Forex Tradingwithrayner

[tradingwithrayner]

Therein lies the problem. As markets are to some degree correlated where whipsawing is occurring in 1 market, other markets are also likely to be whipsawing. If you were trading multiple markets, you could likely be whipsawed to death. A prolonged whipsaw state, (you can see this on any random chart) would wipe you out or do massive damage to your account,even at 1% risk. No. position sizing and risk management are just position sizing and risk management. Let's be frank, its not an edge.

You can check out trend following by michael covel or following the trend by andreas clenow.

The answer is all there.

Rayner

 

[Владимир]

Been reading since post one, thumbs up for ts, and those shared their view on fx trading, thanks all.

 

[tradingwithrayner]

Been reading since post one, thumbs up for ts, and those shared their view on fx trading, thanks all.

you're welcome, thank you for stopping by!

Rayner

 

[CookieMonsta88]

Hello Wahkao3. Thank you for sharing your findings. Are you referring to the index or individual stocks?

I need to clarify what I said. I am referring to trend trading strategies on Forex specifically. Will trend trading work on commodities? I don't honestly know. Will trend trading work on Stocks? I don't know. Will trend trading work on the forex spot market? I am fairly certain that it doesn't.
I have a gut feel that trend trading strategies may work on indexes but you would really need a lot of time to do the testing...

The markets are more whipsawy now as compared to the past, as confirmed in an interview with Richard Dennis who is one of the top trend followers in his time, by jack d schwager, in the market wizards book, and I highly suspect its because its the entrance of hedge funds, and hedge funds do a lot of spread trading say long audusd short some nzdusd, to spread out the risk, if the view is long dollar also with more market making firms dealing in options they provide liquidity to sell options knowing it's a adverse trade, and buy stocks to hedge it to convert into synthetic puts, and these actions cause price action to be less informative in the medium term. Richard Dennis also mentioned a way to overcome this is to lower either to smaller time frames or longer time frames for trends.

Personally if I want to see if a trend is genuine, I would see if there is fundamentals backing it, or if it holds well after breaking out from the trading range and not fall back into the trading range, as this would gauge that, nobody dares to sell this market if it broke upwards

 

[lasnoblur]

forex whipsaw too much nowadays.

 

[wahkao3]

Personally if I want to see if a trend is genuine, I would see if there is fundamentals backing it,

U also use TA+FA!

 

[CookieMonsta88]

U also use TA+FA!

Of course, the royal bank of australia want to give me money tell me 7500 is a good price from 8200, of course listen to them lah

 

[Владимир]

you're welcome, thank you for stopping by!

Rayner

I m just newbie learning the rope, haven't watch those videos, but will go through it one by one, thanks

 

[jgyy1990]

Hey will usd eur ever hit.flat 1.00?

 

[blurinvestor]

The bear continue to dance at 1.07xx. If 1.072 then maybe 1.05.

 

[jgyy1990]

Damm tempted to put 1k in short usd till hit 1.06

 

[tradingwithrayner]

What Do All Successful Traders Have In Common?

A successful trader is not the trader who makes a lot of money over a short period of time because he could simply be lucky. Rather it is the consistently profitable trader who makes money year after year that is successful. [continue reading]

Rayner

 

[prudent76]

Why you should never revenge trade

Lessons to be learned - This is the reason why you should never "Revenge trade". Some traders will get stopped out and think to themselves "Oh I've been stopped out because the direction has changed. I'll go long now" So instead of taking 1 punch to the chin with 1 short trade, you get 2 slaps in the face with 2 losing trades. If you get stopped out, you need to take a step back to analyse what went wrong. Sometimes you have an error in analysis, sometimes it's a bad entry, but a lot of times its just because S*!t happens.

 

[jgyy1990]

Most likely I will short it and wait for a few days

 

[tradingwithrayner]

Multi Year Lows On This Commodity Market

This week's market analysis..

Rayner

 

[Fattyboiboi]

Hi Rayner, I quite like your analysis. Good to have you sharing here. I was wondering, if I want to cap a max 15% loss on my position, how should I calculate the stop loss point?

Sent from Somewhere on the little red dot using GAGT

 

[tradingwithrayner]

Hi Rayner, I quite like your analysis. Good to have you sharing here. I was wondering, if I want to cap a max 15% loss on my position, how should I calculate the stop loss point?

Sent from Somewhere on the little red dot using GAGT

Hey boi,

Thank you i'm glad you find it useful.

With regards to your question, i do it differently.

I have my entry and stop loss point and % risk on each trade, then i define my position size accordingly.

Perhaps this position size calculator could help you http://www.myfxbook.com/forex-calculators/position-size

Rayner

 

[jgyy1990]

Seems like Swiss currency is desperately going back to 1.2 for chf/eur

 

[xternity]

Hey rayner I want to try forex trading how do I go about it? Which account should I open and how much money do I need to start investing in forex please advice ty

 

[blurinvestor]

Hey rayner I want to try forex trading how do I go about it? Which account should I open and how much money do I need to start investing in forex please advice ty

I suggest you try demo account first, if you have not.

MT4 demo is a good start.