Beginner's Disaster!

Beginner Questions
1342

Went long 5 minutes before that happened at 1-33. TP was 1-3330 for 4 lots. So didn’t get the most of it but take what I did get gratefully. $293 on the scoreboard now.

Just like to pause for a second though and say it’s THE perfect time to make a great point to complete newbies ( ie. People who are even newbier (?) than me ) It’s about stop losses. Had you been short just before that move, with no stop loss in place, that was your entire account gone in less than 5 minutes. Still think you don’t need to put in a stop ?.

On the bright side, glad to see everyone had fun. As I say, I’m at work, and I still don’t even know what caused it. But on this occasion, ignorance really is bliss

Oh well, no rest for the wicked, back to work for me gang.

1343

I know that trading has a reputation for being exciting, but I am oddly not a fan of days like today. I have made some nice pips, but I can’t shake the feeling that on some of these days I will take losses without having made a particular mistake. So I’m sorry you missed out on the fun, but at the same time you could have traded with skill and still lost pips, so for me it is easier to make a career of this from the calm days. So in the long run not pulling a sicky will serve you well lol.

Yes, Mrs Templar is not enjoying today - a colleague who has just been laid off has just called her, not fun at all, particularly in the current climate. I think that Christmas is being ruined for a few today :frowning:

ST

1344

Federal Reserve Press Release
From federalreserve.gov
The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve, and the Swiss National Bank are today announcing coordinated actions to enhance their capacity to provide liquidity support to the global financial system. The purpose of these actions is to ease strains in financial markets and thereby mitigate the effects of such strains on the supply of credit to households and businesses and so help foster economic activity. These central banks have agreed to lower the pricing on the existing temporary U.S. dollar liquidity swap arrangements by 50 basis …

As ever, you make a very good point, HoG - however tempting it looks, I never have more than 1% of my account exposed to any trade.

Even if ‘newbier’ did not exist a few minutes ago, it certainly does now, and rightly so.

And meant to say: CONGRATS on the $293!!

ST

1345

LOL I know, I’m living the pro trader dream!

1346

Simon… I have to say I loved trading today. no so much for the “excitement”…because it wasn’t all that exciting for me…as I felt I had an excellent grasp on what would happen, and why, and to what degree, and when it would reverse.

Again…most of my trading days are NOT this clear to me…but today…it was that once or twice a week when my crystal ball had perfect reception.

Anyway… today was a big poker game IMO…and a very big player made a move that made no sense… so therefore… it was screaming a red flag of impending short squeeze…

Anyway. hope u all made some pips… lets see if I can keep my perfect trading record up this week (I know! Perfect! Ican’t believe it either! like…20 entries in a row all profitable… guess that review stuff really works)

Anway…happy trading to you all… see you in the next session.

Jay

1347

If that move could have burnt up someone’s entire account, they are using using [B]FAR[/B] too much leverage.

Just sayin’ :slight_smile:

1348

You are right MT, last 3 months, the daily volatility in pips has been between 170 and 190…

My average SL is 120 pips, sometimes is as lower as 60 pips or as higher as 180… [B]risking no more than 1%[/B]

1349

Indeed, interesting territory. I banked 7% today, so it’s a good day, but at the same time if I could guarantee that the market would not give these days in future, and simply secure the calm, predictable market, I would take it. That you refer to today as a big poker game - and I agree with you entirely - sums up my reasoning: I just prefer it slow and steady; even if I make a good return on it, like today, when I sit back and look at this as a career these sorts of days make me nervous.

But I agree with you entirely, completely agree that sometimes, when the market seems crystal clear, that is when some very nice returns can be made. I just never seem to feel that way on big move days lol. I make the trades work, but still feel a little more apprehensive than usual.

Very nice work on going 20-0 for the week, to take a boxing comparison. Unfortunately I opened the week with a loss first thing Monday morning, a little 20 Stop that should have been a 30 pip Stop, but have had all winners since then so it’s overall a good one.

Completely agree with you… but unfortunately it happens. I guess some people like the thrill of feeling that they can turn their lives around with just one trade!

ST

1350

I missed the move up, but made some 30+ pips scalping and went in @ 13515 for a southbound ride. Not sure if my b/e+xx will be hit or my 133xx target, tho. Either way a good profit today or a “home run”. :slight_smile:

1351

I’m duly impressed Yunny… I thought my 0.1% of bal trades was light given that a stop of 100 pips will only equal 1% of bal but 180 pips and still only 1%. Thats risk management!

