Fundamental Forex Strategies - Best FX Trading Strategies ...

ForexTraders

An Online Community for Forex Traders.
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Forex Trading Lessons: A Must For Forex Beginners

Forex Trading Lessons: A Must For Forex Beginners
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Trading Psychology: Winning The Mental Game

🧠 Master your emotions; the markets will take care of the rest. This subreddit is dedicated to everything that is trading psychology.
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Fundamentals of Forex Trading - Andromeda FX Trading Academy

megafilefactory.info/Fundamentals of Forex Trading - Andromeda FX Trading Academy

submitted by zweistufige to u/zweistufige [link] [comments]

Fundamentals of Forex Trading for Beginners

Beginners should undergo various trading related articles and strategy tips to understand the complete basics of the Forex trading. Once you perfectly understood the basics, the easy you bet on the stocks and make profits in no time. The following blog has three useful tips to cover the fundamentals of Forex trading. Make the most of it - https://forextradinginmalaysia.wordpress.com/2018/11/12/3-things-to-remember-before-starting-forex-trading/
submitted by aryanamar to forextopsites [link] [comments]

What Are Forex Orders?

As you begin to learn the fundamentals of Forex trading, you'll need to learn what an order is. In day trading, Forex orders are used by traders to enter and exit the market, and they help provide controls over how trades are placed. There are many different types. Some orders are rules-based, enabling a trader to enter the market when prices are at specific levels, while others enable traders to enter or exit the market at the current price.
There are five types that are almost universally offered by brokers, as well as some lesser known trade orders. Beginning day traders must learn how each trade order works and the situations in which each order should be used. Here's a look at the five most common:
  1. Market Orders: Market orders are used by traders to enter or exit the market immediately. Essentially, the trader enters or exits at the current price, and if the market moves against his or her position, it would result in a loss if the position was closed.
  2. Limit Orders: Limit orders are rules-based, with the rules being set by the trader. Most commonly, limit orders are used to enter the market when the exchange rate for a currency pair reaches a certain value. They are considered "pending" until the rules are met and the trade is filled. If you are going long, your limit order would be slightly above the market value, and if you were selling short, the order would be slightly below. For example, if you believe GBP/USD is moving into an uptrend from 1.5000, you might set a limit order to enter at 1.5020.
  3. Take Profit Orders: Traders often set up trades but cannot sit back and monitor the movement of the market. Take profit orders are used to automatically close a trade when the exchange rate has reached a profitable value for the trader. For example, if you enter EUUSD at 1.0600 and want to take a profit if the market reaches 1.0700, you would set a take profit order for 1.0700. By setting these orders, traders are able to lock in profits.
  4. Stop Loss Orders: The opposite of a take profit order is the stop loss. A stop loss order - which is sometimes referred to as an exit order - is used to automatically close a trade if the market moves against the trader's position. This is a defensive mechanism that allows a trader to cap the amount of loss incurred. For example, if you go long on GBP/USD at 1.0500, you could set a stop loss at 1.0400. If the market moves against your position, the trade would be closed once the exchange rate reached 1.0400. Without a stop loss order in place, though, your losses in this trade could quickly add up if the market continued in a downward trend.
  5. Trailing Stop Orders: Trailing stop orders are similar to stop losses, but there is one key difference. With a trailing stop, the trader sets a stop price benchmark. The trade will automatically close if the exchange rate reaches this stop price. But there is also a trailing amount attached to the stop order price. So if the market moves in a positive direction, the stop price rises by the trail amount. For instance, if you go long in a position, you would set a specific stop price below the current market rate. As the market rises, so too will your stop price. If the market moves against your position, though, the stop price remains unchanged.
submitted by jeffout to ForexRatingPro [link] [comments]

Forex Technical Analysis

Making money in the foreign exchange trading market means understanding the market and doing some form of forex technical analysis in spotting trends, timing the market, and executing your trades. Not all of your forex trades, even with the right amount of forex analysis, will turn out to be profitable. The goal of forex technical analysis is to be able to manage these risks, manage the gains and losses, and consequently result in a positive bottom line. Top Forex Brokers
Forex technical analysis is something that is necessary for a forex trading that is profitable not just at present but for the longer term. A forex trading business is not one that constantly gives you profitable trades but one that is able to balance gains and losses to result in profits. To be able to do forex technical analysis, it is important to understand the fundamentals of forex trading first. There are several basics that need to be studied. The determinants of market movements should first be studied for any form of forex analysis to be possibly.
One thing that is constant in the forex market is that it is never constant. The forex market is always moving. Your knowledge of market fundamentals will tell you this. What the fundamentals cannot tell you is why and how the market moves a specific way. The price of a currency is determined not only by the market fundamentals, but by investor psychology as well. Forex technical analysis shows you how these investors are looking at the market fundamentals and how they are reacting to the movements in the market. It is actually the investors who are the key price determinants in the forex market. The supply and demand relationships, as influenced by buying and selling behavior of the investors, in the various currencies determine what the prices will be in the forex market. Forex Brokers Reviews
Forex analysis is done using charts. There are several charts that you will have to familiarize yourself with if you are to do forex analysis the right way. At a glance, you will see how feelings of greed or fear can cause price spikes and plunges. Knowing this will allow you to be ready to execute your trades when the market indicators hit certain levels. While doing forex analysis is in no way a guarantee that you will gain from all of your trades, doing forex analysis will put the odds in your favor and will up your chances of reading the market right.
Do not allow your own emotions to meddle in your forex technical analysis. The reason why you are using charts and indicators is so that you can properly time your trades and not get left behind because you are still thinking of the pros and cons of trading in a particular direction. Whether or not it seems to be a losing trade should not matter when you have a trading strategy based on your forex technical analysis. The only way to master technical analysis is to actually practice it yourself. Try it out using a demo account to get a better feel of how your forex analysis will work with your particular trading system and trading style.
Visit Here - forex broker review
submitted by Sure_Statistician384 to u/Sure_Statistician384 [link] [comments]

just need some advice.

currently learning the fundamentals of forex trading and was wondering if i should demo trade whilst i'm learning. it may seem like a dumb question but i didn't know whether it was to best to learn and grasp it first or do it at the same time.
Edit: it seems like the vast majority of people on here just hone in on the technical sides of trading , l understand that everyone has their own preference but i feel like being able to read the feelings of the market would be more important than any chart you can draw.
submitted by tochidecks to Forex [link] [comments]

Coinbase presented a set of trading signals for beginners in crypto trading

Coinbase presented a set of trading signals for beginners in crypto trading
Coinbase is a secure platform that allows us to buy, sell, and store cryptocurrency like Bitcoin, Ethereum and others easier. Recently, the company announced that it`s going to launch a set of free of charge tools aimed to help those who only begin to trade to understand the main sense, secrets, and fundamentals of Forex trading.

