Trading FOREX at home and winning big!

Mtrader said:
I agree but I have a few remarks:
  1. BMW335isedan wrote:"Better trade futures instead of Forex. Forex spreads can be easily manipulated because they are not centralized. Futures have very low day trading margin so no need to trade Forex." That is an excellent posting and he is not discouraging. I traded 5 years fulltime Forex in the 90's and shifted then to futures E mini S&P. I can confirm that non currency futures are better than Forex.
  2. Very aggressive interventions from national banks like in forex markets are non existing in non currency futures.
  3. I agree that there are a lot of people (bashers) who immediatelly tell it is impossible. Most of them are losing money while trading and conclude that if they cannot, nobody can. The fact that so many give negative comments confirms that the big majority is losing money. But it is the aim to be in the minority.
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Here are my 2 cents:
1. You traded SPOT back in the '90? Things have changed quite a lot since then... Regarding the manipulation, as someone said previously they can't manipulate too much because those who do arbitrage will jump immediately and take advantage.

2. Yes you are right, the CB's will do operations on spot/money markets because is their job to do so, but it is the risk manager/trader responsibility to have a proper risk management plan and take into account such swings/scarce liquidity scenarios. For example the new regulatory framework imposed to banks by Basel Committee is taking into account liquidity when calculating market risk: FRTB(fundamental review of trading book), take a look at the adjusted ES formula.
If you are referring to SNB move @CHF, it was a no brainer that the liquidity is void below the 1.2 floor. Futures market is not too much better, let's not forget about the Flash Crash in May 6 2010.

Eitherway, this type of scenarios should be taken into consideration when doing capital allocation regardless of the traded market.
 
bmw335isedan said:
Better trade futures instead of Forex. Forex spreads can be easily manipulated because they are not centralized. Futures have very low day trading margin so no need to trade Forex.
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Do you even know what you're talking about? Where's the proof? The spreads widen ahead of news and that's usually it. You get RAPED trading futures.
 
I am still trade on forex and not in stocks market, I think with always keep discipline with risk management and obey rules system then opportunity to increasing funds still opened
 
Listen guys, in a forex business you have to treat this as a business and as a business in which you can make millions in the forex business you have to treat it as such, know what I mean? This forex business is a business man.
 
There is no surer way to blow out an account than to begin your trading career with futures. With an average risk of 200 bucks a trade, you can see why. And for those who are thinking "well, I'll just use a very tight stop", you're going to go down that road even faster.
 
Georgii said:
There is no surer way to blow out an account than to begin your trading career with futures. With an average risk of 200 bucks a trade, you can see why. And for those who are thinking "well, I'll just use a very tight stop", you're going to go down that road even faster.
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Here is a post by another member (CBC) who is written against fx comparing futures. Just posting here to see your view on this.
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https://www.elitetrader.com/et/thre...-they-trend-similar-technically.304731/page-3
CBC
Alright kent, it looks like its gonna be back to basics for you.

With your trade above, you enter the trade and pay a spread to enter and to exit, this will be approxx 3 pips from what I understand (especially if moves in your favor) with spot.

So with a spot broker you will make $460 on your trade profit, and you will lose roughly say $280. This is taking into account slippage and good ol "re-quote".

So you place an identical trade on the future at CME. You will make $496 profit from the winning trade and lose $254 from the losing trade. Round trip costs with the future are roughy $4.


Clearly som1 placing multiple trades would want to trade the future.
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Traders at home have a big advantage, the ability to properly concentrate.

At home you can lock yourself away in a trading room, no noise, no phone, no distractions, just you and the screen. DO NOT discount how powerful this can be.

Work at a big organisation and it's very hard, if not impossible to concentrate for long periods of time. There is always a call, always some crappy meeting, always some girl with too short a skirt walking by, or even worse (better!) big pair of tat-tats.

So again, being able to concentrate for long periods of time is one hell of an advantage.

As for the 'big boys'. I wish I had £1 for every time I heard that quote when assuming they know. 90% of them know jack shit.

As for the 'superior information' these mythical big boys or major players are supposed to enjoy, most don't get hold of any of it, and even if they do, knowing which way the market will move on much of that information is a crap shoot. With proper reading of the charts with both PATIENCE and CONCENTRATION there is no need for any information at all, only the charts. A good example of that is with the SNB announcement of 2 years ago. I was trading EUR-USD at the time and bam, price went crazy. I knew something was up but just concentrated on the charts and all was good. Only a few hours later did I find out what had happened. NO PROPER TRADER NEEDS GOOD NEWS ACCESS IN THIS GAME. But if you need good news access to trade and make money you're not much of a trader.
 
AbbotAle said:
Work at a big organisation and it's very hard, if not impossible to concentrate for long periods of time.
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People vary greatly, in this regard. Some actually find the bustle of the trading-floor more conducive to concentration ("go figure") and prefer to maintain their station there, even if offered their own office.


AbbotAle said:
if you need good news access to trade and make money you're not much of a trader.
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Again, although I prefer to avoid news-feeds, myself, and am basically on "your side of the argument" on this point, there are certainly some pretty good traders who do need that ... it depends on your trading-style.

So I don't myself disagree with your points, but I think you're probably over-generalizing, really.
 
Xela, yes, there are lots of news traders, many of them very successful. But the point I was making was that if a trader relies on getting news before everyone else then he's not much of a trader.

And yes, your post is 100% correct, people vary so an edge for one (quiet room) maybe nothing special to another. But for those that need to concentrate for long periods of time, a big trading room is not a good room.
 
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