1352

Know what you mean BC… closed my south out for 20. Asian is bound to go the ‘wrong way’ i.e. retest the high… stop hunting, before normal service resumes into London. Call me a skeptic! LOL

1353

Some may call you a skeptic I call it using common sence. Its just how that session moves. I trade it i had to learn it and you are very right. Almost seems Asian session will do what ever it takes to setup LO for another good trading day. Consolidation retrace what ever big money needs to do will happen then to get ready for LO.

1354

Got to give thanks where it is due, RC: you inspired me to break with convention and short today’s spike (don’t worry, I don’t just trade what others say, it is risk-aversion that generally keeps me out of those rather than not being able to spot the setups).

Anyway, I just now trailed my Stop and locked in 1% shorting EUR. Without chatting on here I would not have taken it. So thank you for that!!

ST

1355

What ST got a little frisky and grabbed the bull by its horns. Lol good job man

1356

Sceptic or not (that’s usually my role, lol), we are on h4/1 still heavily overvalued. Regression wise. Plus on m30 it says also price is a little heavy, lol. Says my spaghetti bowl. :wink:

1357

Okay, so now that the market has overinflated this hopium ballon, and it’s rising in the sky nicely, which EZ country will be the smartass with a sligshot?

My guess is Germany. Not because they are broke, but because they won’t agree with a fix.

The case could also be made for France to be the next failing spoke in the wheel. But I think the most likely cause for a big drop will be either lack of funding, or disagreeing with the way to fund the bailouts.

And these moves are likely exagerated like everything is during the holiday season.

Pretty easy money though, if you know what you are looking for :smiley:

1358

Lol yes, we got our first hard frost here today so maybe the cold has got to me! I’ll be conservative again tomorrow, I’m sure. Although those quick pips were quite fun…

1359

Sorry to hear things are so rough at Mrs T’s work just now mate. There is never a good time to lose your job but at Xmas it just seems to be a bit rougher for some reason.

Sad thing being that due to the nature of your trading, and therefore having to keep an eye on the economy in general, you probably know as well as anyone that things ain’t gonna get better anytime soon.

My wife’s sister’s husband lost his job recently and I was trying to work a bit extra to help them get the bills paid. Thankfully he has started to pick up bits and pieces of work here and there but it is tough out there just now.

I’m sure you’ll do your best to keep her spirits up.

As for the marbles and the robot wars, tell me you’d rather be somewhere else, just try ! :19:

1360

I dont want to be the one to say I told you so but ahem I think I might have hinted at something along those lines :54:

1361

Yep, totally agree Tang

But the point is, beginner’s DO use too much leverage, and DO use to big lot sizes, I did.

Take for instance today’s 200 pip move and an account balance of $200. Micro account = 10 cents per pip ( $4 required margin for this ) But say I was keen as mustard today in my beginner world, I decided to go short 10 lots, ( after all, I’ve had some winners recently, what could possibly go wrong?) That would be $1 per pip and $40 put aside for margin. As you well know, that only leaves $160 tradeable margin left.

You go short and BANG, 200 pips in the wrong direction and it’s all over. It’s very easy to go down the road of “people shouldn’t do this, people shouldn’t use that.” And we know these things are true.

But people do do things they shouldn’t when they start out. In all honesty, if there really was any justice in the world I should have blown my account out a couple of times with the daft things I have done. But I guess I was just lucky. But I am also sure there were people today who weren’t as lucky.

People, as you know much better than me Tang, open accounts with $50, $100. And again I know they probably shouldn’t but there are a lot of people out there desperately seeking a way out of the money worries they are in. And they hope FX will be the answer.

I guess, especially in the beginning, lady luck has as big a hand to play in a newbie’s survival as knowledge does.

So yep, I totally agree with you mate, but I only agree with you because I have now LEARNED that you are right. Had you asked me 5 months ago if I thought too high a leverage was a problem and I’m quite sure I would have given you a different answer.

But then that was the point of my point. It was a great learning moment, or at least should have been a great learning moment. People may read the comments on this thread, and other threads, and be impressed with the winning figures of some of the traders.

But for everyone of us who were lucky enough to have picked up some pennies today, I wonder what the figure was of people who got their backsides kicked with that move.

:19:

HoG