This may not be worth a new thread but would someone be so kind as to explain to me why I read (so far) that you can trade 24 hours a day yet a few paragraphs later I read about getting your trade closed before the 5:00 cut off? If I will learn this later in school, feel free to mention that and I’ll just wait until I get to that section.
Thank you
Not sure what you may have read, but this may refer to avoid getting charged rollover costs, and of course this depends on which pair you are trading, in what direction, and the interest rates your broker/dealer credits/debits.
A lot companies debit/credit the cost to hold the trade into the next day around 5:00 pm - close of the US session, open of the Australia/New Zealand session. So, if you’re a day trade or scalper, you may want to avoid having any open trades around that time so that you do not incur any unnecessary charges.
You usually do not want to carry a trade over the weekend for 2 reasons.
1.) rollover, you are charged for locking up money basically.
2.) the opening gap. Opening gaps are usually not in your trades direction, however they can be sometimes. This can kill some of your trades profits or even put it in the negatives.
I should have been more specific… What I’m guessing is that I was taking “you can trade 24 hours a day” to mean that you can physically buy and sell around the clock. What I see it really means is that the market is still moving “after hours” but I cannot actually make a move “after hours”. Is this about right?
that really depends on your broker. Your broker decides if it will let you open trades during off hours. But note the market won’t actually be moving so its not like you will be able to close +
[B]TWO THINGS happen at 5pm which affect your trading.
the first is ROLLOVER as stated below — if you go into rollover with a currency that is going to pay you NEGATIVE interest, the old saw is that most should sell before they are charged that amount, which of course debits from your profits. When facing real life, if you wish to hold the trade, and the rollover is against you, it may be simply a pittance compared to the inevitable profit you shall hold.
On the other side of the coin, if youre holding a good trade and its positive rollover, theres not much to think about ----- you simply hold that trade, gain the interest on your swap, and take profit the next day.
Discussions about holding overnite are silly unless you count the number of days (or use the LRC to see WHERE in the trend movement your currency lives) — without those, you are baying at the moon about gaps and such because you havent a clue, but best advice is to get out before the stock market opens, or at the most, by 10 PM EST, 1/2 hour after it opens.
DAYTRADERS, as mentioned, inevitably CLOSE all trades at the end of the day (maybe thats why they call them DAY traders) — just take a look at what happens between 3:15 and 4PM EST every day — those who work in the NYSE are getting out of their trades by 4 (close of the exchange) and you get some of the greatest movement you can imagine for a scalper — with the exception of the london open and close, it may just be one of the most profitable times to trade !
But what you MUST remember is that most institutions have VERY long term trades on their books, trades that run at least months, if not the whole year, and it is best if they take a trade with a positive rollover in their favor, or they could DRASTICALLY reduce any profits that incur (theyre using amounts of equity that make us poor slobs green with envy !)[/B]
[B]ROLLOVER is one of those “minor but nice” little money makers one can earn, but dont think you have to always work in its direction — PROFIT takes preceedence over a little interest every single time ![/B]
enjoy and trade well
mp
[B][I]Within the great hall at Elfinore stands a wondrous coffer, precisely four cubits square and securely latched against the outside world. Inside that repository, shut away from impertinent eyes, abides many an intriquing trading secret garnered from around the world and over the ages !
As a child, i used to watch from the darkness as the secrets were debated and annotated by the elders. No one there held a single thought of my presence – BUT I KNOW WHERE THEY HID THE KEY !! [/I][/B]
what i know about this is, that trading “after hours” would not be profitable because, the best hours for trading (depending on the pair) will be those when the market has more liquidity. So, if we are talking about the EUR/USD, it is supposed to be between 15:00 EST and 18:00 EST, cause by that time, more traders are entering the market.
[B]ah dollyjen — this is the very reason i exist on this glorious LEARNING site, so set thyself down here weedhooper and we shall learn you !
after 5pm, the market does its second MAJOR REVERSE of the day (a major reverse is one that will prob go to the 50 fib, while a minor reverse only goes to the 23 fib (or reasonably close, as fibs arent what they used to be, but then neither is the dollar for that matter !) This is automatic and readily apparent by 6:30pm, for those slow of reflex !
WHATEVER was the dominent trend prior to this time is now REVERSED — yes, LONG becomes SHORT and SHORT becomes LONG and the world is twisted upside down.
this is almost an automatic trade, and usually the point where the H1 trade that is on your chart REALLY BEGINS !
the most wonderful profits can be made by entering trades off the H1 and sleeping peacefully through the night, awakening to find that those on the other side of the pond have made you a rich person while you slept.
Now i would never ask you to run right out and do this, but perhaps on day one you might just PEEK at the chart, and on day two you could actually LOOK at it, and on day 3 you might STUDY it and on day 4 you might say “GOLLY GEE WHILLIKERS, HE MAY JUST HAVE SOMETHING HERE !” and on day 5 ----- whooooooooops ------ sorry, hold off cause this is friday and even though it will work fine, you would have the whole weekend to toss and turn and probably have intestinal problems that could cause you to have to visit the people hospital — best to hold this for DAY ONE of the following week !
enjoy and trade well
mp[/B]
[B][I]Within the great hall at Elfinore stands a wondrous coffer, precisely four cubits square and securely latched against the outside world. Inside that repository, shut away from impertinent eyes, abides many an intriquing trading secret garnered from around the world and over the ages !
