I understand your frustrations but you are dipping into high frequency trading territory. You will need a lot of resources to pull that off it is not a newbie retail traders game. If you want to investigate it further speak to https://www.lmax.com/ and they can offer you reliable depth of market from their aggregated pool which you might be able to use to make those trades however you will need:
Customised low latency hardware
Extremely good programming skills
D.Phil level mathematics skills
That stuff is extremely taxing. I have tried. You might want to go for lower hanging fruit until you build your account balance enough to maybe recruit a team of researchers to help you.
Is it possible to use fundamental analysis for daily trading?? I was thinking to study more in this field but I donāt know the oddsā¦ I think ther must be a way to gauge the market bias on low time framesā¦ otherwise we only have martingale or pure luck to trade using the existing indicatorsā¦ I tested hundreds of stategies,ā¦ I know more than 90% of indicatorsā¦ but I am not more confident than I was as a begginerā¦
I am not sure. Maybe for trading the news. I wouldnāt suggest it though but only because I havenāt cracked it myself. Alternatively I would recommend fundamental trading political news. US Election, Brexit Matters, referendums etcā¦in those cases the uncertainty itself creates market volatility and therefore movement, either strong trending, whipsaw or spike. You might want to consider looking at options to trade these events, to limit your risk but expose yourself to the upside.
Broad based fundamentals like balance of payments and that other stuff is generally better suited to longer term trading rather than daily trading. That is actually more like investing than the intra-day trading of market volatility in my view. I am far too impatient to do that myself but if you do look out for the daily swap rates because it might cost you quite a bit to hold your positions for a long time if youāre not on the right side of the swap.
It is not enough to rely on technical indicators. Successful traders use a combination of fundamental and technical indicators. You should understand the reason for the trend before you decide to jump into the trade. Timing is also very important. Understand the best time of the day to trade a particular currency pair. Iāve learnt that the fewer the technical indicators you use the better for you. The most important indicators are the trend, resistance and support with a proper understanding of fundamental analysis.
Secondly, each pair of currency is like a course that may take you weeks, sometimes months to study. I suggest you start by concentrating on a few pairs of currencies. Two or three pairs for starters. Make use of economic calendars and give yourself some time to learn the ropes.
Also, psychological training is very important in Forex trading. You must learn to control your emotions. The fact that a potential move feels right doesnāt make it right. These things are learnt with practice and time.
I once learnt from someone on this forum that you canāt fly a plane just by reading a book. Forex is not an easy way to make money. You have to dedicate substantial time and effort to learning. You will most likely make losses initially. Learn your lessons from each loss and with enough dedication, you will be successful.
Eveybody talks about resistance and support ā¦ but from my experience price go through them like they did not even existsā¦ ! Maybe on very large time frames to be of some importance but not on 1 minuteā¦ ! Also there is no or very little info about how to trade on 1 minute or less using fundamentalsā¦ maybe is not even possibleā¦! I like turbo trading ā¦ i would like to trade like 20-30 trades a day ā¦ and also using binary options in a few months I would finally make moneyā¦ Otherwise why not doing any other job and earn maybe even more money than trading??
There is no real advantage in trading Binary Options. The payouts are usually below 90% which means that you have to have a significant Edge in the market to be profitable long term. And if you understand the market well enough to have that edge, then you might as well trade spot and achieve a better R:R. Binary Options are an over simplified product that make losing long term almost inevitable.
And that is even assuming you successfully navigate the minefield of fraudulent purveyors to find a legitimate Binary Options broker in the first place.
When i traded with 100 pips stop loss and 100 leverage it was like actually loosing the investmentsā¦ and also in forex the 80 pips trades were very rare for me at leastā¦ so for me BO would have been better as i would have earned always 80% that equaled with 80 pipsā¦ got it??
Yeah I understand you. But the 80% (assuming 1% PnL per pip) is the payout if you win. If you lose the loss is 100%. So the win rate that you would need to break even is 100/(80 + 100) = 55.56%.
if you assume a random market, the probability of being in the money or not being in the money on a BO at time t is just 50%.
If you have above 5.56% edge in your locker and the simplicity of BO suits you then go for it. You could maybe adjust your SL and TP distances; they donāt have to be 100 and 80 pips respectively. With the right position sizing you could achieve the same PnL with smaller distances.
I agree. In a trend, the trend is a stronger potential force than the support/resistance. So, in an uptrend I ignore resistance, in a downtrend I ignore support. With thanks to Rayner Teo.
A good trader always has a choice and he works defensively in order to attack at the moment when market shows some weakness. A hidden clue is always there on the chart and you have to find it for going in the right direction. Am I right guys?
I believe you are on the right lines. This has an air of Sun Tāzu about it - attack where there is no defence, defend where you cannot be attacked. I take this to mean being long in an uptrend and short in a downtrend.
It is not actually that easy to predict or explain the market conditions in a simple way. It is more dependent on the trading expertise and experience of a trader how well he can overview market situations. I hope the experts here will help you.
Btw, looking at the ETFās, on Friday the only other red marker was staples - seems we buy those when the chips are down, even toilet paper manufactures are in this group - but when risk is off ā¦
There was of course a reason that caution was discarded, the Pres gets a sneaky preview of NFP, heās not allowed to trade it but he is allowed to bask in the light when itās good, so he tweeted a few hours before release:
āLooking forward to seeing the employment numbers at 8:30 this morningā.
So a media savvy guy was tweeting good numbers before release
