Trade Like a Dealer: (And Avoid Death by a Thousand Stops)

[fxwiz]

Originally Posted by jmf0482

Jasper and fxwiz

what time frames do you use when u trade against the trend?

Depends on the amount of risk you are willing to take. At a nickel (500 pips) I use day time frames. Another good time frame to examine is the 4 hour candle known as the dealer candle and of course the 1 hour.

[wozdan]

Originally Posted by fxwiz

Depends on the amount of risk you are willing to take. At a nickel (500 pips) I use day time frames. Another good time frame to examine is the 4 hour candle known as the dealer candle and of course the 1 hour.

The 4 hour candle is the dealers' favorite time frame?

[fxwiz]

Originally Posted by wozdan

The 4 hour candle is the dealers' favorite time frame?

In a 24 hour market its a good time frame to see actual price flow and guage support and resistance.

[TheSundanceKid]

Originally Posted by jasperforex

Brilliant article that everyone should. Trading against the trend can be highly profitable if you know what you're doing. I do exactly that and my system has never lost me a penny. It's all about steadily getting in after the trend is dying.

The problem I have with contrarian trading is that usually I find I'll profit much more if I follow the trend, rather then try to fight it.
Although I'll admit it does have it's benefits/merits as a trading style. It does wonders for your ego, and makes your trading statement look very pretty!

Good Trading,

Sundance

[GeorelloG]

>Jasper

You're sure you've never been burnt by the trend that sometimes continues. I also like to look for the end of a trend and go against it. I've made some good trades like this, but then some just ... you know, just slipped away.

Anyway excellent article. I can surely relate to it. Brought back some memories.

G

[jasperforex]

Originally Posted by GeorelloG

>Jasper

You're sure you've never been burnt by the trend that sometimes continues. I also like to look for the end of a trend and go against it. I've made some good trades like this, but then some just ... you know, just slipped away.

Anyway excellent article. I can surely relate to it. Brought back some memories.

G

Nope, never been burnt as in its always comes good sooner or later, normally inside two or three days. Like I said the main thing about is that it waits till the thing is completely shot through before it tells you to buy/sell. Most recenr example was for the swiss franc where on Monday this week it hit the sell level but I had to hold it overnight before I got my profit. So that was quite quick. With the aussie it can take longer cos it overshoots bigger but you can use it to your advantage and buy better prices if you use the extra tool.

FXwiz. Timeframe is daily.

[Makedon]

Originally Posted by jasperforex

Nope, never been burnt as in its always comes good sooner or later, normally inside two or three days. Like I said the main thing about is that it waits till the thing is completely shot through before it tells you to buy/sell. Most recenr example was for the swiss franc where on Monday this week it hit the sell level but I had to hold it overnight before I got my profit. So that was quite quick. With the aussie it can take longer cos it overshoots bigger but you can use it to your advantage and buy better prices if you use the extra tool.

FXwiz. Timeframe is daily.

Hi jasperforex, how do you determine the sell level? Monday's USDCHF was a nice buy at about 11:00 but it opened low and closed high for the 24 day.

Sounds to me like you sold it when the momentum was over and waited for the next day, which was a low range BTW.

[fxwiz]

Again I want to reiterate that I trade with nickel (500 pip ) HARD STOPS. LIke Japser I try to buy bottom and sell top but once in while trend WILL run me over. For anyone reading this article I do not want Misperceptions that this is a NO STOP strategy even though some traders may trade that way.
The most important aspect of this strategy is are you comfortable fighting the crowd or joining it?
Your psychological make-up will be the most important ingredient in wether you suceed or fail. Can you calming throw good dollars after bad? If not. If you puke at the thought of being 100 pips out of the money - this is definitely not for you.
I am a renegade by nature that why the strategy works for me and why I have a hard time trading trend.
There is no RIGHT way to trade their is only YOUR way. Hopefully this just shows a way to fade for those who like to use that kind of strategy.