How to make money trading the FX market

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Old May 3, 2016, 1:14pm   #46
 
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Mr. Charts started this thread Another very similar one this morning +23 pips
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Old May 18, 2016, 1:06pm   #47
 
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Mr. Charts started this thread cable
doesn't need an explanation
+104 pips
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Old May 18, 2016, 1:09pm   #48
 
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Originally Posted by Mr. Charts View Post
cable
doesn't need an explanation
+104 pips

great work!
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Old May 19, 2016, 5:38pm   #49
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Originally Posted by achi72 View Post
great work!
Depends on the lot size. For 1 lot yes it's pretty good.
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Old May 19, 2016, 8:23pm   #50
 
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Personally I just use simple support/resistance areas, Fib levels and also I combine Elliott Wave theory just to further strengthen my point. MACD and RSI are also used to confirm my point.
If you don't know what I mean go to my blog and you'll get an idea. I just use it to record my analysis and see how I improve.
Happy trading
blog - https://thegreentrader.wordpress.com
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Old May 20, 2016, 5:08pm   #51
 
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Mr. Charts started this thread I only had time for a couple of hours FX trading today so decided to do some scalping GBP:USD

Of the five trades three of them used the method in this thread :-
C>D
E>F
I>J

The others were using different set ups.

No technical analysis indicators, trend lines or anything complicated, just set ups and actual price action. And all trades within a congestion zone.

A bought
B sold
+16 pips

C sold
D bought
-1 pip

E sold
F bought
+3 pips

G bought
H sold
+6 pips

I sold
J bought
+13 pips
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Old May 20, 2016, 8:41pm   #52
 
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I like the Simplicity of your trading. No need to have a lot of indicators.
Money Management rules.
Regards


Quote:
Originally Posted by Mr. Charts View Post
I only had time for a couple of hours FX trading today so decided to do some scalping GBP:USD

Of the five trades three of them used the method in this thread :-
C>D
E>F
I>J

The others were using different set ups.

No technical analysis indicators, trend lines or anything complicated, just set ups and actual price action. And all trades within a congestion zone.

A bought
B sold
+16 pips

C sold
D bought
-1 pip

E sold
F bought
+3 pips

G bought
H sold
+6 pips

I sold
J bought
+13 pips
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Old May 21, 2016, 1:17am   #53
Joined Oct 2013
Quote:
Originally Posted by Mr. Charts View Post
I only had time for a couple of hours FX trading today so decided to do some scalping GBP:USD

Of the five trades three of them used the method in this thread :-
C>D
E>F
I>J

The others were using different set ups.

No technical analysis indicators, trend lines or anything complicated, just set ups and actual price action. And all trades within a congestion zone.

A bought
B sold
+16 pips

C sold
D bought
-1 pip

E sold
F bought
+3 pips

G bought
H sold
+6 pips

I sold
J bought
+13 pips
Hi!

I really like this kind of trading. It's not easy....I know.
If you don't mind to give a bit of explanation on what was your thought process by the time you entered at A. I see price came from a quick drop of some 50 pips; it didn't get to touch the likely Support of round number 4550, so what made you decide to fade that quick drop?
I find fascinating how you seasoned traders sometimes catch the exact swing when price reverses.
Last question...I hope I'm not annoyoing you: when you scalp like this, what is the maximum DD you allow on each trade. I ask because I'm trading quite similar but at this moment I'm not sure what DD would be the sweet spot for this kind of trading.
Cheers,
keen246
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Old May 21, 2016, 4:37pm   #54
 
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Mr. Charts started this thread
Quote:
Originally Posted by keen246 View Post
Hi!

I really like this kind of trading. It's not easy....I know.
If you don't mind to give a bit of explanation on what was your thought process by the time you entered at A. I see price came from a quick drop of some 50 pips; it didn't get to touch the likely Support of round number 4550, so what made you decide to fade that quick drop?
I find fascinating how you seasoned traders sometimes catch the exact swing when price reverses.
Last question...I hope I'm not annoyoing you: when you scalp like this, what is the maximum DD you allow on each trade. I ask because I'm trading quite similar but at this moment I'm not sure what DD would be the sweet spot for this kind of trading.
Cheers,
keen246
Hi,
I use several different chart set ups - patterns based on what works significantly more often than not and which have inherently tight stops to minimise risk thus making it highly likely that any losers will be small, smaller than the average winner and less frequent than the average winner.
The only set up I'm prepared to discuss is rising/falling candles which is a modification of what I use on stocks. http://www.trade2win.com/boards/stoc...arkets-87.html
This set up is a different one.
I also like to read the flow and development of price action as a further trigger to an entry, especially on short term trades.
However, on a purely chart basis, price had, in the previous two candles approached support which had been rejected. This was followed by sharply upwards price action which triggered the entry once the set up had occurred.

I don't have a fixed stop loss, but they are small ones on short term trades.
I don't have targets either, though I'm obviously looking closely at price behaviour when it approaches support/resistance levels.

The methods I use are not really conventional ones amateur home trades use packed with trend lines and an assortment of technical analysis indicators littered all over the place. No disrespect to folk who use them.
I think and trade repeated behaviour as demonstrated in my set ups, sentiment as shown in price action. It works
Hope that helps.
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Old May 22, 2016, 7:00pm   #55
Joined Oct 2013
Quote:
Originally Posted by Mr. Charts View Post
Hi,
I use several different chart set ups - patterns based on what works significantly more often than not and which have inherently tight stops to minimise risk thus making it highly likely that any losers will be small, smaller than the average winner and less frequent than the average winner.
The only set up I'm prepared to discuss is rising/falling candles which is a modification of what I use on stocks. http://www.trade2win.com/boards/stoc...arkets-87.html
This set up is a different one.
I also like to read the flow and development of price action as a further trigger to an entry, especially on short term trades.
However, on a purely chart basis, price had, in the previous two candles approached support which had been rejected. This was followed by sharply upwards price action which triggered the entry once the set up had occurred.

