Hey Jow Forums I got a quick question for you
I've only ever fucked with ETH and nothing else but my boyfriend is dabbling in forex trading.
The reason why I'm asking is because I'm a little worried that his friend isn't giving him the best advice when trading. Kinda freaked me out that he lost a lot of money last night trading USD to CAD yesterday.
Give me your thoughts and opinions Jow Forums
Other urls found in this thread:
warosu.org
twitter.com
youtube.com
youtube.com
studyofcycles.blogspot.co.nz
youtube.com
youtube.com
financemagnates.com
twitter.com
>dabbling in forex
>lost a lot of money last night
not gonna make it
how old are you and where are you from
You can actually make money in forex if you know what you're doing.
How in the hell did you manage to do that? I've heard forex is very volatile and most don't make it. Was this consistent? How much did you trade and in what frequency?
>forex
>volatile
This ain't crypto. Forex is actually slow moving and boring that typical major pairs like the EURUSD or AUDUSD move only around 0.10-0.20% per day. You're lucky if you get a 1% movement in major forex pairs. It's due to this nature of forex that leverage is actually needed if you want to get profits. The reason why most people get liquidated is because they put in retardedly insane amounts of leverage (like 100x or 500x) and then wonder why they get closed out in a very short amount of market movement. Just control the leverage you put in, put stops in place just in case it moves the opposite direction of your prediction and you're all set.
>my boyfriend
faggot
So crypto is for fags, forex is for men then?
Would anyone like me to share a trade on the Dow Jones I just did? There's about 23 pics were I go step-by-step, so I'd have to hijack this thread. Biz never has any proper trading threads though.
This. Thousand times. Forex is for medium term, not day trading.
What initially drew my attention was this Channel formation on the 5min time frame.
Identified potential reasoning for the Price Action that was taking place on the 5min time frame, using the 1min time frame.
I identified that there was Trend taking place on the 1min time frame.
There was Stop Hunting which seemed to be taking place, to catch out Trend traders, after seeing this, I was not really thinking about making any sort of entry.
But I kept watching, over time.
Some times what can happen is that when a trend on a lower time frame take price too far away from Moving Averages on a higher time frame, Price will begin to stall.
As you can see, Price had become too far away from the 5min time frames MA's.
>forex
goodluck with your measly 20% yearly gains.
10,000% gains crypto chad checking in.
Initially, there seemed to be some promise of Trend continuation, but I still didn't make an entry.
Signs of Trend continuation started to look weaker.
But there seemed to still be some potential, still was doubtful though.
This is what really showed me that there was unlikely to be any sort of continuation. Notice how price responds really weakly to the 10 SMA?
Coming back after some time, you can see that no Continuation took place.
Yeah, i know a forex trader in my discord, makes good money on TA alone
What did interest me though was that Buyers did show up with strength to support price.
I pay very close attention to the 200 SMA. It's an extraordinarily good filter/trigger for entry (as you'll see). Doesn't work all the time though, of course.
So here's the most important screenshot, I think. And how I think TA can help any person to trade.
Notice how I use it to quantify my risk, and identify when to enter? That's what it helps with, I don't believe it can be used for Prediction.
Thoughts about Sugar Futures? It hit yesterday a multi year low
I know it has nothing to do with Forex, but this is the only non-crypto related thread
I also pay very close attention to Volatility. The initial "ignition" of movement is very important for Trend traders to keep an eye on. This is also often used to trick Trend traders into making entries, only to have price reverse violently against them. But you kinda just have to put up with that, because eventually you grab get on board a good movement.
Me trade forex, on 3rd account, liquidated after 2x first account, liquidation after 3x second account
Forex am easy until black swans
For me it was euro going to 1.13 over night
The key to Trading is not to always be right all the time, but to be right in a fucking massive way that makes all losers hilariously meaningless. This is why I always to add, and hold on to winners. It does tend to make lose a lot of money when stuff reverses against me though, I'm still learning though.
As you can see, things got pretty hairy. Pullbacks can be violent things that cause huge Reversals.
Why does forex/stocks works with TA? But not in crypto?
My understanding of forex is that if you monitor it 18 hours a day you might make up to 20% every few months
The Dow Jones has lost the uptrend, and will most likely experience a lack of direction during the US session, as Bears on the SP500 try to push that index away for All time highs - leading to flow on effects to th Dow and Nasdaq (I'm assuming.
But Just wanted to show one possible way of milking Trends.
Moving averages (which are one aspect of TA) works in all markets. You don't need anybody else to use the 200 SMA for it be a helpful filter on a Daily time frame.
