I have enjoyed watching the Civil war. I thought the Iron man would dominate the Captain. Anyway, seeing fighting between heroes were quite thrilling. In the market, which tools would you recommend to ants? I say price action is more reliable. BB, volume, stoch, etc, for those who trade only for some minutes, they might need them. But seriously, all you need to have on your chart is some moving average level to work out target profit point and anticipate some resistance/support level. To become a consistently profitable trader, I would not focus on short term trading anyway because I find that it's too risky - sometimes you're right but other times, your loss is great too. I started with small money. I borrowed some money from a bank because I did not have much money to start my trading anyway. Initially, I only focused on short term trading, tried all sorts of TA tools and initially lost 70% of my balance. Be able to interpret patterns and anticipate price action based on patterns, I find it very reliable - somewhat I say, 100% winning rate so far. I've got simple ideas - financial derivatives, from papers I teach and have built my strategy based on the goals of financial derivatives. You don't have to trade everyday, trade only when you can anticipate accurately. Wait until the London session opening is over, and read the market sentiment, and then initiate trade based on the market sentiment of that period for New York session, the outcome will be so great .... imho, 98% are ants in the market because they learn wrong trading skills as well as wrong ideas from the start.
You can still have 125% win rate. And be wiped out in just a few minutes. It's has-been. Guys ! Wake up. We're in 2016 ! By the way ... I see no correlation btw Risk and TF ...
VictoryCountry> So you're saying the FTSE leads the S&P? Correlations tend to change over time though.
There is cos of high frequency traders. There was a few times, I anticipated the direction correctly but in between cos of high frequency traders, I got into serious losing positions but only temporary but was enough to scare me to close those positions. That's why I have stopped the short term trading. It involves too much psychological issues. Sometimes, I get mad, even if I lost in guessing the right direction, I kept initiate positions, resulting in bigger loss. so now Once I see the forest, I just ignore trees. I stay away from the chart, check it later as if I wait for a contract maturity, and pleased find good profits. For example, I use the concept of option derivative. Initiate only one position for each currency pair after I find the second round point of a trend, set stop loss (treat it as premium), so if my anticipation turns out to be wrong, then I only pay for the premium, minimising my loss. In other words, if my prediction turns out to be correct, my profit will be so great.
I am not talking about pairs trading strategy like the broker Bone. I don't really think that strategy is reliable anyway. I am talking about the intraday trend. For example, yesterday, GBPUSD, had a uptrend prior to London session, only to depreciate significantly during the session. So clearly the market sentiment was bearish. I find a bearish hammer just before New York session, I set my stop loss at the high of the hammer, and checked 5 hours later and got 50 pips (1.45720 - 1.45200) , which was not too bad profit.
Most of us are ants yes, but don't forget ants can lift 10x their body weight. Worst idea ever is take out money from somewhere else when you're not making money hand over fist with your own first. A great trader could take 5k and return a few 100 a day and grow from there. Risk has nothing to do with time frame.
Well short-term trading is definitely not for manual trading, it's all about patterns there, you find them check on history and then build EA on it with a thorough calculation in money management. IMO only dumb guys trade on short term manually thinking about consistent profit. Humans prone to make mistakes but robots are not.
I must be really dumb man I'm manually trading on 800 tick and 5 min bars and have made money 7 days in a row.
cognitive bias, it's part of humans' nature. Whether you deny it or not, you will eventually make some foolish mistakes. What 90% traders don't do is risk management, it's kind of insurance in case things go wrong. so doggy has a point. I feel I am lucky cos I am a tutor of a risk management paper.