"Mood" of the market

[Baruch]

Originally posted by jasperforex
Its a question of risk. With the right systems profit always comes so that's not important. More important is managing risk. I didn't think much to risk until early this year. Now it's as if someone else is trading, the results are that different.

But I think your average down-system has a lot of risk?

[jasperforex]

Not really as the amounts I use are small, only 50000 per each trade entry.
Pound is more volatile than euro and the larger size means more options cost so more potential loss.
Shame I didn't do the options today but it was risky as the trade deficit normally doesn't move the market much, only on a big surprise and when trading you can't bank on big surprises in data to save you, so that's why I made the decision not to do them. Instead I got long euro market order on the data at 1.2250 which I closed at the first high in the seventies and I did the pound on a break of 1.8350. In between those two trades I managed to mess up on another pound trade that I mistimed so overall I'm up about 30 odd pips on the day so I can't complain.

[Baruch]

Originally posted by jasperforex
Not really as the amounts I use are small, only 50000 per each trade entry.
Pound is more volatile than euro and the larger size means more options cost so more potential loss.
Shame I didn't do the options today but it was risky as the trade deficit normally doesn't move the market much, only on a big surprise and when trading you can't bank on big surprises in data to save you, so that's why I made the decision not to do them. Instead I got long euro market order on the data at 1.2250 which I closed at the first high in the seventies and I did the pound on a break of 1.8350. In between those two trades I managed to mess up on another pound trade that I mistimed so overall I'm up about 30 odd pips on the day so I can't complain.

Yes, the pound is more volatile, but with your options strategy it should mean less - and not more - risk. How do you got filled at @50 - I had to pay 22 pips more to get in? Which broker do you use?

[jasperforex]

I write off the cost of the options every time I decide what I'm doing so for me that is the risk I'm taking. So if I have to pay more, it means more risk because the options could always end up being worthless so that's your risk. As I said if you use reasonable systems the profit always come it just you gotta make sure you lose less than what you make. I use CMC FxSol IG Berkeley FXCM. I have a lot of brokers some are faster than other at different times and some are better for certain jobs than others. Eventually when I have enough cash to risk I'm moving up to UBS.

[Baruch]

Originally posted by jasperforex
I write off the cost of the options every time I decide what I'm doing so for me that is the risk I'm taking. So if I have to pay more, it means more risk because the options could always end up being worthless so that's your risk. As I said if you use reasonable systems the profit always come it just you gotta make sure you lose less than what you make. I use CMC FxSol IG Berkeley FXCM. I have a lot of brokers some are faster than other at different times and some are better for certain jobs than others. Eventually when I have enough cash to risk I'm moving up to UBS.

OK, but why do use so many brokers? And which is the best?

[jasperforex]

All brokers have their problems but the main reason for having more than one is for backup. If one goes down and you can't close your position you can always hedge it with another broker.

[Baruch]

Originally posted by jasperforex
All brokers have their problems but the main reason for having more than one is for backup. If one goes down and you can't close your position you can always hedge it with another broker.

Yes, that's right. Have a nice weekend.