https://preview.redd.it/zd3nc6m4gtb31.png?width=860&format=png&auto=webp&s=b0d759cfc1fc468af0443384790de1ab8d22e18a
One of these tools shows transactions dealt with by the biggest platform`s traders.
As was pointed out in the company`s blog, the signals that transfer the activity of best traders are certain percentages of Coinbase with large balances, that have bought (increased) or sold (decreased) their positions for the past 24 hours. Data is being upgraded every 2 hours.
As well as the previous tools, there is another one tool that should allow seeing the median number of days during which traders will hold an asset on the market before selling it or transfer to another address.
The company makes more accurate the fact that these data include only the activity of individual users only, they do not show the deals made by large organizations.
Coinbase is also elaborating on a new infrastructure for matching trade applications, which is going to be more productive and will allow the company to get closer to the Bitcoin`s “super-power rally”.
The information above cannot be considered as investment advice and past results do not indicate future performance.
\*Investors should have experience and understand the risks of losing all the initial investment.)
80% of retail investor accounts lose money when trading CFDs with GMOTrading.
submitted by GMO_Trading to GMOtrading [link] [comments]

Forex trading may appear a little puzzling if you fail to get the appropriate training before

Go market online forex trading for beginners offers information on various forex currency trading systems as well as tactics, or other things Forex-related you could think about. Nevertheless, that will not imply it is almost all good data. You will find some good publications for learning the fundamentals of forex trading together with foreign currency trading though. Whenever you can get a few solid no cost foreign exchange training that describes the fundamental principles of trading the Foreign exchange market, you then will perform yourself an excellent favor. Go market offer numerous Forex trading platform on the market which are fundamentally essential to set you off on forex for beginners principles. More so, there forex trading videos for beginners lessons will cost you nothing. Therefore, perform your due diligence as well as find yourself a real as well as effective forex trading course for beginners, or get all set up on almost all the basic building blocks of Currency trading before you start learning a real forex strategy.
submitted by jeffreybewley to u/jeffreybewley [link] [comments]

How many of you use fundamentals in trading forex? I'm trying to incorporate fundamentals as I just haven't been all that successful with technicals alone and found this. For those who use fundamentals what do you think about this thing? Useful?

submitted by MyBumbleBeeHoney to Forex [link] [comments]

Looking for someone to collaborate with in exploring some of the fundamental questions in algo trading in relation to quantitative analysis and the Forex market specifically.

I got interested in both algo trading and Forex about the same time. I figured that if I was going to trade in the Forex market or any market there after, I was going to use algorithms to do the trading for me. I wanted to minimize the "human factor" from the trading equation. With the research I have done so far, it seems that human psychology and its volatile nature can skew ones ability to make efficient and logical trades consistently. I wanted to free myself from that burden and focus on other areas, specifically in creating a system that would allow me to generate algorithms that are profitable more often then not.
Consistently generating strategies that are more profitable then not is no easy task. There are a lot of questions one must first answer (to a satisfactory degree) before venturing forward in to the unknown abyss, lest you waste lots of time and money mucking about in the wrong direction. These following questions are what I have been trying to answer because I believe the answers to them are vital in pointing me in the right direction when it comes to generating profitable strategies.
Can quantitative analysis of the Forex market give an edge to a retail trader?
Can a retail trader utilize said edge to make consistent profits, within the market?
Are these profits enough to make a full time living on?
But before we answer these questions, there are even more fundamental questions that need to be answered.
To what degree if any is back-testing useful in generating successful algo strategies?
Are the various validation testing procedures such as monte carlo validation, multi market analysis, OOS testing, etc... useful when trying to validate a strategy and its ability to survive and thrive in future unseen markets?
What are the various parameters that are most successful? Example... 10% OOS, 20% OOS, 50%......?
What indicators if any are most successful in helping generate profitable strategies?
What data horizons are best suited to generate most successful strategies?
What acceptance criteria correlate with future performance of a strategy? Win/loss ratios, max draw-down, max consecutive losses, R2, Sharpe.....?
What constitutes a successful strategy? Low decay period? High stability? Shows success immediately once live? What is its half life? At what point do you cut it loose and say the strategy is dead? Etc....
And many many more fundamental questions....
As you can see answering these questions will be no easy or fast task, there is a lot of research and data mining that will have to be done. I like to approach things from a purely scientific method, make no assumptions about anything and use a rigorous approach when testing, validating any and all conclusions. I like to see real data and correlations that are actually there before I start making assumptions.
The reason I am searching for these answers is because, they are simply not available out on the internet. I have read many research papers on-line, and articles on this or that about various topics related to Forex and quantitative analysis, but whatever information there is, its very sparse or very vague (and there is no shortage of disinformation out there). So, I have no choice but to answer these questions myself.
I have and will be spending considerable time on the endeavour, but I am also not delusional, there is only so much 1 man can do and achieve with the resources at his disposal. And at the end of the whole thing, I can at least say I gave it a good try. And along the way learn some very interesting things (already had a few eureka moments).
Mo workflow so far has consisted of using a specific (free) software package that generate strategies. You can either use it to auto generate strategies or create very specific rules yourself and create the strategies from scratch. I am not a coder so I find this tool quite useful. I mainly use this tool to do lots of hypothesis testing as I am capable of checking for any possible correlations in the markets very fast, and then test for the significance if any of said correlations.
Anyways who I am looking for? Well if you are the type of person that has free time on their hands, is keen on the scientific method and rigorous testing and retesting of various hypothesis, hit me up. You don't need to be a coder or have a PHD in statistics. Just someone who is interested in answering the same questions I am.
Whats the end goal? I want to answer enough of these questions with enough certainty, whereby I can generate profitable algo strategies consistently. OR, maybe the answer is that It cant be done by small fry such as a retail trader. And that answer would be just as satisfactory, because It could save me a lot more time and money down the road, because I could close off this particular road and look elsewhere to make money.
submitted by no_witty_username to Forex [link] [comments]

Forex Trading. What separates the Losers from the winners.

My name is Tom Burgoine and I am an engineer by trade however love Forex trading and have taken it up as a hobby. I have spent the last 5 years studying Forex and have had help from supposed traders teaching me the fundamentals of Forex trading. This was good as I got to know the basics and how all of the indicators worked and the terminology used etc. Once all of this was learnt, I then moved down the road of starting to trade. Straight away, I was losing money however the buzz of doing this gripped me and allowed me to keep pumping money in. I looked at various strategies given to me and none of them worked. I studied Elliot wave and although I have to agree with the markets moving in 5 and 3 waves, it became very hard to count the waves and at some points felt very contradictive of what I had been taught. It was almost like every rule, had an exception (Is it really a rule). After 3.5 grueling years of losing 40K, I then took a step back and re-evaluated. I asked myself what were the issues surrounding my losing? I know that my mentality was a problem. I was over trading and getting greedy when the wins came in. Secondly and most importantly, I realised that all of the teachings, lessons on indications, and other advice (Although welcomed and useful) was teaching me about reactive circumstances. The Indicators were reacting to market movement which meant by the time I jumped onto the trade, I had missed a bulk.
Being an engineering manager, I always try to find the Logic in things and like to know how they work quite in depth. I know, geekish, however, my mind works only in logic. I decided to try and find a way to be proactive in seeing the market turn rather than reactive and started looking into different tools and indicators. Finally in logically looking at how the market moves, I found the answer.
Market prices move with the pressure of the buyers and sellers purchasing or selling there currencies. I needed to find a way of knowing when the pressure of a market going up (Bullish) or the pressure of a market going down (Bearish) was tailing off, eventually resulting in a reverse. I looked at the indicators and found that momentum does this. I needed a second Indicator as well just to crosscheck what I was being told. I looked at the formula of the MACD indicator and thought the Histogram from the MACD indicator was very good. The moving average slapped on the top however was of no use. I then configured the MACD indicator to only show the histogram. So my Indicators were the momentum (Set to 12) and the Histogram from the MACD.
I traded on the daily as I wanted medium to long term trades. This prevented me and my mind from over-trading. I would look at the daily and would look at the direction of the price movement and the look at the pressure moving it. If the price and pressure (Indicated by the momentum and the histogram) were moving in the same direction then it was all good. The minute I saw the momentum and the Histogram starting to turn while the price still went in the same direction gave me my proactive indication that the market was about to turn. This is when I implemented my strategy. I then went to the 4 hr time frame and waited for the same thing to happen which then gave me an even tighter and closer proactive indication that the market was about to turn. once the 4 hr time frame gave me the same signal, I then moved to the 1 hourly until I received the same signal. I then got to the point of knowing within a couple of hours when the market was going to turn. I needed something extra that would allow me to enter my trade rather than trying to guess which hour was going to be the turning point. I then looked into a third indicator. Stochastics. Stochastics allowed me to see when the market was over bought or over sold. I waited until all of my Signals were in place and then waited for the stochastic to go over bought or over sold. I then entered on the hourly. This has turned my trading around. It has made me slow down my trading with consistent wins and mentally has put me in a better place. I have set up a you tube channel FX Logic, where I will be going through potential trades weekly using this method. I have a introductory video on there as well which talks you through the methodology discussed here with the charts right in front of you. There is no catch just a engineer trying to share his success. Subscribe to my channel and go through the process of growing your account with the community. https://www.youtube.com/watch?v=ldki7ddTwec&t=10s
submitted by ForexLogic to u/ForexLogic [link] [comments]

