i was watching the surge when it happened.
i got a surprise and still enter a couples of trade, got many requotes
before i can close any trade, i got many requotes as well!!
did not place a larger amount as i don’t know how strong this trend gonna move, as it might move against me any time!
any advice to trade such a sudden movement??
Yep: don’t try to trade them!!! LOL!!!
That’s MY advice.
You’ll always get requoted when entering and you’ll always get requoted when trying to exit (and if you’re trading with a ‘bucketshop broker’ it’s a guarantee that you’ll not be able to exit until the position is a loser). ‘That’s life’.
In my opinion: trying to trade (news???) spikes is where the ‘fine line’ between TRADING and GAMBLING is drawn.
Regards,
Dale.
Unless you have the insider information that SBN was going to do what it did then no.
Otherwise, wait till news over then pick position. Market always adjusts back to normal levels.
Just look at USD pairs.
Given the SBN’s declared support presumably this will either hold the rate at this level or eventually fail and EUR/CHF will fall again - so isn’t this (shorting) potentially a one-way trade with very little downside?
thanks guys.
couldn’t control
should have enforce more on my discipline!!!
argghh!!!
Got to agree with what the others have said. I was actually placing a Short CHF/JPY trade as the spike hit the markets. Had I been two or three minutes faster with my order, I would have put 5% on my account in half and hour or so. They key point is, though, that my intended order was nothing to do with the SNB issue. It was a setup that fit with my strategy, so I was taking it. I was not looking to trade the spike, that spike would simply have been happy coincidence had I got my order in slightly earlier. As it was, I cancelled off the order before placing it as I saw the spike, so didn’t make anything. I’ll take the next setup, and the next one, and the one after that, as experience tells me that if I trade them mechanically over the year then I will make nice money. Predicting these spikes does not fit with my strategy at all, and personally I don’t see how anyone can intend to trade this sort of spike and look to make consistent, career-long money over the long run. I just view them as luck - sometimes they boost a trade in the right direction, other times they cause Price to bust through a Stop on a technically good trade. They represent a feature on the trading landscape that should even out over time. As others have said, I would not let the lure of such fast pips make you sit on the outside looking in, wondering ‘how could I trade that’.
Big moves were once expressed to me in terms of buses and busstops. If you are at the stop, you get on the bus, and then it speeds off, that is great, you are along for the ride. If you are arriving at the busstop and see the bus already hitting top speed having left the stop, then it is already moving too fast to be worth chasing. You missed it.
Trading should be about anticipating Price movement and backing it with your money. Once you can see the move, it is generally too late to back it if you aren’t already in (okay, scalpers etc can sometimes make that work but I am making a generalist point and am not a scalper).
ST
True to a point, but trading is all about timing - en route to your expected outcome, Price could move sharply in either direction, so I would just advocate trading the chart: if it gives setup, take it, if it does not then stay out. I am not a fan of trading a generic belief in an overall Price direction (outside of very long-term trades, occasionally, but I do not think that that is what you are talking about). The trading strat needs to give an indication of when a move in a particular direction is going to happen, otherwise there is no edge, just opinion.
ST
hi Simon, thanks for enlightening.
i still have much to learn from you guys.
There’s two ‘rules’ that I was made aware of some time ago. They’re not easy to implement and sometimes they’re not even possible to implement i.e. they depend on your trading system or trading methodology. For instance: my ‘main’ trading system is a ‘true stop and reverse’ or ‘always in’ system so sometimes winners do turn to losers otherwise I’d not be following the system. But the second ‘rule’ I find myself employing more and more these days to great effect. But it’s only possible to implement the second rule when you’ve reached the point of understanding where you have realised that even if you’re out of the market or ‘flat’ and you’ve missed a good trade: there is always another trade ‘just around the corner’. Once you realise that then the second ‘rule’ becomes easy to implement.
First ‘rule’ (Kathy Lien and Boris Schlossberg):
Never let a winner turn to a loser (which normally involves moving your stop to at least breakeven at some point but that’s trading system specific as I said).
Second ‘rule’ (Linda Bradford Raschke and Laurence ‘Larry’ A. Connors):
Always take profit on a ‘parabolic move’. In other words: if the market moves ‘violently’ in your favour then take the profits right there and then. Even although you’ll then be out of the market or ‘flat’ think about it: you’ll have more capital for the next trade (which as I noted WILL BE ‘just around the corner’). Not easy to implement but a good ‘rule’ and good advice (at least I think so anyway). I was fortunate enough to be short the Dow at the time of the ‘flash crash’ a while back. There was NO WAY I was going to sit and watch an ‘abnormal’ profit dissapear before my eyes on the retrace JUST so that I could be able to say that I was ‘following my trading system to the letter’. Like I said: not easy and does, in a sense, break the ‘GOLDEN rule’ of ‘follow your trading system to the letter’ but sometimes I think you need to make a ‘prudent judgement call’. But this only applies to ‘parabolic profits’ not ‘parabolic losses’. There’s a difference. Don’t take a loss just because you ‘feel’ it’s ‘too big’ while your trading system is telling you to stay in the position. That’s a big mistake. Nine times out of ten the system is right. Of course: I make the assumption that by now everybody adheres to strict risk and money managment rules of course i.e. if risk and money management is being implemented correctly there should be no such thing as a ‘parabolic loss’.
Just some ‘food for thought’ is all that may be of benefit to some.
Regards,
Dale.
Thanks, those 2rules of yours sure helps
Oh, wow. This just blew up in SNB’s face.
Not really. Look at eurchf. 
That spike from eurusd was just a tiny side effect, lol.
Regarding busses and bus stops, that’s true for sure. However, if you still have a plan b with a proper risk control then you can even try to jump on slow moving busses. If you know where their next bus stop is. Albeit of course not such spikes, where hundred pips make it in a few seconds, lol.