Scalping Definition / Forex scalping strategies by ProfitF
Scalping Definition / Forex scalping strategies by ProfitF
What is Scalping on Forex. 1-minute scalping strategy ...
What is Scalping in Forex - RebateKingFX
Forex Scalping Definition - Investopedia
Forex Scalping Strategy - ForexSignals.com
Ultimate Forex Scalping Guide and 1-Minute Scalping Strategy
Is Scalping a Viable Forex Trading Strategy?
The comedy how I lost all my money in two hours
I'm trading for 11 months with pretty good success. I never traded metals and forex before, just stocks. Today when gold started to consolidate at the last hour, I decided to scalp short it with a large amount, so I opened 100 lots. I haven't realised, in forex 100 (lots) doesn't mean "100 pcs", because I used to stocks and I went full retard without knowledge. Seconds later, I realised it means 10 million dollars (1 lot = 100.000, and I had 500x leverage). It moved up a bit and immediately I was down £4000. I scared as fuck and rather than closing the position quickly I hoped maybe I could close break even. The market closed, and I waited for the Asian session. The gold popped like never before, and I lost all my life savings (£55000) in less than two hours. (including the 1-hour break between sessions). If I count that I lost all my earnings as well, I lost around £85000. Here is the margin call https://imgur.com/a/XY5m4ZA https://imgur.com/a/VSgmCSs https://imgur.com/pRWl5g9 IC Markets closed my position partially in every 1-2 minutes until I shut it myself at £35. You know the rest of the story. I'm depressed, crying and shouting with myself. Yes, I know I was stupid, thanks. I just wanted to share this with you. Edit: WOW THANK YOU, GUYS! I haven't expected this, but you help me. Many of you asked the same questions, I answer it here: - I live in Europe, and we usually trade CFD's, not futures. - Currency in GBP. - As you can see, this account made on IC Markets. They not just allowing you a 500x leverage, it's the default. - You can ask me why I went against the market. Because gold is way oversold? Because I expected institutions would sell their shares before gold is hitting £2000, leaving retails hanging there. Also, as I said, I wanted to scalp, not riding the gold all the way down. If I had a loss of £100, I would close the position immediately. But when I saw the £4000, my heart is stopped, and my brain just freezes. - I went for a revenge trade with my last £2k, and I don't have to say what happened. I uninstalled the app, and I give up trading for a while. - Again, in the past months, I was cautious, I lost a significant sum in March, but I managed to recover. Made consistent gains, always with SL. This is just an example of how easy is to fuck up everything you did. - I didn't come here for some shiny digital medals. I can't tell about my losses to anyone who I know in real life. I would make a fool of myself. - Anyone who attacking me that it is a scam. Well, think what you want. I feel terrible and the last thing is to answer all the messages saying "You fucking karma whore". I don't give a shit about karma.
Former investment bank FX trader: Risk management part 3/3
Welcome to the third and final part of this chapter. Thank you all for the 100s of comments and upvotes - maybe this post will take us above 1,000 for this topic! Keep any feedback or questions coming in the replies below. Before you read this note, please start with Part I and then Part II so it hangs together and makes sense. Part III
Squeezes and other risks
Crap trades, timeouts and monthly limits
Squeezes and other risks
We are going to cover three common risks that traders face: events; squeezes, asymmetric bets.
Economic releases can cause large short-term volatility. The most famous is Non Farm Payrolls, which is the most widely watched measure of US employment levels and affects the price of many instruments.On an NFP announcement currencies like EURUSD might jump (or drop) 100 pips no problem. This is fine and there are trading strategies that one may employ around this but the key thing is to be aware of these releases.You can find economic calendars all over the internet - including on this site - and you need only check if there are any major releases each day or week. For example, if you are trading off some intraday chart and scalping a few pips here and there it would be highly sensible to go into a known data release flat as it is pure coin-toss and not the reason for your trading. It only takes five minutes each day to plan for the day ahead so do not get caught out by this. Many retail traders get stopped out on such events when price volatility is at its peak.
Short squeezes bring a lot of danger and perhaps some opportunity. The story of VW and Porsche is the best short squeeze ever. Throughout these articles we've used FX examples wherever possible but in this one instance the concept (which is also highly relevant in FX) is best illustrated with an historical lesson from a different asset class. A short squeeze is when a participant ends up in a short position they are forced to cover. Especially when the rest of the market knows that this participant can be bullied into stopping out at terrible levels, provided the market can briefly drive the price into their pain zone. There's a reason for the car, don't worry Hedge funds had been shorting VW stock. However the amount of VW stock available to buy in the open market was actually quite limited. The local government owned a chunk and Porsche itself had bought and locked away around 30%. Neither of these would sell to the hedge-funds so a good amount of the stock was un-buyable at any price. If you sell or short a stock you must be prepared to buy it back to go flat at some point. To cut a long story short, Porsche bought a lot of call options on VW stock. These options gave them the right to purchase VW stock from banks at slightly above market price. Eventually the banks who had sold these options realised there was no VW stock to go out and buy since the German government wouldn’t sell its allocation and Porsche wouldn’t either. If Porsche called in the options the banks were in trouble. Porsche called in the options which forced the shorts to buy stock - at whatever price they could get it. The price squeezed higher as those that were short got massively squeezed and stopped out. For one brief moment in 2008, VW was the world’s most valuable company. Shorts were burned hard. Incredible event Porsche apparently made $11.5 billion on the trade. The BBC described Porsche as “a hedge fund with a carmaker attached.” If this all seems exotic then know that the same thing happens in FX all the time. If everyone in the market is talking about a key level in EURUSD being 1.2050 then you can bet the market will try to push through 1.2050 just to take out any short stops at that level. Whether it then rallies higher or fails and trades back lower is a different matter entirely. This brings us on to the matter of crowded trades. We will look at positioning in more detail in the next section. Crowded trades are dangerous for PNL. If everyone believes EURUSD is going down and has already sold EURUSD then you run the risk of a short squeeze. For additional selling to take place you need a very good reason for people to add to their position whereas a move in the other direction could force mass buying to cover their shorts. A trading mentor when I worked at the investment bank once advised me: Always think about which move would cause the maximum people the maximum pain. That move is precisely what you should be watching out for at all times.
Also known as picking up pennies in front of a steamroller. This risk has caught out many a retail trader. Sometimes it is referred to as a "negative skew" strategy. Ideally what you are looking for is asymmetric risk trade set-ups: that is where the downside is clearly defined and smaller than the upside. What you want to avoid is the opposite. A famous example of this going wrong was the Swiss National Bank de-peg in 2012. The Swiss National Bank had said they would defend the price of EURCHF so that it did not go below 1.2. Many people believed it could never go below 1.2 due to this. Many retail traders therefore opted for a strategy that some describe as ‘picking up pennies in front of a steam-roller’. They would would buy EURCHF above the peg level and hope for a tiny rally of several pips before selling them back and keep doing this repeatedly. Often they were highly leveraged at 100:1 so that they could amplify the profit of the tiny 5-10 pip rally. Then this happened. Something that changed FX markets forever The SNB suddenly did the unthinkable. They stopped defending the price. CHF jumped and so EURCHF (the number of CHF per 1 EUR) dropped to new lows very fast. Clearly, this trade had horrific risk : reward asymmetry: you risked 30% to make 0.05%. Other strategies like naively selling options have the same result. You win a small amount of money each day and then spectacularly blow up at some point down the line.
We have talked about short squeezes. But how do you know what the market position is? And should you care? Let’s start with the first. You should definitely care. Let’s imagine the entire market is exceptionally long EURUSD and positioning reaches extreme levels. This makes EURUSD very vulnerable. To keep the price going higher EURUSD needs to attract fresh buy orders. If everyone is already long and has no room to add, what can incentivise people to keep buying? The news flow might be good. They may believe EURUSD goes higher. But they have already bought and have their maximum position on. On the flip side, if there’s an unexpected event and EURUSD gaps lower you will have the entire market trying to exit the position at the same time. Like a herd of cows running through a single doorway. Messy. We are going to look at this in more detail in a later chapter, where we discuss ‘carry’ trades. For now this TRYJPY chart might provide some idea of what a rush to the exits of a crowded position looks like. A carry trade position clear-out in action Knowing if the market is currently at extreme levels of long or short can therefore be helpful. The CFTC makes available a weekly report, which details the overall positions of speculative traders “Non Commercial Traders” in some of the major futures products. This includes futures tied to deliverable FX pairs such as EURUSD as well as products such as gold. The report is called “CFTC Commitments of Traders” ("COT"). This is a great benchmark. It is far more representative of the overall market than the proprietary ones offered by retail brokers as it covers a far larger cross-section of the institutional market. Generally market participants will not pay a lot of attention to commercial hedgers, which are also detailed in the report. This data is worth tracking but these folks are simply hedging real-world transactions rather than speculating so their activity is far less revealing and far more noisy. You can find the data online for free and download it directly here. Raw format is kinda hard to work with However, many websites will chart this for you free of charge and you may find it more convenient to look at it that way. Just google “CFTC positioning charts”. But you can easily get visualisations You can visually spot extreme positioning. It is extremely powerful. Bear in mind the reports come out Friday afternoon US time and the report is a snapshot up to the prior Tuesday. That means it is a lagged report - by the time it is released it is a few days out of date. For longer term trades where you hold positions for weeks this is of course still pretty helpful information. As well as the absolute level (is the speculative market net long or short) you can also use this to pick up on changes in positioning. For example if bad news comes out how much does the net short increase? If good news comes out, the market may remain net short but how much did they buy back? A lot of traders ask themselves “Does the market have this trade on?” The positioning data is a good method for answering this. It provides a good finger on the pulse of the wider market sentiment and activity. For example you might say: “There was lots of noise about the good employment numbers in the US. However, there wasn’t actually a lot of position change on the back of it. Maybe everyone who wants to buy already has. What would happen now if bad news came out?” In general traders will be wary of entering a crowded position because it will be hard to attract additional buyers or sellers and there could be an aggressive exit. If you want to enter a trade that is showing extreme levels of positioning you must think carefully about this dynamic.
Retail traders often drastically underestimate how correlated their bets are. Through bitter experience, I have learned that a mistake in position correlation is the root of some of the most serious problems in trading. If you have eight highly correlated positions, then you are really trading one position that is eight times as large. Bruce Kovner of hedge fund, Caxton Associates For example, if you are trading a bunch of pairs against the USD you will end up with a simply huge USD exposure. A single USD-trigger can ruin all your bets. Your ideal scenario — and it isn’t always possible — would be to have a highly diversified portfolio of bets that do not move in tandem. Look at this chart. Inverted USD index (DXY) is green. AUDUSD is orange. EURUSD is blue. Chart from TradingView So the whole thing is just one big USD trade! If you are long AUDUSD, long EURUSD, and short DXY you have three anti USD bets that are all likely to work or fail together. The more diversified your portfolio of bets are, the more risk you can take on each. There’s a really good video, explaining the benefits of diversification from Ray Dalio. A systematic fund with access to an investable universe of 10,000 instruments has more opportunity to make a better risk-adjusted return than a trader who only focuses on three symbols. Diversification really is the closest thing to a free lunch in finance. But let’s be pragmatic and realistic. Human retail traders don’t have capacity to run even one hundred bets at a time. More realistic would be an average of 2-3 trades on simultaneously. So what can be done? For example:
You might diversify across time horizons by having a mix of short-term and long-term trades.
You might diversify across asset classes - trading some FX but also crypto and equities.
You might diversify your trade generation approach so you are not relying on the same indicators or drivers on each trade.
You might diversify your exposure to the market regime by having some trades that assume a trend will continue (momentum) and some that assume we will be range-bound (carry).
And so on. Basically you want to scan your portfolio of trades and make sure you are not putting all your eggs in one basket. If some trades underperform others will perform - assuming the bets are not correlated - and that way you can ensure your overall portfolio takes less risk per unit of return. The key thing is to start thinking about a portfolio of bets and what each new trade offers to your existing portfolio of risk. Will it diversify or amplify a current exposure?
Crap trades, timeouts and monthly limits
One common mistake is to get bored and restless and put on crap trades. This just means trades in which you have low conviction. It is perfectly fine not to trade. If you feel like you do not understand the market at a particular point, simply choose not to trade. Flat is a position. Do not waste your bullets on rubbish trades. Only enter a trade when you have carefully considered it from all angles and feel good about the risk. This will make it far easier to hold onto the trade if it moves against you at any point. You actually believe in it. Equally, you need to set monthly limits. A standard limit might be a 10% account balance stop per month. At that point you close all your positions immediately and stop trading till next month. Be strict with yourself and walk away Let’s assume you started the year with $100k and made 5% in January so enter Feb with $105k balance. Your stop is therefore 10% of $105k or $10.5k . If your account balance dips to $94.5k ($105k-$10.5k) then you stop yourself out and don’t resume trading till March the first. Having monthly calendar breaks is nice for another reason. Say you made a load of money in January. You don’t want to start February feeling you are up 5% or it is too tempting to avoid trading all month and protect the existing win. Each month and each year should feel like a clean slate and an independent period. Everyone has trading slumps. It is perfectly normal. It will definitely happen to you at some stage. The trick is to take a break and refocus. Conserve your capital by not trading a lot whilst you are on a losing streak. This period will be much harder for you emotionally and you’ll end up making suboptimal decisions. An enforced break will help you see the bigger picture. Put in place a process before you start trading and then it’ll be easy to follow and will feel much less emotional. Remember: the market doesn’t care if you win or lose, it is nothing personal. When your head has cooled and you feel calm you return the next month and begin the task of building back your account balance.