I made a Udemy course on forex trading...FREE for r/forex!!

Hey everyone,
I just posted two Udemy.com video courses on forex trading today. The first class is called Fundamentals of Forex Trading, and it's really meant to be a short crash-course on the absolute basics of trading currencies for newbies.
The class includes a discussion of terms and definitions, a full MT4 walkthrough, and introductions to fundamental and technical analysis. THIS CLASS IS FREE!!
You can enroll in the course here: https://www.udemy.com/fundamentals-of-forex-trading/
I made a second class called How to Make Passive Income Trading Forex that teaches the sentiment trading method (automated by MT4 EA's) my partners and I use at our company PoseidonFX. The class includes 2 fully-built EA's and an in-depth discussion on how exactly to build and use an automated trading system.
This class is normally $149, but for /forex I've made the class 50% off. You can see that class by clicking the link here:
https://www.udemy.com/how-to-make-passive-income-trading-forex/?couponCode=halfoffpips
I'm happy to answer any questions you all may have about the classes. Thanks for your support!
submitted by PoseidonFX to Forex [link] [comments]

Looking for someone to collaborate with in exploring some of the fundamental questions in algo trading in relation to quantitative analysis and the Forex market specifically.

I got interested in both algo trading and Forex about the same time. I figured that if I was going to trade in the Forex market or any market there after, I was going to use algorithms to do the trading for me. I wanted to minimize the "human factor" from the trading equation. With the research I have done so far, it seems that human psychology and its volatile nature can skew ones ability to make efficient and logical trades consistently. I wanted to free myself from that burden and focus on other areas, specifically in creating a system that would allow me to generate algorithms that are profitable more often then not.
Consistently generating strategies that are more profitable then not is no easy task. There are a lot of questions one must first answer (to a satisfactory degree) before venturing forward in to the unknown abyss, lest you waste lots of time and money mucking about in the wrong direction. These following questions are what I have been trying to answer because I believe the answers to them are vital in pointing me in the right direction when it comes to generating profitable strategies.
Can quantitative analysis of the Forex market give an edge to a retail trader?
Can a retail trader utilize said edge to make consistent profits, within the market?
Are these profits enough to make a full time living on?
But before we answer these questions, there are even more fundamental questions that need to be answered.
To what degree if any is back-testing useful in generating successful algo strategies?
Are the various validation testing procedures such as monte carlo validation, multi market analysis, OOS testing, etc... useful when trying to validate a strategy and its ability to survive and thrive in future unseen markets?
What are the various parameters that are most successful? Example... 10% OOS, 20% OOS, 50%......?
What indicators if any are most successful in helping generate profitable strategies?
What data horizons are best suited to generate most successful strategies?
What acceptance criteria correlate with future performance of a strategy? Win/loss ratios, max draw-down, max consecutive losses, R2, Sharpe.....?
What constitutes a successful strategy? Low decay period? High stability? Shows success immediately once live? What is its half life? At what point do you cut it loose and say the strategy is dead? Etc....
And many many more fundamental questions....
As you can see answering these questions will be no easy or fast task, there is a lot of research and data mining that will have to be done. I like to approach things from a purely scientific method, make no assumptions about anything and use a rigorous approach when testing, validating any and all conclusions. I like to see real data and correlations that are actually there before I start making assumptions.
The reason I am searching for these answers is because, they are simply not available out on the internet. I have read many research papers on-line, and articles on this or that about various topics related to Forex and quantitative analysis, but whatever information there is, its very sparse or very vague (and there is no shortage of disinformation out there). So, I have no choice but to answer these questions myself.
I have and will be spending considerable time on the endeavour, but I am also not delusional, there is only so much 1 man can do and achieve with the resources at his disposal. And at the end of the whole thing, I can at least say I gave it a good try. And along the way learn some very interesting things (already had a few eureka moments).
Mo workflow so far has consisted of using a specific (free) software package that generate strategies. You can either use it to auto generate strategies or create very specific rules yourself and create the strategies from scratch. I am not a coder so I find this tool quite useful. I mainly use this tool to do lots of hypothesis testing as I am capable of checking for any possible correlations in the markets very fast, and then test for the significance if any of said correlations.
Anyways who I am looking for? Well if you are the type of person that has free time on their hands, is keen on the scientific method and rigorous testing and retesting of various hypothesis, hit me up. You don't need to be a coder or have a PHD in statistics. Just someone who is interested in answering the same questions I am.
Whats the end goal? I want to answer enough of these questions with enough certainty, whereby I can generate profitable algo strategies consistently. OR, maybe the answer is that It cant be done by small fry such as a retail trader. And that answer would be just as satisfactory, because It could save me a lot more time and money down the road, because I could close off this particular road and look elsewhere to make money.
submitted by no_witty_username to algotrading [link] [comments]

Online Trading can offer you plenty of opportunities to earn the highest profits during Corona and after. What you need is an opportunity to learn the fundamentals of Forex Strategies from the trending online webinars at http://dominion24.esy.es/register-for-webinar/

Online Trading can offer you plenty of opportunities to earn the highest profits during Corona and after. What you need is an opportunity to learn the fundamentals of Forex Strategies from the trending online webinars at http://dominion24.esy.es/register-for-webina submitted by edithadhanushya to u/edithadhanushya [link] [comments]

I made a Udemy class on forex trading....FREE for r/finance!! (x-post from r/forex)

