they are not easily "manipulated" correct?

But what does a manipulated market do thats so undesirable to a trader?

I'm sure you have heard of the high frequency and flash trading recently and I'm pretty sure you understand why it is "undesirable" to retail traders when Goldman Sachs and alike institutional traders are "forward" trading the orders BEFORE the general markets receive the information. It's a matter of stealing a tiny bit of profit from every trade but does so in a million times every day.

Massive profit.

Fortunately, SEC decided to ban flash trading.

I was looking for a table that I saw back a little while ago. It illustrates the degree of "penetration", probably via volume based, of program trading in various stock/future exchanges.

There are clear evidences that the US stock markets are being dominated by these high frequency program trading (not necessary manipulations, but potentially enough to move the market if desired), while the forex market is still fairly "clean" from program trading. (less than 10%)

Obviously, the reasons why program tradings have not fully invaded the forex market just yet have already been listed out in this thread. No fixed market (which is a GOOD THING) and massive volume.

 

[Miro]

Do professional traders make decisions based on technical analysis or strategy trading?

By technical analysis I mean charting, with attention to fundamental events

Is strategy trading still in the game? Developing a strategy, back-testing, implementing a strategy, changing it etc.