Daytrading EUR/USD
- Thread starter cvds16
- Start date
Then forget what I had said.
I never enter the trading day with a directional bias. I do not have enough capital to influence markets; all I can do is trade the momentum. I have a couple of "if-then-else" scenarios in mind but any one of them could unfold.
This is something I've been a bit confused by. Does stop hunting actually occur in the currency markets? Wouldn't that take a crazy amount of capital to do considering how much money flows through? I've always thought that the market was so deep that it would be nearly impossible to stop hunt.
Well, having a bias isn't so bad, you got to know what to look for to change your bias. I came in bullish but at the point of 1.1811 I should have reversed my bias to short: enough evidence for that. I still have that short bias for now, at least till we reach 1.1727. Then and there I will review things again.
Surely 6e can't track the EURUSD tick by tick, but I was under the impression that it gets arb'ed pretty quickly. To the extent that it's pointless to consider being an arb because the arbs are so good and close spreads quickly. So to stop hunt the 6e, you'd have to dive into forex and somehow dump enough money on one side in to move it (in forex, isn't stophunting done by the shady broker where you can never be sure what the price really was? just what they tell you it was). Wouldn't that be billions? How do you stop hunt a market where $trillions flow everyday? Sounds really risky to me, but I obviously don't know and looking for some sort of enlightenment.