That's a wrap on risk management
Thanks for taking time to read this three-part chapter on risk management. I hope you enjoyed it. Do comment in the replies if you have any questions or feedback. Remember: the most important part of trading is not making money. It is not losing money. Always start with that principle. I hope these three notes have provided some food for thought on how you might approach risk management and are of practical use to you when trading. Avoiding mistakes is not a sexy tagline but it is an effective and reliable way to improve results. Next up I will be writing about an exciting topic I think many traders should look at rather differently: news trading. Please follow on here to receive notifications and the broad outline is below. News Trading Part I
Why use the economic calendar
Reading the economic calendar
Knowing what's priced in
First order thinking vs second order thinking
News Trading Part II
Preparing for quantitative and qualitative releases
Data surprise index
Using recent events to predict future reactions
Buy the rumour, sell the fact
The mysterious 'position trim' effect
Some key FX releases
*** 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.
Profitable forex strategy: it is a type of instruction for the trader, which helps to follow a clearly verified algorithm and safeguard his deposit from emotional errors and consequences of the unpredictability of the Forex currency market.
Thanks to her, you will always know the answer to the question: how to act in certain market conditions. You have the conditions of opening a transaction, the conditions of its closing, likewise, you do not guess if it is time or not. You do what the trading strategy tells you. This does not mean that it cannot be changed. A healthy trading scheme in the forex market must be constantly adjusted, it must comply with the realities of current market trends, but there must be no unfounded arguments in it. >>> Forex Signals With Unbeatable Performance: Verified Forex Results And 5° Rated OnInvesting.com|Free Forex Signals Trial:CLICK HERE TO JOIN FOR FREE
Profitable Forex Strategy Reddit
Types of trading strategies The forms of a trading strategy can combine a variety of methods. However, several of the most commonly used options can be highlighted.
Trading strategy based on various complementary technical indicators
Trading strategy using Bollinger Bands
Moving Average Strategy
Technical figures and patterns
Trading with Fibonacci levels
Candlestick trading strategy
Trend trading strategy
Flat trading strategy
Fundamental analysis as the basis of the strategy
Three most profitable Forex strategies
Important!These strategies are the basis for building your own trading system.Indicator settings and recommended pending order levels are for consultation only.If you do not get a satisfactory outcome in the test result or in a live account, that does not mean that the problem is the strategy.It is enough to choose individual parameters of indicators under a separate asset and under the current market situation.
1. “Bali” scalping strategy
This strategy is one of the most popular, at least its description can be found on many websites. However, the recommendations will be different. According to the author's idea, "Bali" refers to scalping tactics, as it facilitates a fairly short stop loss (SL) and take profit (TP). However, the recommended time frame is high, because the signals appear not very often. The authors recommend using the H1 interval and the EUR / USD currency pair. Indicators used:
Linear Weighted Moving Average. Period 48 (red line).
Important!Note that the indicators for the “Bali” strategy are chosen in such a way as to ultimately give an early signal.This gives the trader time to confirm the signal and check the fundamentals.
MA is one of the basics on MT4, the other two indicators can be found in the archive for free here. To add them to the platform, click on MT4: "File / Open data directory". In the folder that opens, follow the following path: MQL4 / Indicators. Copy the flags to the folder and restart the platform. Also Read: Make Money With Trading Conditions to open a long position:
Price penetrates the orange Trend Envelopes line from the bottom up. At the same time in the same candle there is a change of the orange line that falls to a growing celestial.
The candle is above LWMA. Once the above condition has been met, we wait for the candle to appear above the moving one. It is important that it closes above the LWMA red line. It is mandatory to have a Skyline Trend Envelopes on a signal candle.
The additional DSS of momentum line on the signal candle is green and is above the dotted line of the signal (that is, it crosses or crosses it).
We open a trade at the close of the signal candle. The recommended stop level is 20-25 points in 4-digit quotes, take profit at 40-50 points. https://preview.redd.it/t48d55s8faw51.jpg?width=1000&format=pjpg&auto=webp&s=1e93863745e74dec536178539817225767cbeb1c The arrow indicates a signal candle where a Trend Envelopes color change occurred. Note (purple ovals) that the blue line is below the orange line and goes upwards (in other cases the signal should be ignored). In the signal candle, the green DSS of momentum line is above the dotted line. Conditions to open a short position:
Price penetrates the Trend Envelopes sky line from top to bottom. At the same time in the same candle there is a change from the increasing celestial line to the falling orange.
The candle is below LWMA. Once the above condition has been met, we wait for the candle to appear below the mobile. It is important that it closes below the LWMA red line. It is mandatory to have an orange Trend Envelopes line on a signal candle.
The additional DSS of momentum line on the signal candle is orange and is below the dotted line of the signal (i.e. crosses or crosses it).
This profitable Forex strategy is weekly and can be used on different currency pairs. It is based on the spring principle of price movement, what went up quickly, sooner or later must fall. To trade you will only need a schedule on any platform and W1 time frame (although the daily interval can be used).
The bearish candle, which signifies last week's movement, has a relatively large body.
Open a long position early next week. Make sure to place a stop loss at 100-140 points and a take profit at 50-70 points. When it is midweek, close the order if it has not yet been closed at take profit or stop loss. After that, wait again for the beginning of the week and repeat the procedure, in any case do not open operations at the end of the current week. https://preview.redd.it/vuihnqspfaw51.jpg?width=1000&format=pjpg&auto=webp&s=7641e9d7701911cc255c4f0c8a53e1660c35c9fe On this chart it is clearly seen that after each large bearish candle there is necessarily a bullish candle (although smaller). The only question is what period to take where it makes sense to compare the relative length of the candles. Here everything is individual for each currency pair. Note that a rising candle was observed followed by a few small bearish candles. But when it comes to minimizing risks, it is best not to open a long response position, as the relatively small decline from the previous week may continue. Conditions to open a short position:
The bullish candle, which signifies last week's movement, has a relatively large body.
We open a short position early next week. https://preview.redd.it/tv4zmf5ufaw51.jpg?width=1000&format=pjpg&auto=webp&s=61cd1dcfc4aebfa6f80343b6c51f7a6e46358602 The red arrows point to the candles that had a large body around the previous bullish candles. Almost all signals turned out to be profitable, except for the transactions indicated by a blue arrow. The shortcomings of the strategy are rare signs, albeit with a high probability of profit. The best thing is that it can be used in several pairs at the same time. This strategy has an interesting modification based on similar logic. Investors with little capital opt for intraday strategies, as their money is insufficient to exert radical pressure on the market. Therefore, if there is a strong move on the weekly chart, this may indicate a cluster of large strong traders. In other words, if there are three weekly candles in one direction, it is most likely the fourth. Here you also have to take into account the psychological factor, 4 candles is equal to one month, and those who "push" the market in one direction, within a month will begin to set profits. Strategy principle:
A "three candles" pattern (ascending and descending) formed on the weekly chart.
It is preferable that each subsequent candle was larger than the previous one. Doji is not taken into account (disembodied candles).
Stop is placed at the closing level of the first candle of the constructed formation. Take profit at 50-100% of the last candle, but it is often better to manually close the trade.
This strategy is universal and is usually given as an example for novice traders. It uses classic EMA (Exponential Moving Average) indicators for MT4 and Parabolic SAR, which acts as a confirmatory indicator. The strategy is trend. Most sources suggest using it in "minutes", but price noise reduces its efficiency. It is better to use M15-M30 intervals. Currency pairs - Any, but you may need to adjust the indicator settings. Indicators used:
EMA with periods 5, 25 and 50. EMA (5) in red, EMA (25) and EMA (50) in yellow. Apply to Close (closing price).
Red EMA (5) crosses the yellows from bottom to top.
Parabolic SAR is located under the sails.
Conditions to open a short position:
Red EMA (5) crosses the yellows from top to bottom.
Parabolic SAR is located above the candles.
The transaction can be opened on the same candle where the mobile crossover occurred. Stop loss at the local minimum, take profit at 20-25 points. But with the manual management of transactions you can extract great benefits. For example, close at the time of the transition from EMA (5) to a horizontal position (change of the angle of inclination of the growth to flat). https://preview.redd.it/4un92jlegaw51.jpg?width=1000&format=pjpg&auto=webp&s=406a700c00722349622d031e20d0858e4196d18b This screen shows that all three signals (two long and one short) were effective. It would be possible to enter the market on the candle by following the signal (in order to accurately verify the direction of the trend), but you would then miss the right time to enter. It is up to you to decide whether it is worth the risk. For one-hour intervals, these parameters hardly work, so be sure to check the performance of the indicators for each period of time in a minimum span of three years. And now that you know the theory, a few words about how to put these strategies into practice. Ready? Then let's get started!
From the theory to the practice
Step 1. Open demo account It's free, requires no deposit, takes up to 15 minutes, and no verification required. On the main page of your broker there is for sures a button "Register", click and follow the instructions. An account can also be opened from other menus (for example, from the top menu, from the commercial conditions of the account, etc.). Step 2. Familiarize yourself with the functionality of the Personal Area. It won't take long. It is at the most user friendly and intuitive. You just need to understand the instruments of the platform and understand how the trades are opened. Step 3. Launch the trading platform. The Personal Area has the platform incorporated, but it is impossible to add templates. Hence, the "Bali" and "Parabolic Profit" strategies can only be executed on MT4.
Characteristics of an effective Forex strategy Reddit
And finally, let's see what makes a profitable Forex strategy effective. What properties should it have? Perhaps three of the most important characteristics can be pointed out.
The minimum number of lag indicators. The smaller they are, the greater the forecast accuracy.
Easy. Understanding your strategy is more important than your saturation with complex elements, formulas, and schematics.
Uniqueness. Any trading strategy must be "tailored" to your trading style, your character, your circumstances, and so on.
It is very important to develop your own trading strategy, but it is necessary to test a large number of already available and proven strategies. On the Forex blog you will find trading strategies available for download. Before using a live account, test your chosen strategy on the demo account on the MetaTrader trading platform. Conclusion. To successfully trade the Forex currency market, create your own trading strategy. Learn what's new, learn out-of-the-box trading schemes, and improve your individual action plan in the market. Only in this case, the trading results will satisfy you to the fullest. Success, dear readers! >>> Forex Signals With Unbeatable Performance: Verified Forex Results And 5° Rated OnInvesting.com|Free Forex Signals Trial:CLICK HERE TO JOIN FOR FREE Join the community for more articles on trading and making money on the Forex and Stock market. ------------------------------------------------ ------------------------------------------------ Disclosure: This post contains affiliate links, if you click and make a purchase I may receive a commission - This has NO extra cost for you.
Just some inspirations / reminders on strategy development
I just talk about really major pairs like EURUSD, USDJPY, etc. Forget about catching a trend, if you wanna trade trends, commodities, stocks, index funds trend way better, a lot more opportunities than forex. Major currencies range at least 70% of the time, if not more. Learn how to make money from ranging markets and hold a trend once you catch it. The biggest purpose of currency is for settling transactions, not for scalping profits. That's why it doesn't trend (aka remaining stable). Stability is why a currency being "major". Therefore most indicators don't work well with these currencies because first they are not designed for forex, second most of them only tell trends or overbought/oversold. Unless you are Soros or central banks etc no major currency can be overbought or oversold. Take advantage of "fakeout" (I still wonder if it's the right way to call it so, Trump's Tweets are one of the sources IMO). Accept the fact that it happens and think about how to profit from it. Market makers and big banks are also just market players, even though very much bigger, they are also profiting from each other. If you can't beat them, join them. Choppy market is still better than a still market. No market maker cares about support or resistance. Like no insider or institutional money (i mean human not machines) would spend hours and hours on charts drawing trend lines before they place an order. Why would you? Planning how to react in different scenarios after a position is opened is much better than trying to act like a crystal ball by looking at history when you trade something that ranges most of the time. The moment you observe a trend, chances are the trend is (almost) over. Even if things are against you, most of the time you can turn it to break even without using lots of margin. (Most news are just as big as baby's cough.) But still, very few news are really big (911, fukushima, brexit, covid, name it), don't ignore the news completely. Money management is very important. Most traders (of course including many of those on reddit) just talk about how to make an entry but seldom talk about how to manage an already open position or how to close a trade. The latter is way more important than the former. Besides japanese candlesticks, there are a lot more charting options out there. Be creative and know what you are trading to the deepest !
