By placing less money in the trade? Or by placing a stop loss?
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Trades for today
- Thread starter farmerjohn1324
- Start date
By placing less money in the trade? Or by placing a stop loss?
By placing less money in the trade? Or by placing a stop loss?
Both.
I never risk more than 0,5% of my account value on any trade. So the size of my trade depends on where the stop will be.
I do trade stock, not currency. However that doesn't really matter when it comes to controlling trading risk.
Both.
I never risk more than 0,5% of my account value on any trade. So the size of my trade depends on where the stop will be.
I do trade stock, not currency. However that doesn't really matter when it comes to controlling trading risk.
It does matter because currency pairs are so leveraged that 0.5% is practically no movement at all. Most of these are leveraged 20x or more. That might make your strategy impossible for Forex.
It does matter because currency pairs are so leveraged that 0.5% is practically no movement at all. Most of these are leveraged 20x or more. That might make your strategy impossible for Forex.
0,5% of your account value would mean $500 on a $100K account. In this example if my stop would be 50 pips away, my size would be 1 lot, if my stop would be 100 pips away my size would be half a lot.
Same with stocks, if want to buy a stock valued at $100 and my stop would be $10 i would buy 50 shares, if my stop would be $5 i would buy 100 shares.
No difference at all.
0,5% of your account value would mean $500 on a $100K account. In this example if my stop would be 50 pips away, my size would be 1 lot, if my stop would be 100 pips away my size would be half a lot.
Same with stocks, if want to buy a stock valued at $100 and my stop would be $10 i would buy 50 shares, if my stop would be $5 i would buy 100 shares.
No difference at all.
Ok. That makes sense. I'm a little tired.
there is nothing wrong with placing trades based on fundamentals.however it is generally believed that these take time come to fruit so you have to take that into account.These are fake currency pair trades. The reason for posting this is to see what changes to my strategy should be made, and I am still open to the possibility that none of this is a good idea.
My GUESSES for today. Two trades.
1. I bought GBP/JPY. I bought this because GBP went down yesterday because of renewed fears of a no-deal Brexit. I am of the opinion that Brexit fears are over exaggerated and that Britain will be just fine after leaving the EU. I viewed yesterday's action as an opportunity for a sale. I bet $50,000 fake dollars. After a few hours, I would have profited over $700. But now just a few hours later, I have lost over $3,200. Seeing as it's only been a few hours, it's difficult to tell when is too early to call a trade won or lost. For all I know, if I hold this for 1 year, I could have made or lost 200%. This still leaves me with little conclusions to draw. Still feels like roulette. I picked to get against JPY for no other reason than I have to pick a pair and that JPY is a safe haven. I figured if money would flow into GBP, it would tend to flow away from safe havens. I also could have picked CHF. I don't know if this is sound reasoning.
2. I bet on the USD/CHF. I did this at about 9:00am ET. This is because there were two news releases today for USA. The first was at 8:30am. This was the Housing Starts and Building Permits. Both of these beat expectations slightly. The 2nd news release was Capacity Utilization and Industrial and Manufacturing Output. I guessed that if the first news release beat expectations, so would the second.
Capacity Utilization was 0.1% short of estimate, but Industrial and Manufacturing Output beat expectations by 0.3% and 0.4% respectively.
Looking at the attached screenshot, you can see that the actual minute of 8:30 was slightly down (1 pip) but part of a larger short-term trend upwards that superceded the news release. Then there was a big uptrend from 8:42-8:56 that had nothing to do with the news releases. Then, at 9:15, it continued to go up as part of an unrelated force and I would guess the news release had little effect on the chart.
Conclusions? That these "minor" news releases don't form the basis of a trading strategy?
a tomato does not change fundamentally but it's price fluctuates wildly at least in our Indian markets.
a change in fundamentals will impact price but it may not do so immediately.
i should point out that i have heard big boys like Soros base their trades on fundamentals as well as technicals......technicals has over time gained some credence
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these do not feel like trades.These are fake currency pair trades. The reason for posting this is to see what changes to my strategy should be made, and I am still open to the possibility that none of this is a good idea.
My GUESSES for today. Two trades.
1. I bought GBP/JPY. I bought this because GBP went down yesterday because of renewed fears of a no-deal Brexit. I am of the opinion that Brexit fears are over exaggerated and that Britain will be just fine after leaving the EU. I viewed yesterday's action as an opportunity for a sale. I bet $50,000 fake dollars. After a few hours, I would have profited over $700. But now just a few hours later, I have lost over $3,200. Seeing as it's only been a few hours, it's difficult to tell when is too early to call a trade won or lost. For all I know, if I hold this for 1 year, I could have made or lost 200%. This still leaves me with little conclusions to draw. Still feels like roulette. I picked to get against JPY for no other reason than I have to pick a pair and that JPY is a safe haven. I figured if money would flow into GBP, it would tend to flow away from safe havens. I also could have picked CHF. I don't know if this is sound reasoning.
