Nice trade on eur/usd, rax. I managed to get into a trade on the cable; closed with ~100 pip profit. Should have been closer to 150 but what you can do. GBP/JPY was the big overnight winner (for me, at least): closed with 220. I gave away a decent amount in both, but I was sleeping; not much I can do about that. I was tempted to let both keep going, as the charts I trade off of are still showing it going up but I couldn't let myself leave 330 pips on the table.
i think cashing in on winners is always a good idea. sometimes when im thinking about going flat i pick a pair with a close to -1 correlation to have a hedge for my profits in the market. eg the usdchf for eurusd, but of course its not perfect -1 correlation and second its not 1 pip = 1 pip in dollar terms for the same position size. but still sometimes it feels better this way and if the inital position runs further in my way and the hedge (of course) against me i close the inital with a bigger profit than before and wait for the hedge to come into positive territory again.
Hey Baruch, 1) If when you arrived at your trading screen and found that the price had already moved approximately 20 pips away from your MA 50and the MOM still agreed, would you take the trade? 2) How about if you arrived and found that after moving 20 pips away from the MA 50, it had retraced 10 pips and is now only 10 pips away from your MA 50, would you take it then? 3) What is the maximum you would allow it to stray from the MA 50 before taking up the trade? Because the price may start moving yet the MOM may still be on the opposite side and therefore you would wait - but how far would you allow the prices to go before deciding that whether to ditch the MOM for that trade or sticking to it? Appreciate an answer to all 3. Thanks
1. No. 2. No. 3. I only take the trade just after the signal. But sometimes I take it without confirmation from MOM - depending on the market.
Baruch, I trade it the way I trade all pairs: I look for reversals to get in early, or an unfolding trend to jump in on; I guess it's no different than anyone else. Truth be told, I prefer the reversals because I'm more of a contrarian by nature, and I always feel like I've missed most of the move when I try and jump an ongoing trend. I've found the longer term charts help with this, but it's just something I'll need to work on; I'm already becoming more comfortable with it. I don't really trade off the news because I don't have access to news as it breaks; by the time something will trickle down to me, I'll have missed the move. It had run up a from 194 to around 202; I saw the entry at ~198.00 as a minor retracement. I tend to rely on slow stochastics, MACD and DMI. I really liked the way they were setting up on a 4hr chart; I'll also back down to 2hr and 3hr charts to get a feel of the way things are unfolding; again, the setup looked good, so I took it. I haven't been doing this too long, so I'm sure as I gain experience, my methods will evolve and I'll use different strategies, but for now, this seems to work. rax, Your hedging idea seems like an excellent one. Options I can hedge, but I wouldn't have a clue where to start with the currency pairs. It is, however, something for me to think about. Thanks for the idea! Steve
Hi again, 4hr chart - wow! How can you trade using such a big chart? I try to use 1hr instead of 30min, but it's not easy. I want to know the details. I also use 1min and 10min.