Scalping is a type of trading strategy designed to profit from small price changes since the benefits of these transactions are obtained quickly and once an operation has become profitable. All forms of trading require discipline, but because the number of trades is so large, and the profits from each trade are so small, a scalper must rigorously stick to their trading system, to avoid large losses that could eliminate dozens. successful operations. The scalper traders: they will take small profits to take advantage of the gains as they appear. The goal is a successful trading strategy by means of a large number of profitable trades, rather than a few successful trades with large profits. The scalping of the idea of a better risk exposure as the current time each operation is quite short, which reduces the risk of an adverse event that causes a big move. Furthermore, it is considered that smaller movements are easier to achieve than larger movements and that smaller movements are more frequent than larger ones. >>> Forex Signals With Unbeatable Performance: Verified Forex Results And 5° Rated OnInvesting.com|Free Forex Signals Trial:CLICK HERE TO JOIN FOR FREE
The best scalping strategies
Stochastic Oscillator Strategy
Moving average strategy
Parabolic SAR Indicator Strategy
RSI (Relative Strength Index) Strategy
Reddit Forex Scalping Strategies:
1- Scalping trading using the stochastic oscillator
Scalping can be achieved by using the stochastic oscillator. The term stochastic refers to the current price point relative to its range over a recent period of time. When comparing the price of a security with its recent range, a stochastic tries to provide potential changes. The scalping using said oscillator aims to capture the movements of a market trend, ie, one that moves up or down accordingly. Prices tend to close near the extremes of the recent range before a change occurs, as in the example seen below: https://preview.redd.it/7wy3ixui2nw51.png?width=1397&format=png&auto=webp&s=91f50d685dd4841015c51322cee9fb90701aad33 the chart above, for Brent over a three minute period, we can see that the price rises even higher, and the lows in the stochastic (marked with arrows) provide entry points for long trades, when the black line of% K is crosses over with the red dotted line of% D. The operation is exited when the stochastic reaches the maximum value of its range, above 80, when a bearish convergence appears, when the line of% K crosses below with% D. Rather, short positions would be used in a downtrend market, as in the example below. This time, instead of 'buying dips', we are 'selling raises'. Therefore, we will look for a bearish convergence in the direction of the trend, as highlighted below: https://preview.redd.it/y3qqvejs2nw51.png?width=1398&format=png&auto=webp&s=627f3ded47e901c1f9ea97d5416caeea49b9dc3f
2- Scalping using the moving average
Another method is to use moving averages, usually with two relatively short-term and one longer-term to indicate the trend. In the examples below, on a three-minute chart of the EUR / USD pair , we are using 5- and 20-period moving averages in the short term, and a further 200-period moving averages in the long term. In the first chart, the longer-term moving average is rising, so we expect the five-period moving average to cross above the 20-period moving average, and then we take positions in the direction of the trend. These are marked with an arrow. https://preview.redd.it/22jquy1z2nw51.png?width=1499&format=png&auto=webp&s=ed4f724384b86f95dff584c596e25652f23f240d In the second example, the long-term moving average is declining, so we look for short positions when the price crosses below the 5-period moving average, which has already crossed below the 20-period moving average. https://preview.redd.it/0tl7mky23nw51.png?width=1496&format=png&auto=webp&s=ca7b44138901537185d9e0dbd639a799407ced08 It is important to remember that these trades are trending and that we are not trying to find and capture every move. As in any scalping strategy, it is essential to have good risk management with stops, which is vital to avoid large losses that could eliminate many small gains quickly. >>> Forex Signals With Unbeatable Performance: Verified Forex Results And 5° Rated OnInvesting.com|Free Forex Signals Trial:CLICK HERE TO JOIN FOR FREE
3- Scalping with the use of the parabolic SAR indicator
The Parabolic SAR is an indicator that highlights the direction in which the market is moving and also tries to provide entry and exit points. SAR is the acronym for ' stop and reversal ', which means stop and revocation. The indicator is a series of points placed above or below the price bars. One point below the price is bullish and one point above it is bearish. A change in the position of the points suggests that there is going to be a change in trend. The chart below shows the DAX on a five minute chart; You can open short trades when the price moves below the SAR points and long when the price moves above them. As you can see, some trends are quite widespread and at other times a trader will encounter many trades that generate losses. https://preview.redd.it/35uo837g3nw51.png?width=1498&format=png&auto=webp&s=f020a461c6ff1f8d49fab381da0713b1de75dbf7
What do you have to know before starting scalping strategies Reddit?
The scalping requires the trader has an iron discipline, but also very demanding as far as time is concerned. Although long-term times and smaller sizes allow investors to move away from their platforms, given that there are few possible entries and can be controlled remotely, scalping requires the investor's full attention. Possible entry points can appear and disappear very quickly and therefore a trader must be very vigilant about his platform. For individuals who have a day job or other activities, scalping is not necessarily an ideal strategy. On the other hand, long-term operations with higher profit objectives are a more suitable option. It is difficult to execute a successful scalping strategy. One of the main reasons is that many operations need to be performed over time. Some research in this regard usually shows that more frequent investors only lose money faster, and have a negative capital curve. Instead, most investors are more successful and reduce their time commitments to trading, and even reduce stress by using long-term strategies and avoiding scalping strategies. The scalping requires quick responses to market movements and the ability to forgo an operation if the exact moment has passed. 'Chase' trades, along with a lack of stop-loss discipline, are the key reasons why scalpers are often unsuccessful. The idea of only being in the market for a short period of time sounds appealing, but the chances of being stopped out on a sudden move with a quick correction are high. Trading is an activity that rewards patience and discipline. Although those who are successful with scalping do demonstrate these qualities, they are a small number. Most investors do better with a long-term view, smaller position sizes, and a less frenetic pace of activity. >>> Forex Signals With Unbeatable Performance: Verified Forex Results And 5° Rated OnInvesting.com|Free Forex Signals Trial:CLICK HERE TO JOIN FOR FREE
The majority of this sub is focused on technical analysis. I regularly ridicule such "tea leaf readers" and advocate for trading based on fundamentals and economic news instead, so I figured I should take the time to write up something on how exactly you can trade economic news releases. This post is long as balls so I won't be upset if you get bored and go back to your drooping dick patterns or whatever.
How economic news is released
First, it helps to know how economic news is compiled and released. Let's take Initial Jobless Claims, the number of initial claims for unemployment benefits around the United States from Sunday through Saturday. Initial in this context means the first claim for benefits made by an individual during a particular stretch of unemployment. The Initial Jobless Claims figure appears in the Department of Labor's Unemployment Insurance Weekly Claims Report, which compiles information from all of the per-state departments that report to the DOL during the week. A typical number is between 100k and 250k and it can vary quite significantly week-to-week. The Unemployment Insurance Weekly Claims Report contains data that lags 5 days behind. For example, the Report issued on Thursday March 26th 2020 contained data about the week ending on Saturday March 21st 2020. In the days leading up to the Report, financial companies will survey economists and run complicated mathematical models to forecast the upcoming Initial Jobless Claims figure. The results of surveyed experts is called the "consensus"; specific companies, experts, and websites will also provide their own forecasts. Different companies will release different consensuses. Usually they are pretty close (within 2-3k), but for last week's record-high Initial Jobless Claims the reported consensuses varied by up to 1M! In other words, there was essentially no consensus. The Unemployment Insurance Weekly Claims Report is released each Thursday morning at exactly 8:30 AM ET. (On Thanksgiving the Report is released on Wednesday instead.) Media representatives gather at the Frances Perkins Building in Washington DC and are admitted to the "lockup" at 8:00 AM ET. In order to be admitted to the lockup you have to be a credentialed member of a media organization that has signed the DOL lockup agreement. The lockup room is small so there is a limited number of spots. No phones are allowed. Reporters bring their laptops and connect to a local network; there is a master switch on the wall that prevents/enables Internet connectivity on this network. Once the doors are closed the Unemployment Insurance Weekly Claims Report is distributed, with a heading that announces it is "embargoed" (not to be released) prior to 8:30 AM. Reporters type up their analyses of the report, including extracting key figures like Initial Jobless Claims. They load their write-ups into their companies' software, which prepares to send it out as soon as Internet is enabled. At 8:30 AM the DOL representative in the room flips the wall switch and all of the laptops are connected to the Internet, releasing their write-ups to their companies and on to their companies' partners. Many of those media companies have externally accessible APIs for distributing news. Media aggregators and squawk services (like RanSquawk and TradeTheNews) subscribe to all of these different APIs and then redistribute the key economic figures from the Report to their own subscribers within one second after Internet is enabled in the DOL lockup. Some squawk services are text-based while others are audio-based. FinancialJuice.com provides a free audio squawk service; internally they have a paid subscription to a professional squawk service and they simply read out the latest headlines to their own listeners, subsidized by ads on the site. I've been using it for 4 months now and have been pretty happy. It usually lags behind the official release times by 1-2 seconds and occasionally they verbally flub the numbers or stutter and have to repeat, but you can't beat the price! Important - I’m not affiliated with FinancialJuice and I’m not advocating that you use them over any other squawk. If you use them and they misspeak a number and you lose all your money don’t blame me. If anybody has any other free alternatives please share them!
How the news affects forex markets
Institutional forex traders subscribe to these squawk services and use custom software to consume the emerging data programmatically and then automatically initiate trades based on the perceived change to the fundamentals that the figures represent. It's important to note that every institution will have "priced in" their own forecasted figures well in advance of an actual news release. Forecasts and consensuses all come out at different times in the days leading up to a news release, so by the time the news drops everybody is really only looking for an unexpected result. You can't really know what any given institution expects the value to be, but unless someone has inside information you can pretty much assume that the market has collectively priced in the experts' consensus. When the news comes out, institutions will trade based on the difference between the actual and their forecast. Sometimes the news reflects a real change to the fundamentals with an economic effect that will change the demand for a currency, like an interest rate decision. However, in the case of the Initial Jobless Claims figure, which is a backwards-looking metric, trading is really just self-fulfilling speculation that market participants will buy dollars when unemployment is low and sell dollars when unemployment is high. Generally speaking, news that reflects a real economic shift has a bigger effect than news that only matters to speculators. Massive and extremely fast news-based trades happen within tenths of a second on the ECNs on which institutional traders are participants. Over the next few seconds the resulting price changes trickle down to retail traders. Some economic news, like Non Farm Payroll Employment, has an effect that can last minutes to hours as "slow money" follows behind on the trend created by the "fast money". Other news, like Initial Jobless Claims, has a short impact that trails off within a couple minutes and is subsequently dwarfed by the usual pseudorandom movements in the market. The bigger the difference between actual and consensus, the bigger the effect on any given currency pair. Since economic news releases generally relate to a single currency, the biggest and most easily predicted effects are seen on pairs where one currency is directly effected and the other is not affected at all. Personally I trade USD/JPY because the time difference between the US and Japan ensures that no news will be coming out of Japan at the same time that economic news is being released in the US. Before deciding to trade any particular news release you should measure the historical correlation between the release (specifically, the difference between actual and consensus) and the resulting short-term change in the currency pair. Historical data for various news releases (along with historical consensus data) is readily available. You can pay to get it exported into Excel or whatever, or you can scroll through it for free on websites like TradingEconomics.com. Let's look at two examples: Initial Jobless Claims and Non Farm Payroll Employment (NFP). I collected historical consensuses and actuals for these releases from January 2018 through the present, measured the "surprise" difference for each, and then correlated that to short-term changes in USD/JPY at the time of release using 5 second candles. I omitted any releases that occurred simultaneously as another major release. For example, occasionally the monthly Initial Jobless Claims comes out at the exact same time as the monthly Balance of Trade figure, which is a more significant economic indicator and can be expected to dwarf the effect of the Unemployment Insurance Weekly Claims Report. USD/JPY correlation with Initial Jobless Claims (2018 - present) USD/JPY correlation with Non Farm Payrolls (2018 - present) The horizontal axes on these charts is the duration (in seconds) after the news release over which correlation was calculated. The vertical axis is the Pearson correlation coefficient: +1 means that the change in USD/JPY over that duration was perfectly linearly correlated to the "surprise" in the releases; -1 means that the change in USD/JPY was perfectly linearly correlated but in the opposite direction, and 0 means that there is no correlation at all. For Initial Jobless Claims you can see that for the first 30 seconds USD/JPY is strongly negatively correlated with the difference between consensus and actual jobless claims. That is, fewer-than-forecast jobless claims (fewer newly unemployed people than expected) strengthens the dollar and greater-than-forecast jobless claims (more newly unemployed people than expected) weakens the dollar. Correlation then trails off and changes to a moderate/weak positive correlation. I interpret this as algorithms "buying the dip" and vice versa, but I don't know for sure. From this chart it appears that you could profit by opening a trade for 15 seconds (duration with strongest correlation) that is long USD/JPY when Initial Jobless Claims is lower than the consensus and short USD/JPY when Initial Jobless Claims is higher than expected. The chart for Non Farm Payroll looks very different. Correlation is positive (higher-than-expected payrolls strengthen the dollar and lower-than-expected payrolls weaken the dollar) and peaks at around 45 seconds, then slowly decreases as time goes on. This implies that price changes due to NFP are quite significant relative to background noise and "stick" even as normal fluctuations pick back up. I wanted to show an example of what the USD/JPY S5 chart looks like when an "uncontested" (no other major simultaneously news release) Initial Jobless Claims and NFP drops, but unfortunately my broker's charts only go back a week. (I can pull historical data going back years through the API but to make it into a pretty chart would be a bit of work.) If anybody can get a 5-second chart of USD/JPY at March 19, 2020, UTC 12:30 and/or at February 7, 2020, UTC 13:30 let me know and I'll add it here.