Hey there /finance!
I just posted two Udemy.com video courses on forex trading today. The first class is called Fundamentals of Forex Trading, and it's really meant to be a short crash-course on the absolute basics of trading currencies for newbies.
The class includes a discussion of terms and definitions, a full MT4 walkthrough, and introductions to fundamental and technical analysis. THIS CLASS IS FREE!!
You can enroll in the course here: https://www.udemy.com/fundamentals-of-forex-trading/
I made a second class called How to Make Passive Income Trading Forex that teaches the sentiment trading method (automated by MetaTrader4) my partners and I use at our company PoseidonFX. The class includes 2 fully-built EA's and an in-depth discussion on how exactly to build and use an automated trading system.
This class is normally $149, but for /forex and /finance I've made the class 50% off. You can see that class by clicking the link here:
https://www.udemy.com/how-to-make-passive-income-trading-forex/?couponCode=halfoffpips
I'm happy to answer any questions you all may have about the classes. Thanks for your support!
submitted by PoseidonFX to finance [link] [comments]

knowledge base section you will find easy-to-understand information on the history of the currency markets, what is the Forex market, how trading works, fundamental and technical analysis, simple explanations on some example technical indicators and key components you will need to get started.

submitted by sgtmarkets to forex_trades [link] [comments]

New to Trading? Here's some tips

So there seems to be a lot of new people on this sub. And makes sense if you have questions a lot of time you'll turn to reddit for the answers (I know I do). Well here are some tips that I think would benefit new traders.
  1. Don't trade ANY Euro pairs. Look I know it's the most traded pair it goes up and down really fast and there's so much potential for you to make money. Turns out there's even more for you to lose money. It's way too volatile specially if you don't know what you're doing. EUUSD is the worst offender.
  2. Trade the Daily. Might think you're cool looking at charts every x amount of times during the day. You get to tell your friends and family that you trade all day and they might be impressed at what you're doing but unless you have some years under you stick to the daily. There's less noise. You can see clearer trends and when you don't stare at the screen all day you're less emotional therefore a more effective trader. I only look at the chart 15 minutes a day to either enter close or manage my trades. Whatever happens when I'm gone is what happens.
  3. There is no holy grail indicator Look for it all you want. It doesn't exist. There are good indicators. There are bad indicators. There are some indicators that are so broken if you do the opposite of what they're intended for you'll actually make a profit. But the fact remains that there's no perfect one. Stop looking. What you should be looking for is an indicator that fits with your strategy.
  4. What currencies to pick. I actually never see this brought up. The notion in forex is that all pairs can be traded equally. To a certain extent that's not false. But until you get the hang of it stick to a strict trading diet. Look for pairs that trend a lot. Duh look for the trend I can hear you say. When I say trend I don't mean a couple of days or weeks. I mean a couple of months. Half a year. Pairs that do that have a higher tendency to stick with one direction for a while. That's where you make your money. An easy way to identify those pairs as well is putting together a volatile currency (USD) with a less volatile one(JPY).
  5. USE YOUR SL Trust me even if not putting a SL has netted you all kinds of gains eventually the market will turn around and bite you. With no safety net you'll lose most if not all your profit. The best offense is a good defense.
  6. How to pick your TP and SL level. Most new traders care so much about that. I put it near the bottom because in my opinion you should know everything listed first. This is my opinion and I use it for my strategy I use the ATR(average true range) indicator. It's a really helpful tool that helps you identify the range at which the candles will either rise or fall. Obviously you want to set your TP inside of that range and your SL slightly outside of it.
  7. Lot sizes. Everyone has a different story about how they pick their lot size. The general consensus is don't risk over 2% of your account. But I'm a simple man and I can't be bothered to figure out what my risk is every single time. So what I do is I put $0.10 for every $100 I have on the account. I then assign $300(minimum) to each pair. That's $0.30 per pair. It's easy to remember. 10 cent for every $100. If you're able to blow $100 with $0.10 then you probably shouldn't trade.
  8. How to avoid reversals. Tbh you can't. There's no way to predict the future so eventually you'll get hit by one. What you can do however is minimize the blow. How I do it is for every pair I take two trades. If you remember in the previous tip is said I do about$0.30 per pair well I divide it 2:1. I take one trade with a TP(2) and one without (1). If my TP is hit I pocket that amount and if the trend keeps going in my direction I make even more. If the trend decides to end or reverses my losses are minimal because at least I kept half.
  9. There is NO right way to trade. Stop listening to people telling the best way to trade is fundamentals or naked charts of to use some specific indicator. There are no right way to do this. It's as flexible and unlimited as your imagination. I personally use indicators but if that's not your thing do YOU! Just remember to manage your trades properly and be level headed when trading. Hell if your trading strategy is flipping a coin with proper trade management you'd probably make some money (don't quote me on that).
  10. Trade money you're willing to lose Don't trade your rent money.
That's all I have for now. If anyone sees this and wants to add more feel free. Hope this helps someone.
submitted by MannyTrade to Forex [link] [comments]

Slack Group For Learning Crypto Technical Analysis

Hi, we have a group of 10 people in our Slack. We are looking to expand this number and hopefully you will be a good fit :) . We are searching for people who have some experience with technical analysis based trading or are at least experienced with paper trading. This could either be in Cryptocurrencies which is the main focus of the group. Or could be in other markets like Forex or Stocks.
We have a variety of skill levels in the group from beginners through to profitable, we all want to improve quickly. Ideally you would have the same aspirations. One of the main goals of this group is to help each other to become consistently profitable traders who can trade as their full time job.
Everyone in the group trades separately and has their own accounts. We don't want to sell you anything, we are just building a community that aims to help each other succeed.
Some of the things we do in the slack are:

If you are interested in finding out more about the group or want to join, either comment below or Pm me with the below template.
Expression of interest template:
Name:
Country:
Time Zone:
How much experience you have in trading:
What you trade:
Additional comments:
---
Example expression of interest:
Name: Ben.
Country: Australia.
Time Zone: AEDT (GMT+11).
How much experience you have in trading: 6 Months.
What you trade: Cryptocurrency spot and futures. Mostly BTC, ETH, ADA, LTC, ATOM, XTZ, ETC, LINK, THETA.
Additional comments: I have been trading as a pair with 1 other person for the last 6 months. We have been meeting 5 days a week for those 5 months. Working together has been really beneficial for us. The slack group has been around for nearly 2 months now and has made a positive difference to my trading. It took the benefits I was getting from trading with 1 other person and multiplied them.
If you have any other questions ask below :)
submitted by Bensetera to ethtrader [link] [comments]

Former investment bank FX trader: some thoughts

Former investment bank FX trader: some thoughts
Hi guys,
I have been using reddit for years in my personal life (not trading!) and wanted to give something back in an area where i am an expert.
I worked at an investment bank for seven years and joined them as a graduate FX trader so have lots of professional experience, by which i mean I was trained and paid by a big institution to trade on their behalf. This is very different to being a full-time home trader, although that is not to discredit those guys, who can accumulate a good amount of experience/wisdom through self learning.
When I get time I'm going to write a mid-length posts on each topic for you guys along the lines of how i was trained. I guess there would be 15-20 topics in total so about 50-60 posts. Feel free to comment or ask questions.
The first topic is Risk Management and we'll cover it in three parts
Part I
  • Why it matters
  • Position sizing
  • Kelly
  • Using stops sensibly
  • Picking a clear level

Why it matters

The first rule of making money through trading is to ensure you do not lose money. Look at any serious hedge fund’s website and they’ll talk about their first priority being “preservation of investor capital.”
You have to keep it before you grow it.
Strangely, if you look at retail trading websites, for every one article on risk management there are probably fifty on trade selection. This is completely the wrong way around.
The great news is that this stuff is pretty simple and process-driven. Anyone can learn and follow best practices.
Seriously, avoiding mistakes is one of the most important things: there's not some holy grail system for finding winning trades, rather a routine and fairly boring set of processes that ensure that you are profitable, despite having plenty of losing trades alongside the winners.

