Trading -AUD/USD

Quote from xelite777:

Good for you Visaria, but as you probably already know, if a trader is constantly looking for very small profits (under 10 pips for instance), he won't make it in the long run, unless the percentage of his winning trades is above 70 or 80%.

For example let's take a currency pair with a 3 pip spread.

If the trader is constantly looking for a 10 pip profit with a 10 pip stop, a mere 7 pip move against his position will take his money (7 + 3 = 10 pips).

On the other hand, he needs to make 13 pips to earn that same 10 pips (13 - 3 = 10)!

Imagine a game where I (your broker or a casino) only need to earn $700 to earn your $1,000 bankroll, while you need to earn almost twice as much ($1300) to earn my $1000 bankroll, how long do you think you will last before bankruptcy...
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in my defense, the spread on euro was about 0.8 pips.

but yes, if the cost of trading is high relative to the amounts we aim for, then we are at a disadvantage. so what u have written is correct and a reminder.

(having said that i shorted crude with a 3 tick stop and made 10 ticks on it earlier )
 
You escaped by a hair last evening from a haircut. EUR/USD now at 1.3410 area. I am starting to like it as a short, particularly if Visaria were to become bullish bewteen 1.3410 and 1.3420:p . However the reward does not look good so far. I miss the fast big moves. Now at 1.3408.
 
Quote from tradingjournals:

You escaped by a hair last evening from a haircut. EUR/USD now at 1.3410 area. I am starting to like it as a short, particularly if Visaria were to become bullish bewteen 1.3410 and 1.3420:p . However the reward does not look good so far. I miss the fast big moves. Now at 1.3408.
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Disagree about the haircut, there was massive resistance at my target 1.3345, just check it out on a chart.

My only annoyance was that i should have reversed, but for some unknown reason my provider closed down forex trading at 12am UK and then reopened about 5 mins later!
 
Quote from xelite777:

Big Hammer at support area on the EUR/GBP (15 min) chart.
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well spotted. :)

so it went up, found a high, tried to beak down a support area, and below were some huge buyers.

now would the safest safest safest trade would be a short sell order below around 0.8370, and a tight stop :confused:
 
Quote from smallStops:

now would the safest safest safest trade would be a short sell order below around 0.8370, and a tight stop :confused: [/B]
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Absolutely, a close at or below 0.8370 could be considered as a serious and valid short signal, with a first target around the 0.8350 area.

Personally I am considering the long side at 0.8380, but the upside potential is rather limited (serious resistance ahead....).
 
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