ASK ME ANYTHING: Hoping to Help!

This is a discussion on ASK ME ANYTHING: Hoping to Help! within the First Steps forums, part of the Reception category; Err actually Tom, back int day when I were a stop user, I had some of my best times using ...

Reply
 
LinkBack Thread Tools Search this Thread
Old Oct 14, 2016, 12:10pm   #46
 
darktone's Avatar
Joined Nov 2003
Err actually Tom, back int day when I were a stop user, I had some of my best times using tiniweeni p&c stop orders, especially when brokers were stoopid enough to be offering non slip fills. When prices are thundering around a 1.1pip initial risk then to BE a afaf can work very well. Until they look into you anyways. Bracket orders around NFPR was like taking it out an atm.
__________________
Me and you, we is largely the same bruv! We dont know sht! The difference is, I know I dont know sht!!

Last edited by darktone; Oct 14, 2016 at 12:42pm.
darktone is offline   Reply With Quote
Thanks! The following members like this post: Oscar Reed
Old Oct 14, 2016, 12:15pm   #47
 
darktone's Avatar
Joined Nov 2003
Quote:
Originally Posted by highbury fx View Post
hi Tim

I've not seen it at the 3 spreadbet/cfd brokerages I've worked at although I did suspect it was happening to an account I used at a swiss broker back in 2004. I'd be surprised if it happens at any fca brokerages today but I wouldn't be surprised if it happened at brokers regulated in less stringent jurisdictions as it's an easy bit of code to write.

its very simple to see if its happening to you.. just compare 2 accounts, 1 in a position and 1 not in a position.

what probably is more prevalent is the automatic applying of arbitrary slippage on orders. that's more of a widespread problem i'd imagine and has the same result as price bias in terms of paying away unnecessarily pips.
I've personally experienced 'selective slippage'. Used a buddies account with same firm to confirm before ringing them up. They said I wasn't being very fair to them (they were right lol) but they wouldn't admit that I was being treated any different. We all take the p1ss in our own way
__________________
Me and you, we is largely the same bruv! We dont know sht! The difference is, I know I dont know sht!!

Last edited by darktone; Oct 14, 2016 at 12:43pm.
darktone is offline   Reply With Quote
Old Oct 14, 2016, 1:40pm   #48
Joined Oct 2016
tobecont started this thread
Quote:
Originally Posted by darktone View Post
Hello, thanks for passing by and starting this thread.

Is appropriately sized scaling in / out a viable strategy for the retail account?
From the areas of experience youve listed above id like to hear your professional view on the subject. Here in the retail environment it gets lumped into the 'averaging in / adding to losers' box and for the most part gets cast aside as an option.

Most discussion on this forum concerns the 'confirmed' rather than the 'discovery' side of price action. Be nice to hear your views on the various approaches.

Click the image to open in full size.
Hey Darktone. Thanks for getting involved.

Definitely viable if you can make the sizes work for your account. One of the most successful traders at my first shop, still trading to this day, scaled in to and out of every position. As long as your total risk at any time is within your risk parameters then it makes compete sense to scale.

Show me anyone that can 'confirm' anything in trading, I'll show you a liar. My personal approach often gives me a range at which i expect some sort of suggestion that the level is likely to propel price in either direction. If i cannot be at the screens then I will leave a number of orders across that price range. Sometimes no fill, sometimes partial fill, sometimes fill and stop. It's the way it goes.

Quote:
Originally Posted by piphoe View Post
great idea for a thread tobecont.

my Q: under what conditions would you double down on a trade?
Hey Piphoe,
Similar to above really. I think its important to differentiate between scaling in to a position and doubling down. To me, doubling down involves taking outsized risk. It's extremely easy to do in the heat of a losing trade. Scaling in is a much more rational operation, considered ahead of time and as part of a disciplined plan. Rather than preach let me answer exactly what you asked:

I would never double down on a trade. That is, I would never risk more capital than I had initially intended to on a trade. I would add to a losing trade in a situation where I still have 50% of my pre-determined risk allocation (for that trade) uninvested in the trade and the case for making the trade remains.

