Experienced Traders Thread

[DaveLittle]

Hello everyone,

After a long time away from forums I've decided to come back

When I first started trading Forex 4 years ago I used to use these forums for the advice of others (back in the sorry days when I was losing large amounts of money trading).

I'm now finally starting to make quite reasonable weekly profits from FX on a more consistent basis. I therefore thought I would start a thread for experienced traders (sorry newbies!). It could be good to share trading advice and strategies among profitable traders, so hopefully we can all perfect our techniques and perhaps learn from some experienced people.

I don't want to set criteria for posting in the thread. I thought perhaps people who have made fairly consistent profits over the past year.

I personally make 3 to 4 trades a week. I am about 60% technical - 40% fundamental. I strongly believe trading is all about finding a style that is suited to the individual. Nonetheless I would be very interested in hearing what styles other traders find have worked for them.

I never believe in holding a trade open for more than 36 hours (too much can affect the market to alter a tradedirection over a longer period of time). Also, I only trade the EUR/USD, GBP/USD and USD/JPY. I use different strategies for each and place trades only at certain points of the day for each.

Does anyone have any questions or suggestions for this thread?

I am going to post the same thread in a few other forums to encourage wider feedback. I might even edit together all the posts as a PDF file which I can then send out to people. A sort of "FX" dossier of advice from traders who have developed profitable strategies.

Anyway let me know what you all think.

Thanks

Dave

davelittle06@hotmail.com

[Stein]

Originally Posted by DaveLittle

Hello everyone,

After a long time away from forums I've decided to come back

When I first started trading Forex 4 years ago I used to use these forums for the advice of others (back in the sorry days when I was losing large amounts of money trading).

I'm now finally starting to make quite reasonable weekly profits from FX on a more consistent basis. I therefore thought I would start a thread for experienced traders (sorry newbies!). It could be good to share trading advice and strategies among profitable traders, so hopefully we can all perfect our techniques and perhaps learn from some experienced people.

I don't want to set criteria for posting in the thread. I thought perhaps people who have made fairly consistent profits over the past year.

I personally make 3 to 4 trades a week. I am about 60% technical - 40% fundamental. I strongly believe trading is all about finding a style that is suited to the individual. Nonetheless I would be very interested in hearing what styles other traders find have worked for them.

I never believe in holding a trade open for more than 36 hours (too much can affect the market to alter a tradedirection over a longer period of time). Also, I only trade the EUR/USD, GBP/USD and USD/JPY. I use different strategies for each and place trades only at certain points of the day for each.

Does anyone have any questions or suggestions for this thread?

I am going to post the same thread in a few other forums to encourage wider feedback. I might even edit together all the posts as a PDF file which I can then send out to people. A sort of "FX" dossier of advice from traders who have developed profitable strategies.

Anyway let me know what you all think.

Thanks

Dave

davelittle06@hotmail.com

Hi Dave,
I am surprised you don't also trade the CHF in the opposing direction as it is the second, counter currency, that in general is in tandem with the Pound and the Euro.
Do you trade the Yen during the Asian session when there is more volitily for the Yen?
Looks to me you only trade when the conditions or your indicators are all lined up, hence only 3 / 4 trades a week.
Way to go.
Having survived several years of poor results can be quite draining on your capitol and your emotions.
That alone is admirable.
Stein.

[T.Sanders]

It would be nice to see some some of your strategies, ie, your trades, and why you placed them.

Share your thinking process regarding particular trades.

This should start some good conversing on the thread.

And you may even get some good ideas that could improve your trading as well.

[DaveLittle]

I don't trade the CHF. I prefer to only trade a smaller number of currencies so that I can specialise in them.

One very successful strategy I've found with a co-trader is to break a currency pair up in to 4-6 hour time periods for the day. You should then study a particular 1 or 2 time periods for that day and become an expert trader within that time period.

Factors I recommend you look at are: what is the trade volume in that time period, what is the volatility likely to be like, what market factors are going to affect it (use external sources for this), what trends frequently occur in that time period, who is normally trading in that time period (location wise). This should then be combined with a fundamental analysis (of which I use about 3 very reliable sources) to create an ideal trade. The day is too long and the market is too unpredictable and random to try and understand everything about it for a full 24 hour period. There are certain external sources and analysts that are also paramount in being able to understand both technical and fundamental factors which are going to affect the time period you have chosen.

I realise a lot of traders disagree with short trades and it doesnt fit in with their trading stlye, but I have managed to make some quite good profits recently from focusing in on key time-frames.

[DaveLittle]

Today I went long on the EUR/USD with a limit of 1.1945 (reached jsut under an hour ago). If the trade had not hit its limit by about 13:00 GMT then I would have closed it just before the ECB announcements (todays news factor).

Before going into this trade I used my own technical analysis and combined it with a fundamental analysis about the ECB (from my usual sources)


Hope this helps. How is everyone else trading today?

[faure]

Originally Posted by DaveLittle

One very successful strategy I've found with a co-trader is to break a currency pair up in to 4-6 hour time periods for the day. You should then study a particular 1 or 2 time periods for that day and become an expert trader within that time period.

This is really interesting. While I don't really like specialisation I think you've pointed out a key factor and that is getting into the information flow of the market you happen to be trading. I've always just looked at the key themes for the market in the long run and minded my way around the news announcements and expectaions/re-actions. Your concept gives the added edge of knowing who you're up against and eventually looking at their habits.
One of my favourite plays is the Friday afternoon close after a big move to get an idea of how the market will go next week. That is, are guys taking profits into the weekend or holding on for next week. But you will usually get that retracement of the day's move around 4pm EST and if it doesn't happen then you know Monday's gonna go the same as the Friday.

[jrinvestors]

After being wiped out a couple of times (due to lack of plan and capital) I have been trading profitable consistently since June of last year (expect for this last January in which the loss of 1 trade wiped out the winnings of the rest).
I have been using entries based on m/a c/o but waiting until a p/b or bnce happens after the c/o.
I also trade o/b o/s conditions using 3 different indicators, but this type of trade is the ones that usually get me in trouble.
I have also noticed how they try to run the stops and then the pair has a counter move which gives a nice little quick profit.
I follow around 30 pairs but trade consistently about 50% of them. I try to stay away from EUR/USD AND GBP/USD unless i get very good confirmation. The moves in these pairs are 2 volatile and the stops will have to be place way 2 far not to be chased after.
My 2 fx's
Ricardo

[jotace]

Thanks Dave for this oportunity.

My system:
No fundamental
5min chart with macd(traditional parameters) and will(39)
1min chart with both indicators again
Look for over sold situations or over bought
Assets: gold, brent, bund, T-bond, usdjpy, gbpusd, usdchf, nzdusd, audusd.

A little bit difficult to maintain all at a glance but they’re good.

One to one hour and half of trading. I usually close all positions. If not, I can buy puts or sell calls, both OTM (I usually look for over sold zones)