Capital and position sizing

The first thing you have to know is how much capital you are working with. Let’s say you have $100,000 deposited. This is your maximum trading capital. Your trading capital is not the leveraged amount. It is the amount of money you have deposited and can withdraw or lose.
Position sizing is what ensures that a losing streak does not take you out of the market.
A rule of thumb is that one should risk no more than 2% of one’s account balance on an individual trade and no more than 8% of one’s account balance on a specific theme. We’ll look at why that’s a rule of thumb later. For now let’s just accept those numbers and look at examples.
So we have $100,000 in our account. And we wish to buy EURUSD. We should therefore not be risking more than 2% which $2,000.
We look at a technical chart and decide to leave a stop below the monthly low, which is 55 pips below market. We’ll come back to this in a bit. So what should our position size be?
We go to the calculator page, select Position Size and enter our details. There are many such calculators online - just google "Pip calculator".

https://preview.redd.it/y38zb666e5h51.jpg?width=1200&format=pjpg&auto=webp&s=26e4fe569dc5c1f43ce4c746230c49b138691d14
So the appropriate size is a buy position of 363,636 EURUSD. If it reaches our stop level we know we’ll lose precisely $2,000 or 2% of our capital.
You should be using this calculator (or something similar) on every single trade so that you know your risk.
Now imagine that we have similar bets on EURJPY and EURGBP, which have also broken above moving averages. Clearly this EUR-momentum is a theme. If it works all three bets are likely to pay off. But if it goes wrong we are likely to lose on all three at once. We are going to look at this concept of correlation in more detail later.
The total amount of risk in our portfolio - if all of the trades on this EUR-momentum theme were to hit their stops - should not exceed $8,000 or 8% of total capital. This allows us to go big on themes we like without going bust when the theme does not work.
As we’ll see later, many traders only win on 40-60% of trades. So you have to accept losing trades will be common and ensure you size trades so they cannot ruin you.
Similarly, like poker players, we should risk more on trades we feel confident about and less on trades that seem less compelling. However, this should always be subject to overall position sizing constraints.
For example before you put on each trade you might rate the strength of your conviction in the trade and allocate a position size accordingly:

https://preview.redd.it/q2ea6rgae5h51.png?width=1200&format=png&auto=webp&s=4332cb8d0bbbc3d8db972c1f28e8189105393e5b
To keep yourself disciplined you should try to ensure that no more than one in twenty trades are graded exceptional and allocated 5% of account balance risk. It really should be a rare moment when all the stars align for you.
Notice that the nice thing about dealing in percentages is that it scales. Say you start out with $100,000 but end the year up 50% at $150,000. Now a 1% bet will risk $1,500 rather than $1,000. That makes sense as your capital has grown.
It is extremely common for retail accounts to blow-up by making only 4-5 losing trades because they are leveraged at 50:1 and have taken on far too large a position, relative to their account balance.
Consider that GBPUSD tends to move 1% each day. If you have an account balance of $10k then it would be crazy to take a position of $500k (50:1 leveraged). A 1% move on $500k is $5k.
Two perfectly regular down days in a row — or a single day’s move of 2% — and you will receive a margin call from the broker, have the account closed out, and have lost all your money.
Do not let this happen to you. Use position sizing discipline to protect yourself.

Kelly Criterion

If you’re wondering - why “about 2%” per trade? - that’s a fair question. Why not 0.5% or 10% or any other number?
The Kelly Criterion is a formula that was adapted for use in casinos. If you know the odds of winning and the expected pay-off, it tells you how much you should bet in each round.
This is harder than it sounds. Let’s say you could bet on a weighted coin flip, where it lands on heads 60% of the time and tails 40% of the time. The payout is $2 per $1 bet.
Well, absolutely you should bet. The odds are in your favour. But if you have, say, $100 it is less obvious how much you should bet to avoid ruin.
Say you bet $50, the odds that it could land on tails twice in a row are 16%. You could easily be out after the first two flips.
Equally, betting $1 is not going to maximise your advantage. The odds are 60/40 in your favour so only betting $1 is likely too conservative. The Kelly Criterion is a formula that produces the long-run optimal bet size, given the odds.
Applying the formula to forex trading looks like this:
Position size % = Winning trade % - ( (1- Winning trade %) / Risk-reward ratio
If you have recorded hundreds of trades in your journal - see next chapter - you can calculate what this outputs for you specifically.
If you don't have hundreds of trades then let’s assume some realistic defaults of Winning trade % being 30% and Risk-reward ratio being 3. The 3 implies your TP is 3x the distance of your stop from entry e.g. 300 pips take profit and 100 pips stop loss.
So that’s 0.3 - (1 - 0.3) / 3 = 6.6%.
Hold on a second. 6.6% of your account probably feels like a LOT to risk per trade.This is the main observation people have on Kelly: whilst it may optimise the long-run results it doesn’t take into account the pain of drawdowns. It is better thought of as the rational maximum limit. You needn’t go right up to the limit!
With a 30% winning trade ratio, the odds of you losing on four trades in a row is nearly one in four. That would result in a drawdown of nearly a quarter of your starting account balance. Could you really stomach that and put on the fifth trade, cool as ice? Most of us could not.
Accordingly people tend to reduce the bet size. For example, let’s say you know you would feel emotionally affected by losing 25% of your account.
Well, the simplest way is to divide the Kelly output by four. You have effectively hidden 75% of your account balance from Kelly and it is now optimised to avoid a total wipeout of just the 25% it can see.
This gives 6.6% / 4 = 1.65%. Of course different trading approaches and different risk appetites will provide different optimal bet sizes but as a rule of thumb something between 1-2% is appropriate for the style and risk appetite of most retail traders.
Incidentally be very wary of systems or traders who claim high winning trade % like 80%. Invariably these don’t pass a basic sense-check:
  • How many live trades have you done? Often they’ll have done only a handful of real trades and the rest are simulated backtests, which are overfitted. The model will soon die.
  • What is your risk-reward ratio on each trade? If you have a take profit $3 away and a stop loss $100 away, of course most trades will be winners. You will not be making money, however! In general most traders should trade smaller position sizes and less frequently than they do. If you are going to bias one way or the other, far better to start off too small.

How to use stop losses sensibly

Stop losses have a bad reputation amongst the retail community but are absolutely essential to risk management. No serious discretionary trader can operate without them.
A stop loss is a resting order, left with the broker, to automatically close your position if it reaches a certain price. For a recap on the various order types visit this chapter.
The valid concern with stop losses is that disreputable brokers look for a concentration of stops and then, when the market is close, whipsaw the price through the stop levels so that the clients ‘stop out’ and sell to the broker at a low rate before the market naturally comes back higher. This is referred to as ‘stop hunting’.
This would be extremely immoral behaviour and the way to guard against it is to use a highly reputable top-tier broker in a well regulated region such as the UK.
Why are stop losses so important? Well, there is no other way to manage risk with certainty.
You should always have a pre-determined stop loss before you put on a trade. Not having one is a recipe for disaster: you will find yourself emotionally attached to the trade as it goes against you and it will be extremely hard to cut the loss. This is a well known behavioural bias that we’ll explore in a later chapter.
Learning to take a loss and move on rationally is a key lesson for new traders.
A common mistake is to think of the market as a personal nemesis. The market, of course, is totally impersonal; it doesn’t care whether you make money or not.
Bruce Kovner, founder of the hedge fund Caxton Associates
There is an old saying amongst bank traders which is “losers average losers”.
It is tempting, having bought EURUSD and seeing it go lower, to buy more. Your average price will improve if you keep buying as it goes lower. If it was cheap before it must be a bargain now, right? Wrong.
Where does that end? Always have a pre-determined cut-off point which limits your risk. A level where you know the reason for the trade was proved ‘wrong’ ... and stick to it strictly. If you trade using discretion, use stops.