Quote:
Originally Posted by tomorton View Post
Brilliant insight, more than balances the fatal concentration on entry signals, levels and patterns.
Spot on tomorton. Signals, levels and patterns should be a secondary consideration for all. I've never met anyone that's any good at predicting the future. I know some very wealthy traders though.

Quote:
Originally Posted by Mr. Charts View Post
The more experienced and better you are
and the more you choose clearly moving stocks
and the more you use price action rather than "I will buy/short at a certain level"
and the more you minimise TA indicators like moving average cross overs,
the more accurate you get till you reach a state where you can SOMETIMES be spot on to the cent for your entries - and SOMETIMES your exits.
All in my humble opinion and experience.
Hi Mr Charts,
Have to agree with you on all of your points. Forgive my example in my prior response to you and Tim. I should have perhaps explained that is nothing like how I would analyse a market. I laid it out that way as the target for my answer really isn't an experienced trader as yourself, rather a junior trader. Everyone knows the MA cross method and so the reader can focus on the point on the response, order types.

As I have alluded to above, specific levels don't really exist and TA indicators are all but useless. As for being spot on, that's an extremely admirable ability of which I am envious.

Being accurate is great and having a high win rate is easier on the mind but at the end of the day, staying alive when you're wrong trumps all.
tobecont is offline   Reply With Quote
Thanks! The following members like this post: swissy , darktone
Old Oct 14, 2016, 2:27pm   #49
Joined Oct 2016
tobecont started this thread Hi Signalcalc,

Thanks for all the questions. Bit tired here on Friday night but hope they're of use. Cheers

Quote:
Originally Posted by Signalcalc View Post
What has made you a successful trader (assuming that you are successful)?
Experience/time. There's no real shortcut. Having mentors will help drastically and for those not fortunate enough to be in the industry, there's some fantastic books available that really are the next best thing. My suggestion for any new trader is Trading in the Zone by Mark Douglas.

Quote:
Originally Posted by Signalcalc View Post
What is your trading style (scalper, position, swing)?
I guess I would be classified as a swing trader. Typical trade lasts from few hours to few weeks.

Quote:
Originally Posted by Signalcalc View Post
What analysis are your strategies based on (fundamentals, technical, chart patterns, price action)?
Price action is at the heart of my trading. Unfortunately in my line of work people want a 'clever' narrative to go with the trades so I tend to have some fundamental views to support positions. Price action tho. ps. Chart patters=price action.

Quote:
Originally Posted by Signalcalc View Post
Are you a manual trader, an algo trader, a quant trader, discretionary, system, maybe a combination of some of these?
Manual. its a blurred line between discretionary and system. If you're talking about trade entry/exit then it's discretionary. The risk management is very systematic.

Do you trade on instinct or a strict set of rules or a combination?
Combination. It's rules but no 2 entries are the same.

What are your favourite or most reliable sources of information?
Trade prices.

What are your worst or most laughable sources of information?
Sellside macro analysts.

How long did it take you to find the path to being profitable, did you learn some (hard) lessons along the way and what were those lessons?
I was fortunate that I was on a market making desk while learning so the pnl at the end of the day often didn't tell the whole story as far as one's trade success throughout the day. Definitely learnt some hard lessons. Too many to list but one that comes to mind is: It's better to assume you're going to be wrong that right.

How many strategies did you try before settling on something that provided consistent profits?
If by strategies you mean trade entry and exit strategies, 100s. Eventually you realise it doesn't really matter what your entry/exit strategy is. The strategy that matters is your strategy for making sure you stay in the game.

Do you trade Forex, Stocks, Indices, ETF/ETN's or a combination?
Over the years I have traded pretty much every liquid market. I have been a fixed income specialist in recent years though.

Do you diversify or do you stick to favourite instruments?
happy to trade any market.

Do you trade proprietary strategies or strategies that are in the public domain?
It's all in the public domain but you'd have to walk an identical path to me to come to the same point. That's unlikely!

Do you think the markets have changed during your trading career and in what way, how long is your trading career?
13 years. Yes changed a lot. Localised volatility with very little macro volatility. The system is less stable than prior to the crisis. The buffers (banks and HFs) can't stop things like they used to. More 'flash crashes' as a consequence.

