Search results

I trade forex and the US stock indices (long-side only) but I am purely technical - I pay no attention at all to fundamentals on either.

Gut instinct comes from unconsciously recognised evidence of some sort. Learn to recognise what makes your gut "instinctively" go a certain way, quantify how reliable it is and if appropriate incorporate it into your strategy.

Yes, all positions are closed at the same stop-loss level if price moves against you. I emphasise all, because many traders assume pyramiding is a one-off event on a winning trade. In fact you can add as many additional positions as your margin allows. A new position is added each time the...

This is not how classic pyramiding works. The idea is to always advance your stop-loss(es) when an additional trade is opened. For example - Open Trade 1: Buy at 10,000 Stop-loss at 9,900 Risk = -100 Price rises to 10,100 Open Trade 2 at 10,100 Stop-loss at 10,000 Move stop-loss of Trade 1...

Classic pyramiding involves opening further positions of equal size whenever the profit on the last trade opened equals the risk of the first trade. As each new trade is opened, the stop-losses of all preceding trades are advanced. The principle is that the net capital risked never exceeds the...

Markets don't ever change, prices don't ever stop changing.

My rule on backtesting is to treat it like any other research project - which means, decide on the questions I want my data to answer before I start collecting data.

These things are obvious. I think we've reached the end.

What would stop the broker labelling every profitable trade as an error would be the threat of complaint to the regulator or court action by the trader. That is after all what stops all attempts at fraudulent business. No, a trader should not be expectd to always know what an error which the...

In general, you might be right or you might be wrong. It depends on what the T&C's say. If they say that a trader may not trade so as to take advantage of some error or inaccuracy in the broker's price quotes, then you are wrong. In this specific instance, neither of us knows who is right as we...

You might have much sympathy for this trader, and I might have too. But not accepting that the binding principle here is contract and contract law many other traders will be potentially falsely emboldened to take high risks in pursuit of high profits. Their argument will be just as...

When you say "weasel out" you make it sound like the broker is trying to do something not allowed by contract law. This isn't proven. The broker does not have to prove what the client was thinking: their position can only be based on what they can show the client did. This is the way good law...

If the client does not like the T&C's they should not sign the contract. Likewise if they don't understand them. If T&C's are incapable of being rationally interpreted, the usual principle in law is that a dispute arising would be resolved in favour of the signatory of the contract, not its...

It's not really clear what you're asking, since forex tends to be a field for short-term trading, not long-term investment. A traditional rule for the balance between investments and trading funds is that the percentage of your capital in long-term investments should be greater when you are...

It seems that The January Effect was a real market phenomenon, not a statistical blip or an error in analysis. It is also clear that although it still occurs and has not been made extinct, the strength of January gains is much reduced, so that a strategy based on the January Effect would be of...

Thanks for this. I'm only aware of the name so I'll have to look into this one before commenting.

I like this principle. When I have shared thoughts on TA and strategies etc. I have been able to strengthen my own trading using queries and comments received. Some are afraid of sharing knowledge - strategies especially - but I ask them to please name any consistently profitable strategy which...

How did you define the key market players? I guess it's not just the biggest 20 forex banks and funds, so there must have been a way of excluding some. Are you perhaps tracking what successful freelance traders do?

That's an interesting line of thought. It suggests a compassionate god would have created only vegetarians amongst humanity. Or vegans. And amongst animals just herbivores really. So what possible scenario does that suggest? - either no god was involved in creation, or that he was not a...

I don't argue with anything you have said. I stated I thought I was being deceived by "some Christians" who have told me I will not burn forever. I think you will find that this final judgement of atheists is commonly either denied or brushed over by many Christians. I suspect this is because...