Picking a clear level

Where you leave your stop loss is key.
Typically traders will leave them at big technical levels such as recent highs or lows. For example if EURUSD is trading at 1.1250 and the recent month’s low is 1.1205 then leaving it just below at 1.1200 seems sensible.

If you were going long, just below the double bottom support zone seems like a sensible area to leave a stop
You want to give it a bit of breathing room as we know support zones often get challenged before the price rallies. This is because lots of traders identify the same zones. You won’t be the only one selling around 1.1200.
The “weak hands” who leave their sell stop order at exactly the level are likely to get taken out as the market tests the support. Those who leave it ten or fifteen pips below the level have more breathing room and will survive a quick test of the level before a resumed run-up.
Your timeframe and trading style clearly play a part. Here’s a candlestick chart (one candle is one day) for GBPUSD.

https://preview.redd.it/moyngdy4f5h51.png?width=1200&format=png&auto=webp&s=91af88da00dd3a09e202880d8029b0ddf04fb802
If you are putting on a trend-following trade you expect to hold for weeks then you need to have a stop loss that can withstand the daily noise. Look at the downtrend on the chart. There were plenty of days in which the price rallied 60 pips or more during the wider downtrend.
So having a really tight stop of, say, 25 pips that gets chopped up in noisy short-term moves is not going to work for this kind of trade. You need to use a wider stop and take a smaller position size, determined by the stop level.
There are several tools you can use to help you estimate what is a safe distance and we’ll look at those in the next section.
There are of course exceptions. For example, if you are doing range-break style trading you might have a really tight stop, set just below the previous range high.

https://preview.redd.it/ygy0tko7f5h51.png?width=1200&format=png&auto=webp&s=34af49da61c911befdc0db26af66f6c313556c81
Clearly then where you set stops will depend on your trading style as well as your holding horizons and the volatility of each instrument.
Here are some guidelines that can help:
  1. Use technical analysis to pick important levels (support, resistance, previous high/lows, moving averages etc.) as these provide clear exit and entry points on a trade.
  2. Ensure that the stop gives your trade enough room to breathe and reflects your timeframe and typical volatility of each pair. See next section.
  3. Always pick your stop level first. Then use a calculator to determine the appropriate lot size for the position, based on the % of your account balance you wish to risk on the trade.
So far we have talked about price-based stops. There is another sort which is more of a fundamental stop, used alongside - not instead of - price stops. If either breaks you’re out.
For example if you stop understanding why a product is going up or down and your fundamental thesis has been confirmed wrong, get out. For example, if you are long because you think the central bank is turning hawkish and AUDUSD is going to play catch up with rates … then you hear dovish noises from the central bank and the bond yields retrace lower and back in line with the currency - close your AUDUSD position. You already know your thesis was wrong. No need to give away more money to the market.

Coming up in part II

EDIT: part II here
Letting stops breathe
When to change a stop
Entering and exiting winning positions
Risk:reward ratios
Risk-adjusted returns

Coming up in part III

Squeezes and other risks
Market positioning
Bet correlation
Crap trades, timeouts and monthly limits

***
Disclaimer:This content is not investment advice and you should not place any reliance on it. The views expressed are the author's own and should not be attributed to any other person, including their employer.
submitted by getmrmarket to Forex [link] [comments]

Futures Trading

Hi, we have a group of 12 people in our Slack. We are looking to expand this number and hopefully you will be a good fit :) . We are searching for people who have some experience with technical analysis based trading or are at least experienced with paper trading. This could either be in Cryptocurrencies which is the main focus of the group. Or could be in other markets like Forex or Stocks.
We have a variety of skill levels in the group from beginners through to profitable, we all want to improve quickly. Ideally you would have the same aspirations. One of the main goals of this group is to help each other to become consistently profitable traders who can trade as their full time job.
Everyone in the group trades separately and has their own accounts. We don't want to sell you anything, we are just building a community that aims to help each other succeed.
Some of the things we do in the slack are:
If you are interested in finding out more about the group or want to join, either comment below or Pm me with the below template.
Expression of interest template:
Name:
Country:
Time Zone:
How much experience you have in trading:
What you trade:
Additional comments:
---
Example expression of interest:
Name: Ben.
Country: Australia.
Time Zone: AEDT (GMT+11).
How much experience you have in trading: 6 Months.
What you trade: Cryptocurrency spot and futures. Mostly BTC, ETH, ADA, LTC, ATOM, XTZ, ETC, LINK, THETA.
Additional comments: I have been trading as a pair with 1 other person for the last 6 months. We have been meeting 5 days a week for those 5 months. Working together has been really beneficial for us. The slack group has been around for nearly 2 months now and has made a positive difference to my trading. It took the benefits I was getting from trading with 1 other person and multiplied them.
If you have any other questions ask below :)
submitted by Bensetera to FuturesTrading [link] [comments]

Looking For People To Join Our Crypto Technical Analysis Slack Group.

Hi, we have a group of 10 people in our Slack. We are looking to expand this number and hopefully you will be a good fit :) . We are searching for people who have some experience with technical analysis based trading or are at least experienced with paper trading. This could either be in Cryptocurrencies which is the main focus of the group. Or could be in other markets like Forex or Stocks.
We have a variety of skill levels in the group from beginners through to profitable, we all want to improve quickly. Ideally you would have the same aspirations. One of the main goals of this group is to help each other to become consistently profitable traders who can trade as their full time job.
Everyone in the group trades separately and has their own accounts. We don't want to sell you anything, we are just building a community that aims to help each other succeed.
Some of the things we do in the slack are:
If you are interested in finding out more about the group or want to join, either comment below or Pm me with the below template.
Expression of interest template:
Name:
Country:
Time Zone:
How much experience you have in trading:
What you trade:
Additional comments:
---
Example expression of interest:
Name: Ben.
Country: Australia.
Time Zone: AEDT (GMT+11).
How much experience you have in trading: 6 Months.
What you trade: Cryptocurrency spot and futures. Mostly BTC, ETH, ADA, LTC, ATOM, XTZ, ETC, LINK, THETA.
Additional comments: I have been trading as a pair with 1 other person for the last 6 months. We have been meeting 5 days a week for those 5 months. Working together has been really beneficial for us. The slack group has been around for nearly 2 months now and has made a positive difference to my trading. It took the benefits I was getting from trading with 1 other person and multiplied them.
If you have any other questions ask below :)
submitted by Bensetera to CryptoMarkets [link] [comments]

Some trading wisdom, tools and information I picked up along the way that helped me be a better trader. Maybe it can help you too.