Have you adapted your trading style to changing market conditions, have you recognised if/when markets change?
Yeh I take less risk than I used to. I gravitate to trending markets. Stocks have been the game over the past 5 years or so. Fixed income prior to that.

Do you trade all market conditions, in what conditions do you make the most losses?
Yep, I wish i was better at recognising market changes in realtime. As a result I tend to lose money in range bound markets. I rely a lot on momentum.

What is your equity curve like and what are your max drawdowns, what has been your longest losing streak and did you change anything during those periods or just stick with what you were doing?
Equity curve has shallow prolonged drawdowns and large upside volatility. Similar to that of a long gamma portfolio. I try not to change too much during drawdowns which have lasted over a year. Losing years happen.
tobecont is offline   Reply With Quote
Thanks! The following members like this post: swissy
Old Oct 14, 2016, 2:29pm   #50
Joined Oct 2016
tobecont started this thread
Quote:
Originally Posted by Oscar Reed View Post
The thread with more questions than answers.
Trying to get through to all the questions Oscar. Full time job and doing things will continue to take priority though. Hope that's ok.
tobecont is offline   Reply With Quote
Thanks! The following members like this post: Oscar Reed
Old Oct 14, 2016, 4:36pm   #51
The Staff are paid members that perform various roles such as editorial, advertising, support or technical work.
 
timsk's Avatar
Joined Mar 2002
Quote:
Originally Posted by tobecont View Post
Trying to get through to all the questions Oscar. Full time job and doing things will continue to take priority though. Hope that's ok.
Hi tobecont,
Yes, that's okay!

Over the years, those of us who've been on T2W a while have seen quite a few threads along similar lines: 'I'm a pro': here to help' etc. At best, they're disappointing and, at worst, they turn out to be scammers or vendors just trying to peddle their wares. I'm happy to say tobecont that you appear to be the exception that proves the rule! I've been impressed by your straightforward answers along with your willingness to engage one to one with members. Very refreshing; long may it continue.

Tim.

PS. I should add - and it's remiss of me not to have mentioned this before - but highbury fx who happens to have contributed to this thread - also deserves a mention for the same reasons. His insights into how the retail brokerage business works - especially spread betting companies - are most enlightening. Those not familiar with his contributions will be rewarded by a custom search for posts made by him.
__________________
I'm New To T2W - Where Do I Start? - a must read for anyone new to T2W
I'm New To TRADING Where Do I Start? - a must read for anyone new to TRADING
The Trading Plan Template - a must read for anyone without a proper TRADING PLAN
Please note: I am part of T2W Admin' Staff - I am NOT a Moderator!

Last edited by timsk; Oct 14, 2016 at 7:04pm. Reason: Added PS
timsk is offline   Reply With Quote
Thanks! The following members like this post: tomorton , swissy , mike. , Lee Shepherd
Old Oct 14, 2016, 9:28pm   #52
Joined Oct 2016
tobecont started this thread
Quote:
Originally Posted by timsk View Post
Hi tobecont,
Yes, that's okay!

Over the years, those of us who've been on T2W a while have seen quite a few threads along similar lines: 'I'm a pro': here to help' etc. At best, they're disappointing and, at worst, they turn out to be scammers or vendors just trying to peddle their wares. I'm happy to say tobecont that you appear to be the exception that proves the rule! I've been impressed by your straightforward answers along with your willingness to engage one to one with members. Very refreshing; long may it continue.

Tim.

PS. I should add - and it's remiss of me not to have mentioned this before - but highbury fx who happens to have contributed to this thread - also deserves a mention for the same reasons. His insights into how the retail brokerage business works - especially spread betting companies - are most enlightening. Those not familiar with his contributions will be rewarded by a custom search for posts made by him.
Early days yet Tim but I can assure you I've got no agenda. If nothing else we'll have a good discussion!

Only yesterday was interviewing a graduate for an internship and he came in thinking the way to impress senior managers within the business was to talk of his 30% annualised returns with a 'system' he learnt on forex factory. As I said to him, it's often very hard to know what trading other people's capital really involves. Hopefully threads like this can shed some light.

Hint: most guys interviewing you won't have had many/any +30% years and they think they're a **** load better than you are!