As a child, i used to watch from the darkness as the secrets were debated and annotated by the elders. No one there held a single thought of my presence – BUT I KNOW WHERE THEY HID THE KEY !! [/I][/B]
I still would not reccomend leaving a trade open while you sleep…bad practice even though in my learning days I did this and was able to profit off reversal patterns.
I personally prefer to be sitting in front of the screen, bag my pips and leave, but that is also because I am risking more per pip (0.5-1%) than most ppl on this board because I have smaller S/L’s or enter with momentum into instant profit.
The best hours to trade however are with the most volatility and liquidiity, it creates many more opportunities, but it can also cause you to loose more so be careful.
[B]ah balto,
if one is scalping, then sitting in front of the screen and enjoying the volitility is the name of the game, of course ----- but that is only ONE way to play the game ! If one is trading via price movement, although not a great method, one still must watch the monitors for their signals.
For me, the promise of 24 hour trading is a marvelous thought, but even with all my enthusiasm and endurance, I start to tire around wednesday, if i havent slept at all for three days, so i do the next best thing ---- i set trades and go to sleep and wonder of wonders, I DONT USE A SL !
now I have often spoken with other traders and marveled at how much can be made while sleeping — indeed I usually do BETTER while asleep (and i choose NOT to investigate that phenomenon !)
Its only a concept, but differing ideas are what creates horse races (although having little to do with forex) but the proof lies in the tasting, or in this case the profit, and so I shall stick to what I do because I KNOW where the price is going, and DONT have to sit and watch for a reversal candle.
I’ve even shared what I do, cause there aint no mystery to it — simple support and resistance is what makes the market move, and simple support and resistance is what i use ![/B]
[B]enjoy and trade well
mp[/B]
I tend to disagree with the proce movement statement.
Price Action drives everything, it is the most basic way of trading a market. It lets you get in moves early and out before they turn against you.
You are trading price action just on a higher timescale, everyone has their own way of trading. But Price Action is King, ask any trader who has made a living off it.
Do what works for you tho
balto,
i stated that there are MANY ways to make stew out of a Panda, and that price action is one of them — its ONLY big problem (assuming one knows the game) is that you must WAIT for a candle to form a reversing candle (shall we just say simple “doji” for instance)
while you wait for confirmation of your next move, youve already PASSED the top tp point waiting for the candle to tell you to reverse ------ its a natural situation, that can be altered to more positive results with s+r and the LRC — thats all.
your price action is fine, as are HA candles, BUT both are LATE in telling you to get out because you didnt know where to exit BEFOREHAND as following either one of them gives late signals.
not that you cant make money using late signals, just that you can make MORE by not being in and out of a trade LATE !
essentially, I believe I can prove my words without conflict — im only suggesting that your method can be improved, and if someone tells me mine can be, I listen !
enjoy and trade well
mp
I’m not trying to get into a conflict, no point in that :). Just trying to explain my reasoning. Thats the reasoning behind the lower TF and knowing price action.
I generally do not get in late at all or exit too early (tho sometimes I do to prevent greed), I get in most of the time while the IB candle is forming… There can and always will be improvements being made, and not all of how i trade is public knowledge yet lol
S&R and LRC are at their cores Price Action. Price creates those Supports and Resistances along with those Channels.
Oh Higher time frames I do agree thats IB’s are too late, this is because of inter/ra trend moves, pullbacks, and pushes in the main direction again. This is why I use the lowest TF possible to get good entry and exit signals… I have taken my time and have been through many indicators & systems. All of which are wayyyy too complicated and take your focus away from the real thing at hand price…
Yes there is more than one way to skin a cat, but you are still skinning the cat with price action, it just depends on what you are comfortable with really 
Regards,
Balto
enjoy and trade well
mp
I’m just going to stop here as we both have different views of the market…which is what causes the market to be tradeable…
But I will tell you that you are able to hit those T/P’s easily because you are trading on a higher time frame there is more room for error in entries and exits…
My Inner Bars are not the only thing to my method… I told you price action… I watch the quote panel as well and that is how I enter or exit, tape reading. You are never late in your entries and exits when trading by price action, you are on the other hand getting in right when the move starts or a couple ticks after it starts.
[B][I]Within the great hall at Elfinore stands a wondrous coffer, precisely four cubits square and securely latched against the outside world. Inside that repository, shut away from impertinent eyes, abides many an intriquing trading secret garnered from around the world and over the ages !
As a child, i used to watch from the darkness as the secrets were debated and annotated by the elders. No one there held a single thought of my presence – BUT I KNOW WHERE THEY HID THE KEY !! [/I][/B]
Not refusing to learn
I just beleive indicators lagg wayy too much lol.
S&R has its place tho and it is good, thats why zooming out on a chart is important 
The S&R will pop out to you, but you shouldn’t go looking for it
Best Regards,
Balto
you one stubborn kinda guy – is naked trading a religion or something ? (LOL)
mp
lol I’m stubborn because it works and simplicity is key, I am not saying that I do not liek S&R it is wayyy better than indicators.
I am only saying I hate how indicators are used as a religion, they tell the past, you need to look towards the now and the future
however you like to brew your tea is fine — just remember that the pros DO use a few good indicators, and since they do, everyone of them trades the same way, and price action FOLLOWS the movement, so while you laugh at indicators for being late, your own price movement is by nature ALSO late !
but enough, my and your point has been made, even though im the most open and nicest guy inthe world, and youre a simple STUBBORN fool !
LOL
mp