Thread: Closed: Discuss EUR/USD News with a DailyFX Analyst

Originally Posted by Gregory McLeod

Thanks Brian for your wise words! I can't add anything more!

Thanks Greg!!!

Originally Posted by ForexLozenge

I agree with Audit, you need to have the proper criteria in place with regard to what you are willing to risk and stick with it. You should definitely know what you're putting up before you roll the dice.

Before entering the trade, I knew exactly my entry point and exit points.

Originally Posted by brianborn1968

On my demo account, I opened one short position at market and have entry sell orders at every 10 pips up to 1.400 with a stop set right above the high at 1.4168.

I did not mention my target in my original post, but it was 1.3700. Since price action was not moving well in that direction, I manually closed some of the shorts I had opened. I treated this DEMO account like it was real money. If you calculate my entry, my stop and my target, the risk/reward is a little more than 1:2 which is the minimum that I risk. As with most of my trades, I watch how the market is moving and will manually close trades before either my stops or limits are triggered if price action is not going well.

Next time you take a plane trip or go to a doctor to have surgery, make sure you are thankful that these PROFESSIONALS did hundreds of hours of practice and simulation before you put your life in their hands. It wouldn't be so funny if they had only did a weekend course before they made their services available to you.
It would only make sense that your capital should have someone trading it who had the same type of training that professionals have had. Just a thought.
Hopefully, any other opinions to the contrary will be more than 3 words.

Originally Posted by brianborn1968

If I would have followed your advise, my profit would have been much less by entering my 5 lot trade all at one time at 1.3956. Also if this would have been a loosing trade, my losses would have been greater entering all at one time when my stop/loss triggered. If your theory is that I should have only entered the trade with a 1k micro trade instead of 5 standard lots, then you are wrong in suggesting that to anyone unless you actually know the person and there bank roll. How do you know if I have $100 or $100,000,000 to invest? If you knew, then it would be understandable to make that suggestion.

As for gluing myself to one pair, I traded in multiple pairs for most of my time in FX. Spreading myself too thin did not allow me to see a broader picture of what I needed to see and it cost me quite a lot. A couple of months ago I decided that it was best for me, not everyone, but for me to concentrate on one pair, learn it well and document what I learned before adding more pairs to my trading. That is what I am doing and my winning percentages have improved. No need to spread oneself too thin until one is truly confident in one's ability. Personally I really feel good about my knowledge of being able to read the charts and knowing enough on the fundamental side to trade well. However, with just 16 months trading FX, I still forget some of the mistakes I continually make and that is what I'm working on now.

I'm not going to debate you any more on this issue as it doesn't help me at all. It is not worth my time as I would rather spend my time doing something else.

Best wishes to you zion.

Account size does not matter. What pays is Return On Investement (ROI).

Looking for opportunities in other pairs does not translate to spreading out trades. NO. What it simply means is the possibility of finding a good and low risk setup in another pair.
Forex trading is simply based on High yield/Low yield. This ratio always do have a direction with a timeframe. There are always laggards/leaders in this movement and in those that oppotunities present itself.

The ratio of high/low yields is very well defined by the US$. If US$ is rallying ALL of these pairs move in inverse order and also conversely.

LOW Yields are : US$ with respect to all currencies except YEN; YEN with respect to all currencies; CHF with respect to all except US$ and YEN, Eur with respect to all except US$, YEN, CHF and GBP.

From this above..if US$ is rallying..it means that CHF/EUR, USD crosses must rally except the YEN....for instance.

Based on the above..it is possible to find enough opportunities in many other pairs provided your direction is well defined.

All those Levels or Indicators in all currencies are just nonsense. Only USS levels work and widely watched by traders

Originally Posted by zion

Account size does not matter. What pays is Return On Investement (ROI).

Looking for opportunities in other pairs does not translate to spreading out trades. NO. What it simply means is the possibility of finding a good and low risk setup in another pair.
Forex trading is simply based on High yield/Low yield. This ratio always do have a direction with a timeframe. There are always laggards/leaders in this movement and in those that oppotunities present itself.