I read Highbury's posts with interest. Everyone from Joe blogs to PTJ thinks 'theyre' out to get us. Run our stops etc. Spread betting firms are some of the more uncertain so great to have an insiders input.
tobecont is offline   Reply With Quote
Thanks! The following members like this post: timsk
Old Oct 14, 2016, 9:37pm   #53
 
piphoe's Avatar
Joined Oct 2015
Quote:
Originally Posted by tobecont View Post

Hey Piphoe,
Similar to above really. I think its important to differentiate between scaling in to a position and doubling down. To me, doubling down involves taking outsized risk. It's extremely easy to do in the heat of a losing trade. Scaling in is a much more rational operation, considered ahead of time and as part of a disciplined plan. Rather than preach let me answer exactly what you asked:

I would never double down on a trade. That is, I would never risk more capital than I had initially intended to on a trade. I would add to a losing trade in a situation where I still have 50% of my pre-determined risk allocation (for that trade) uninvested in the trade and the case for making the trade remains.


.


i scale in but never double down...and the case for making the trade remains.

thats what i'm talking about
(poor choice of words my acct)
__________________
I said, Mr Stupid, why risk everything on one trade? Why not make your life a pursuit of happiness rather than pain?
Paul Tudor Jones

Last edited by piphoe; Oct 14, 2016 at 9:43pm.
piphoe is offline   Reply With Quote
Old Oct 14, 2016, 11:05pm   #54
Joined Oct 2016
Dear Tomorton

Which one is the best?

Investment
Trading long term basis more than one year
Day trading, weekly trading and monthly trading


One of the most difficult decisions that I have. Please suggest me to read some good books and how to build plan and act etc if you have time.


Kind regards
Dian is offline   Reply With Quote
Old Oct 14, 2016, 11:37pm   #55
Joined Feb 2002
Ideally Dian, one would extract maximum work (and results) out of every pound in the trading account. So, if long-term conditions do not match your trade criteria, maybe some of the the money can be deployed short-term. And vice versa.

I can't think of worthwhile long-term investments except -
1. education (not qualifications)
2. your main property

A public sector occupational pension used to be No.3 in the UK and maybe other countries but I don't think they are as advantageous or secure now as they used to be.

In the financial markets world, for me long-term means 6mths. Beyond that, no human being alive has any vision.

The Sticky threads on this forum will give you fantastic guidance towards success as a trader.
tomorton is offline   Reply With Quote
Old Oct 14, 2016, 11:42pm   #56
Joined Oct 2016
Thank you for the great response.
Quote:
Originally Posted by tomorton View Post
Ideally Dian, one would extract maximum work (and results) out of every pound in the trading account. So, if long-term conditions do not match your trade criteria, maybe some of the the money can be deployed short-term. And vice versa.

I can't think of worthwhile long-term investments except -
1. education (not qualifications)
2. your main property

A public sector occupational pension used to be No.3 in the UK and maybe other countries but I don't think they are as advantageous or secure now as they used to be.

In the financial markets world, for me long-term means 6mths. Beyond that, no human being alive has any vision.

The Sticky threads on this forum will give you fantastic guidance towards success as a trader.
Dian is offline   Reply With Quote
Old Oct 14, 2016, 11:44pm   #57
Joined Feb 2002
Quote:
Originally Posted by Dian View Post
Thank you for the great response.

But this is tobecont's thread, and his words have been excellent so far, maybe he will add something here.
tomorton is offline   Reply With Quote
Old Oct 15, 2016, 12:26am   #58
 
Oscar Reed's Avatar
Joined May 2015
Quote:
Originally Posted by tobecont View Post
Trying to get through to all the questions Oscar. Full time job and doing things will continue to take priority though. Hope that's ok.
Good thread mate.

Couple of questions.

Do you have a daily trading routine.

Also do you increase size when you trading is going well and if yes how do deal with that size increase from an emotional side.

One more question, have you seen many traders take daily income from the market, 50% daily profit out each day, with the other 50% staying in the account to try and grow the account and cover losses.

