Impossible to swing trade in Forex?

[hybrid]

Is holding any position in Forex for two to three days or so impossible?

I ask because each and every day the forex calendars state there is maximum, scary, run-for-the-hills, news. When this news is announced volatility eats stops.


Is the answer to intra-day trade? or to create bigger stops? or to trade the news?

...or other?


thx

 

[Traderallen]

I seem to recall reading somewhere that swing traders have the worst performance of any trading method regardless of the market that trading. Probably because it's an easily define method and looks great on past chart, but on the hard right edge it's a big failure. Kudos to you for recognizing the need for keeping track of volatility in the market you're looking to trade. Most want a be traders have no clue about volatility. I prefer scalping Forex I think it's the one market where scalping makes the most sense. Other than scalping I would only recommend a type of trend trading a top-down approach using the daily weekly and monthly charts.

 

[George A]

There are people who do well with swing trading
Trading 2 to 3 days swings is NOT really hard , as long as u can get into sync with the market ( get into step with the dance ) , and you are right there is volatility BUT unless u hold ur position , u will never get to tale large profits when the market presents them , BUT i will agree with traderallen , except i do NOT like scalping , and would rather trade the swings of 15 mnt charts , which usually will deliver 2 to 4 swings a day , and with some great profits , BUT that is another art and u need to know the basis OR they theory that is used to move the market on an intra day bases , which has a consistency .
So in reality , there is no right and wrong ,, in my opinion , it is what you prefer as a trader , and there is success in what ever u choose to do BUT the secret is NOT in what you do BUT how good are you at it .
Cheers,
George

 

[NVP]

Is holding any position in Forex for two to three days or so impossible?

I ask because each and every day the forex calendars state there is maximum, scary, run-for-the-hills, news. When this news is announced volatility eats stops.


Is the answer to intra-day trade? or to create bigger stops? or to trade the news?

...or other?


thx

interesting question.........

sometimes yes ....sometimes no ......it is at the whim of the market ..like any timeframe

N

 

[darktone]

Is holding any position in Forex for two to three days or so impossible?

I ask because each and every day the forex calendars state there is maximum, scary, run-for-the-hills, news. When this news is announced volatility eats stops.

Is the answer to intra-day trade? or to create bigger stops? or to trade the news?

Its possible imho. If you can define a trend in an instrument and it tends to trend for more a few days, theres no real reason you cant capitalise on that.
Examples below.

Cheers
D

 

[hybrid]

anyone have any thoughts on this?

http://www.learntotradethemarket.co.../trading-during-market-uncertainty-volatility

 

[Traderallen]

I like what Nial Fuller tries to teach one of the traders. I have one of his courses, I don't necessarily agree so much about pin bars. But I do think he's honest in his opinions and seems to know what is talking about. What I think is missing from what he teaches is a complete step-by-step action plan. He has a lot of really good information but putting that information to work or should I say in a format that somebody can follow, I've yet to see.

 

[Benj1981]

Is holding any position in Forex for two to three days or so impossible?

I ask because each and every day the forex calendars state there is maximum, scary, run-for-the-hills, news. When this news is announced volatility eats stops.


Is the answer to intra-day trade? or to create bigger stops? or to trade the news?

...or other?


thx

Trade with the trend and the news works in your favour more than it doesn't.

 

[jw1981]

Swing trading is not for everyone especially after you enter on a nice candle formation only to see a down day the next candle.. Or when you move to BE only to get stopped out for nothing. That said, it does keep you out of bad trades and builds patience... Kind of takes you on a small yet similar path of trading equities with a 'hold' philosophy.

Its also a personal choice.. I can't afford to stare at 15m or even h4 charts, so my preference is for daily, weekly and monthly... I can say this though, you need a strong appetite for confidence and risk... Which is especially put to test when bloomberg and reuters journos keep telling you the exact opposite of your trade direction.

 

[forker]

Of course it is possible,I have and still do hold trades that can last weeks but they tend to be once or twice a year with my average trade lasting 1-3 days.

 

[dezzy]

Is holding any position in Forex for two to three days or so impossible?

I ask because each and every day the forex calendars state there is maximum, scary, run-for-the-hills, news. When this news is announced volatility eats stops.


Is the answer to intra-day trade? or to create bigger stops? or to trade the news?

...or other?


thx

I guess there is a long-standing debate on whether to trade short term or long term, some people believe in technical analysis, while some believe in the bigger picture of how the economy of a country or the world is doing. There is no definite solution to it, but I believe a good solution is to know your trading style well.

If you really wish to swing trade, you are trading on the basis of short term movements, and the important thing to know is that the market can fluctuate largely in the short term. So you'll likely want tighter stop losses that fit your trading risk appetite

 

[Traderallen]

"So you'll likely want tighter stop losses that fit your trading risk appetite" this is 100% right on the money wrong! If you're going to swing trade regardless of whether it's Forex were equities or whatever. Swing trade meeting trying to catch 3 to 5 days swings in the market. You going to have to allow for market volatility, which major stops are going to have to be wider much wider. Or you're just go slowly bleed your count the death. Which is what most traders do and why most lose. To swing trade and try to gain a statistical advantage. You're going to start with a long-term trend, daily weekly and monthly. You have to place your trades in the direction of the monthly in the weekly trend and only when the correlated the trade in that direction based on the daily chart. Stop loss is going to have to be wide enough. To allow for daily volatility. I would have to run numbers for the current Eurodollar but I would guess that a stop outside of volatility would be somewhere around hundred pips if not more.