I don't have a fixed stop loss, but they are small ones on short term trades.
I don't have targets either, though I'm obviously looking closely at price behaviour when it approaches support/resistance levels.

The methods I use are not really conventional ones amateur home trades use packed with trend lines and an assortment of technical analysis indicators littered all over the place. No disrespect to folk who use them.
I think and trade repeated behaviour as demonstrated in my set ups, sentiment as shown in price action. It works
Hope that helps.
That is the core of being consistenly profitable. Difficult to carry out, but you demostrate clearly it's achivable.
Thanks for yout reply.
Cheers,
Keen236
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Old May 23, 2016, 1:55pm   #56
 
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Mr. Charts started this thread Morning scalping EUR:GBP

C>D & E>F were rising/falling candle set ups.
the other three were different set ups.

A>B +2 PIPS

C>D +1 PIP

E>F +23 PIPS

G>H -6 PIPS

I>J +13 PIPS
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Old May 23, 2016, 9:06pm   #57
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Well, it is really interesting because I have been a professional derivatives trader for a number of years. I left Nomura about 2 years ago and have been prop trading ever since, it is not unusual in my world for guys to be making 1000% plus annually 10x there allocated capital, anyway I know in the retail world it is not possible. It occurred to me that all of us from the professional sector only traded derivatives, well, the spot market retail is way too expensive to trade on a day to day, so most of us either traded Options or Futures, well once I was no longer institutionally trading I wanted to have a retail account that offered FX Options Schwab did Stocks, IB and Saxo handled futures well but I couldn't find a single broker that did Vanilla Options for FX, just binary. I was like damn! Then my ex-work colleague who had the same issue and ran a blog told me about this one broker, I won't say their name here but he trades with them so check out his blog. Last year I made just over 800% gains, well just today alone I did 90% gain on my premium so just shy of doubling it.

The point behind the story is there is no way to make money in the spot market, a few pips here and there that's all you are going to get, the brokers have virtual dealer plugins and all sorts on MT4 that can really mess up your trades. The derivatives are the answer. Start trading them with experience and a bit of skill you will be laughing, I guarantee it. I was shocked that 80% of retail traders are spot FX trading no wonder they keep losing money. You need start thinking derivatives. My profit potential on a Vanilla Options trade is influenced by volatility, I make money in volatile markets, my risk is always measured, I can further hedge that risk by going delta neutral or execute different strategies like bull spreads, of course if I am writing the Option I am taking on more risk but I never sell an Option naked, I prefer covered trades. So in short my profit potential far outweighs anything you can do in the spot. To put it this way I could buy a $200 premium Option contract and double it even, treble it in one day, the worse that can happen is I lose $200 if the Option expires out of the money. So on 2 day Option, I would be holding the equivalent of a 20 pip spot position with no risk of being stopped out and everything to gain if the market moves in my favour or gets volatile. I guess you are seeing the big picture now...

Most traders are right on direction, volatility kills them in the spot markets. So if you knew where the Euro was going in the next 2 days, you could trade that knowledge and never worry about being stopped. This is why the Interbank Option trades are dwarfing the spot trades and all the delta hedging causes volatility so much in the spot market that traders are seeking the 10am NY cut information to try and figure out the strike levels. Lol! Like that helps. You want to make money like pro start trading Vanilla or I guarantee the spot brokers will take you for even your shirts.
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Old May 23, 2016, 9:15pm   #58
 
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Mr. Charts started this thread It seems to me the above poster might be better starting a new thread with his above content.
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Old May 23, 2016, 9:29pm   #59
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Originally Posted by Mr. Charts View Post
It seems to me the above poster might be better starting a new thread with his above content.
I am curious Mr Charts +3 pips what's your spread on that? I don't think I should, traders are losing money, every forum I have been to there is a post like this, a guy who makes loads of money in spot FX, usually back by several brokers, all over 45, seem to come from the periphery of finance and all of sudden they convincing so many that trend lines actually work in trading.

I hope I didn't threaten your post but you and I know that derivatives offer more opportunity as the cost is factored as one off in the trade and margin changing and spread widening is not possible. So I curious to know your broker and how you scalp 3 pips profitably?
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Old May 23, 2016, 9:56pm   #60
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Originally Posted by vanillaman View Post
I am curious Mr Charts +3 pips what's your spread on that? I don't think I should, traders are losing money, every forum I have been to there is a post like this, a guy who makes loads of money in spot FX, usually back by several brokers, all over 45, seem to come from the periphery of finance and all of sudden they convincing so many that trend lines actually work in trading.

I hope I didn't threaten your post but you and I know that derivatives offer more opportunity as the cost is factored as one off in the trade and margin changing and spread widening is not possible. So I curious to know your broker and how you scalp 3 pips profitably?
It seems like you are a tad out of touch with the actual FX market. Nowadays, most brokers offer spreads of 0.2-0.6 pip. So, you can scalp for 3-10 pips and make money. The commission is 8-10 USD per lot traded. With a decent winning rate, a scalper can make money. Sure, scalping is extremely difficult and most people will fail.
I wonder if you traded FX first hand as to assert that no retail trader can make money. I hope you have very clear that institutional trading is a complete different world from retail trading.
Hope you open a new thread and provide clear examples on why you think trading derivatives as retail trader is easier/more profitable.
Cheers

Last edited by keen246; May 23, 2016 at 10:50pm.
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