So without too much effort we determined that (1) USD/JPY is strongly negatively correlated with the Initial Jobless Claims figure for the first 15 seconds after the release of the Unemployment Insurance Weekly Claims Report (when no other major news is being released) and also that (2) USD/JPY is strongly positively correlated with the Non Farms Payroll figure for the first 45 seconds after the release of the Employment Situation report. Before you can assume you can profit off the news you have to backtest and consider three important parameters. Entry speed: How quickly can you realistically enter the trade? The correlation performed above was measured from the exact moment the news was released, but realistically if you've got your finger on the trigger and your ear to the squawk it will take a few seconds to hit "Buy" or "Sell" and confirm. If 90% of the price move happens in the first second you're SOL. For back-testing purposes I assume a 5 second delay. In practice I use custom software that opens a trade with one click, and I can reliably enter a trade within 2-3 seconds after the news drops, using the FinancialJuice free squawk. Minimum surprise: Should you trade every release or can you do better by only trading those with a big enough "surprise" factor? Backtesting will tell you whether being more selective is better long-term or not. Hold time: The optimal time to hold the trade is not necessarily the same as the time of maximum correlation. That's a good starting point but it's not necessarily the best number. Backtesting each possible hold time will let you find the best one. The spread: When you're only holding a position open for 30 seconds, the spread will kill you. The correlations performed above used the midpoint price, but in reality you have to buy at the ask and sell at the bid. Brokers aren't stupid and the moment volume on the ECN jumps they will widen the spread for their retail customers. The only way to determine if the news-driven price movements reliably overcome the spread is to backtest. Stops: Personally I don't use stops, neither take-profit nor stop-loss, since I'm automatically closing the trade after a fixed (and very short) amount of time. Additionally, brokers have a minimum stop distance; the profits from scalping the news are so slim that even the nearest stops they allow will generally not get triggered. I backtested trading these two news releases (since 2018), using a 5 second entry delay, real historical spreads, and no stops, cycling through different "surprise" thresholds and hold times to find the combination that returns the highest net profit. It's important to maximize net profit, not expected value per trade, so you don't over-optimize and reduce the total number of trades taken to one single profitable trade. If you want to get fancy you can set up a custom metric that combines number of trades, expected value, and drawdown into a single score to be maximized. For the Initial Jobless Claims figure I found that the best combination is to hold trades open for 25 seconds (that is, open at 5 seconds elapsed and hold until 30 seconds elapsed) and only trade when the difference between consensus and actual is 7k or higher. That leads to 30 trades taken since 2018 and an expected return of... drumroll please... -0.0093 yen per unit per trade. Yep, that's a loss of approx. $8.63 per lot. Disappointing right? That's the spread and that's why you have to backtest. Even though the release of the Unemployment Insurance Weekly Claims Report has a strong correlation with movement in USD/JPY, it's simply not something that a retail trader can profit from. Let's turn to the NFP. There I found that the best combination is to hold trades open for 75 seconds (that is, open at 5 seconds elapsed and hold until 80 seconds elapsed) and trade every single NFP (no minimum "surprise" threshold). That leads to 20 trades taken since 2018 and an expected return of... drumroll please... +0.1306 yen per unit per trade. That's a profit of approx. $121.25 per lot. Not bad for 75 seconds of work! That's a +6% ROI at 50x leverage.
Make it real
If you want to do this for realsies, you need to run these numbers for all of the major economic news releases. Markit Manufacturing PMI, Factory Orders MoM, Trade Balance, PPI MoM, Export and Import Prices, Michigan Consumer Sentiment, Retail Sales MoM, Industrial Production MoM, you get the idea. You keep a list of all of the releases you want to trade, when they are released, and the ideal hold time and "surprise" threshold. A few minutes before the prescribed release time you open up your broker's software, turn on your squawk, maybe jot a few notes about consensuses and model forecasts, and get your finger on the button. At the moment you hear the release you open the trade in the correct direction, hold it (without looking at the chart!) for the required amount of time, then close it and go on with your day. Some benefits of trading this way: * Most major economic releases come out at either 8:30 AM ET or 10:00 AM ET, and then you're done for the day. * It's easily backtestable. You can look back at the numbers and see exactly what to expect your return to be. * It's fun! Packing your trading into 30 seconds and knowing that institutions are moving billions of dollars around as fast as they can based on the exact same news you just read is thrilling. * You can wow your friends by saying things like "The St. Louis Fed had some interesting remarks on consumer spending in the latest Beige Book." * No crayons involved. Some downsides: * It's tricky to be fast enough without writing custom software. Some broker software is very slow and requires multiple dialog boxes before a position is opened, which won't cut it. * The profits are very slim, you're not going to impress your instagram followers to join your expensive trade copying service with your 30-second twice-weekly trades. * Any friends you might wow with your boring-ass economic talking points are themselves the most boring people in the world. I hope you enjoyed this long as fuck post and you give trading economic news a try!
One of my favourite ways to enter a trade - what market makers do
Hey Forex. Been a while since I've made an actual post. I still think 90%+ of the posts in here are a toxic wasteland, unfortunately. That being said, I wanted to share one of my entry tips with all of you. This is especially helpful given the dramatic increase in volatility we have seen across the currency markets. This isn't technical, there's no magic chart pattern or indicator. Rather, it is a concept. From what I've seen posted here, a common struggle is "where and how do I enter the trade?". This is a big question... and it can separate the analysts from the traders. How often have you had a view that xxx/xxx is going up/down and in fact... it does just that? The only problem is, you weren't onboard the trade. You either missed out entirely, or you chased it and bought the high/sold the low. The title for this post isn't just clickbait, this is in fact what market makers do. I have to emphasize this point once more, this is NOT a technical strategy. It is a different perspective on risk management that the retail crowd is largely unfamiliar with. I'm going to use point form to cover this concept from now on: Don't (DO NOT DO THESE THINGS): - Think of your entry as an all-or-nothing proposition - Think that you must shoot your entire shot all at once - That there's a perfect point at which you must pull the trigger, and if you miss this point then you miss the trade Do: - Split your risk allocation for a specific idea into different parts (for example if you want to risk $100,000 notional value on a USD/JPY trade, split your entry into 4 parts. Maybe that means each tranche is 25k, maybe it means that you go 10k, 20k, 30k, 40k) - Be a scale down buyer and a scale up seller - Pick bands in which you want to take action. For example if you think USD/JPY is a buy from 108.5 to 110, then pick a band in which you will be a buyer. Maybe it is between 108.5 and 108. That gives you a lot of room to stack orders (whether these are limits or market orders is up to you). The best case scenario is that all your orders get filled, and you have a fantastic overall average price point. The worst case scenario (other than simply being wrong) is that only your initial order is filled and price starts running away. Remember, you'll always be too light when it is going your way and too heavy when it is going in your face. - This also works on the way out when you want to exit. You can scale out of the trade, just as you scaled into it. This takes a lot of pressure off in terms of "sniping" an entry. I hear that term a lot, and it drives me crazy. Unless I'm hedging my options in the spot and I'm scalping for small points here and there, I'm not looking for a "sniper" entry. I'm looking for structural plays. Other hedge funds, banks, central banks, they're not dumping their entire load all at once. This approach allows you to spread your risk out across a band rather than being pigeonholed into picking a perfect level. It allows you to improve your dollar-cost average with clearly defined risk parameters. Unless you are consistently getting perfect entries with zero drawdown, this method just makes so much sense. The emotional benefit is incredible, as you don't have to worry about the price moving against you. Obviously you pick a stop where your idea is simply wrong, but otherwise this should help you remain (more) relaxed.
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The Daily Autist, By An Autist, For Autists. 03/24/20
The Daily Autist
Hot Off The Spectrum
TLDR of the News to Inform Your Moves (Monday was a lot. Even my post is long)
What’s up sluts. I’m back with another burst of autism. I’ve been Rick fuggin Rollin in the tendies (AKA not hemorrhaging money) and these posts have been fairly accurate. I’ll be adding plays to the NostraLosses section as a result to bring more clarity to my dumbass takes. FIRST THINGS FUCKING FIRST THE ORIGINAL AUTIST ARTIST WHO DREW THE OLD LOGO HAS COME TO LIGHT IM SO FUCKING HAPPY. We’ll never get it back, but sometimes closure on it’s own feels good enough. What am I a fucking teenager? The rest of the sub was shit yesterday/this morning.I was shadowbanned for posting “Fear mongering Corona Content,” and yet 75% of the sub’s hot posts are exactly that but with even less info than I had. Rest is memes. No plays or info. Honestly kinda sad. https://www.reddit.com/wallstreetbets/comments/fnpz20/hey_yall_i_drew_the_original_baby_ama/ Obligatory Corona Dump (Monday news could not stop throating COVID content) Things are in such a Twilight Zone State Amazon is getting credit for being “altruistic,” like they didn’t hike up prices since late January themselves and only altered their practices once Trump threatened Defense Production Act (DPA) notice they’re also only suspending, so once things are just slightly back to normal please price gouge errthang. https://www.scmp.com/tech/big-tech/article/3076638/amazon-suspends-almost-4000-seller-accounts-unfairly-priced-products Costco is also getting unwarranted credit. They won’t take back your tower of toilet paper or tub of hand sanitizer, which COSTS them money they already made. Did they have any problem hiking the price, refusing to limit sales per person, not give their employees PPE, or donate any relief from their excess food products due to banning eating at the location and numbers going down? Nah? ok. So the good guy is the company that profited off of fear and won’t provide the minimum financial relief to those who thought it was that extreme. Stop demonizing your fellow worker citizens. https://brobible.com/culture/article/costco-toilet-paper-returns-hoarders/ Companies getting high praise and both articles implying a return to normalcy soon. How does that affect the markets? Normies are being told everything is okay and they will follow suit. Is everything okay? Absolutely not. These MFs in charge just announced unlimited QE yesterday nothing’s okay financially. Retard normie pump coming in. Financial News: Trump is saying that unless 10,000 die in the streets soon he’s gonna “re-open” the economy after the 15 days. At this point it’s a bit of a walking Onion article. Thursday?” ITS A WAR WE WILL CAPTURE AND KNIFE COVID’S ASSHOLE”. Friday? “This is serious. I do not want to use any drastic measures but I will. This is very verry serious.” Monday? “Isn’t being stuck inside fucking wack? Let’s open the pit up bro” I recommend watching the video with subtitles to get a transcript of his speech patterns. https://www.reuters.com/video/watch/america-will-again-and-soon-be-open-for-id701434357?chan=9qsux198 I predicted the Fed couldn’t devalue the dollar as fast as other countries could want it and it seems to be holding up. A very small dip from the news they’re willing to print unlimited moneys? The global economy is in trouble if that's still the stability bearer. Puts are lookin good, but they need to be farther out. 04/17 soonest for my comfort. Especially with the temporary re-open of the US economy. Seeing Reuters use “money bazooka,’ multiple times in the last week has been fantastic. https://www.reuters.com/article/global-forex/forex-dollar-slips-as-feds-money-bazooka-raises-hopes-of-easier-cash-supply-idUSL4N2BH2AF Italy’s debt, tax, and unemployment relief are all being held up by congressional disputes and an ability to only handle a tenth of the paperwork that comes in. Sound familiar? Maybe ominous? The population density in regions of Italy is our closest analog to how a free (eat my dick South Korea) country is gonna get hit. Their healthcare system is also tainted by for-profit companies and insurance so it’s also pretty similar medical coverage wise per capita. https://www.reuters.com/article/us-health-coronavirus-banks-insight/banks-struggle-to-ride-to-the-rescue-in-europes-cash-crunch-battle-idUSKBN21B0OE United Airlines is threatening to fire workers if they don’t get a bailout. I hope to fuck this is the tipping point and the government forces United to hand over their payroll list so the gov. Provide financial relief to their employees while United liquidates their assets or sells to some Saudi Conglomerate. Effect on market? PUTS ON UNITED BITCH THEY GOIN OUT https://www.npr.org/sections/coronavirus-live-updates/2020/03/20/819401028/united-airlines-threatens-to-cut-jobs-if-coronavirus-aid-package-isnt-passed(From 03/20 but was drowned out by other news. Looks more and more likely airlines won’t be bailed out) Everyday Fox business posts something for Boomers to buy more Ford or Dine stocks (idk what old people buy) and today they have some good ammo. Overnight futures were up. Pre-market today as of 06:31 EST is $234.72 after touching 238. Looks like today is going to be the bull trap day as the rumors of stimulus are hot again. If it gets passed I expect a 245-248 top before the unemployment numbers Thursday fist everyone. Market effect? Short term calls as everyone gets high on optimism and long term puts for when they come down. https://www.foxbusiness.com/markets/stock-futures-gain-ground-as-congress-moves-closer-to-a-stimulus-deal Crypto is taking off after tanking yesterday. Overnight rally (NZ markets followed by Asian markets) carried it up 14% in the last 16 hours. It started to rise slowly after the QE announcement but really flew overnight and this morning. Cooling off now but already had a dip to 6650 and right back up to 6700+ While not always correlated, crypto is a key indicator right now in speculative confidence while people are budgeting for maintaining their lives versus increasing their future wealth. No link because every crypto site is owned by a Ponzi schemer. Fight me and my tinfoil fucking hat. Here are some squigglies and bars https://www.tradingview.com/symbols/BTCUSD/?exchange=BITBAY My NostraLosses Prediction? The rumors of stimulus and the passed unlimited QE will provide market optimism today and tomorrow. Thursday’s unemployment numbers is the next scheduled big news so I wouldn’t get any short term puts unless scalping. If anything unexpected news could bring the market even higher with it being random good news versus any random catastrophic news. Market open will be up about 6% from the previous day’s close, so I expect a short term dip at open which would be a good spot to get quick calls to then ride the pump. Market closes above 235 and if stimulus passes along with more false optimism statements by Trump there’s possibly a sharp bull run to 245-248 by end of Wednesday. Plays to follow: SPY: 240c 03/27 once the first dip of day happens. If your bankroll allows for a few days farther out I would go for it. If SPY does hit 240, SELL call and BUY put for 228 04/01 at soonest. DIA: 190P 04/17 It hasn’t fallen nearly as hard as it should (another 5% imo) and the industries making it up are going to have numbers showing how bad the payroll cuts and profit loss has been. During today’s pump get some not so fucking expensive puts (made sure not to say cheap) Any Stupid Tech Company: Retarded OTM call for 03/27 or later. With so many people being stuck at home the last week or so the tech companies are outperforming the market with the idea that: The high user rate means more $$$, but if there’s more people on because they are not working or laid off, how do they have the money to buy shitty sponsored products on their feed? The kicker here is ads have always had near useless efficacy rates on social media so the fact they will continue to do a shit job might not change much. Anyway people are fucking dumb and tech gonna continue to rally this week. Signed, someone with 1.5k in TWTR Puts expiring over next 4 weeks. Most people don’t even give you one play. I’m giving you multiple ways to lose your money. TLDR of my TLDR: Companies who profited off the crisis getting karma points for no reason. Normies think the crisis will be over next Friday. International currencies are still erratic but the markets are rallying today globally (sign of lacking underlying stability for said rally). Italy can’t pass anything or handle the paperwork from their previously set up process (AKA USA in 7-10 days under current stimulus proposals) and they don’t have a solution in sight. Stimulus has everyone rock hard for calls again, ride the short term rise and pick up puts while you’re up there. Just be a long term gay bear experimenting with bulls depending on the day. Results on my thoughts from last post 03/23: I was incorrect on circuit breaker open but was only 1% away and it did run up mid-day as called. So if you sold at 218 to buy calls to sell a few hours later, we nailed it boys. If you were aiming for price instead of time, it never hit 234 again which was a key test and you’re likely sitting on a fat red option right now. I was about half right which is all you need to be. I’ve also switched up Market affect and effect because I’m retarded and am unsure which is right anymore. Nvm grammarly fixed it. And again, I mean this sincerely,
Hi there. so first off a little background information, I am currently 16 years old and I got into forex trading about 6 to 7 months ago. I've spent the past few months doing the babypips course as well as taking online lessons to learn things such as harmonic patterns, support & resistance, using fibs and stuff like that. Along with this, I've been trading on a demo account with pepperstone to see what kinds of strategies work for me, which is mostly scalping as well as trading on the 15m tf. But here lies my problem. I want to move on to a live account, which, as recommended, obviously means I'm going to need a strategy. I've experimented and tried to find what works for me and I've understood very well what environment and timeframe I like to trade on, but I'm unsure how to form a strategy which I can follow and play by. I've tried multiple strategies such as the 3EMA(8,13,21) strategy on the 15m tf as well as strategies based on indicators, but nothing seems to work. Everything I try works for about 2 to 3 days, but eventually turns around really really fast. I was wondering if anyone could help me or give me tips on how to, or rather, the steps to building my own strategy. I decided to come here as I browse this subreddit a-lot and I've met and seen some of the nicest and most humble people here, hence coming here and not going to some baby pips forum. Any help is appreciated, thanks so much if anyone replies!!! EDIT : Hey guys so I have in fact gotten the advice I was seeking for, and like I mentioned below, I was practicing S/R over the weekend and tried planning ahead for this once, these are my profits for today with only half the knowledge as well as half the time due to school as well as no strategy. So I'd say pretty good returns on a 200$ demo account with 1:500 leverage who gets barely any time to trade....and is testing a strategy. Anyways, thank you so much to those who responded and helped out!!!!
