Hi jonnyy40, My 3 kind of trades : 1. My system (but it likes to tease me - making signals when I am sleeping or busy with other things - LOL) 2. Trading the news (fundamentals) 3. Trading the chart. "Trade what you can see". Today I trade the long eur/usd because the trend is up. My strategy: I like to keep things simple. Also my trading. That's why I am only trading eur/usd and sometimes gbp/usd, but I am looking into other pairs (jpy and cad). I don't like big stops, because they means big losses. Therefore I set small stops - better get out quickly if your are wrong instead of feeling a lot of pain hoping that your loss will go away.
Not much, really. Took a piece out of the EUR/JPY fall last night. I've been mostly paper trading. There just doen't seem to be much movement; consequently, I've been hesitant to take trades. My paper trades have been doing fine, but it's easier to make that prediction than to put money behind it. Right now, I'm looking into options trading offered through Refco. I think it's a good compromise for me as I love playing the reversals off the daily and weekly charts, but I also don't really like sacrificing the potential to play the intra-day swings.
Would you mind describing (in as much or as little detail as you feel comfortable) what you use to make your decisions? Thanks, Steve
Hi Steve, OK - options?! I have never tried that - and I have never met a rich options trader (LOL). How are you going play them? I suppose you can't use s/l?
I usually look for a big reversal of a downtrend or uptrend, also use ma 50, 5, 15, 30 min chart for entry point. I look at key resistance and support levels, and news..research what the analysts are saying, I pretty much keep it basic, I usually trade for intra day profits... if I am unsure I will buy and sell same pair with 20 pip stops on each.......but don't like doing that.....
Baruch, I am following your journal with interest. Thank you. I don't trade currenies right now but have always been interested. What I find interesting is the currency traders are helping each other and not the constant name calling and bickering as found on some other threads. Well done ! When do you sleep ?
Baruch, Actually, I've been doing pretty well with options on equities, but that's beside the point. Basically, the way refco structures their forex options is you decide on a payout, pick a price, then a condition. For example, you can say that EUR/USD will hit this price by this date; it won't hit this price by this date; or the price will either be above this price or below this price at expiration. It's very customizable. They offer payouts of $100-$10000 and you'll pay a premium to buy the option. http://www.refcofx.com/option-trading-accounts.html I'm looking at a bunch of reverals on the daily and weekly charts; some have already kicked in as I put them in my demo account. I'm thinking about options because I can make the play without really sacrificing the missed profit opportunities from playing the intraday swings. It also seriously limits the risk of drawdown, which is always a beneficial thing - especially with a small account.