What type of trader are you

MoneyTec Forums General Trading Forum What type of trader are you

This topic contains 22 replies, has 3 voices, and was last updated by  FXGuru 2 months, 3 weeks ago.

Viewing 8 posts - 16 through 23 (of 23 total)
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  • #684

    tonyj
    • 0

    Your handle seems familar…..one that was flaming me on an opinion. However…in high frequency trading you have to go into a substanital leverage beginning at 7X. That is in making a small account into a big account to become wealthy. If you’re referring to investing then it would be 1x to 3x. From 3 to 6 we are about to speculate. Unless you have something that we don’t have, your claim in getting 20 to 50 pips has to be damn good. Remember we all take losses…as small as possible. Most professinals that I know go for low pips and high leverage….gunning for pips in the 6 to 12 range….from 7X and then rev-ing up to 20X….even up to 100X. First of
    all to get those kinds pips one has to have a market that is volatile, liquid
    with a very high average daily range….which we refer to as the “hook”…
    a hook to hang your hat on. You can have your own version of an average
    daily range….with something like 30 or 40 days. This can be programed into
    your chart. The hook=ADR/bid-offer spread. So you can see that the spread
    has a tremenously effect on the hook. EUR/USD is the only one that would
    give you at least a better chance than any of the others. I saw an explan-
    ation of an average daily range(50 days) of 108 pips. I didn’t have any such
    figures in tables. Mine were 90 being the highest…and then I think that was
    in the USD/CHF…maybe again closer to 100. But it’s the spread that is the
    demon in this whole setup. Many newer traders don’t realize how this can
    help blow the can up. You have to have a high hook to ensure sufficient
    time/price opportunities in order to minimize the trading cost relative to the
    magnitude of an average trade. So one would look to make profits in the
    5% to 10% of the average daily range…which means you are shooting for
    a 6-12 pips a day on EUR/USD, on average. If you can make 6 EUR/USD
    pips a day on 20X leverage, in one year you will make a 1000% yield. I
    would doubt that you are using a 20 times leverage with your trades.
    Why?……because that kind of inefficiencies would be discovered and
    exploited by the market faster than you could blink your eye. Just remember
    the market is smarter than any one of us. Someone said….Is the market
    fooling you,….or are you fooling yourself. There’s other factors not
    mentioned such as shortening the TP level skews the odds against you
    exponentially….the spreads chews up the small edge any short term strategy
    you may have. Your claim is interesting….to say the least.

    ciao
    Tony

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    #685

    7thSignalTrader
    • 0

    I trade four (4) different trajectories:

    1) Initial Move (minutes to hours)
    2) Day Trade (up to 24 hours)
    3) Swing Trade (24 hours up to 5 days)
    4) Outlook Trade (up to 1 month)

    I use my Swing Trade is the great equalizer in case anything goes wrong with any Day Trade. I use the Outlook Trade as the great equalizer in case anything goes wrong with any Swing Trade.

    No Outlook Trade has ever lost money, so I don’t have a back-up for that one.

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    #686

    tonyj
    • 0

    1) Initial Move (minutes to hours)
    2) Day Trade (up to 24 hours)
    3) Swing Trade (24 hours up to 5 days)
    4) Outlook Trade (up to 1 month)

    I use my Swing Trade is the great equalizer in case anything goes wrong with any Day Trade. I use the Outlook Trade as the great equalizer in case anything goes wrong with any Swing Trade.

    No Outlook Trade has ever lost money, so I don’t have a back-up for that one.[/QUOTE
    7thSignal:

    What is an Outlook trade? Am not familar with it. I’m a PNL’er….Point and
    Line Methodology. My explanation was in regard to small pips with high
    leverage. You know, of course, that you can gun for 6 pips easier than in
    gunning for 20 pips or higher. If you can consistantly get 6 pips then you
    should be able in a reasonable amount of time get sufficient funds to shoot
    for 20X, 25X etc….even up to 100X. It’s just that the hook, if programed
    into your chart can give you an idea of where the mine fields may pop up.
    Actually, you really should be scalping and day trade during a trend run…
    and a congestion is an invitation to Lucifier’s Slopchute and shoveling coal.
    What most traders don’t realize how deceiving the bid/ask spread can be.
    The best is EUR/USD by far than any other crosses. Good trading to you.

    Addendum: The poll is asking the wrong question…..Why?
    There are two kinds of markets, and ONLY two kinds of markets. There
    are five kinds of trades, and ONLY five kinds of trades. No matter what the
    market does, it has to abide by the conventional patterns of 5 kinds of
    trading. Each one is different….and that is the problem. And 90% get
    blown out of the box. They didn’t tell you that in any of the forex courses..
    ….did they?
    ciao
    Tony

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    #687

    7thSignalTrader
    • 0

    Tony,

    I agree – my first thought when I read the question was “false premise” = “false question”. The math is easy. You can be more than one type of trader at the same time, too. Which is a smart way to manage and preserve capital.

    The Outlook Trade in my system is one that runs at least one (1) month in duration, but can run up to as many as 5 months or more. Right now, my system is projecting the Outlook Trade to be up to 5 months targeting the $1.2450 level at the time of this post.

    However, because the systems targeting package is dynamic, those targets get changed with every tic. Only, with the Outlook Trade the changes in the target projections are less than a few pips per day unless there is a major move like we had a couple weeks ago, where the Outlook’s top side was $1.2300. At the time, the current price was in the $1.1700 range.