The Path To Crypto Trading Starts With Knowledge: A Brief Guide To Crypto Trading
Trading cryptocurrencies has come into fad over the last few years and become a relatively good means of earning for both professional traders and enthusiasts. If we look at the price charts that have been compiled over the years by a variety of channels, we can see that the crypto market is exhibiting the market dynamics and fluctuations much like those that can be found on traditional markets. This makes it clear that the presence of volatility on the crypto market makes it a profitable area for trading. Of course, the main question that arises in the minds of most aspiring crypto traders is how to make money trading cryptocurrencies. For this reason, many seek to learn how to day trade cryptocurrencies. Anyone willing to make the effort can truly find opportunities there. For instance, the exchange rate of BTC has grown from about $800 in 2013 to over $6,000 in 2019, after having spiked in price to over $20,000 in 2017. Ethereum was just as remarkable in its dynamics after having gone to $0.57 in 2014 to $1,180 in 2017 to $171 in 2019. Ripple was just as dynamic, going from $0.02 in 2014 to $0.32 in 2019. If that is not volatility, then we don’t know what is. This makes the crypto market one of the best avenues for risky traders seeking to make their fortunes. But mastering how to make those fortunes is over half the matter. https://preview.redd.it/bajehrv10m541.png?width=541&format=png&auto=webp&s=8be0fe84df20245d6db0d64f44aedca2047d27fc
How To Start Trading Cryptocurrencies
Anyone who wants to sink their teeth into the juicy cake of crypto trading has to first realize where cryptos are traded. Like every other financial instrument put up for trading, cryptocurrencies are placed on exchanges. The crypto market is host to over 200 exchanges, some more reputable than others. Among some of the best and renowned are Binance,BitMex, Bittrex, Huobi, Coinbase and many others. Unlike traditional exchanges on Wall Street, crypto exchanges are divided into two types – centralized and decentralized. Both work on blockchain technologies and provide almost the same level of convenience, depending on the offered instruments and the architecture of user interface. However, some exchanges are decentralized, meaning that they do not store any of the user’s information, including the wallets on any of their servers or systems and resort to external services in this regard. Decentralized exchanges do not require any intermediaries to conduct any operations and perform all the order matching themselves. On the other hand, centralized exchanges resort to a number of intermediary services to conduct their operations. The intermediaries provide anything from order matching to user wallet storage. This makes centralized exchanges much riskier and more expensive compared to their decentralized counterparts. Despite the obvious differences in platform structure, there is also the issue of convenience. Most decentralized exchanges have horrible user interfaces and are much more difficult to master. But when it comes to speeds, centralized exchanges win over their decentralized counterparts, since their platforms are better suited for transactions. Though there are tendencies of reversing the issue, the situation still remains in favor of centralized exchanges. Centralized exchanges win over decentralized ones in another important factor that is vital for trading – liquidity. Decentralized exchanges cannot compete with centralized ones in volumes of trading. However, decentralized exchanges win over in an almost complete lack of commissions and security, since they do not rely on any intermediaries. When dealing with crypto exchanges, traders also need to know how crypto trading bots work. This is because bots are allowed on crypto exchanges facilitate trading considerably. When resorting to bots, it is important to first analyze the exchanges and understand which ones offer the best instruments for convenient trading. Given the many restrictions placed on cryptocurrency trading in some countries, many traders would ask how to trade cryptocurrencies in the US. The issue is not as complicated as it might seem, since most reputable exchanges, like Binance and others operate legally on the US market. It is therefore necessary for traders to research their platforms of choice before using them to make sure they comply with US laws.
How To Trade Cryptocurrencies
Trading cryptocurrencies is done almost in exactly the same way as with other financial instruments – through the application of a variety of strategies. The main strategies on the crypto market are much like those on other markets, such as Forex, and they include: Scalping – the launch of a very large number of small orders for the purpose of making small profits in bulk, rather than waiting for one large win. Intraday – this is the basic form of trading which involves placing orders during trading hours and buying and selling assets. This is the base strategy for fixing profits during the same day without risking off-hour volatility. Investing – both long and short term investing is also a type of trading strategy, which involves waiting for an asset’s price to move (preferably up) and fixing the resulting profits. There are dozens of trading strategies on the market and MoonTrader will allow its users to make use of all of them through its convenient interface. How To Trade Bitcoin Bitcoin is the most coveted coin out there with its volatility being its main allure and bane. The first and main question posed by any starting trader is how to trade Bitcoin for profit. In fact, this question is often associated with the question of how to become a Bitcoin trader, which in itself is a rather false view on the crypto market, since the latter is much bigger than Bitcoin alone. The issue of how Bitcoin trading works is largely a reflection of any trading process on the market and does not involve any special circumstances apart from the asset’s volatility. Trading Bitcoin is done exactly the same way as with any other crypto asset. But with trading BTC comes the question of how to automate Bitcoin trading. This is where traders must first realize that their exchange of choice and strategy will be the determining factors in the question of automation and the use of bots. How to trade Ethereum Ethereum is the second most popular name on the market after Bitcoin and is traded in exactly the same way. Ethereum is considered to be a less risky asset, since its prices are lower and it is far more commonly encountered than its more expensive counterpart. How To Trade Ripple Ripple is the third most frequently encountered name on most crypto asset charts, mostly because of its relatively low volatility and popularity as an instrument for transactions used by some banks. The confidence that traders have in Ripple and its low price makes it a favorite for beginning traders and a low-cost option for scalping orders. https://preview.redd.it/vl0e1bo90m541.jpg?width=1254&format=pjpg&auto=webp&s=5b51c59dfa22fc8f4319207d11b3c51e85d24cd5
Learning How To Trade Cryptocurrency
The biggest challenge facing any aspiring trader who wishes to join the crypto market and start trading Bitcoin and other assets is learning how to do it properly. In fact, reading is the only way followed by a gradual and phased transition from test trading to real trading. The process may well be painful at first, but experience counts the most in trading. MoonTrader knows all too well how difficult it may be to learn the ropes of crypto trading, so the platform is delighted to present an entire block of content devoted exclusively to educational content. The https://moontrader.com/en/category/beginners-guide-to-trading-crypto/ section offers accessible, clear and valuable insight into the steps necessary to start the journey into crypto trading.
Crypto trading is not without its risks. The market is inherently risky for a number of factors. Ironically, the profit making factor of volatility is also the factor that can reduce profits to losses. When embarking on the journey of crypto trading, aspiring traders must realize and ascertain the risks involved and consciously undertake all of their next steps. The best step to take is to create a trading strategy first and rely on one of the most important instruments available on the market – the margin. By trading with a margin, traders can minimize their losses and ensure a great enough volume of trading. Binance Futures, for example, offers a large variety of margins from x1 to x125 to ensure that traders have the necessary leverage to trade effectively. It is important to note that margin trading is an advanced instrument and cannot be reliable enough for novice traders. As such, MoonTrader encourages aspiring traders to refrain from margin trading until they are confident enough to risk greater volumes of assets during trading.
Keep It Going
Learning is the process of acquiring experience and the latter counts the most in trading. Before embarking on the path of trading cryptocurrencies, traders must first compile a large enough amount of knowledge that they will be able to rely upon in the variety of situations that can arise on the market. First and foremost, it is vital to refrain from negative sentiment and look ahead into brighter prospects. Secondly, aspiring traders must study the market and find a suitable platform. Thirdly, novice traders must build a strategy that suits their characters and styles and make sure to abide by it. Once that has been mastered, they can start delving into the more advanced aspects of trading. Whatever path traders take, MoonTrader will be there to help them with both information and instruments to make sure their trading is profitable and enjoyable. Check us out at https://moontrader.io Facebook: https://www.facebook.com/MoonTraderPlatform Twitter: https://twitter.com/MoonTrader_io LinkedIn: https://www.linkedin.com/company/19203733 Reddit: https://www.reddit.com/Moontrader_official/ Telegram: https://t.me/moontrader_news_en Originally posted on our blog.
