Trading timeframe

[afton]

What's your trading timeframe like?

Is it possible to take profit by holding position in a few days or weeks instead of a few minutes/hours?

 

[tayser]

yep.

Note the peak in October on AUD/USD compared to the current price, if a trading system you used gave you a signal to go short, you'd be laughing right now (and you'd have been laughing after 4 weeks).

 

[BentRod]

What's your trading timeframe like?

Is it possible to take profit by holding position in a few days or weeks instead of a few minutes/hours?

Possible to hold even longer aswell...Eg; I'm still short cable from 191.47 with a 30 pip stop, that trade was taken last year in August.

 

[sinner]

What's your trading timeframe like?

Is it possible to take profit by holding position in a few days or weeks instead of a few minutes/hours?

A very interesting question. Before the financial crisis introduced heavily volatility into the markets, I know lots of cases (Japanese housewives and European speculators have both had these stories written about them) where a portion of the family capital is placed on a long term trending currency pair.

e.g. Japanese housewife goes to BoJ with her 100% credit rating, takes out loan of 2500000 JPY at 0.3% or whatever. She logs into her International Brokers account or similar, and places all the money on a long AUD/JPY (remember, this was the trend until recently).

Interest differential on the two currencies LIBOR accumulates. Remember, last year the difference was 6-7% AUD LIBOR vs 0.5-1.0% JPY LIBOR. Japanese housewife then happily pockets a 5-6% on 2500000 JPY she doesn't own and happily left the trade for probably 3-4 years minimum! Just a bit of pocket money, as they say

This is known as the yen carry trade, and is the unwinding of this is the reason why the yen has shown such remarkable strength right now. The extent of this trade reaches into the trillions of credit created JPY and USD. There are news articles about interest rates in Sth Africa hitting +9% due to Japanese carry trade searching high yielding currencies.

You can still do this pretty effectively pairing NZD and JPY the differentials in LIBOR rates are HUGE and not too much chance of NZD appreciating significantly against the Yen.

 

[Page]

Seeing the market conditions, I will not suggest holding any positions. The market status suggests going for intraday trading and making profits. The best trading strategy seeing the market conditions is to do intraday trading.

 

[white_goodman]

many systems described on forums use a 4H bar...

 

[acetrader]

What's your trading timeframe like?

Is it possible to take profit by holding position in a few days or weeks instead of a few minutes/hours?

Sure it is possible. It is all about how you plan your trade.

 

[AbundantIncome]

many systems described on forums use a 4H bar...

is this the most consistent bar to base indicator on ????

isn't lower tick time gives you more data ???

thanks

 

[Stormin_Norman]

what do you define as 'more data'?

 

[AbundantIncome]

what do you define as 'more data'?

well in my lack of experience so far with charting analysis etc, one would thought that the faster you get the candle sticks (1 minutes versus 5 minutes versus 1 hour) you would get longer graphs for trend analysis within a certain period say one hour or one day for example. Not sure if it is desirable, that is my logic for now

i am open to correction on that

thanks