    Those pips are what you see in my trade journal on the “Outlook” trade profile where the system used the open price of January, in the $1.1820 level. So, a Long Hold when the system gave that entry price at the start of January, would have net 505 pips thus far before this 226+ pull back that we are seeing right now about one (1) month ago.

    Agreed, smaller pips are by definition easier than larger pips and I have some of the built into my system with the Initial Move trade and under certain circumstances, the Day trade itself gets truncated when the system does not have a strong enough probability associated with the trade.

    You are correct. In fact, many people would be totally blown away if they were to calculate what just 5 pips per day could net them if the were able to accumulate those pips consistently on a daily basis using high leverage like 200:1, or even 100:1.

    Those peanuts add up really fast! Pretty soon, you are talking about some real peanut “butter”.

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    #688

    tonyj
    • 0

    7thSignal…
    You and I have the same kind of system..(I hate the word “system”) in which
    there is that heart or soul which all the others don’t have. I too have that
    one ingredient which would track the market up to a year and beyond if one
    wanted, and by that time you’ve gained the coffers to do so. I am an old
    man now, an octogenarian….had made mine in commodities and am only back
    on the scene with forex. Only for a look-see. Because I have a son who is
    trading and I’m helping him. But the market in my day, was different. The
    market is still the market. But in most of my trading, we didn’t have the
    computer. The computer came in at the end of my trading days. Where
    I ended up using the DTN…satellite disk. Otherwise it was necessary to
    be at the Broker’s office to use the quoting machine. And we drew up our
    own charts. It’s different today….all around. Now you have the Forex with
    which just a few dollars one can open an account. You have free quotes…
    we didn’t. You had to pay for it. It’s like you going to the super market
    and paying to find out the price for a loaf of bread. Even if I am an experience
    trader….it doesn’t amount to a hill of beans. I do have some something to
    compare to….and the Fat Lady hasn’t changed her garter belt one bit. It’s
    just the same old song but a different Fat Lady doing the singing…..and the
    shot glass has a different brand of booze. And the pick pocketers haven’t
    changed their style and their smile is still the same as that of a bedbug after
    his fill. You have a better chance to make a bundle…even make a living
    doing it. At least now….you can try flipping the quarter….and you know
    it could come up head or tails. In my day….you weren’t always sure…
    the guy doing the flipping would run off with the coin….and he was the
    fastest man on the track team. He’d even start off in a kneeling position.
    Have good trading….
    ciao
    Tony

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    #689

    7thSignalTrader
    • 0

    Tony, you remind me of a time that I remember through study only. I studied the times that you speak of, Sir.

    Creating Charts by hand. Yes!

    I remember reading about this and you are not kidding one bit. That is exactly the way it used to be. I don’t think the average young trader today knows the history of this business – they should, so they can appreciate all of the technology at our finger tips today. Many new traders don??????t even know that once upon a time, you had to create your own charts.

    My, my ?????? how much things have changed, now!

    I made my first million using Microsoft Excel. A millionaire using a Spreadsheet ?????? who??????d a thunk it?. Creating a new trading technology using a Spreadsheet created by a man who created an entire new industry using IBM’s software. Everybody in the chain using something that somebody else created. How pretty is that picture – darn pretty!

    I think it all boils down to how bad does one want it. Some of these new traders fall apart at the seams if things don??????t work out quickly for them. Too many ForexMadeEasy types flying around out there fooling everybody into thinking that this business is easy. It is not, it is extremely hard to make it ?????? it is even more difficult to thrive. I feel truly blessed. I feel like I??????ve been given a special gift and that is why I spend so much of my time trying to encourage other new traders to start thinking outside the box. Most of them just don??????t get it, however.

    My next target is the 10 figure level, just a soon as I can get completely out of the final development phase of certification and focus 100% of my time on trading. My grind is day-in and day-out. Simply turning over the same capital day, after day, after day, after day and reinvesting 90% of all of my profits on each and ever single trade.

    That kind of discipline, if you can maintain high accuracy will pay off even if you don’t turn 100 pips per day. A handful of pips per day, consistently over a period of time with good leverage, can lead to very good gains – but, the accuracy must be there and I think this is what separates the early days of retail trading from what I do now as a private institutional trader.

    I could not do what I do without the technology on several levels. High-speed network communications, direct access trading avenues, computer based decision support trading technology, client/server trading platforms, the ability to trade through any bank anywhere in the world, or any broker anywhere in the world in real-time, electronic EFT’s forward and backward – the opening of the FX markets to the individual more than 6 years ago. All of this makes for a real opportunity for the wise, creative and hard working trader.

    I absolutely live every single minute of it. Good trading to your son, I??????m sure you will teach him well!

    Nice dialoging with you, Sir.

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    #1367

    Coleen
    Member
    • 26

    I prefer to be multiple pony thing, I believe you can’t become great by just one way instead you need to work it out through multiple ways. I like to trade according to the situation, as I believe that is the way forward to gain consistently.

    It will not work for us if we are not adopting an open route. That’s why it is the absolute must that we play it all accurately, as that is what enables us to gain most.

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    #2182

    FXGuru
    Participant
    • 155

    I am a very much open kind of trader. I prefer trading according to the situation instead of having fixed mindset. As I feel when you work without getting specific, it opens so many more opportunities for you. I find it all super easy and simple thanks to FreshForex and their highly likable facilities from having low spreads to fast execution of trades and of course, the highly popular 101% Tradable Deposit Bonus, it’s all superb.

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