So here it is, three more days and October begins, which marks one year of trading for me. I figured I would contribute to the forum and share some of my experience, a little about me, and what I've learned so far. Whoever wants to listen, that's great. This might get long so buckle up.. Three years ago, I was visiting Toronto. I don't get out much, but my roommate at the time travels there occasionally. He asked everyone at our place if we wanted to come along for a weekend. My roommate has an uncle that lives there and we didn't have to worry about a hotel because his uncle owns a small house that's unlived in which we could stay at. I was the only one to go with. Anyways, we walk around the city, seeing the sights and whatnot. My friend says to me "where next?" "I don't know, you're the tour guide" "We can go check out Bay Street" "what's 'Bay Street?'" "It's like the Canadian Wall street! If you haven't seen it you gotta see it!" Walking along Bay, I admire all the nice buildings and architecture, everything seems larger than life to me. I love things like that. The huge granite facades with intricate designs and towering pillars to make you think, How the fuck did they make that? My attention pivots to a man walking on the sidewalk opposite us. His gait stood out among everyone, he walked with such a purpose.. He laughed into the cell phone to his ear. In the elbow-shoving city environment, he moved with a stride that exuded a power which not only commanded respect, but assumed it. I bet HE can get a text back, hell he's probably got girls waiting on him. This dude was dressed to kill, a navy suit that you could just tell from across the street was way out of my budget, it was a nice fucking suit. I want that. His life, across the street, seemed a world a way from my own. I've worn a suit maybe twice in my life. For my first communion, it was too big for me, I was eleven or whatever so who gives a shit, right? I'm positive I looked ridiculous. The other time? I can't remember. I want that. I want the suit. I want the wealth, the independence.I want the respect and power, and I don't give a shit what anyone thinks about it. Cue self doubt. Well, He's probably some rich banker's son. That's a world you're born into. I don't know shit about it. \sigh* keep walking..* A year later, I'm visiting my parents at their house, they live an hour away from my place. My dad is back from Tennessee, his engineering job was laying people off and he got canned... Or he saw the end was near and just left... I don't know, hard to pay attention to the guy honestly because he kind of just drones on and on. ("Wait, so your mom lives in Michigan, but your dad moved to Tennessee... for a job?" Yea man, I don't fucking know, not going to touch on that one.) The whole project was a shit show that was doomed to never get done, the way he tells it. And he's obviously jaded from multiple similar experiences at other life-sucking engineer jobs. My mom is a retired nurse practitioner who no longer works because of her illness. I ask him what he's doing for work now and he tells me he trades stocks from home. I didn't even know you could do that. I didn't know "trading" was a thing. I thought you just invest and hope for the best. "Oh that's cool, how much money do you need to do that?" "Ehh, most say you need at least $25,000 as a minimum" "Oh... guess I can't do that..." Six months later, I get a call and it's my dad. We talk a little about whatever. Off topic, he starts asking if I'm happy doing what I'm doing (I was a painter, commercial and residential) I tell him yes but it's kind of a pain in the ass and I don't see it as a long term thing. Then he gets around to asking if I'd like to come work with him. He basically pitches it to me. I'm not one to be sold on something, I'm always skeptical. So I ask all the questions that any rational person would ask and he just swats them away with reassuring phrases. He was real confident about it. But basically he says for this to work, I have to quit my job and move back home so he can teach me how to trade and be by my side so I don't do anything stupid. "My Name, you can make so much money." I say that I can't raise the $25,000 because I'm not far above just living paycheck to paycheck. "I can help you out with that." Wow, okay, well... let me think about it. My "maybe" very soon turned into a "definitely." So over the next six months, I continue to work my day job painting, and I try to save up what I could for the transition (it wasn't a whole lot, I sucked at saving. I was great at spending though!). My dad gives me a book on day trading (which I will mention later) and I teach myself what I can about the stock market using Investopedia. Also in the meantime, my dad sends me encouraging emails. He tells me to think of an annual income I would like to make as a trader, and used "more than $100,000 but less than a million" as a guideline. He tells me about stocks that he traded that day or just ones that moved and describes the basic price action and the prices to buy and sell at. Basically saying "if you bought X amount of shares here and sold it at X price here, you could make a quick 500 bucks!" I then use a trading sim to trade those symbols and try to emulate what he says. Piece of cake. ;) Wow, that's way more than what I make in a day. He tells me not to tell anyone about my trading because most people just think it's gambling. "Don't tell your Mom either." He says most people who try this fail because they don't know how to stop out and take a loss. He talks about how every day he was in a popular chatroom, some noob would say something like, "Hey guys, I bought at X price (high of day or thereabout), my account is down 80% .. uhh I'm waiting for it to come back to my entry price.. what do I do??" Well shit, I'm not that fucking dumb. If that's all it takes to make it is to buy low, sell high, and always respect a stop then I'll be fantastic. By the end of September, I was very determined. I had been looking forward everyday to quitting my painting job because while it used to be something I loved, it was just sucking the life out of me at this point. Especially working commercial, you just get worked like a dog. I wasn't living up to my potential with that job and I felt awful for it every minute of every day. I knew that I needed a job where I could use my brain instead of slaving my body to fulfill someone else's dream. "Someone's gotta put gas in the boss's boat" That's a line my buddy once said that he probably doesn't know sticks with me to this day. It ain't me. So now it was October 2018, and I'm back living with Mom n' Pops. I was so determined that on my last day of work I gave away all of my painting tools to my buddy like, "here, I don't need this shit." Moving out of my rental was easy because I don't own much, 'can't take it with ya.' Excited for the future I now spend my days bundled up in winter wear in the cold air of our hoarder-like basement with a space heater at my feet. My laptop connected to a TV monitor, I'm looking at stocks next to my dad and his screens in his cluttered corner. Our Trading Dungeon. I don't trade any money, (I wasn't aware of any real-time sim programs) I just watch and learn from my dad. Now you've got to keep in mind, and look at a chart of the S&P, this is right at the beginning of Oct '18, I came in right at the market top. Right at the start of the shit-show. For the next three or four weeks, I watch my dad pretty much scratch on every trade, taking small loss after small loss, and cursing under his breath at the screen. Click. "dammit." Click. "shit." Click. Click. "you fuck." Click. This gets really fucking annoying as time goes on, for weeks, and I get this attitude like ugh, just let me do it. I'll make us some fucking money. So I convince him to let me start trading live. I didn't know anything about brokers so I set up an account using his broker, which was Fidelity. It was a pain and I had to jump through a lot of hoops to be able to day trade with this broker. I actually had to make a joint account with my dad as I couldn't get approved for margin because my credit score is shit (never owned a credit card) and my net worth, not much. Anyways, they straight up discourage day trading and I get all kinds of warning messages with big red letters that made me shit myself like oooaaahhh what the fuck did I do now. Did I forget to close a position?? Did I fat finger an order? Am I now in debt for thousands of dollars to Fidelity?? They're going to come after me like they came after Madoff. Even after you are approved for PDT you still get these warning messages in your account. Some would say if I didn't comply with "whatever rule" they'd even suspend my account for 60 days. It was ridiculous, hard to describe because it doesn't make sense, and it took the support guy on the phone a good 20 minutes to explain it to me. Basically I got the answer "yea it's all good, you did nothing wrong. As long as you have the cash in your account to cover whatever the trade balance was" So I just kept getting these warnings that I had to ignore everyday. I hate Fidelity. My fist day trading, I made a few so-so trades and then I got impatient. I saw YECO breaking out and I chased, soon realized I chased, so I got out. -$500. Shit, I have to make that back, I don't want my dad to see this. Got back in. Shit. -$400. So my first day trading, I lost $900. My dumbass was using market orders so that sure didn't help. I reeled the risk back and traded more proper position size for a while, but the commissions for a round trip are $10, so taking six trades per day, I'm losing $60 at a minimum on top of my losing trades. Quickly I realized I didn't know what the hell I was doing. What about my dad? Does HE know? One day, in the trading dungeon, I was frustrated with the experience I'd been having and just feeling lost overall. I asked him. "So, are you consistently profitable?" "mmm... I do alright." "Yea but like, are you consistently profitable over time?" ......................... "I do alright." Silence. "Do you know any consistently profitable traders?" "Well the one who wrote that book I gave you, Tina Turner.. umm and there's Ross Cameron" ...................... "So you don't know any consistently profitable traders, personally.. People who are not trying to sell you something?" "no." ................... Holy fucking shit, what did this idiot get me into. He can't even say it to my face and admit it. This entire life decision, quitting my job, leaving my rental, moving from my city to back home, giving shit away, it all relied on that. I was supposed to be an apprentice to a consistently profitable day trader who trades for a living. It was so assumed, that I never even thought to ask! Why would you tell your son to quit his job for something that you yourself cannot do? Is this all a scam? Did my dad get sold a DREAM? Did I buy into some kind of ponzi scheme? How many of those winning trades he showed me did he actually take?Are there ANY consistently profitable DAY TRADERS who TRADE FOR A LIVING?Why do 90% fail? Is it because the other 10% are scamming the rest in some way? Completely lost, I just had no clue what was what. If I was going to succeed at this, if it was even possible to succeed at this, it was entirely up to me. I had to figure it out. I still remember the feeling like an overwhelming, crushing weight on me as it all sunk in. This is going to be a big deal.. I'm not the type to give up though. In that moment, I said to myself, I'm going to fucking win at this. I don't know if this is possible, but I'm going to find out. I cannot say with certainty that I will succeed, but no matter what, I will not give up. I'm going to give all of myself to this. I will find the truth. It was a deep moment for me. I don't like getting on my soapbox, but when I said those things, I meant it. I really, really meant it. I still do, and I still will. Now it might seem like I'm being hard on my dad. He has done a lot for me and I am very grateful for that. We're sarcastic as hell to each other, I love the bastard. Hell, I wouldn't have the opportunity to trade at all if not for him. But maybe you can also understand how overwhelmed I felt at that time. Not on purpose, of course he means well. But I am not a trusting person at all and I was willing to put trust into him after all the convincing and was very disappointed when I witnessed the reality of the situation. I would have structured this transition to trading differently, you don't just quit your job and start trading. Nobody was there to tell me that! I was told quite the opposite. I'm glad it happened anyway, so fuck it. I heard Kevin O'Leary once say, "If I knew in the beginning how difficult starting a business was, I don't know that I ever would've started." This applies very much to my experience. So what did I do? Well like everyone I read and read and Googled and Youtube'd my ass off. I sure as hell didn't pay for a course because I didn't have the money and I'm like 99% sure I would be disappointed by whatever they were teaching as pretty much everything can be found online or in books for cheap or free. Also I discovered Thinkorswim and I used that to sim trade in real-time for three months. This is way the hell different than going on a sim at 5x speed and just clicking a few buy and sell buttons. Lol, useless. When you sim trade in real-time you're forced to have a routine, and you're forced to experience missing trades with no chance to rewind or skip the boring parts. That's a step up because you're "in it". I also traded real money too, made some, lost more than I made. went back to sim. Traded live again, made some but lost more, fell back to PDT. Dad fronted me more cash. This has happened a few times. He's dug me out of some holes because he believes in me. I'm fortunate. Oh yeah, about that book my dad gave me. It's called A Beginner's Guide to Day Trading Online by Toni Turner. This book... is shit. This was supposed to be my framework for how to trade and I swear it's like literally nothing in this book fucking works lol. I could tell this pretty early on, intuitively, just by looking at charts. It's basically a buy-the-breakout type strategy, if you want to call it a strategy. No real methodology to anything just vague crap and showing you cherry-picked charts with entries that are way too late. With experience in the markets you will eventually come to find that MOST BREAKOUTS FAIL. It talks about support/resistance lines and describes them as, "picture throwing a ball down at the floor, it bounces up and then it bounces down off the ceiling, then back up." So many asinine assumptions. These ideas are a text book way of how to trade like dumb money. Don't get me wrong, these trades can work but you need to be able to identify the setups which are more probable and identify reasons not to take others. So I basically had to un-learn all that shit. Present day, I have a routine in place. I'm out of the dungeon and trade by myself in my room. I trade with a discount broker that is catered to day traders and doesn't rape me on commissions. My mornings have a framework for analyzing the news and economic events of the particular day, I journal so that I can recognize what I'm doing right and where I need to improve. I record my screens for later review to improve my tape reading skills. I am actually tracking my trades now and doing backtesting in equities as well as forex. I'm not a fast reader but I do read a lot, as much as I can. So far I have read about 17-18 books on trading and psychology. I've definitely got a lot more skilled at trading. As of yet I am not net profitable. Writing that sounds like selling myself short though, honestly. Because a lot of my trades are very good and are executed well. I have talent. However, lesser quality trades and trades which are inappropriately sized/ attempted too many times bring down that P/L. I'm not the type of trader to ignore a stop, I'm more the trader that just widdles their account down with small losses. I trade live because at this point, sim has lost its value, live trading is the ultimate teacher. So I do trade live but I just don't go big like I did before, I keep it small. I could show you trades that I did great on and make people think I'm killing it but I really just don't need the validation. I don't care, I'm real about it. I just want to get better. I don't need people to think I'm a genius, I'm just trying to make some money. Psychologically, to be honest with you, I currently feel beaten down and exhausted. I put a lot of energy into this, and sometimes I work myself physically sick, it's happened multiple times. About once a week, usually Saturday, I get a headache that lasts all day. My body's stress rebound mechanism you might call it. Getting over one of those sick periods now, which is why I barely even traded this week. I know I missed a lot of volatility this week and some A+ setups but I really just don't give a shit lol. I just currently don't have the mental capital, I think anyone who's been day trading every day for a year or more can understand what I mean by that. I'm still being productive though. Again, I'm not here to present an image of some badass trader, just keeping it real. To give something 100% day after day while receiving so much resistance, it takes a toll on you. So a break is necessary to avoid making bad trading decisions. That being said, I'm progressing more and more and eliminating those lesser