Help with trade gone wrong!

[jonojpsg]

Just thought I'd pop this one up as it has had a direct impact on a trade I took this morning and wanted to get people's thoughts on it.

With a 25 bp lift from 0.5 to 0.75% for emergency loans, what do people think the impact will be over the coming days?

The trade I took was on the Hang Seng as I thought (damn I hate it when I try and predict things!!) it would jump when Hong Kong opened today following a reasonable lead from the Dow. Obviously the opposite happened when the Fed moved after the close, which was about...5 minutes after I opened my position

I know my lesson needs to be - wait until after the close and posible post-market announcements before making trades like this.

Basically my position is now, I can either close out and take the loss, or hold and see what happens over the course of the day. If it continues to move against me, I close. If it comes back, I hold. A reasonable decision making process??

 

[Trembling Hand]

Re: FED raises emergency rates

What did you use to trade the HSI while its shut? CFDs?

 

[jonojpsg]

Re: FED raises emergency rates

What did you use to trade the HSI while its shut? CFDs?

Yep - IG Markets.

Still holding atm.

 

[ThingyMajiggy]

Re: FED raises emergency rates

How does that work? How can you trade a CFD of something that is shut? Wheres the price coming from?

 

[Trembling Hand]

Re: FED raises emergency rates

Yep - IG Markets.

Still holding atm.

Why trade a synthetic of a synthetic???????

No doubt its got a spread of 50 ticks or the like?

 

[Wysiwyg]

Re: FED raises emergency rates

IG has the HS42 closed for 1/2 hour every trading day.

Which is in a freefall at the moment. + 300 points

Spread of 12 points during this turbulence.

 

[Trembling Hand]

Re: FED raises emergency rates

IG has the HS42 closed for 1/2 hour every trading day.

lol I bet they do.

 

[Wysiwyg]

Re: FED raises emergency rates

lol I bet they do.

 

[Trembling Hand]

Re: FED raises emergency rates

There is no overnight Hang Seng market. They are making the prices up from god knows what. Why would you trade something that does not exist??

The reason why is - see the first post,

The trade I took was on the Hang Seng as I thought it would jump when Hong Kong opened today following a reasonable lead from the Dow

You couldn't find a more perfect example of taking a position where the other side has all the control, right down to the actual price they wish to set.

 

[Wysiwyg]

Re: FED raises emergency rates

Which is in a freefall at the moment. + 300 points

More freefall ... lordy lordy .

You couldn't find a more perfect example of taking a position where the other side has all the control, right down to the actual price they wish to set.

Agree.

 

[Trembling Hand]

Re: FED raises emergency rates

Jono how many points over yesterdays close did you buy in at?

 

[jonojpsg]

Re: FED raises emergency rates

Jono how many points over yesterdays close did you buy in at?

Bought at 20475 which from was 85 points up from close. I figured that was reasonable given the rise on Wall St, thought we'd see approx 150pt gain for the day. Shows how wrong I was

Tell the truth I based it on a similar trade from 17th, when I saw that the HS42 was only showing about a 100pt gain (approx 0.5%) at 12pm before HK open when the Dow had risen 2%ish and Oz was up similar. I jumped on and sure enough as soon as HK opened the CFD shot up 200pts from where I bought it.

Damn Fed had to choose today to raise rates

And to make it even worse ( I continue to amaze myself at how stupid I can be) I am still holding the trade Oh well, will keep you all updated on how much I lose

Thanks for the comment TH and Wys

 

[Timmy]

Re: FED raises emergency rates

Did you / do you have a stop loss level? (And has it moved since opening the trade?)

 

[Trembling Hand]

Re: FED raises emergency rates

Jono these trades, buy overnight because US is up, are just rubbish. You have no control over the loss when the actual market gaps. And mostly if its an overnight instrument they have already priced in the move. Low probability punt in my books.

Then you have made it worst by taking a trade for a reason, that is the US is up, but then when it reversed and completely removed your reason for being in the trade in the first place you have still held?

 

[jonojpsg]

Re: FED raises emergency rates

Jono these trades, buy overnight because US is up, are just rubbish. You have no control over the loss when the actual market gaps. And mostly if its an overnight instrument they have already priced in the move. Low probability punt in my books.

Then you have made it worst by taking a trade for a reason, that is the US is up, but then when it reversed and completely removed your reason for being in the trade in the first place you have still held?

I know, I know, exactly what I have been bashing myself over the head with all day

And Timmy, yep I had a stop loss when I took out the trade (20405) which for some inexplicable reason that I think has something to do with a brain malfunction (or maybe some deep buried gambling urge that makes me think I can beat the system), I removed

I really am trying to become a better trader, but sometimes I think I'd be better off cashing out and simply spending more time riding my bike

 

[Trembling Hand]

Re: FED raises emergency rates

I know, I know, exactly what I have been bashing myself over the head with all day

I really am trying to become a better trader, but sometimes I think I'd be better off cashing out and simply spending more time riding my bike

Your stop loss is now a SPEW stop. You will dumb it just before you spew up from worry, distress & disgust.

Not pretty.

:crap:

 

[Wysiwyg]

Re: FED raises emergency rates

I know, I know, exactly what I have been bashing myself over the head with all day
I really am trying to become a better trader, but sometimes I think I'd be better off cashing out and simply spending more time riding my bike

I'm growing the opposite way. Today I closed a position that had flopped around below my entry and above my stop loss. Hindsight had proven the trade entry was crap and the HSI tanking was enough to let it go. Hope is a lonely word. Next!!!!

 

[Trembling Hand]

Re: FED raises emergency rates

Just to add a little spice to the mix. Its looks like it will gap down again.

 

[jonojpsg]

Re: FED raises emergency rates

What I should have done was stick to my stop and go short straight after it was triggered - was a pretty strong move down and would have more than made up for my initial loss on the long.

Hindsight hey

Man I hate gaps!!

 

[Wysiwyg]

Re: FED raises emergency rates

What I should have done was stick to my stop and go short straight after it was triggered - was a pretty strong move down and would have more than made up for my initial loss on the long.

Hindsight hey

Man I hate gaps!!

But you don't have a written plan to do A if B happens (or any trade plan). Hence your predicament. I have done worse than this a few times because I didn't learn the first few times. Don't look back at what could have been. Plan forward.