I actually tried making Trend Reversal calls on Bitcoin: warosu.org
it leads on to about 5 threads. I discuss my assumptions made in prior threads in each thread. Both my Trend Reversal calls were wrong, but I think it's important to understand why I was wrong, and more so, the process.
You don't have to necessarily copy what I do, but I think Technicals can be very helpful to anyone for decision making, and so by me posting things like this, I want to encourage people to start being more systematic about their entries.
Why you so stupid and no use stop loss?
I'm a pro-trader in FX, now trading crypto, equities, and equity derivatives.
Hit me up on twitter:twitter.com
Offering my trading services for a fee, serious inquiries here: [email protected]
Inb4 CashDaGreat
>
less than AUD1k in FX account? why bother
sell it now! You've won the game!
I reduced most of my position on the US open. Meant to be studying for a fucking accounting test I have in like 10 hours.
If you know how to trade crypto, forex is easy mode.
if you dont know how to trade crypto, forex will fuck you even harder. these seem contradictory, but it makes a lot of sense to anyone experienced.
Basically crypto rewards people who know how to trade properly well, while forex punishes ignorant people really harshly.
if he just lost a shit load of money, he doesnt know what hes doing. he invseted too much too fast and was not knowledgeable. no reason to ever lsot a lot, with stop loss and risk management.
if you cant make it trading with 100 bucks, you wont make it with 10k, 100k or 1 million either.
Thanks user. Great insights.
delet this
Hey man, do you have a youtube channel or anything I could check out?
I can recommend some channels I've learnt a lot from:
youtube.com
He mainly teaches support/resistance/trend/muti-time frame trading
youtube.com
Ira breaks down news quite nicely. His strategy incorporates b-bands, slow stochastics, and moving averages.
Explanation of his general strategy he demonstrates in his daily videos: studyofcycles.blogspot.co.nz
I'm essentially a blend of those two guys' trading styles.
If you're interested about trading, in general, then you might be interested with this channel: youtube.com
Regular videos are posted about risk management, psychology, and a variety of approaches.
If you're experienced in order book/volume analysis trading: youtube.com
those videos can be quite detailed and intense to follow though, so be prepared.
I hope to slowly advance towards incorporating the order book, and things like market/volume profile. But i think it's important to first of all have a good grounding in basic charting.
I plan on using GVT to get exposure to forex. I'm intrigued by it but don't want to get wrecked like your bf did.
Ironically I'm more profitable with Forex than with crypto. I can time the market right with Forex but somehow I find doing the same thing with crypto. Or maybe crypto really is just manipulated as hell and there's no point trading it.
Trading bitcoin below the 4 hr time frame, in these current market conditions, is just asking for trouble. People are getting lucky by accidentally being in the right position, just before huge swings take place.
I believe it's due to a mixture of fuck all liquidity after the Uptrend ended on the Daily time frame, burning a lot of people out. Also, margin position liquidations will be adding fuel to this fire.
Imo, if people want to trade, and are not really sure where to start, just sticking to making calls based off of the 4 hr 200 SMA is a good place to start.
Crypto is a different game. i find that with forex, its more relaxing in a lto of ways. i just use the TA for the most part. Crypto, you must consider FUD factors and other events related to the Ta. but TA works well in crypto for targets.
Basically, if your risk management is on point, crypto is kill. and if you are good at risk management, forex is a piece of piss.
If ur risk management and entry is shit, forex will wreck you so fucking hard as you need higher leverage to make it. in crypto, 10x or 5x is plenty considering the volatility.
I trade daily timeframes and even there the whole market is manipulated as fuck. I use TA a lot (coming from forex background) and even I was having a hard time making up profits consistently. The best case I have to make is buy and hold now. This market is whack to be honest.
>you must consider FUD factors and other events related to the Ta.
Honestly this. TA might give the impression that there is a reversal and suddenly news comes out that goes opposite of my trade and stop loss is then triggered only to rise back up days later. Seems you have to factor in news, FUD and other shit too.
yeah man its hard. I dont make many trades in crypto. like 3 positions a week max. sometimes only 1 or two.
Just wait for those entries and if your in, you gonna have a good time, if not, there are more. forex is better for daily trades
But how many of you guys have managed to make forex your main source of income?
Or are you all just smartasses with negative balance on your broker account?
not many ever will. if you dont gamble, your gains are gonna be consistent but low enough to not make it practical to live on
This doesn't happen overnight, and like every single other profession/human endeavor out there, not everyone will succeed and do well. Trading is no different to being self-employed/running a business. It's literally just another endeavor to make money.