quality trades and identifying my bad habits. I take steps to control those habits and strengthen my good habits such as having a solid routine, doing review and market research, taking profits at the right times, etc. So maybe I can give some advice to some that are new to day trading, those who are feeling lost, or just in general thinking "...What the fuck..." I thought that every night for the first 6 months lol. First of all, manage expectations. If you read my story of how I came to be a trader, you can see I had a false impression of trading in many aspects. Give yourself a realistic time horizon to how progress should be made. Do not set a monetary goal for yourself, or any time-based goal that is measured in your P/L. If you tell yourself, "I want to make X per day, X per week, or X per year" you're setting yourself up to feel like shit every single day when it's clear as the blue sky that you won't reach that goal anytime soon. As a matter of fact, it will appear you are moving further AWAY from that goal if you just focus on your P/L, which brings me to my next point. You will lose money. In the beginning, most likely, you will lose money. I did it, you'll do it, the greatest Paul Tudor Jones did it. Trading is a skill that needs to be developed, and it is a process. Just look at it as paying your tuition to the market. Sim is fine but don't assume you have acquired this skill until you are adept at trading real money. So when you do make that leap, just trade small. Just survive. Trade small. get the experience. Protect your capital. To reach break even on your bottom line is a huge accomplishment. In many ways, experience and screen time are the secret sauce. Have a routine. This is very important. I actually will probably make a more in-depth post in the future about this if people want it. When I first started, I was overwhelmed with the feeling "What the fuck am I supposed to DO?" I felt lost. There's no boss to tell you how to be productive or how to find the right stocks, which is mostly a blessing, but a curse for new traders. All that shit you see, don't believe all that bullshit. You know what I'm talking about. The bragposting, the clickbait Youtube videos, the ads preying on you. "I made X amount of money in a day and I'm fucking 19 lolz look at my Lamborghini" It's all a gimmick to sell you the dream. It's designed to poke right at your insecurities, that's marketing at it's finest. As for the bragposting on forums honestly, who cares. And I'm not pointing fingers on this forum, just any trading forum in general. They are never adding anything of value to the community in their posts. They never say this is how I did it. No, they just want you to think they're a genius. I can show you my $900 day trading the shit out of TSLA, but that doesn't tell the whole story. Gamblers never show you when they lose, you might never hear from those guys again because behind the scenes, they over-leveraged themselves and blew up. Some may actually be consistently profitable and the trades are 100% legit. That's fantastic. But again, I don't care, and you shouldn't either. You shouldn't compare yourself to others. "Everyone's a genius in a bull market" Here's the thing.. Markets change. Edges disappear. Trading strategies were made by traders who traded during times when everything they did worked. Buy all the breakouts? Sure! It's the fucking tech bubble! Everything works! I'm sure all those typical setups used to work fantastically at some point in time. But the more people realize them, the less effective they are. SOMEONE has to be losing money on the opposite side of a winning trade, and who's willing to do that when the trade is so obvious? That being said, some things are obvious AND still work. Technical analysis works... sometimes. The caveat to that is, filters. You need to, in some way, filter out certain setups from others. For example, you could say, "I won't take a wedge pattern setup on an intraday chart unless it is in a higher time frame uptrend, without nearby resistance, and trading above average volume with news on that day." Have a plan. If you can't describe your plan, you don't have one. Think in probabilities. You should think entirely in "if, then" scenarios. If X has happens, then Y will probably happen. "If BABA breaks this premarket support level on the open I will look for a pop up to short into." Backtest. Most traders lose mainly because they think they have an edge but they don't. You read these books and all this stuff online telling you "this is a high probability setup" but do you know that for a fact? There's different ways to backtest, but I think the best way for a beginner is manual backtesting with a chart and an excel sheet. This builds up that screen time and pattern recognition faster. This video shows how to do that. Once I saw someone do it, it didn't seem so boring and awful as I thought it was. Intelligence is not enough. You're smarter than most people, that's great, but that alone is not enough to make you money in trading necessarily. Brilliant people try and fail at this all the time, lawyers, doctors, surgeons, engineers.. Why do they fail if they're so smart? It's all a fucking scam. No, a number of reasons, but the biggest is discipline and emotional intelligence. Journal every day.K no thanks, bro. That's fucking gay. That's how I felt when I heard this advice but really that is pride and laziness talking. This is the process you need to do to learn what works for you and what doesn't. Review the trades you took, what your plan was, what actually happened, how you executed. Identify what you did well and what you can work on. This is how you develop discipline and emotional intelligence, by monitoring yourself. How you feel physically and mentally, and how these states affect your decision-making. Always be learning. Read as much as you can. Good quality books. Here's the best I've read so far; Market Wizards -Jack Schwager One Good Trade -Mike Bellafiore The Daily Trading Coach -Bret Steenbarger Psycho-cybernetics -Maxwell Maltz Why You Win or Lose -Fred Kelly The Art and Science of Technical Analysis -Adam Grimes Dark Pools -Scott Patterson Be nimble. Everyday I do my research on the symbols I'm trading and the fundamental news that's driving them. I might be trading a large cap that's gapping up with a beat on EPS and revenue and positive guidance. But if I see that stock pop up and fail miserably on the open amidst huge selling pressure, and I look and see the broader market tanking, guess what, I'm getting short, and that's just day trading. The movement of the market, on an intraday timeframe, doesn't have to make logical sense. Adapt. In March I used to be able to buy a breakout on a symbol and swing it for the majority of the day. In the summer I was basically scalping on the open and being done for the day. Volatility changes, and so do my profit targets. Be accountable. Be humble. Be honest. I take 100% responsibility for every dime I've lost or made in the market. It's not the market makers fault, it wasn't the HFTs, I pressed the button. I know my bad habits and I know my good habits.. my strengths/ my weaknesses. Protect yourself from toxicity. Stay away from traders and people on forums who just have that negative mindset. That "can't be done" mentality. Day trading is a scam!! It can certainly be done. Prove it, you bastard. I'm posting to this particular forum because I don't see much of that here and apparently the mods to a good job of not tolerating it. As the mod wrote in the rules, they're most likely raging from a loss. Also, the Stocktwits mentality of "AAPL is going to TANK on the open! $180, here we come. $$$" , or the grandiose stories, "I just knew AMZN was going to go up on earnings. I could feel it. I went ALL IN. Options money, baby! ka-ching!$" Lol, that is so toxic to a new trader. Get away from that. How will you be able to remain nimble when this is your thought process? Be good to yourself. Stop beating yourself up. You're an entrepreneur. You're boldly going where no man has gone before. You've got balls. Acknowledge your mistakes, don't identify with them. You are not your mistakes and you are not your bad habits. These are only things that you do, and you can take action necessary to do them less. It doesn't matter what people think. Maybe they think you're a fool, a gambler. You don't need their approval. You don't need to talk to your co-workers and friends about it to satisfy some subconscious plea for guidance; is this a good idea? You don't need anyone's permission to become the person you want to be. They don't believe in you? Fuck 'em. I believe in you.
EDIT: I realize this is long, but I feel it's important to have this info out there. Maybe save it for later when you see this narrative being pushed around so you can come back and get the other side. EDIT 2: TL:DR - Most negative analysis on this sub lately of Tether are likely from a single biased source that stretches a lot to make his points, and there is simply not enough Tether in the market nor is it concentrated enough to create a catastrophic problem or significant inflation for any USDT currency pair. Like many of you, I have heard the stories and posts about the fraudulent tether, I trade in this space on many exchanges and the growing concern is worrying, so I did my due diligence, and I would like to share it with the community. First and most importantly IMO, all this controversy stems from just one account/person. A person on twitter going by the handle @Bitfinexed - https://twitter.com/Bitfinexed Here you can see this person's writings - https://medium.com/@bitfinexed/latest Spoofy, Tethers and institutional investors are what they contend to be the lies and fraud, AND that this entire rally in 2017 is based on fraudulent Tethers and spoofing, and that this will implode the markets. I feel this is also important… Turns out this person sold at $1000, maybe the real reason he is on this mission??… https://twitter.com/whalepool/status/896460700461277185 Now for some troubling info, the majority of this narrative (FUD??) here on Reddit in the last month come from just three accounts. https://www.reddit.com/useAtlasRand1/submitted/ https://www.reddit.com/usecetusfund/submitted/ https://www.reddit.com/useAnythingForSuccess As you can see these accounts entire mission is to post constantly about this. They all show up on the other’s post to comment regularly. Btw, some people on the pro-finex side think this is a smear campaign from other exchanges. I don’t believe this to be the case. This person(s) only talk about TetheFinex, yet Tether is used and traded by the $millions daily on 3 of the top 5 exchanges, Finex, Bittrex, Polo, yet never a word about those other exchanges. (Check the USDT volume on other exchanges) https://coinmarketcap.com/assets/tethe#markets Therefore, if it is an exchange, it isn’t Trex/Polo because this would affect them as well. If it was an exchange other than Trex/Polo they would have plenty of fire power against 3 of the top 5 exchanges with Tether fraud. This leads me to believe it is most likely a sad person(s) with an ax to grind. They might have lost their $ on Finex to what they believe are spoofers/fraud and or they were part of the finex hack and sold there BFX too early. Btw I see contention that Bitfinex did NOT pay back the $ from the hack. They did, but some people are mad because they sold BFX early and didn’t recoup full $ amount from haircuts, but that was their decision. ~ POINTS OF CONTENTION SPOOFING This is what set my alarm bells off about these articles I read from Bitfinexed. Specifically spoofing… https://hackernoon.com/meet-spoofy-how-a-single-entity-dominates-the-price-of-bitcoin-39c711d28eb4 and this nugget…“And who the hell is going to go margin long so dramatically after a huge crash?” from this article… https://medium.com/@bitfinexed/are-fraudulent-tethers-being-used-for-margin-lending-on-bitfinex-5de9dd80f330 Claiming spoofing shows this person has limited markets/trading knowledge. Clearly they haven’t watched an order book of any exchange in crypto, equities, or Forex. This is called scalping or scare walls. Again this is done in every market around the globe. Here is a professional FOREX trader talking about scalping, how it works, who/why they do it. https://www.youtube.com/watch?v=EYMIPmgRb_M&list=WL&index=94 TL;DW - they do this to get the price where they want it because they know people are watching the order book (the video is quite enlightening), and the key point that keeps this from being an illegal activity (on regulated exchanges) is THAT THEY DO MAKE TRADES FOR THOSE SIZES eventually. This doesn’t always work and they get stuck in these positions. Risk/reward. The ironic part about this spoofing idea is Finex is one of the few, if not only exchanges, that offer hidden orders. So people trying to scalp always have to worry if there is a monster hidden order lurking. Go to the UPDATE: AUGUST 7TH of this story and watch the video he claims proves spoofing and Phil Potter admitting it in the voice over. https://hackernoon.com/meet-spoofy-how-a-single-entity-dominates-the-price-of-bitcoin-39c711d28eb4 I see nothing wrong with what Phil says and no proof of anything in the video. Again this is true on every exchange trading anything of volume in the world. People with large amounts of money move markets, oh the horror. I “technically” do this when I place an order and pull it for whatever reason (scared, mistake, etc.) just not in large sums, but I would if I had large sums. “And who the hell is going to go margin long so dramatically after a huge crash?” The crash they are referring to is from the early June ATH to the mid-July correction. A 45-day crash? Well, I am one of those people that went margin long. And many many others who read charts, resistance, support, retracement info. Again, this smacks of someone who doesn’t know what they are talking about. REASON FOR PRICE RISE/BTC GOES UP WHEN TETHERS ARE CREATED This is absurd. This completely negates everything else, the Japanese currency ruling and them entering the market, Koreans coming into the market in a huge way (they now have the largest exchange by far with close to a Billion traded DAILY, oh and they don’t use Tether at all), the successful hard fork, or the more (positive!) interest from the media and people than ever before in BTC history. Instead, we are supposed to think that $395 million dollars of tethers are the reason for this rise in a $160+ Billion market cap. ￼ C’mon people! Look at that volume for the last 30 days. https://imgur.com/a/vKJ5g Also, the overwhelming majority of trade does not exist in Tether but KRW, CNY, USD, JPY. Tethers are usually created when extra liquidity is needed, be it a crash or a spike. Because more people are trading. They try to prove Tether boosts the market with this picture in their article. https://imgur.com/a/274SE The problem is 2 of the last 3 tether dumps coincide with a downturn. In fact, there is nothing in this graph that proves this theory. Also, the last tether dump/price rise coincides perfectly with the news of the majority of miners signaling segwit2x for the first time (search bitcoin or btc around that date). So do you think the market traded billions of $ at that time because of a $50 million Tether dump or because for the first time in YEARS a solution and path forward became visible?? THEY DON’T HAVE BANKING//NO INSTITUTIONAL INVESTORS/FAKE TETHERS-TERMS OF SERVICE In regards to banking, clearly they have some kind of banking and a way for large amounts of fiat to get in and out. The banking is not for you and me but for regional bitcoin exchanges and other large customers. You know how I know this? If they didn’t the internet would be flooded with Finex withdrawal issues, there would be a price premium on Bitfinex compared to other exchanges, just like Mt. Gox had for so long and also Bitfinex earlier in the year when the banking issues started. This article explains it very clearly (seriously read this article), it has nothing to do with this controversy, just the banking issue in April. https://medium.com/@Austerity_Sucks/why-bitfinex-went-from-a-premium-in-its-crypto-usd-pairs-to-now-a-significant-discount-e7be193d7cb0 TL;DR - All of the imbalances discussed (Finex premium) have been a result of USD frictions into Bitfinex. It has been a chain reaction resulting from the initial freeze to the various gradual withdrawal options. As soon as Bitfinex conclusively addresses the USD flow issues, the crypto pair prices will normalize (which they did) with other exchanges that don’t have banking frictions and USDT price will return to par (which it did). The premiums on Finex and Tether are what would prove something is wrong, yet they are not here. Surprisingly Finex has been at a discount to GDAX and GEMINI recently. Meaning people are willing to take a loss on prices to be able to lend on Finex. This too will normalize as people/bots arb. Aug 9th… From “arguably” bank fraud https://twitter.com/Bitfinexed/status/895339675120013313 Aug 22nd…. To “admitting” bank fraud https://twitter.com/Bitfinexed/status/900230917196836864 Listen to that audio in the second link, listen carefully. His explanation is perfectly reasonable. Banks don’t work well, consistently, or at all with crypto related companies (marijuana companies too for that matter) especially in jurisdictions that are outside US/Europe. Surprise surprise, this is nothing new. When they find out customers, deposits/wire