High Frequency Trading

[MadisonFX]

How many trades do you make a day on average?

[Soul-Trader2004]

423.56 trades per day

[KPcurrency]

I am of the belief that a trader should strive to Under-trade in both size and frequency.

Many (day)traders make a lot of trades, targeting smaller profits. This means they need to be correct more often. Therein lies the struggle- high wins rates do not in themselves make money(although they are easier on the psyche). Larger wins on one's wins than the corresponding losses on one's losers is what makes money. Being right and sitting tight that's where the money is.

**If you're making more than 3 trades in a day, you are trading too much.

**Not being in the market IS a trading decision.

**Learn to be comfortable being IN the market.

[Soul-Trader2004]

Originally Posted by KPcurrency

I am of the belief that a trader should strive to Under-trade in both size and frequency.

Many (day)traders make a lot of trades, targeting smaller profits. This means they need to be correct more often. Therein lies the struggle- high wins rates do not in themselves make money(although they are easier on the psyche). Larger wins on one's wins than the corresponding losses on one's losers is what makes money. Being right and sitting tight that's where the money is.

**If you're making more than 3 trades in a day, you are trading too much.

**Not being in the market IS a trading decision.

**Learn to be comfortable being IN the market.

horses for courses KP and the point of more than 3 trades a day being too much is a very sweeping statement based only on your experience.

Many city traders trade hundreds of times a day and make a lot more money than you or I - frequency of trades has nothing to do with the success of a trader or strategy - just that you havent seen yet how to do it.

always remember this

** you dont know what you dont know

** most traders who give advice cannot trade for toffee

** Sweeping statements are rarely useful - the day after you make one it is inevitably proved false

[Trader02]

Originally Posted by Soul-Trader2004

horses for courses KP and the point of more than 3 trades a day being too much is a very sweeping statement based only on your experience.

Many city traders trade hundreds of times a day and make a lot more money than you or I - frequency of trades has nothing to do with the success of a trader or strategy - just that you havent seen yet how to do it.

always remember this

** you dont know what you dont know

** most traders who give advice cannot trade for toffee

** Sweeping statements are rarely useful - the day after you make one it is inevitably proved false

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Get a job, chief -- or publish the cliches in one shot, please.

Pity the man who likes to have good, long, lasting, satisfying, sex with his girl twice a week -- as opposed to this millionaire who plunges 20-100 times a day, sometimes lasting only a few seconds per assault.

And we cannot possibly know this is batty until we have tried it consistently for -- months?

A Pyrrhic victory: lots of money but dazed, no-life zombies for the most part, some exceptions notwithstanding -- worse still, only 1-2% of these cats are actually doing real well financially, but even here they've been dead inside a long time ago.

Bottomline: Frequency of trades has EVERYTHING to do with long-term, lasting success that must include mental well-being, family & social life, stress management and thereby reasonably good maintenance of the prime conduit, the eyes.

[Soul-Trader2004]

well of course we bow down to your superior knowledge. How i wish i could make a much money as you do.

it must be hard to be humble when you know everything messiah.

[Soul-Trader2004]

ps, i myself dont trade hundreds of times a day one main trade and a few discretionary ones if i feel like it for kicks - but there are plenty who do trade hundreds of times a day - many of which are automated arb systems inducing no stress at all.

tho I agree it would drive you nuts if you had do manage them manually.

ps, what has trading to do with your girlfriend - maybe getting your kicks in the wrong place?

[KPcurrency]

Soul-trader: I have read many of your posts and usually find them well thought out and intriguing. On this subject you are completely off track. Yet, as such you go a long way in proving me right.

1. As you know, or have seen, on these boards, most FX brokers will not even allow scalping. Scalping and Arbitrage are the hardest things for the retail trader to do. Yes there are pros that arb the market 100's of times a day. BUT THEY ARE NOT A RETAIL TRADER IN A HOME OFFICE TRADING OFF A WEB-BASED PLATFORM. These people have access to better data, faster computers and more access then the typical trader. For the retail trader, less is more.

2. Generally speaking, the best opportunities a rarer. A trade set-up that occurs 15 times a day will tend not to be as good as a trade set-up that occurs 5 times a week.

3. Traders make trades because they have identified high probability trades within the context of their trading methodology. Gamblers make trades for the action.

Sure we are talking in general here. Every person has his or her own belief system and personality. That not withstanding, most traders would benefit from trading fewer times than trading more. As for the money, forget about the money and focus on the process (which I actually believe you do-then again, I don't know what I don't know.)