Here's an article detailing how many brokers' clients actually are winners: financemagnates.com
It's roughly 20%. Look into the Pareto Principle, it's just an expression of that phenomenon.
Trading is not easy money. It's something to be worked at, over time.
>investments as main sources of income
That's where you fucked up. I don't treat forex as my means of living. I treat it like any speculative asset/investment vehicle. And yes, I'm profitable. See . Started out last two weeks mind you. I position trade using daily timeframes so I don't have to stare at charts all day.
I can't make it work and Im a fucking Mensa member, who invested a lot of time into this shit.
Now unless you guys are some hardcore geniuses I doubt that it will work for you also...
>unless you guys are some hardcore geniuses
Heh
Two weeks? That is nothing. I was also profitable for two weeks. Then it goes downhill. All depends on how long you are lucky.
what was your main strategy?
Trendline breaks on multiple timeframes.
I tried almost everything. For 6 months. Nothing works.
what about risk management? its more important than TA.
I had that down. max 3 percent per trade. Stop loss to EP after I was in the blue.
Trailing stop losses etc.
Everything. Nothing works.
Its like chasing a fuckin unicorn.
There's no reason to feel inadequate about not succeeding in literally just one endeavor. Maybe you'd be better at more Quantitative approaches, rather than Discretionary?
Hey.
I am sorry for not understanding your complete sentence, english is not my first language.
I am having trouble as to what are you saying with quantitative and discretionary in regards to forex?
Making profit on forex should be easy.
>Find strong daily trend
>Bet on trend
>Set stop loss and take profit at equal distance from entry point
>Never take early profits or losses - always let them resolve themselves
>As long as trend keeps going >50% of the time you will make money, granted you exercise proper risk management
What's the flaw?
if u are super conservative, you move the stop to entry, and just wait for breakouts. you might catch like a few a year, but you wont really lose money
Discretionary is pretty much what you're describing, in terms of use of Technical trading methods like time frames, and trend lines.
Quantitative approaches are based more on Mathematics. They also tend to have more strict rules in their approach, allowing for more indepth testing of the reliability of an approach.
The flaw is that most of the time, at least on daily trends, the trend will reverse after the first adjustment rush at the begnning of the trading session. It will either wipe out your trade/money, or if you are smart enough, trigger your stop loss.
Oh, okay, I understand.
By mathematics, do you have any specific method in mind, because every method ive come across, seems to not be efficient.
Why not use less leverage and/or use wider stop losses then?
In terms of forex, you could look into things like Market Neutral strategies/Pairs Trading.
Look into ideas like Correlation and Co-integration.
This thread reeks of Nigger and roastie trash
As expected of the forex
If you do that, the dark spirits of forex will do the exact opposite of what you tried to do and you will basically suffer a greater loss. Leverage has little to do with profitability.
It does make sense if you set your stop loss to 3000 pips or something, other than that, leverage is not important for successful trades.
Thank you for your contribution sir. I will use that information in the future.
Market neutral never made any sense to me whatsoever, youre neutral after all arent you?
You means as in trading different pairs based on their indexes?
Basically, if one pair is at an extreme, relative to another pair (and whatever other conditions need to be met), you long one and short the other. You make money as they return to their normal relative states.
It's essentially non-directional Mean Reversion.
I'm 21, from California
Whatever you say man.
Something like 95% of traders lose money. Forex is even worse than stocks because it's a zero sum game (negative sum after fees). If he doesn't have a professional background as a trader then there's 99%+ (unironically) probability that he has a negative expected return.
>leverage is not important for successful trades.
T. Brainlet
No wonder you weren't profitable with forex.
Arbitrage basically?
Do you have any personal advice maybe? If that is no too much to ask of you.
You could look into Statistical Arbitrage
In terms of useful Maths, begin by going into shit like basics of Statistics/probability, and also Linear Algebra and have a background in differentiation/integration from calculus.
Explain to me, how leverage would effect your trading.
Using less leverage means you won't get stopped out by random volatility as easily. You should only use as much leverage as necessary for a "satisfactory" profit relative to your risk management strategy.
Leverage only affects the amount of money you are willing to risk, unless you are a fucking moron and are willing to bet 100% of your account.
It doesn't affect the mechanics of a trade.
Dude thank you so much
Of course it does. The more leverage you use, the tighter your stop loss needs to be to fall within an acceptable range of risk.
The higher your leverage, the more likely you are to be liquidated or destroyed in your trades. The rewards are higher but the risk is too. You also cannot hedge and trade with other currency pairs if you make your leverage higher. No wonder you failed in forex dude, basic shit like this escapes you.
I don't think you guys understand what I am saying on a mathematical level.