The ratio of high/low yields is very well defined by the US$. If US$ is rallying ALL of these pairs move in inverse order and also conversely.

LOW Yields are : US$ with respect to all currencies except YEN; YEN with respect to all currencies; CHF with respect to all except US$ and YEN, Eur with respect to all except US$, YEN, CHF and GBP.

From this above..if US$ is rallying..it means that CHF/EUR, USD crosses must rally except the YEN....for instance.

Based on the above..it is possible to find enough opportunities in many other pairs provided your direction is well defined.

All those Levels or Indicators in all currencies are just nonsense. Only USS levels work and widely watched by traders

I m usually wary when the words 'always' and 'all' come up in any analysis of the market. Uually, the market proves us wrong with an exception to the rule as these correlations breakdown and change.

Originally Posted by Gregory McLeod

I m usually wary when the words 'always' and 'all' come up in any analysis of the market. Uually, the market proves us wrong with an exception to the rule as these correlations breakdown and change.

correlations of pairs can never be 100%. pairs can be said to be tightly correlated within the band of 50~99%. This distortion within this wide band creates the trading opportunities that we all crave for. After all trading is all about probability so we all look for "high" probability settings.
For example, if (in a well defined timeframe ) US$ is rallying, and suddenly a good news in New Zealand made NZD/USD to buck the trend and rally as well...that could be a wonderful opportunity I am talking about.

Originally Posted by zion

Knowledge of the turning point within a timeframe is the SINGLE most important skill and the lowest risk setup. Once the turning occurs savvy traders confirm and continue to drive the trend until it is visible to the crowd and probably the time (in most cases) the trend is ending.
Market turning MUST be defined based on Timeframe!

Hmmmmmmm, very interesting comment, i agree.

Update: Last week, I presented a 15m chart where the decline failed to reach the 100 FE of the previous wave down. Instead price bounce back above 61.8 FE, signifying possible bullish potential. The chart was an early indication that the 4048-3858 drop, was the end of something. Maybe the end of a small w2 or wA. Now if only I can get my charts back active, I can confirm whether the 3856-3973 rally has been fully extended(100 FE) with this gap up(triple top on 15m).

A-Yooooooooooo

So far, price opened at 3975ish level but seems to be closing below the 61.8 failure point. Maybe it going for gap closure, au and eu has gap'd up, but gu hasn't, so I don't totally buy into complete dollar weakness at this point.

Hi,

can the FXCM team comment on the after hour incident of the USD (Friday 22nd)? I looked at MarketScope and I see nothing suspicious there in the USD pairs. (via)

Thanks a bunch,

cccccccccccccccccccccccccccccccccc

Originally Posted by nopainnogain

cccccccccccccccccccccccccccccccccc

I was thinking about your triangle over the weekend, very possible. I was thinking we were in a larger triangle for w4 but either way you go, the gap up was a good indication for further strength up. I'm thinking 4009(100 FE) will be our first test of resistance, if not right now. But brickwall resistance sits at 4080, so a failure or a clean close above will be nice!!!!!!!! I'm long at 3935. As always, nice chart!

A-Yooooooooooo

gonna get some sleep & have another look in a few hours.

Originally Posted by nopainnogain

gonna get some sleep & have another look in a few hours.

Im done too, til US session. Cya

Hi all.....

As usual Asian session, cut out the number .... probably time to start to trade on the Asian session ...


Regards
andy1

Originally Posted by brianborn1968

The reason for my averaging was sound in my trading plan in that I intended to enter a 5 lot trade, but did not want to enter all in one shot. If this was a micro account, that would have been 5k and not 500k. My analysis brought me to conclude that the price action would not go much higher than 1.40, but might not reach that level at all. I averaged my entry in this manner to hopefully earn a better return while not completely missing the trade.

i scale in all the time...right or wrong, it works for me.. was it Tudor Jones that said "losers average loser" well that's cute whatever works for you... people are intelligent enough to decide for themsleves

Lets be honest ... only one wat this heading UP.... bears target of 13700 thats gota be laughed at. Not meaning to be rude. Well its a valid target... but in a few years lol