However, sometimes you can be waiting a long time and going into an awful drawdown waiting for that to happen.
I was actually referring to market volatility. For example, during the FOMC you could probably open two positions in different directions with 10 pip TPs and let the market volatility close them both. Hence, if you were trading during this time you would want to have wide stops to survive. However, the end of the US session after London closes has much lower levels of volatility where trendline/support/resistance breaks are more meaningful with fewer false breaks.
One answer is to simply not trade during the unsuccessful times. I.e. track your trades and find out when those are. But, I don’t like that solution because I think it means that you are unable to adapt when the market changes season to season and year to year. I think it is necessary to learn how to change trade location, entry type and SL size depending upon the market characteristics.
I personally think having to have different approaches for what you define as different market conditions is not the way to operate.
It’s best to produce an approach that suits all seasons and have a single entry criteria that leaves you with no confusion, condition met? Yes enter/No don’t enter. Make adjustments to your risk according to your perception of the current market conditions.
Adjusting risk is easy. Sweating on which entry type or method to use and trusting your assessment of the current conditions is correct, I would argue is much more difficult.
Think minimalism in your trading. Always looking to simplify your processes to a point that it really does become second nature.
I will always advocate accuracy as all of the ills that affect many trades are no longer of any consequence when you hit the sweet spot.
Know what you are looking for and that your approach/skills/personality/account size are in synch for your objective.
It looks as though the multi-day down-channel is breaking.
I have another ‘top’ drawn in currently at 1.1400, but we shall have to see.
Any bad news on the Trump-trade-wars will fire EU upwards.
Buying opportunity with Bulls AUD/USD. If todays daily candle closes above 0.7165 then that opens the door to a 160 pip range. Wait for closing at 5pm today!
Although I am now retired–and therefore, past the age of either trading or stock-market investing–I will just say that I strongly believe in taking the long view.
One person (correctly, I believe) described stock traders as “gunslingers.” This was, I imagine, not intended as a pejorative term; it was merely a description of the mindest that drives frequent trading.
Stock traders can possibly make a great deal of money–or lose a great deal of money.
I never had any desire to try to become wealthy–just to have plenty of money to pay the bills promptly, and do whatever I might care to do, without worry.
That is why I believe in the buy-and-hold philosophy.
I wish to say that there are at least 3 retired people in here who still actively trade and sometimes invest. So don’t let the fact that you are retired hold you back. There are always demo accounts if you are entirely risk averse.
I have always thought that it is good to have both a pool of money and a stream of money in retirement.
The pool of money is represented by cash that is easily accessible (as in a traditional savings account–although interest rates are now historically low). The advantage to this is simply the fact that it is easily accessible–for a sudden emergency, or even a sudden desire.
The stream of money is represented by annuities. The advantage here is that they can never be exhausted; so one need never worry about “outliving” one’s money.
I did, however, make one significant mistake when I retired, just over 14 years ago: I forgot to get annuities that are indexed to inflation. (They may cost a little more; but they would be worth it.)
I think it probably was intended as a pejorative term by a person that has no real understanding about trading other than hyped movies etc.
The same can be said for lots of business ventures. Incidentally I trade currencies and some indices/metals.
It’s interesting that this type of thinking is associated almost automatically with financial trading in general. Again it’s just like any other business. If the mindset coming into the business is wrong from the outset the likelihood is, the business will fail.
Tesco make an income, the corner shop guy makes an income. If the corner shop guy wants to become the next Tesco he has to understand he can’t do it overnight.
I watched it a couple of months back and a) it is actually about trading unlike for instance The Wolf of Wall Street, and b) it was a very interesting examination of what was going on prior to the 2008 crash.
Yes it was a decent representation of what happened I thought. I uploaded a PDF of the book by Michael Lewis here somewhere, which was obviously more detailed and fascinating.
Howdy, y’all. Supposed to be retired but busier now than when fully active. Building business booming here. I don’t seem to be happy unless i"m up to my ass in alligators!
Only one trade this week. EU range outta whack for me – gold way down – EU stable. Suspect tomorrow big day as lot of European economic news in the morning. I’m still showing a weak overall bias. How I have her plotted.
Consider myself a full time trader now – however trading couple hours 3-4 mornings a week, FOMC and on rare occasions the opening of the Tokyo opening.
I read a pretty thought provoking article the other day saying it will get down to the 700 - 800. area first. Inflation just isn’t happening. Probably depends if the pot bellied kid from NK or one of the insane mullahs goes off the rails. I’m still just trading EU at the moment. Plan to give spx a spin next year.
Yes it was a decent representation of what happened I thought. I uploaded a PDF of the book by Michael Lewis here somewhere, which was obviously more detailed and fascinating.