Good Weekend
Oscar
Oscar Reed is offline   Reply With Quote
Old Oct 17, 2016, 2:07pm   #59
Joined Oct 2016
tobecont started this thread
Quote:
Originally Posted by Dian View Post
Dear Tomorton

Which one is the best?

Investment
Trading long term basis more than one year
Day trading, weekly trading and monthly trading


One of the most difficult decisions that I have. Please suggest me to read some good books and how to build plan and act etc if you have time.


Kind regards
Hey Dian,

Tomorton speaks the truth. My 2 cents:

If you took all 2 average middle aged men. one has been investing his savings each month in a managed (or passive for that matter) portfolio of funds. Some equity some bonds some commodities etc. and another who has been day trading his savings each month, swing trading or any other type of trading then on average the investor will have done a LOT better than the punter. I mean trader.

the fact of the matter is most people that trade, lose money. Most people that invest, make money. Leverage will kill you in the short term. compound returns will make you rich in the long term. dollar cost averaging in an incredible thing.

You need to have a think what you really want from this. It almost doesn't make sense to ask which is better. They are completely different things. It's like saying should i take a bicycle or a plane. Sort of depends where you're trying to get to...

If you wanna read:
Peter Brandt for trading - but you will benefit from having some basic understanding before reading his books.
Warren Buffett/Benjamin Graham for investing
tobecont is offline   Reply With Quote
Old Oct 17, 2016, 2:23pm   #60
Joined Oct 2016
tobecont started this thread
Quote:
Originally Posted by Oscar Reed View Post
Good thread mate.

Couple of questions.

Do you have a daily trading routine.

Also do you increase size when you trading is going well and if yes how do deal with that size increase from an emotional side.

One more question, have you seen many traders take daily income from the market, 50% daily profit out each day, with the other 50% staying in the account to try and grow the account and cover losses.

Good Weekend
Oscar
Tks Oscar.

I'm fortunate that I go to a place of work with people doing a wide range of (related) jobs and so there's definitely structure to my day. The markets have a natural ebb and flow and having worked across the 3 major centres (APAC, Europe, US) you can optimise your day by working around the market. You will occasionally miss stuff but that's going to happen regardless unless you're trading the entire session.

As for a routine in terms of what i do when im at my desk: I spend the first few hours of the day digesting NY price action (im Asia based atm) and read as much as I can (to gauge consensus). The APAC open is more often than not pretty boring and the way I am trading, i'll likely get another entry opportunity later in the day even if i do miss it at the open. sometimes not but that happens.

then it's pretty dull until london come in so i tend to catch up on non-trading tasks that need doing. Then trade london open, which is where i enter most trades. I leave just before NY are coming in these days and then watch via phone during the evening if Im not busy. most of my trade exits happen during the NY session and so i've had to adapt a bit and rely a lot more on orders these days than I did in london. I sometimes stay late for FOMC/NFP etc. I prefer playing sport mind...

I've never heard of anyone successful taking money out each day but i don't know many successful day traders/scalpers. Day by day is too micro imo. Even then, I dont see longer term traders taking money out each week/month. You shouldn't be trading if you can't afford to lose your entire account and therefore if you back yourself as a trader why wouldn't you compound your gains as much as possible. Maybe at the end of the year you would see some guys take some out if it was a bumper year.

Maybe i'm too risk averse but my view is that if you want to be a full-time trader you need to have a meaningful account ($100k+) AND enough money to live on for 4 years. It's not realistic for most people and that's why most people shouldn't be trading full time and expecting to make a living from it.

Having a down YEAR is a very real possibility for all traders. You never know when it's coming.
tobecont is offline   Reply With Quote
Thanks! The following members like this post: swissy
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
new member hoping to start trading soon! djbenny1 First Steps 17 Nov 14, 2013 5:12pm
I come from China, hoping to encounter people who will be Chinese eurgbpusdsir General Trading Chat 44 Sep 14, 2011 8:21pm
Hoping for more help and advice... gododdin First Steps 9 Mar 16, 2008 7:13pm
Are you hoping your children will be traders? JumpOff Home Trader 34 Sep 6, 2005 12:11am
Yet another Newbie hoping for knowledge Zero Cool First Steps 5 Dec 11, 2002 12:47pm

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)