Thanks FXmall. If there is a holy grail IMO it begins with a system that does everything it can to avoid losing money.
LOL, call me when that happens, would love to buy in
Ran into another reason to consider trading Forex as opposed to equities.
I was DENIED the ability to buy back some shares I sold this morning. Apparently, if you hold shares overnight and sell them sometime later… you cannot buy them back again later the same day that you sold them. This restriction applies to shares that were initially held overnight. WTF??? I had never heard of this before. It’s something to do with the T+3 rule.
I’ve been trading a long time and have NEVER run into this restriction before. Have you?? Does Forex carry any oddball restrictions like this that I should be aware of? Thanks in advance for any advice.
Burt
Never heard of that. With regard to forex no such thing.
Thanks. I am honestly bewildered.
You may want to check with another broker, to make sure thats really a rule and not some rule your broker came up with
Maybe it has something to do with the “Pattern day trader” regulations?
[I]“Under the rules of NYSE and Financial Industry Regulatory Authority, a trader who is deemed to be exhibiting a pattern of day trading will be subject to the “Pattern Day Trader” laws and restrictions, which is treated differently from a normal trader”[/I]
As a non-American looking at American forex rules, I would class FIFO and no hedging as oddball rules. :42:
This is a nice discussion, it sort of asks yourself: why do you trade forex? For me, forex has a lack of barriers, i.e. all I did was: download MetaTrader from a broker, learn technical analysis, practise on demo, then start with a small account of less than $1000. Not to mention the perks like insider-trading doesn’t exist, 24 hour market, high leverage (which I bend to my will, but I can see how it can also be bad for people who don’t understand it), and forex is a big market that can’t be cornered.
Maybe it’s a misconception, but to me the barriers to trading ETFs, futures, options, and even just FTSE stocks is more of a pain. I did try buying shares before but when you add up stamp duties and transaction fees, it didn’t feel worth the effort. If I recall, the poor Europeans also have a new tax that was recently introduced, the 0.5% rule thing?
I do often wonder how well my trading system would work on other types of instruments though, but I am knee deep in learning MQL4 (which is basically for forex only) and I am loving the automated trading method.
I’ve yet to make the leap to Forex or futures, although I’m aware of the basic trading mechanics. Advocates of futures trading often mention ‘counter party risk’ as a reason to pick futures over Forex. Do you ever worry about counter party risk? Thanks.
That’s what I thought at first too, but apparently the T+3 rule applies to everyone who trades equities regardless if the are a pattern day trader or a normal trader. Once you hold a stock overnight is screws everything up if you also like to trade intraday. It’s crazy.
Nope, never worried about it and I don’t think it applies to spot forex. In spot forex my order is either filled instantly or it isn’t. And I have never had an unfilled order because there is always someone out there who needs to buy or sell currency, even in offpeak hours.
Maybe this happens in futures forex, but I would not know, since I am a retail trader.
Oh, my friend, where there is capacity for exploitation and incentive to do so, there will be exploitation.
Do you trade equities on a margin account?
If not, then you probably are being forced to wait for the 3 day settlement before continuing trading. This might be specific to those shares, but IIRC if you put a large % chunk of your account balance into that trade, then the money used for that trade is still seen as locked up in that trade until the settlement date, leaving you without that buying power and consequently keeping you from buying other shares of anything.
My account is a margin account, however I typically use most of my account to buy a 3X ETF. Most brokers will not loan you more than about 10% of your available margin to purchase 3X ETFs because they are so volatile.
I think I have finally decided to stop trading equities (due to overnight gaps and T+3 restrictions) in favor of trading either Forex or futures. My first inclination is to jump to futures because I am already familiar with the silver market. However, a question I have about futures are the potential gaps in price when the futures markets close for their 45 minute daily maintenance. It seems this could be just as dangerous for a position as an overnight gap in the unlikely event that something big happens in the world during those 45 minutes. I’m curious if anyone has had a negative experience due to the 45 minute break and I’m also curious of Forex has any ‘breaks’ like this during the day. Thanks.
In the ideal world one would try trading every market and instrument then decide which one(s) they liked best.
I used to trade both silver and gold on the MT4 platform up until mid-last year, but since both were correlated, I flipped a coin and chose just to trade gold. I am not sure whether it was futures I was trading though. It behaves very much like the spot market and it doesn’t have those monthly contract things like OIL/USD which needed to be renewed.
I did notice the untradeable gap for XAG/USD and XAU/USD which happened around 23:00 UTC (I think), but movement is really low at this time and I’ve never had an issue. But this depends on how big your stops are I guess. The only real gaps that appear are over the weekend. Best see for yourself once you get hold of software and can look at historical price feeds.
I don’t think forex, stocks, equities, or any other markets would normally have a break during the daytime unless it was a technical fault.