Its a bit lengthy and I tried to condense it as much as I can. So take everything at a high level as each subject is has a lot more depth but fundamentally if you distill it down its just taking simple things and applying your experience using them to add nuance and better deploy them.
There are exceptions to everything that you will learn with experience or have already learned. If you know something extra or something to add to it to implement it better or more accurately. Then great! However, my intention of this post is just a high level overview. Trading can be far too nuanced to go into in this post and would take forever to type up every exception (not to mention the traders individual personality). If you take the general information as a starting point, hopefully you will learn the edge cases long the way and learn how to use the more effectively if you end up using them. I apologize in advice for any errors or typos.
Introduction After reflecting on my fun (cough) trading journey that was more akin to rolling around on broken glass and wondering if brown glass will help me predict market direction better than green glass. Buying a $100 indicator at 2 am when I was acting a fool, looking at it and going at and going "This is a piece of lagging crap, I miss out on a large part of the fundamental move and never using it for even one trade". All while struggling with massive over trading and bad habits because I would get bored watching a single well placed trade on fold for the day. Also, I wanted to get rich quick.
On top all of that I had a terminal Stage 4 case of FOMO on every time the price would move up and then down then back up. Just think about all those extra pips I could have trading both directions as it moves across the chart! I can just sell right when it goes down, then buy right before it goes up again. Its so easy right? Well, turns out it was not as easy as I thought and I lost a fair chunk of change and hit my head against the wall a lot until it clicked. Which is how I came up with a mixed bag of things that I now call "Trade the Trade" which helped support how I wanted to trade so I can still trade intra day price action like a rabid money without throwing away all my bananas.
Why Make This Post? - Core Topic of Discussion I wish to share a concept I came up with that helped me become a reliable trader. Support the weakness of how I like to trade. Also, explaining what I do helps reinforce my understanding of the information I share as I have to put words to it and not just use internalized processes. I came up with a method that helped me get my head straight when trading intra day.
I call it "Trade the Trade" as I am making mini trades inside of a trade setup I make from analysis on a higher timeframe that would take multiple days to unfold or longer. I will share information, principles, techniques I used and learned from others I talked to on the internet (mixed bag of folks from armatures to professionals, and random internet people) that helped me form a trading style that worked for me. Even people who are not good at trading can say something that might make it click in your head so I would absorbed all the information I could get.I will share the details of how I approach the methodology and the tools in my trading belt that I picked up by filtering through many tools, indicators strategies and witchcraft. Hopefully you read something that ends up helping you be a better trader. I learned a lot from people who make community posts so I wanted to give back now that I got my ducks in a row.
General Trading Advice If your struggling finding your own trading style, fixing weakness's in it, getting started, being reliably profitable or have no framework to build yourself higher with, hopefully you can use the below advice to help provide some direction or clarity to moving forward to be a better trader.
  1. KEEP IT SIMPLE. Do not throw a million things on your chart from the get go or over analyzing what the market is doing while trying to learn the basics. Tons of stuff on your chart can actually slow your learning by distracting your focus on all your bells and whistles and not the price action.
  2. PRICE ACTION. Learn how to read price action. Not just the common formations, but larger groups of bars that form the market structure. Those formations carry more weight the higher the time frame they form on. If struggle to understand what is going on or what your looking at, move to a higher time frame.
  3. INDICATORS. If you do use them you should try to understand how every indicator you use calculates its values. Many indicators are lagging indicators, understanding how it calculates the values can help you learn how to identify the market structure before the indicator would trigger a signal . This will help you understand why the signal is a lagged signal. If you understand that you can easily learn to look at the price action right before the signal and learn to watch for that price action on top of it almost trigging a signal so you can get in at a better position and assume less downside risk. I recommend using no more than 1-2 indicators for simplicity, but your free to use as many as you think you think you need or works for your strategy/trading style.
  4. PSYCOLOGY. First, FOMO is real, don't feed the beast. When you trade you should always have an entry and exit. If you miss your entry do not chase it, wait for a new entry. At its core trading is gambling and your looking for an edge against the house (the other market participants). With that in mind, treat as such. Do not risk more than you can afford to lose. If you are afraid to lose it will negatively effect your trade decisions. Finally, be honest with your self and bad trading happens. No one is going to play trade cop and keep you in line, that's your job.
  5. TRADE DECISION MARKING: Before you enter any trade you should have an entry and exit area. As you learn price action you will get better entries and better exits. Use a larger zone and stop loss at the start while learning. Then you can tighten it up as you gain experience. If you do not have a area you wish to exit, or you are entering because "the markets looking like its gonna go up". Do not enter the trade. Have a reason for everything you do, if you cannot logically explain why then you probably should not be doing it.
  6. ROBOTS/ALGOS: Loved by some, hated by many who lost it all to one, and surrounded by scams on the internet. If you make your own, find a legit one that works and paid for it or lost it all on a crappy one, more power to ya. I do not use robots because I do not like having a robot in control of my money. There is too many edge cases for me to be ok with it.However, the best piece of advice about algos was that the guy had a algo/robot for each market condition (trending/ranging) and would make personalized versions of each for currency pairs as each one has its own personality and can make the same type of movement along side another currency pair but the price action can look way different or the move can be lagged or leading. So whenever he does his own analysis and he sees a trend, he turns the trend trading robot on. If the trend stops, and it starts to range he turns the range trading robot on. He uses robots to trade the market types that he is bad at trading. For example, I suck at trend trading because I just suck at sitting on my hands and letting my trade do its thing.

