Baller, my respect - great thread - concrete and to the point!
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Never touched any of those.
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at resistance, possible fake break so far judging by that wick, but tommorow candle will confirm if it is or not…watching this pair 2 hoping in a nice sell off back to support.
Baller, I’m doing well on most positions, but down 146 pips on CADCHF. Currently short.
https://www.tradingview.com/x/XnL1rPEJ/
Give me advice, oh wise one.
@The_Baller I am into other stuff I wanna develop a world class skill in, so forex is not my priority, however since I see there is a lot of potential for a high income stream I would like to ask you where I can go to to find traders on your level or better to manage my capital and other high net worth individuals that I will be forwarding to those high level traders
USDJPY, EURAUD.
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Forex is flexible, you can use it for your sole income stream, or use it as part of multiple income streams.
Firstly high level traders will only manage high level money, 100K and over.
Secondly the upside is with them. They’ll either take 50% of all profits or 50% of all profits and a management fee.
Thirdly these high level traders aren’t going to be hanging around in the most obvious places, i.e. Instragram - it takes a lot of networking and talking to the right people to get introduced to someone that knows what they’re doing when it comes to consistent returns.
Not sure where you’re from, but in the UK, its illegal to manage someone else’s cash unless you have your own fund.
It’s pretty straight forward to set up - but again, if it goes bust, then that’s life - you can’t go after the individual.
That’s why its easier to trade yourself, its a skill set for life.
I have my own software consultancy, equity in several Costa coffee franchise stores and dabbling in other ventures, but it hasn’t stopped me.
Forex takes up the least amount of my time.
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Still holding that buy on USDCAD homeskillet? I’m sure you are.
the weakness was shown tho on that upthrust&fake break and back into the range…it s agressive selling on usdcad, there s no buying pressure whatsoever from what i m seeing. i personally wouldn t try to catch that falling knife… volume is quite low for such a big candle which would suggest ease of movement… anyways, pound might have some nice moves with the brexit vote and all
also the dollar index is at resist and droping
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I’ve been in and out. On my main account I’m holding and have been for a while.
All I know is smart money is long.
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Baller, i have a few questions:
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you said somewhere that you don’t like to trade EURUSD or GBPUSD because these pairs can move fast and far. I understand that if that is because you don’t want to be obliged to follow your trades daily. But another reason is hard to understand, because moves is what makes us money right? Or is your point that they are not predictable enough?
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you also replied somewhere to a question that you trade usually JPY and CHF pairs (and many minors). I have been looking into the volatility issue because of point 1… but I see quite some JPY pairs with high volatility? I know…just one month but still…
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what I don’t like about the volatility calculations is that is does not say all about a pairs behavior: a pair that moves consistently in one way, can have the same volatility as another one that whipsaws around in a small range. are you (or anyone else) aware of a better method that takes direction changes also into account?
not too hard to program something for that, but why reinvent the wheel… -
i fully agree with your “big picture - wide SL” ideas, but one questions about it.
you also stated that you don’t look at correlation of whatever you trade. but when a really disrupting event happens… another big earthquake in japan…war between major countries…an italian debt crisis etc, you really run a severe risk. how do you think about that?
thanks for your ideas!
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Slow, steady and highly predictable moves make money. GBPUSD moving one way, only for it to go the other way just because someone said something on Twitter or BBC news is not my cup of tea.
AUDJPY says it had high volatility - but what exactly is high volatility for this pair? It moves 300-400 pips a month, nothing to be concerned about because its predictable.
Not aware of anything myself.
It’s a valid point. I’ve not had an issue with this personally. Just like going to bed and waking up the next day alive, is not certain. Always go to bed with whatever you can afford to lose remaining in your Forex account.
I limit risk with correct position sizing, even if I was long USDJPY during the flash crash back in January - I still wouldn’t have blown my account - a 600-700 move against me is nothing (I was short).
If you’ve got £50K lying around, don’t deposit it all with your broker.
Personally I’ve spread my risk across 3 accounts trading different pairs.
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thanks for your replies baller- i get your points.
another thing i was thinking about is that the risk is acceptable, because it (disrupting event) has a low chance versus an ongoing moneymaking strategy. if you take out the profit regularly, it would be ok.
broker risk: maybe good to mention for newer traders; the first thing about risk i would check is the small letters in your broker contract. some brokers do not have a “max loss is your inlay-clause”. so if your loss (e.g. by a flash crash) is bigger than your inlay, they can come after you for the rest. that can become very painful. won’t happen? google for “forex flash crash” and see how many you find… after that google for “alpari”…
PS a SL is NOT sufficient protection in case of disrupting events because often the price moves go too fast and fly by your SL without it being triggered (in time).
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many brokers offer a guaranteed SL at no extra cost unless triggered.
u should get margin call if such an event happens( according to ur pos size and price movement) and u ll get stooped out no matter the event, but that ofc may not be the case with all the brokers
There’s always a chance of something happening. If you just started trading and an event happened - then its just bad luck.
I know a few traders who set a SL but price just flew past it and they were stopped out miles away from their original SL.
The more money you have the more you can get away with not using a hard SL. I haven’t used a SL on one of my accounts and never had an issue - yes I’ve been a bit wrong when it came to the entry and been 500 pips down for a few weeks - but that’s just life.
A good trader, can be wrong, but then use that negative and turn it into a positive, and capitalise on that losing trade and suddenly turn it into a winner.
A massive account size with small position sizing (and a limited amount of trades) - is pretty hard to blow no matter how wrong you are.
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