FX banter

[willoneau]

At this moment I have only 1 open position, short EUR/CHF.

 

[willoneau]

We all trade the markets with our beliefs, if our core belief is wrong then becoming a consistently profitable trader is practically impossible.

but what is your belief?

 

[willoneau]

First entry of the day, EUR/CHF short.

 

[willoneau]

but what is your belief?

As a trend follower my core belief is - next trade I put on has a 50:50 chance of being a wining trade.

 

[willoneau]

Every thing else I do is to create positive expectancy and control emotion.
That's all there is to trading and becoming a consistently profitable trader.

 

[willoneau]

USD/CHF - short.

 

[willoneau]

GBP/USD - long.

 

[willoneau]

USD/JPY - short.

 

[willoneau]

Any other FX traders here today?

 

[peter2]

USD/CHF short
GBP/USD long
USD/JPY short

These three trades make you short the USD x3. You're risking 3R (3%) account in one currency.
Have you considered any limits?

 

[willoneau]

Hi peter2, limits as in?

 

[barney]

Any other FX traders here today?

Hi Will ………… Was going to get back to you last night but we had a power blackout. Been a good couple of days so you must be doing something right!

I like @peter2 idea of documenting each trade. Humans are visual so maybe just a quick screenshot of your entries would be good …. I'm sure there are lots more FX lunatics lurking in the wings so definitely keep posting your trades!

 

[peter2]

I limit the number of trades in one direction in one currency to two. If I see weakness in the USD I'll look the short the USD with two stronger currencies. My limit is two.

 

[willoneau]

USD/CHF short
GBP/USD long
USD/JPY short

These three trades make you short the USD x3. You're risking 3R (3%) account in one currency.
Have you considered any limits?

What about -
EUR/CHF shorts ?

 

[willoneau]

I limit the number of trades in one direction in one currency to two. If I see weakness in the USD I'll look the short the USD with two stronger currencies. My limit is two.

I am aware of the correlation, I trade 6 pairs
USD possible 3%
GBP possible 2%
AUD possible 2%
CHF possible 2%
NZD, EUR and JPY possible 1%

I guess I could remove one USD pair for either NZD or JPY pair.
Not sure about EUR as may be correlated to GBP.

 

[willoneau]

Hi Will ………… Was going to get back to you last night but we had a power blackout. Been a good couple of days so you must be doing something right!

I like @peter2 idea of documenting each trade. Humans are visual so maybe just a quick screenshot of your entries would be good …. I'm sure there are lots more FX lunatics lurking in the wings so definitely keep posting your trades!

Thanx barney, been very quiet here but at least peter2 has shown an interest. Which is not surprising as he has as wealth of knowledge.

 

[willoneau]

Hi Will ………… Was going to get back to you last night but we had a power blackout. Been a good couple of days so you must be doing something right!

Still not convinced it isn't a wining streak.

 

[willoneau]

I am aware of the correlation, I trade 6 pairs
USD possible 3%
GBP possible 2%
AUD possible 2%
CHF possible 2%
NZD, EUR and JPY possible 1%

I guess I could remove one USD pair for either NZD or JPY pair.
Not sure about EUR as may be correlated to GBP.

Will take a look at which pair to substitute.

 

[peter2]

It's not a problem until you get hit by a sudden adverse price movement (news) and then, wham, you're down -3R in the blink of an eye. Of course if the news is good you're +3R or more, in an instant.

I'm showing an interest to encourage you to keep going. I like that your charts are simple and uncluttered. If you're trading in the direction of a larger time frame trend that's great.

I hope you've got a written trade plan that helps keep you on track and looking for the same setups every day.

FX trends can last for a long time so winning streaks can get huge. It's important to get all that you can during this period. However price can stop trending and trade sideways for a frustratingly long time also.

 

[willoneau]

Thanx peter2 for your encouragement as it helps as I sit in front of screen.

It's not a problem until you get hit by a sudden adverse price movement (news) and then, wham, you're down -3R in the blink of an eye. Of course if the news is good you're +3R or more, in an instant.

I am aware and curious to see how it pans out as I don't take notice of news and can be down 3R and why I always have SL, just hope slippage not too harsh.

I hope you've got a written trade plan that helps keep you on track and looking for the same setups every day.

Simple plan I try to follow to the letter.

FX trends can last for a long time so winning streaks can get huge. It's important to get all that you can during this period. However price can stop trending and trade sideways for a frustratingly long time also.

EUR/CHF is an example of that for me at the moment.