are cryptos related they pull the plug (a reason why Trex/Polo don’t mess with USD). Also, they gave their customers a haircut, probably a lot of complaints about the hack to Wells Fargo and other banks. These are the correspondent's banks, not Finex’s, they have banking. This is how they can receive large institutional deposits and withdrawals. Which I bet make up the majority of the fiat deposits and withdrawals. Classic 80/20 business rule, 20% of your clients are providing 80% of the liquidity plus you are having banking issues (which is expected in crypto-land), so you cut this service to the 80% saving time/resources/headaches for the 20% loss in a single service to them (no fiat withdrawal/deposits- but crypto flows in and out with ease). Again if they weren’t able to get money in and out there would be a premium, there would be a long line of complaints online. I have no reason (or proof) to believe that money is NOT coming into/out of the exchange. It makes total sense too, they are the best lending platform, have one of the most liquid exchanges, and have by far the most reliable and best software/servers/UI/order options. You cannot deny this fact, they are constantly a top 3 exchange in volume, even after a hack. I use Finex (as well as others) because of all those things. Also, they have already been hacked, a second hack seems less likely (IMO, they have more to lose with another hack). They have many big events on the horizon (Ethfinex). Would a company be putting resources into these things if this is all fraud or an exit scam? I find that unlikely. Is this 100% full proof? Of course not, nothing is, especially in crypto, just my reasons for trading there. Institutional Investors - https://medium.com/@bitfinexed/are-legitimate-institutional-investors-really-coming-onto-bitfinex-s-platform-i-don-t-think-so-cb4ed5175092 Here is what this person doesn’t comprehend, what if these institutional investors are… you ready… here it comes… other exchanges that use Tether, as well as other crypto related businesses. It is only $395 million Tethers. These exchanges (Trex, Finex, Polo) are printing money. This isn’t “someone” with 100’s of millions of dollars as the article suggests, it’s many people with millions/thousands of dollars. Again this all ignores the fact that many more people have entered the ecosystem this year. This is proven by Coinbase growth, transaction growth, and exchange growth (both in volume and # of exchanges), and growth in crypto-related sub-Reddits. Yet Bitfinexed is shocked that lending hits ATH’s, but it is perfectly explainable and reasonable based on the evidence and data of gthe ecosystem. Let us not forget BTC is a finite amount, more people are going to increase demand/price, if you think this is a bubble... you haven’t seen anything yet. The TOS are sketchy and a point of concern but there are two things to keep in mind- It was necessary to word it that way, and the market clearly doesn’t care. If they had worded it that they will redeem no matter what, they would have money launderers flocking to the service (bogging down resources), plus law enforcement knocking. Tethers weren’t created to get $ in/out of crypto but to provide a safe haven and liquidity on exchanges that don’t use USD. And I would say they are working perfectly. Very few are withdrawing USDT for USD. I think it is precisely because of what the co-founder of tether refers to here (and below)… “If you want to convert USD₮ into fiat currency (or vice-versa) at tether.to, you must go through the whole “aggressive” KYC/AML process and get verified. I’ve heard from many who tried and were unable to provide sufficient documentation. Tether’s KYC/AML policies were written by experienced compliance officers and it’s critical that it be done properly and with diligence. It really is about “knowing your customer” and making sure that their uses are legitimate.” This is a perfectly reasonable explanation why people are not lining up to cash out of Tether, and also why large/reputable institutions can (exchanges, investors, etc.). TETHERS REPLY TO ALL THIS, PLUS UPCOMING AUDIT https://tether.to/tether-update/ Now ask yourself this, would a company that is operating fraudulently have a roadmap of all these new features that no one will ever use if they don’t provide these promised audits as they say they will by the end of the year? So as of now they have enough runway until the end of the year. I say we give TetheFinex the benefit of the doubt. While Tether could be operating fractionally (so to could any exchange in crypto btw), there is no proof or evidence of it today. It trades at normalized rates. You can’t just create 100’s of million of dollars without the marketing realizing somewhere. Sure, you can say this is a confidence game, but so is crypto, so is the USD, so is the concept of money. I see no reason to be more concerned with this risk than the already risky environment we trade in with exchanges. WHAT IF I”M WRONG? CRYPTO WILL IMPLODE! No it won’t. Sure there will be a dip maybe even a correction, but there are only 395 million Tethers. People will get out of Tether even at massive discounts (until $0) into crypto because they can’t get USD, but not more than the 395 million tethers circulating (at this time). At a certain discount people will understand what is going on and stop trading for Tether. BTC + ETH is worth over $100 billion, how many time does the entire amount of USDT have to turn over to cause a massive crash? What will get hit the hardest are the people left holding tether (if/when they implode) and Trex/Polo/Finex. To think Polo/Trex would rely so much on USDT that they didn’t fully vet it is absurd as well. Whats more likely, Polo/Trex’s due diligence or this @Bitfinexed person based on conjecture? I’ve already seen a Forbes contributor try and get ahold of Bitfinexed on twitter. https://twitter.com/laurashin/status/894437272241569792 Could I be wrong about all of this??? Of course, but, I feel I have provided more evidence than the other side. You are the Judge :) USEFUL INFO Some from u/udecker - Tether co-founder Tether.to is who has the backing for the token, not Bitfinex. Bitfinex is a customer of Tether. If Bitfinex wants more Tether, they make a request to Tether, just like all other Tether customers. Tether waits for USD to show up, and when it does, creates the necessary tethers and credits Bitfinex. They both have Tawainese banking so money can flow back and forth easily. (The banking industry in the country of Taiwan are under scrutiny lately because of larger legal issues not involving crypto, but clearly affecting crypto companies) https://wallet.tether.to/transparency Tether wasn’t designed to be a profit machine. It was designed to be a utility for the crypto community to provide a stable token (with all the benefits of this). Tether’s business model is this: 1. Generate fees from wire deposits and withdrawals and conversions. 2. Interest income on the reserve. Bitfinex’s parent company owns a 20% stake in Tether. People say Tether isn’t being burned. But they are being recycled which is/was always an option. I hope we can have a productive conversation around this without the usual Gox 2.0, sell it all, Bitfinex is the anti-christ comments with no substance. Give us your opinion and perspective because maybe I am missing something… but, maybe you are too. This was quite time consuming (just ask my kids and boss, lol) So if you found this info helpful you can donate if you’d like here, if not, no biggie smalls :) ETH - 0x0181D1C82229BAD741BB6c302ae523aE6DC9a1EE BTC - 14Wz4SCuKwa81UBh1U7mcaCTxMsYLLuGZK BCH- 16uby9gW79tjn5guQG8v5mTsdu6V6cYyKF
Back to the trenches I guess. Some of you might remember my last post over proffesional approaches to the markets. If not I suggest you take a look on it before reading this. https://www.reddit.com/Forex/comments/cxymyf/a_peek_into_how_financial_institutions_play_this/ I promised to discuss some stuff about macroeconomic approaches to forex, and well, with some delay here I am. Again, here I introduce the very same disclaimer. This is a professional approach, not coming from retail. Take everything with a grain of salt, and exercise proper due diligence with your approach. Sincerely hope you get something out of this post. An inconvenient, forex truth You've been there, struggling and suffering for a while. You have experienced the pain that the markets can unleash on you. You have left positions on the red for longer than your sanity could possible hold. You have opened positions that moved to the green, but you did not take any profits and you let that position slowly die and possibly causing huge loses. Now here you are , in October 2019, possibly as a breakeven trader, still suffering and trying. You have researched hundreds of indicators, if not thousands. You thought you have all sorted out with your RSI , stochastics and TDI. Yet you have switched between strategies more than you have changed your underpants in your whole life. Spent too many hours looking at the screen, wondering what the hell you are still missing. And the incovenient truth is that you want the glitz and the glamour, and the caviar, but you are not willing to eat the shit. And this is the shit: How are you expecting to make any good money on a field where you dont know virtually anything about it. Nor the substance that you are trading, nor what moves it. How are you actually expecting to beat guys that breath and eat economics?. You know literally nothing about volatility and liquidity, about interbanking flows , about puts and calls, market microestructure and price delivery mechanisms both on OTC markets and CME , what is GDP , how is calculated and why is critical. CPI, NMI, GDP to debt ratios, UST, repo markets, shadow banking, carry diferentials, how and why commodities alter certain currencies. EM vs G10 currencies, pegged vs unpegged. Balances of Payments.... When you hear "greeks" you are thinking about the Iliad or Athens. You know nothing about business and credit cycles. Valuation anchors, return to the mean, standard deviations, fair values. I could go on and on and on. Does this make you uncomfortable?It should. You have dozens of the best students that the world can produce, coming out of the London School of Economics, or from IT degrees in Harvard and MIT, all moving into freaking huge financial institutions, building complex system, doing incredible research . Funded to an extreme you can not imagine. Working in partnership with the IMF and Central Banks all aroundthe world. PhD's dedicating their lifes to such complex systems and situations....... and yet here you are, insolent and ignorant piece of s***, you that have been trying to make your "RSI" or "stochastic" work for 2 months, trying to beat this multi billion-trillionaire infrastrucure. Do you start to realize where the f*** do you stand? Do you really believe even for a freaking second that you can beat them on their game? Using RSI or Ichimoku? EAT.THIS.SHIT. And its not that technicals are not necesary. They are. But believe me, I (and most pro's that I've ever engaged with) spent less than 1/5 of the time actually managing trades and looking at price charts. If I'm not scalping , my day starts with me reading around 12 to 15 research papers coming from the main financial institutions, glued to my Reuters terminal reading more reports, looking at polls, updating my macroeconomic models with the latest data, performing calculations related to options...... only then, with a fundamental trading idea, I will move to evaluate technicals to see if the timing is good. I want to learn, how shall I procede? You want to build a lasting and enjoyable relationship with the market? EAT THE SHIT, and do all that is under your control to actually be able to open The Financial Times and understand what they are talking about. It will take you years, and for the education, hundreds of dollars. But this is how it goes if you want to get real. This is career, not a hobby. This is simply the way to be consistent. EAT THE SHIT. I compiled some resources to get you started: ACATIS Konferenz 2016, Mr. Koo, Surviving in the Intellectually Bankrupt Monetary Policy Environment - A great video coming from Nomura, to understand the actual shitty situation in the Eurozone. Online Courses - Look for IMF on EDX. Also, a fenomenal course on Banking and Money in Coursera. Books - Macroeconomics, Gregory Mankiw - Start here to graps the basic concepts Financial Times Guide to the Financial Markets Financial Times Guide to Banking Applied Financial Macroeconomics and Investment Strategy: A Practitioner’s Guide to Tactical Asset Allocation The Holy Grail of Macroeconomics: Lessons from Japan's Great Recession The Escape from Balance Sheet Recession and the QE Trap: A Hazardous Road for the World Economy The Other Half of Macroeconomics and the Fate of Globalization (English Edition) The new lombard street - how the fed became the dealer of last resort Foreign Exchange , Amy Middleton The Role of Currency in Institutional Portfolios, Momtchil Pojarliev and Richard M. Levich Currency Overlay: A Practical Guide, Second Edition, Hai Xin The Handbook of Corporate Financial Risk (2nd edition) Trade Stocks and Commodities with the Insiders: Secrets of the COT Report (Wiley Trading) How I Made One Million Dollars Last Year Trading Commodities Market Liquidity: Theory, Evidence, and Policy (English Edition) Trading And Exchanges: Market Microstructure For Practitioners The Microstructure Approach to Exchange Rates The Creature from Jekyll Island: A Second Look at the Federal Reserve Big Debt Crises Payments Systems in the U.S. - Third Edition: A Guide for the Payments Professional The Volatility Machine: Emerging Economics and the Threat of Financial Collapse (English Edition) Stabilizing an Unstable Economy
Forex scalping is not something where you can achieve success through luck. Any forex scalping system focuses on exact movements which occur in the currency market, and relies on having the right tools, strategy and discipline to take advantage of them. The objective here is to manipulate abrupt changes in market liquidity for fast order ... Forex scalping strategies, Forex scalping techniques, Scalping Definition, Forex, Scalping trading meaning. What is Scalping. Scalping is a form of intra-day trading method where traders tend to trade with the aim of targeting a few pips of profit. There are many trading strategies that can quality as a scalping method. In this article, we will introduce you to a few forms of scalping ... Forex scalping involves buying and selling currencies, typically with a brief holding time and with multiple trades taken each day. Forex scalpers keep risk small in an attempt to capture small ... Forex Scalping Cons. Gain to loss ratio is very low: Because the profit per trade objective is so much lower, it is easy for one bad trade to eliminate the profits of the day or week. Example: if you make 3 pips, 5 times in a row, you are up 15. If you have a stop loss of 20, just one loss wipes out all of your previous five wins. Hard to find a good (working) risk/reward ratio: The easiest ... Scalping in the forex market involves trading currencies based on a set of real-time analyses. The purpose of scalping is to make a profit by buying or selling currencies, holding the position for ... Instead of waiting for days for a trade setup to occur on the daily chart, Forex scalping allows you to take multiple trades in a single day whenever the strategy provides a buy or sell signal. In addition, all trades are closed by the end of the day, meaning you won’t have any risk of holding trades overnight and you’ll be able to precisely calculate your net profit or loss by the end of ... Forex scalping is based on buying and selling forex currencies while profiting from small, fast moves. Scalping forex traders often target as little as 10 pips for their profit targets. In order to profit from such small market moves, forex scalping requires the trader to enter the market with greater lot size than they would let's say a swing trade with a target of multiple hundred pips ...
What is Forex Scalping - Forex Scalping Definition
Forex scalping involves buying and selling currencies, typically with a brief holding time and with multiple trades taken each day. Forex scalpers keep risk small in an attempt to capture small ... Watch this lesson to discover the best scalping trading strategy that could help you become more successful when trading the Forex or stock market. In this v... For scalping try Pepperstone: http://www.financial-spread-betting.com/ccount/click.php?id=90 Check Mark's Premium Course: https://price-action-trading.te... Forex Scalping Strategy based on Currency Correlation How to use currency correlation as a scalping strategy is not that hard. It is crucial that you have a good understanding of what is going on ... Scalping in the foreign exchange market is a method of trading certain currencies based on real-time technical analysis. The main goal of scalping is to make a profit through purchasing or selling... However scalping today is about speculating on short-term direction of that currency pair. We spot an opportunity and we're in aggressively and we're out very quickly whether we're right or wrong ... Hello everyone,dont follow my plan yet! observe first and see what happen!! confidence with my plan??follow me and subscribe! Share this video. pm me if you want request any pair for me to analyze ...