 

[aliasentric]

My two cents on this… I rarely enter a trade with a predetermined length of time that I will stay with it. If the price action indicates I can stay with it and am comfortable holding over a period of time, i.e. a few days, then I hold on. If the price action gives me reason to lack confidence, I take profits, whether it be after a few hours, a day, or whatever.

But the way I trade, I really don't pay any attention to the news. I trade primarily continuations, and reversals. The daily, 4 hour and 1 hour charts all have to agree in one way or another.

I find the news usually just causes a spike or dip, then the price just goes back to what it was doing before the news came out.

So, basically, if you are basing your trades on H1 time frame and higher, the news shouldn't really matter too much, in my opinion. Over the past several weeks, I was only stopped out once or twice because of news spike, then I just waited till it settled down, then jumped back in - in the same direction as I was in before the news, and ended up making up the loss, and additional profits.

I average about 20-30 trades per week. So, only getting stopped out a couple times over past 6 weeks or so, I think speaks to the relatively non affect of the news when trading H1 and above time frames. One key is to set your stop loss appropriately. If you are trading a very volatile pair, then you have to have a larger SL.

The other keys are timing and entry point. I typically enter the market very close to strong support/resistance areas. But regardless of how close my trade is to the support/resistance, I trade away from these areas. So If the support/resistance is strong enough, even a news announcement probably won't pierce it.

Another point that is related is that many make the mistake (in my opinion) of setting their stop loss according to the last swing high/low indiscriminately. This may or may not be good. Was the last swing high/low near enough to any critical support/resistance level? If it was not near enough to any critical support/resistance level, then it may not hold as support or resistance for your SL. Very likely any spike would take out that SL, and head for the stronger support/resistance level before it bounces…

Hope this helps.

 

[annedre]

Some markets are more suitable for swing trading and it is important that you are trading the right currency pair if swing trading forex markets. Swing traders ride the swings or oscillations that markets make as the currency pair pivots from one price level to another.

 

[gerryg]

It depends on market volatility to work out and adapt your trading styles. Swing trading associated with high-risk conditions, which keep you in suspense during trading time, requiring constantly watching for price action. It is really exhausting and that style your trading won't allow you to stay continiously in profit.

 

[cerberuz]

merry xmas to all first.

imho, the longer the trade, the more difficult it is to pull off. it's a simple case of probability. however, it does have several distinct advantages over shorter term trades.

first of which is that the bigger the move, the longer it takes the house to prepare, so you should be able to see the move coming hours if not days before it arrives.

it follows that if you truly understand how the house does its preparations, you should recognize when the preparation is drawing to a close and the actual move will start. which means you'll enter before the move start.

it thus follows that you will be spared of most of the noises that other traders will have to deal with when they try to cut a slice of the cake during the move.

however, bare in mind that the house will time and again try to throw you out (and believe me, the only thing the house does better than kicking you out of a good trade, is getting you into a bad one), you'll need all the courage and conviction in the world to keep you hand off that mouse.

the pay off is great if you can pull it off, and trading less means less risk and less commission (in one form or the other).

but the best part by FAR is that where most types of trading systems are based on historical references (ie, if for the past 6 month, a certain type of PA, EA or indicator combination yields a certain percentage of success rate, then you assume that it would carry on doing so into the future), trading big swings allows you to bring logic into your decision making. and since the underlying principles of the market will always the same, the logic will always be the same. which should help you with your success rate to no end.

i'm thinking of starting a new thread further exploring this idea after xmas. hope to see you there

 

[Euroscalper]

Happy new year everyone,

Its not a problem being stopped out as long as your profitable trades make up for it. Focusing on the relationship between profit to loss ratio is important. It sounds like you need to widen your stops. With swing trading stops need to be very wide say 100 + pips. On GBP/JPY 200 + might be needed.

 

[Forexmospherian]

Happy new year everyone,

Its not a problem being stopped out as long as your profitable trades make up for it. Focusing on the relationship between profit to loss ratio is important. It sounds like you need to widen your stops. With swing trading stops need to be very wide say 100 + pips. On GBP/JPY 200 + might be needed.

Hi Euroscalper and a Happy and prosperous New Year to you.

I would have thought with a "nic" like yours you would be on 3 -10 pips stops with 10 - 30 pip targets and making trades with RR's of 3+ - at least once per day.

Why in earth would you have say a 150 or 200 pip stop and have to wait 4 - 7 days to make a long term trade with the same result - ie a RR of 3+ ie 450 -600 pips win on the swing or longer term trade.

Swing or long term trade is just "inefficient" - yes have it in your toolbox - but get out there every session netting a RR of 3 off 15 -25 pip targets ;-)

Regards

Forexmospherian

 

[Euroscalper]

Hi there Forexmospherian,

I was responding to Hybrid. for me scalping is the was to go. 3 pip stop loss and 3 pip target doing about 30 trades per day. I don't mind waiting for my setup 3-4 hours and more but to be in a position for a few hours not for me thanks.

Regards

 

[wackypete2]

Hi there Forexmospherian,

I was responding to Hybrid. for me scalping is the was to go. 3 pip stop loss and 3 pip target doing about 30 trades per day. I don't mind waiting for my setup 3-4 hours and more but to be in a position for a few hours not for me thanks.

Regards

How would you do 30 trades a day if you are waiting 3-4 hours for your set up?

Peter