That's just horrible advice, and this is not my subjective opinion but downright fact. Why? FX y ou're not participating in a real market, instead going against market makers who are taking the other side of your trade, who can see your stops, who can print whatever they want on the chart, etc. Example: EURUSD is at 1.4850. Your stop is at 1.4862. Suddenly, EURUSD trades up to 1.4862 and you are stopped out. Now, in another account at the same FX bucketshop, there is a limit order to sell at 1.486 put in by another guy. While your stop will get triggered and you will be out 1.4862, the it's the broker taking the other side, and they don't let another market participant take that. Therefore, the market is rigged not just in the sense that the stock market will be "rigged" - i.e. manipulated with fake orders and wash trading - but actually rigged in that the edge they have against you is greater than any edge you'll ever find sitting there staring at an intraday FX chart. Stocks, it's at least a transparent market place. For longer term trading, getting fucked a bit on your stops and getting robbed via slippage won't effect your bottomline the way it most assuredly will in daytrading.
Where can I learn more about detecting bullish trends? please let me know if there are any articles you know of. Are you saying that I should be buying a stock on the way up and then sell it as close to its peak as possible? Thats the impression im getting, but to be honest, i dont know exactly what a 50 day moving average shows you.
I'm from NY. I live on Long Island but work in downtown NYC. (a few blocks from wall street, i just cant stay away )
I'm getting the impression from you guys that looking at charts and noticing trends are extremely important in trading but i've always heard NOT to look at charts or base any part of your decision on them. Have i heard wrong or am i simply misunderstanding most of the comments here?
There we go again another believer that the key to trading are well kept secrets. Screen time plus the skill of the trader is the only "secret" out there. And for what is worth, I think your definition of prudent man, was more of a selfish mofo. Anek
If you are starting out and are young, you have time and patience on your side. I also reccomend parking 4k-5k a year in a ROTH. By the time you are 59.5, you will have a nice nest egg and withdraw. But I'm sure in 20-30 years, the tax laws will change screwing those who played by the rules.