Oh Lou that makes us sound so dirty Honestly it’s not a coin flip for most.
Hi SM good to see you made the trip. Glad you banked some. Not a place I would short personally but if it works for you fine.
FT is subscription. I don’t value them enough to pay, will have a dig someone else is bound to have covered the story. Thanks Ex.
I blagged that article from another page, thought it was The Express
- right-click article URL, then ‘copy link address’
- open the Google.co.uk home page, paste the article URL into the search field
- press ‘Enter’
- you should now have this, the first link takes you to a page you can actually read…
You’re pretty much spot on. If some major event happens out of the blue, you’re likely not going to get out at your SL level. I don’t think it has to do with liquidity when it comes to closing your trade though. Liquidity matters when it comes to opening one. Now a lack of liquidity does affect the spread, so something big could cause a big spike in the spread could push past your SL, but it’s not about waiting for someone else to pick up your trade. Once you’ve opened the trade, you already have your counter-party for it. Usually one of many banks if you use an ECN broker. If it’s a market maker, then it’s either the broker, or another retail trader that you’re up against. That’s what I like about Forex. It’s not like stocks where you have to put them up for sale at a price and wait for someone else to buy them. You can determine when you want to get out of your trade.
I think the issue with the trades closing well past SL levels, is the fact that the price moves so fast. It’s the point where the difference between a 15ms ping, and a 150ms ping could be an additional 20% hit to your account. By the time you see the price on your screen, your broker’s price is beyond that, and your trading partner’s screen already shows a price well past that of your broker. Take that GBP/USD flash crash they had back in early October of 2016 for example. Roughly 1150 pip drop in a matter of minutes. You may set your SL to say a 50 pip loss and see it the level, but by the time the signal to close the trade actually executes, it’s probably more like 150-200 pips at that point. Because the broker and/or bank are getting bombarded with requests to open and close trades.
I know some brokers in the UK now offer guaranteed stoplosses. You have to pay extra commission on each trade that you want it on, but they’re guaranteed to get out at your price. I don’t see how an ECN broker could do it, so it’s probably some MM brokers that are offering it.
All in all, that flash crash is what I now base most of my position sizes off of. If my account can handle a sudden 1150 pip drop and not go bust, then I’ll weather pretty much whatever storm might come my way.
It’s not dirty but a preference.
I deal with medium to long term and it’s been very profitable. Apple bought in 2009 at 20 sold at 112 with a 7/1 split. Sold in 2016 I have several very similar. Numerous that are dividend oriented and pay 3-5% like clock work.
You chose short term.
I don’t have to monitor my portfolio every day. At one time when I didn’t have a great deal on money on the table I did the short term trading gig. Today there is no need.
I good mate! May throw in some day job pics on occasion and keep’in it loosey goosey is what we do!!
Let’s pull out our keys to the ATM and get on wit it!
And that my friend is what all the “gurus” would have you believe. I believed it because all the “experts” told me so. Then I met Stu. Learned nothing complicated from him – only that he made good money scalping (saw the proof) and I could too. The most important thing I picked up form Stu is that everyone has to find what works for them and keep fine tuning till ya got it. It only goes up and down. How complicated is that?
Bitcoin traders understand.
Do you guys do this for passive income, primary income, or investment?
It can be any or. I’m a old fart and my trading income well exceeds my social security check. I also work pretty much full time helping my son in our homebuilding business that he now runs. During the Christmas holidays I’m going to give my ideas in a couple presentations on how I would get started if I were beginning from a investment and goals perspective. I would learn from Stu’s entry method were I young and getting started. There are some profitable traders posting here.
HaHa – gambling – I think not. I have watched this lady dance so much that when she nods my way and winks I take her hand and we make some wonderful music! Banks bug me constantly to deposit 5 - 10 thousand with them and they will give me up to 1 7\8% interest PER YEAR. This little trade gave me a profit of 2.07% on my account in about 75 so minutes.
I’m aiming for primary income. I didn’t hit my stretch goal of compounding 20% per month this year, so it looks like I’m picking up another dead end food service job until I’m buying yachts by the dozen with my trading account. So yeah, ummm… I guess this would be a second part time job for me?
It’s honestly baffling what banks are getting away with these days. An old coworker was telling me that he put about $5k into some new fund his bank was offering. The kicker? They said the interest rate is TBD. THEY DON’T EVEN HAVE AN ANNUAL INTEREST RATE DETERMINED FOR IT YET! I mean fuck, even government bonds are a joke now. Their rates don’t even match inflation.
I think this sums up bitcoin traders pretty well.
Liquidity needs to be there both ways IMO, when you get those sudden drops like the Swissy it’s a liquidity void, the Lq providers don’t have to take the other side, that SL needs to be matched no matter which way you look at it. There are fast moving situations which what you are describing and slippage is going to happen in that environment. If we take the issue with the Swissy, the liquidity plug was pulled, if they aren’t giving quotes you can’t hit them. The SL is a deal at market, it’s at the mercy of who thinks it’s the right time to take it off you. There are obviously different scenarios of who the actual counterparty is which affect this too. I don’t know of any brokers that don’t have in the small print somewhere, “we are not under any obligation to fulfil any order at the quoted price” or words to that effect, it really does cover just about every scenario that can happen. Agree about the guaranteed stops etc.
Regardless of how we perceive the underlying mechanics of these type of situations the take away point is the outcome can be devastating for anyone who isn’t aware of their broker obligations or as you have done with your account, made allowances for a lightening strike. As we both know many head in where angels fear to tread only to receive the harshest of lessons.
Thanks 4x another great post.
That’s fine mate, I was just getting away from the whole gambling thing, as we know there are regular gamblers and there are very measured gamblers.
Some nice investing gains you made there and if you are happy with your dividends and don’t need to do much else that’s cool
We are mainly focused on day to day trading, I do know one guy who is more of a position style trader but not sure if he has made the trip here. EDIT: he has @JimmyC
My short term gig is purely to take out of the market and I do that on a full-time basis, my day job. I don’t choose to invest that in the stock market, I have other preferred avenues.
Hey Jim I didn’t expect to see you until after the holidays. You can have the keys boss, I just got the ball rolling as someone was next door talking to Wilson
Anyway to Alex: So profound, the algo’s as smart or as dumb as the person who writes them. I know they basically ain’t dumb but they just can’t cover all the bases and can be beaten.
So someone has to chirp before I can post again.