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long AUD/NZD.
FX banter
- Thread starter willoneau
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USD/CHF , GBP/USD and AUD/NZD closed -3R
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All part of the experience.
Do you have a daily loss limit? This prevents us from revenge trading or over trading when the market behaviour has stopped us out a few times.
When day trading US stocks I have a -2R limit / day. No more trades if I hit -2R overall or have three small (<1R) losses. Last night the US market went sideways for hours and I took three small losses. That's it for me. Close up and come back tomorrow. If I hit -4R in a week, that's it for the week. Use the SIM platform for the rest of the week to work on improvements.
Do you have a daily loss limit? This prevents us from revenge trading or over trading when the market behaviour has stopped us out a few times.
When day trading US stocks I have a -2R limit / day. No more trades if I hit -2R overall or have three small (<1R) losses. Last night the US market went sideways for hours and I took three small losses. That's it for me. Close up and come back tomorrow. If I hit -4R in a week, that's it for the week. Use the SIM platform for the rest of the week to work on improvements.
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Revenge trading implies loss of emotional control but daily limit is something to look at.
My belief is that the next trade has a 50% chance of being winner so I will not know the outcome until it is closed so taking every trade even if on losing streak is necessary.
My belief is that the next trade has a 50% chance of being winner so I will not know the outcome until it is closed so taking every trade even if on losing streak is necessary.
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My belief is that over trading is taking more trades than the system indicates and revenge trading is when trades are taken when no entries are signalled.
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I don't believe FX should be traded like stocks, one obvious reason is that you can trade both directions with FX.
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long GBP/USD.
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short USD/CHF.
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USD/JPY, target reached 1R profit.
Now I can try to skew my results into positive expectancy.
Now I can try to skew my results into positive expectancy.
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Oh my! Enjoy your hobby.
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Peter2 please explain your comment? as I hope it just a misunderstanding?
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long GBP/AUD.
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I only trade Aussie stocks, never traded US stocks. So if you can trade US stock short I stand corrected and a little wiser.
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not helpful or educational?
Hi @willowneau,
At the time of writing this reply @peter2 is the only person that has made an attempt to give you some guidance on this thread (p.s. to other Forum members please do not take this comment as criticism in any way, shape or form).
@peter2 said, (giving you valuable info to consider),
"When day trading US stocks I have a -2R limit / day. No more trades if I hit -2R overall or have three small (<1R) losses. Last night the US market went sideways for hours and I took three small losses. That's it for me. Close up and come back tomorrow. If I hit -4R in a week, that's it for the week. Use the SIM platform for the rest of the week to work on improvements."
To which you responded,
"I don't believe FX should be traded like stocks, one obvious reason is that you can trade both directions with FX."
and @peter2 responded to your comment,
"Oh my! Enjoy your hobby."
I openly acknowledge that we all make mistakes and we all have our short-comings however just maybe, just a thought from the way I see it, you should actually thank @peter2 for prompting you to do some more research so that you are now aware that you can short sell US stocks AND you can short sell a reasonable number of Aussie stocks using CFD's which would make @peter2's post very helpful & educational.
Cheers,
Rob
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Thanx Rob for your reply,
I do appreciate everything anyone has to say and I think I might not have really said what I meant. I didn't know US stocks could be traded short as for Aussie stock CFD's I have traded some but I personally see them as another instrument with their own characteristics IMHO.
I do appreciate everything anyone has to say and I think I might not have really said what I meant. I didn't know US stocks could be traded short as for Aussie stock CFD's I have traded some but I personally see them as another instrument with their own characteristics IMHO.
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Since I'm not trading tonight because I'm in an 'ornery mood I'll try to explain my post.
After three losses were posted I asked if you had a daily loss limit. This is a technique to ensure that a trader doesn't have such a bad day that it's hard to recover. I then provided an example that I use when trading intraday. I got the impression that you dismissed the advice because I mentioned trading US equities.
The advice applies to all intraday trading activities regardless of financial instruments traded. I was disappointed to see that you were unaware that intraday trading equities involves going long and/or short. I trade with the intraday trend of the index whether it's up or down.
If you dismiss general information like this so easily then I'd call your trading activity a gambling hobby. I assume you're gambling for enjoyment, not profit and sincerely hope you do enjoy it.
Since then, you've started more trades and my count is ~8T tonight. If you're risking 1% each then you have no daily limits and will very likely blow yourself up very soon.
Then this post.
Every single trade result contributes to your expectancy. If you have too many losing trades you can't be profitable. You don't wait until one trade gets into profit to skew your results into positive expectancy.
Expectancy = (W% x AW) - (L% x AL) This is calculated using all your results.
ps: Thank you @rnr
After three losses were posted I asked if you had a daily loss limit. This is a technique to ensure that a trader doesn't have such a bad day that it's hard to recover. I then provided an example that I use when trading intraday. I got the impression that you dismissed the advice because I mentioned trading US equities.
The advice applies to all intraday trading activities regardless of financial instruments traded. I was disappointed to see that you were unaware that intraday trading equities involves going long and/or short. I trade with the intraday trend of the index whether it's up or down.
If you dismiss general information like this so easily then I'd call your trading activity a gambling hobby. I assume you're gambling for enjoyment, not profit and sincerely hope you do enjoy it.
Since then, you've started more trades and my count is ~8T tonight. If you're risking 1% each then you have no daily limits and will very likely blow yourself up very soon.
Then this post.
Every single trade result contributes to your expectancy. If you have too many losing trades you can't be profitable. You don't wait until one trade gets into profit to skew your results into positive expectancy.
Expectancy = (W% x AW) - (L% x AL) This is calculated using all your results.
ps: Thank you @rnr
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I apologize if I gave the impression I was dismissing the advice you gave as that was not my intention.
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I will try to explain what I meant by the comment,
I believe and hope that my winning trades are 50% but I will only know in hindsight.
When my trade reaches 2R I take off half a position giving me 1R return which if I have a 50% win rate would cancel my 1R loss. What I meant by the skewing was how the remaining open position closes.
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I am not a gambler, it is why I am trading demo to see if my line of thinking will work in the long run before I risk actual capital.
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