I did some paper trading scalping and I got a really good return this past week. I decided to branch out and try news trading, and I took a heavy loss. I thought that there would be a bounceback in the price after a heavy reaction to the news. I found, however, that the reaction was immediately bearish, and then continued to trend downwards. Is the trending rather than bounceback a tendency of forex markets? Because of my trading style, I need an automated ECN system. I want to try capital forex lite. Any reviews on this system? There platform does not work on their computers. The advantages of forex seem great over similar products (24hr markets, no commissions, small spreads, fairly liquid, trending, leverage). Could you name some disadvantages, and why this vehicle is not popular?
Sounds like you've been watching late night infomercials. You will not make money as an intraday retail trader in Forex. The market rewards those with patience who know how to follow a trend and aren't afraid to exit when they are wrong.
The OP might not but that doesn't mean no-one makes money trading intraday, it can be extremely lucrative for those who know what they're doing.
This is true. My system is a trend following system. I don't trade countertrend in Forex, you'll get your teeth kicked in. I would do some mean reversion stuff on equities and futures, but not on forex.
What were your rules to fade the trend? Was it at a support or resistance level? How big was your position? What was your stop loss on the trade? I guess the more you tell us about your style, the more we can give you advice.
Wow, I guess I'm really in trouble, I've been profitably intraday countertrend scalping retail forex for the best part of 8 years, as well as news trading....and all this through a bucketshop casino-style marketmaker in an unregulated off-exchange market! Must just be a lucky streak.........:eek: