Forex vs. Other Markets
- Thread starter redbull13
- Start date
late apex, thanks for the advice. I can defintely see what you are saying. I generally just buy 1 xxx/xxx and hold it until it either gets to my stop or my target. My problem is I get greedy or impatient. Many of my calls have been right...I have just tried to pyramid positions and that often results in a margin call. I know if I had just held a few 1-lots and let them run to my target, I'd be doing better. As far as my learning curve goes, I'll admit I have a lot to learn. That will always be my attitude. However, please don't consider me to be a complete novice. I have done quite well swing trading stocks in the past, and I've had some good plays in futures and options. I just need to adjust my methodology a little, and I know things will start going my way. It's no big deal if I lose this account- that's why I started with a small amount (as I always have).
What exactly did you mean by "cutting my teeth" with FXCM? I know that a lot of people say they run stops, that their platform freezes up and such...but I haven't had any problems with them yet. Hopefully it will stay that way. Thanks again.
FXCM is considered by many to employ predatory dealing practices, as a routine part of doing business. My personal experience (several years ago, before I knew any better) confirms that view. But don't take my word for it -- do a simple search here or on other forums. Or look up their CFTC and NFA records.
In general, you want to throw every positive edge, no matter how small, on your side. Think of your current dealer (not broker) as a permanent negative edge, a handicap. Then again, if you're swing trading (and pyramiding? wow) 1-lots with a ~$2,500 account -- that's playing with 40 x 1.25 = 50:1 true leverage on EUR/USD, per lot -- before you get to break-even, let alone consistently profitable, with low or no leverage, then your dealer's practices may be the least of your concerns.
"adjust... a little" -- IMO, you're not being serious about this / honest with yourself, for whatever reasons. How about cutting your leverage by 2 (two) orders of magnitude, i.e., by a factor of 100, to see if you can manage not to lose money for at least 3 months that way? You're 20yo... time is on your side... what's the rush? To do that, you'll need to switch your dealer, of course, not a bad first step. Good luck.
late apex,
Once again I appreciate the advice you are giving me. As you can guess, I'm not trading this account to make a living off of.
What I really want to do with this account is just buy/sell xxx/xxx and hang on to it until it (hopefully) reaches my target. My target is generally 200-300 pips away. My stop will be anywhere from 30-60 pips. It depends on how volatile I determine the market to be. Do you really think this strategy is doomed to failure? If I was to just make one good trade that hit my target, my account would be back up to its initial position. I really think my main problem is me. You're right when you asked what the rush is. There really is none. I just need to realize that.
Once again I appreciate the advice you are giving me. As you can guess, I'm not trading this account to make a living off of.
What I really want to do with this account is just buy/sell xxx/xxx and hang on to it until it (hopefully) reaches my target. My target is generally 200-300 pips away. My stop will be anywhere from 30-60 pips. It depends on how volatile I determine the market to be. Do you really think this strategy is doomed to failure? If I was to just make one good trade that hit my target, my account would be back up to its initial position. I really think my main problem is me. You're right when you asked what the rush is. There really is none. I just need to realize that.
As I'm sure you realize, your trading can only be as strong as the weakest link among your strategy (setup, entry, trade management, exit), psychology / mindset and money management (position sizing and risk control), not necessarily in that order. Regardless of how good the first two are, your MM, as you've described it so far, will continue to spell failure and bring you down. I'd focus on reworking that first, before anything else. Incidentally, it's the easiest one of the 3 areas to change and control... probably why it's often treated so casually. MM gets no freaking respect.
As far as your TP / SL (and risk / reward), without knowing more about your strategies, they both look highly unrealistic to me. Unless you're highly skilled, disciplined and selective with your entries. Staying on the sidelines for many days at a time. Waiting, for example, to buy major support or sell major resistance in a range; or attempting to catch a turning point in a trend; or fading an extreme move for a retracement. However, if you are, in fact, downrivertrader's alter ego (with his skill and experience level), never mind, it's perfectly realistic.
As far as your TP / SL (and risk / reward), without knowing more about your strategies, they both look highly unrealistic to me. Unless you're highly skilled, disciplined and selective with your entries. Staying on the sidelines for many days at a time. Waiting, for example, to buy major support or sell major resistance in a range; or attempting to catch a turning point in a trend; or fading an extreme move for a retracement. However, if you are, in fact, downrivertrader's alter ego (with his skill and experience level), never mind, it's perfectly realistic.
Once you start making money with FXCM you'll probably want to close your account as you'll start seeing those things.
Forex is ruled by the hourlies and higher. Setups on lower than hourly charts are virtually meaningless in forex. Use short term charts for timing only. Every day is a new day but it is a new day within the context of the weekly tone. Every week is a new week meaning most of the time the tone of the previoius week will not carry over into the new week.
Stop trading from the greedy standpoint of wanting to make money or to make something happen, then looking at the market for what's going on and placing a trade to capture the move that "should" happen. A much better way to approach the market is to sit back and wait for the opportunity to present itself, then take action on it. Let the market come to you. The market moves on its own terms and not on yours. It will get to its objectives in its own due time with or without you.
And your piddly little buying and selling won't even make a dent in this thing. A 500 lot going off on EURO futures isn't enough to turn the tide or start a move of more than a few ticks. New size just gets posted and the regularly scheduled program gets carried out without so much as a hiccup.
Best of luck,
Patrick
Quote from late apex:
As I'm sure you realize, your trading can only be as strong as the weakest link among your strategy (setup, entry, trade management, exit), psychology / mindset and money management (position sizing and risk control), not necessarily in that order. Regardless of how good the first two are, your MM, as you've described it so far, will continue to spell failure and bring you down. I'd focus on reworking that first, before anything else. Incidentally, it's the easiest one of the 3 areas to change and control... probably why it's often treated so casually. MM gets no freaking respect.
As far as your TP / SL (and risk / reward), without knowing more about your strategies, they both look highly unrealistic to me. Unless you're highly skilled, disciplined and selective with your entries. Staying on the sidelines for many days at a time. Waiting, for example, to buy major support or sell major resistance in a range; or attempting to catch a turning point in a trend; or fading an extreme move for a retracement. However, if you are, in fact, downrivertrader's alter ego (with his skill and experience level), never mind, it's perfectly realistic.
I know that my MM needs reworking. That is a big problem for me. However, I will say that I am quite selective in my positions. I very rarely put on a position in the majors.