Trade the Trade - The Methodology

Base Principles These are the base principles I use behind "Trade the Trade". Its called that because you are technically trading inside your larger high time frame trade as it hopefully goes as you have analyzed with the trade setup. It allows you to scratch that intraday trading itch, while not being blind to the bigger market at play. It can help make sense of why the price respects, rejects or flat out ignores support/resistance/pivots.
  1. Trade Setup: Find a trade setup using high level time frames (daily, 4hr, or 1hr time frames). The trade setup will be used as a base for starting to figure out a bias for the markets direction for that day.
  2. Indicator Data: Check any indicators you use (I use Stochastic RSI and Relative Vigor Index) for any useful information on higher timeframes.
  3. Support Resistance: See if any support/resistance/pivot points are in currently being tested/resisted by the price. Also check for any that are within reach so they might become in play through out the day throughout the day (which can influence your bias at least until the price reaches it if it was already moving that direction from previous days/weeks price action).
  4. Currency Strength/Weakness: I use the TradeVision currency strength/weakness dashboard to see if the strength/weakness supports the narrative of my trade and as an early indicator when to keep a closer eye for signs of the price reversing.Without the tool, the same concept can be someone accomplished with fundamentals and checking for higher level trends and checking cross currency pairs for trends as well to indicate strength/weakness, ranging (and where it is in that range) or try to get some general bias from a higher level chart that may help you out. However, it wont help you intra day unless your monitoring the currency's index or a bunch of charts related to the currency.
  5. Watch For Trading Opportunities: Personally I make a mental short list and alerts on TradingView of currency pairs that are close to key levels and so I get a notification if it reaches there so I can check it out. I am not against trading both directions, I just try to trade my bias before the market tries to commit to a direction. Then if I get out of that trade I will scalp against the trend of the day and hold trades longer that are with it.Then when you see a opportunity assume the directional bias you made up earlier (unless the market solidly confirms with price action the direction while waiting for an entry) by trying to look for additional confirmation via indicators, price action on support/resistances etc on the low level time frame or higher level ones like hourly/4hr as the day goes on when the price reaches key areas or makes new market structures to get a good spot to enter a trade in the direction of your bias.Then enter your trade and use the market structures to determine how much of a stop you need. Once your in the trade just monitor it and watch the price action/indicators/tools you use to see if its at risk of going against you. If you really believe the market wont reach your TP and looks like its going to turn against you, then close the trade. Don't just hold on to it for principle and let it draw down on principle or the hope it does not hit your stop loss.
  6. Trade Duration Hold your trades as long or little as you want that fits your personality and trading style/trade analysis. Personally I do not hold trades past the end of the day (I do in some cases when a strong trend folds) and I do not hold trades over the weekends. My TP targets are always places I think it can reach within the day. Typically I try to be flat before I sleep and trade intra day price movements only. Just depends on the higher level outlook, I have to get in at really good prices for me to want to hold a trade and it has to be going strong. Then I will set a slightly aggressive stop on it before I leave. I do know several people that swing trade and hold trades for a long period of time. That is just not a trading style that works for me.
Enhance Your Success Rate Below is information I picked up over the years that helped me enhance my success rate with not only guessing intra day market bias (even if it has not broken into the trend for the day yet (aka pre London open when the end of Asia likes to act funny sometimes), but also with trading price action intra day.
People always say "When you enter a trade have an entry and exits. I am of the belief that most people do not have problem with the entry, its the exit. They either hold too long, or don't hold long enough. With the below tools, drawings, or instruments, hopefully you can increase your individual probability of a successful trade.
**P.S.*\* Your mileage will vary depending on your ability to correctly draw, implement and interpret the below items. They take time and practice to implement with a high degree of proficiency. If you have any questions about how to do that with anything listed, comment below and I will reply as I can. I don't want to answer the same question a million times in a pm.
Tools and Methods Used This is just a high level overview of what I use. Each one of the actions I could go way more in-depth on but I would be here for a week typing something up of I did that. So take the information as a base level understanding of how I use the method or tool. There is always nuance and edge cases that you learn from experience.
Conclusion
I use the above tools/indicators/resources/philosophy's to trade intra day price action that sometimes ends up as noise in the grand scheme of the markets movement.use that method until the price action for the day proves the bias assumption wrong. Also you can couple that with things like Stoch RSI + Relative Vigor Index to find divergences which can increase the probability of your targeted guesses.

Trade Example from Yesterday This is an example of a trade I took today and why I took it. I used the following core areas to make my trade decision.
It may seem like a lot of stuff to process on the fly while trying to figure out live price action but, for the fundamental bias for a pair should already baked in your mindset for any currency pair you trade. For the currency strength/weakness I stare at the dashboard 12-15 hours a day so I am always trying to keep a pulse on what's going or shifts so that's not really a factor when I want to enter as I would not look to enter if I felt the market was shifting against me. Then the higher timeframe analysis had already happened when I woke up, so it was a game of "Stare at the 5 min chart until the price does something interesting"
Trade Example: Today , I went long EUUSD long bias when I first looked at the chart after waking up around 9-10pm Eastern. Fortunately, the first large drop had already happened so I had a easy baseline price movement to work with. I then used tool for currency strength/weakness monitoring, Pivot Points, and bearish divergence detected using Stochastic RSI and Relative Vigor Index.
I first noticed Bearish Divergence on the 1hr time frame using the Stochastic RSI and got confirmation intra day on the 5 min time frame with the Relative Vigor Index. I ended up buying the second mini dip around midnight Eastern because it was already dancing along the pivot point that the price had been dancing along since the big drop below the pivot point and dipped below it and then shortly closed back above it. I put a stop loss below the first large dip. With a TP goal of the middle point pivot line
Then I waited for confirmation or invalidation of my trade. I ended up getting confirmation with Bearish Divergence from the second large dip so I tightened up my stop to below that smaller drip and waited for the London open. Not only was it not a lower low, I could see the divergence with the Relative Vigor Index.
It then ran into London and kept going with tons of momentum. Blew past my TP target so I let it run to see where the momentum stopped. Ended up TP'ing at the Pivot Point support/resistance above the middle pivot line.
Random Note: The Asian session has its own unique price action characteristics that happen regularly enough that you can easily trade them when they happen with high degrees of success. It takes time to learn them all and confidently trade them as its happening. If you trade Asia you should learn to recognize them as they can fake you out if you do not understand what's going on.

TL;DR At the end of the day there is no magic solution that just works. You have to find out what works for you and then what people say works for them. Test it out and see if it works for you or if you can adapt it to work for you. If it does not work or your just not interested then ignore it.
At the end of the day, you have to use your brain to make correct trading decisions. Blindly following indicators may work sometimes in certain market conditions, but trading with information you don't understand can burn you just as easily as help you. Its like playing with fire. So, get out there and grind it out. It will either click or it wont. Not everyone has the mindset or is capable of changing to be a successful trader. Trading is gambling, you do all this work to get a edge on the house. Trading without the edge or an edge you understand how to use will only leave your broker happy in the end.
submitted by marcusrider to Forex [link] [comments]

I have created a monster.

I have been trading for 3 months (6 months demo before that). Up until 3 days ago I have always traded with discipline, set SL, understood risk management and make reports out of downloadable CSV data from the broker. I even journal each trade at the end of the day. Each trade I make risks from 0.5% - 2% depending on how confident I am on the particular trade. The first 2 months of grind made 5% and 7% respectively.
Several days ago, I lost 3 trades in a row and felt like George Costanza. It was especially demoralizing because I followed the technical, fundamental, trend, and confirmed with indicator, etc... yet, each went straight for my SL. I took the day off and reflected on what I did wrong. I lost 6% of my capital that day, a whole month's work.
The very next day, during the Fed chair Powell speech, I focused on EUUSD, and as the chart started to run higher and higher, I am not sure what came over me, I entered long at 1.18401 and risked 20% of my capital. I was going to enter my usual 2% risk, but the greed (subconsciously?) in me added an extra 0. The very second the trade was entered, I felt a hot flash and my heart started pumping, I entered into loss territory, my heart sunk as I watch it go down 10 pips, 15 pips, if only for 15 seconds. Then it started going up, and it was exhilarating watching the profits. I had the good sense to enter TP at 1.189, and it got there 15 minutes later. I had just made a little over 10% of my capital in 15 minutes. Recovered yesterday's 6% loss and then some.
I told my self that this was a one time thing, stupid and impulsive thing to do... until the next day...
I saw a good opportunity with USD/JPY. I didn't even bother to check anything, technical, fundamental, indicators, NOTHING! Just that vertical cliff short candle... , my god, that full short candle, and the speed! This time, very much a conscious decision, I entered short with 30% of my capital at 106.5. 4 hours later, I hit my TP at 105.5. I had made 30% of my capital in 4 hours.
In the last 2 trading days, up 40% of my capital, including my previous 2 months of measly 12% in comparison, I am roughly up 50% of my original capital in 3 months.
This has been a good week to say the least. But I am afraid I have created an insatiable monster. The greed has overtaken good sense, and this is quite possibly the origin story of a blown account.
submitted by DodoGizmo to Forex [link] [comments]

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