2. I bet on the USD/CHF. I did this at about 9:00am ET. This is because there were two news releases today for USA. The first was at 8:30am. This was the Housing Starts and Building Permits. Both of these beat expectations slightly. The 2nd news release was Capacity Utilization and Industrial and Manufacturing Output. I guessed that if the first news release beat expectations, so would the second.
Capacity Utilization was 0.1% short of estimate, but Industrial and Manufacturing Output beat expectations by 0.3% and 0.4% respectively.
Looking at the attached screenshot, you can see that the actual minute of 8:30 was slightly down (1 pip) but part of a larger short-term trend upwards that superceded the news release. Then there was a big uptrend from 8:42-8:56 that had nothing to do with the news releases. Then, at 9:15, it continued to go up as part of an unrelated force and I would guess the news release had little effect on the chart.
Conclusions? That these "minor" news releases don't form the basis of a trading strategy?
there is a strong fragrance of investment emanating from these actions
These are the main moves in markets:
Stocks
Stocks
- The S&P 500 Index was little changed at 3,192.23 as of 4:00 p.m. New York time, hitting the highest on record with its fifth consecutive advance.
- The Stoxx Europe 600 Index declined 0.7% to 414.92, the first retreat in a week and the biggest drop in more than two weeks.
- The U.K.’s FTSE 100 Index gained 0.1% to 7,525.28, hitting the highest in almost 20 weeks with its fifth consecutive advance.
- Germany’s DAX Index declined 0.9% to 13,287.83, the first retreat in a week and the biggest drop in more than two weeks.
- The MSCI Emerging Market Index jumped 1.3% to 1,102.51, hitting the highest in 18 months with its fifth consecutive advance.
- The Bloomberg Dollar Spot Index climbed 0.2% to 1,194.79, the biggest increase in more than three weeks.
- The euro was little changed at $1.1146, the strongest in more than six weeks.
- The British pound sank 1.6% to $1.3123, the weakest in almost two weeks on the biggest tumble in 13 months.
- The Japanese yen was little changed at 109.52 per dollar.
- The yield on 10-year Treasuries increased one basis point to 1.88%.
- Germany’s 10-year yield declined two basis points to -0.30%.
- Britain’s 10-year yield fell six basis points to 0.762%, the lowest in almost two weeks on the biggest fall in two weeks.
- West Texas Intermediate crude gained 1.1% to $60.89 a barrel, the highest in three months.
- Gold was little changed at $1,475.96 an ounce.
These are the main moves in markets:
Stocks
- The S&P 500 Index was little changed at 3,192.23 as of 4:00 p.m. New York time, hitting the highest on record with its fifth consecutive advance.
- The Stoxx Europe 600 Index declined 0.7% to 414.92, the first retreat in a week and the biggest drop in more than two weeks.
- The U.K.’s FTSE 100 Index gained 0.1% to 7,525.28, hitting the highest in almost 20 weeks with its fifth consecutive advance.
- Germany’s DAX Index declined 0.9% to 13,287.83, the first retreat in a week and the biggest drop in more than two weeks.
Currencies
- The MSCI Emerging Market Index jumped 1.3% to 1,102.51, hitting the highest in 18 months with its fifth consecutive advance.
- The Bloomberg Dollar Spot Index climbed 0.2% to 1,194.79, the biggest increase in more than three weeks.
- The euro was little changed at $1.1146, the strongest in more than six weeks.
- The British pound sank 1.6% to $1.3123, the weakest in almost two weeks on the biggest tumble in 13 months.
Bonds
- The Japanese yen was little changed at 109.52 per dollar.
- The yield on 10-year Treasuries increased one basis point to 1.88%.
- Germany’s 10-year yield declined two basis points to -0.30%.
Commodities
- Britain’s 10-year yield fell six basis points to 0.762%, the lowest in almost two weeks on the biggest fall in two weeks.
- West Texas Intermediate crude gained 1.1% to $60.89 a barrel, the highest in three months.
- Gold was little changed at $1,475.96 an ounce.
Then I picked the wrong day to bet on the pound.
My usd/chf is now in the positive, btw. But it's all just luck.
these do not feel like trades.
there is a strong fragrance of investment emanating from these actions
Because I'm trying to bet on fundamentals?
Are you saying I should trade a chart without even knowing or caring what the chart is of?