MoneyTec 2.0 - Online Forex Traders & Brokers Social Networking Community » Trading Methodologies » Tools of the Trade

[Qazpur]

Originally Posted by AceInvest

Hi all,
I am new to this forum. Just read this tread. Very interesting. Where can I find this book Dr. Forex's book "Bird Watching In Lion Country"
Thanks

http://www.google.com/search?hl=en&q...=Google+Search

[spudbox]

http://www.goforex.net/bwilc.htm

[AceInvest]

Cheers all. Thanks for the links

[X.Oden]

Can you point me to a good source in using options for forex trading? Any help would be appreciated.

Originally Posted by jotace

What if you have to work all the morning long without testing where's the market because you cannot operate from your office?. Maybe this is one plausible reason why using stoplosses. It is for me. Anyway, i don't really use them; i hedge positions with options. It is similar.

[iphilosophise]

Originally Posted by X.Oden

Can you point me to a good source in using options for forex trading? Any help would be appreciated.

Do you want options on futures knowledge or a broker or both? El Cid put me onto a great broker and he also sent me some informative links. And I just got a great brochure - e book on options that explains it very well. I can s end it to you if you want, letr me know. But I am finding it hard to get a broker for spot fx who is good there (with 100:1 leverage- so not too high) and will also be good for options on futures so I can use the same account, so I can literally hedge on the same account, rather than carry a loss on one account for the part of the position that did not work. Any ideas back appreciated! Cheers,
Jono

[iphilosophise]

Re some info, here is the link to El Cid's post:


http://www.moneytec.com/forums/showt...08&page=5&pp=8
it is down the page. Hope Cid does not mind me quoting him, it was a top post!
Cheers,
J.

[BullMarket]

I always have an traget and a stop loss. It's just apart of the plan.

If you don't have a stoploss trading easily gets in to hope mode and hope mode leads to damnit mode and damnit mode leads to I can’t believe this mode leads to stand up and hit the chair mode So… it’s best not to get into hope mode

Put on your stoploss and don’t move it unless you have a damn good reason.

Plan the trade, Trade the plan.

-Frank

[jotace]

sorry but i don't really can point you a good source.

[jotace]

Try Saxo bank or swissforex. They offer options trading.

[iphilosophise]

Interactive Brokers seem really professional on this type of stuff. Their webinars are quite good too and I recently did one and follow up to my questions was great. But I have not traded there as yet.

[Soul-Trader2004]

any trader who doesnt use a stop is still under the delusion that he / she can predict the market.

stops are protection against the unseen - like when the chinese make announcements or some pillock decides to fly a plane into a building.

stops are your seat belt in your car, your smoke alarm,your u.p.s. on your pc and your life jacket when on a holiday cruise.

would you really jump out of a plane without a parachute - or reserve chute just because you believe you can fly?

[DrForex]

Originally Posted by Soul-Trader2004

any trader who doesnt use a stop is still under the delusion that he / she can predict the market.

would you really jump out of a plane without a parachute - or reserve chute just because you believe you can fly?

You should properly define a loss before you try to stop more of it. In that sense everyone should have a stop loss strategy.

You can't define a loss without considering position size / leverage / gearing and the speed at which your equity change in relation to the speed at which the currency values change.

I think the problem with trading is you don't know if you have to jump or not cause you don't know if the (your) plane is really falling or not, so jumping too early is also problematic (unless the co-pilot stay on). Eventually one day he will also jump and then the plane crashes in anycase ...

One thing that is true is that when you jump out of that aeroplane and you pull the "trigger" too early or too late you are dead meat. (Except that one lucky Kiwi who landed in the snow and lived without too devastating effects and one other guy I saw recently who got stuck to the wing and lived through the landing to tell the tale.)

[tradercal]

My read on stop losses;

1) You are computer trading.
a) Your computer can go away (HD fail, PG&E fail, etc)
b) Your service provider or broker can go away (lineman HAS cut my cable inadvertently - call service and have them sort it out - takes an hour at least). CMS-Forex has improved their up time to 95%+, BUT not 100%.

2) I have found that my broker always honors stops, so you will be protected against an adverse move while #1 above is happening.

3) My stops start out 20 pips away from entry. GBPUSD stop raids are about 20 pips from the extreme (top in a long), BUT you entered several pips below the extreme. (and should have a small profit fairly quickly, at least the spread).

4) I try not to enter a enter a market that is STARTING to go quiet (the Harami portion of the typical pattern). Best is to enter just as the tight range doji pattern is ending, maybe tough to do.

5) Enter a moving market - good for you. Take the center third out as profit.
20 pip initial stop moves up quickly (e.g. every 5 min).

6) If my 20 pip stop cannot be moved up within 20 min, I am gone - MM's are sizing up where my stop is and making bad plans for my account.
Your service provider provides both your ACCOUNT and your QUOTES. Not a chance for them to provide your computer with tailored quotes, i.e. 20 pip round trip in 10 sec or less. Just enough to catch the stop you have placed with them. Not a chance, Never happen. (Rrrrightttt !!)

7) Trail the hard stop 20 pips under the current market price.

8) Manual exit on SAR or Woodie CCI or Spec Blowoff, or candle death star, etc.

9) Unfortunately, your service provider will not always let you enter a hard stop. i.e "Rate not valid for conditional parent order" gibberish. Then you are all manual, and probably exit if it does not form the patterns you anticipated.

TC

[tradercal]

My read on stop losses;

1) You are computer trading.
a) Your computer can go away (HD fail, PG&E fail, etc)
b) Your service provider or broker can go away (lineman HAS cut my cable inadvertently - call service and have them sort it out - takes an hour at least). CMS-Forex has improved their up time to 95%+, BUT not 100%.

2) I have found that my broker always honors stops, so you will be protected against an adverse move while #1 above is happening.

3) My stops start out 20 pips away from entry. GBPUSD stop raids are about 20 pips from the extreme (top in a long), BUT you entered several pips below the extreme. (and should have a small profit fairly quickly, at least the spread).

4) I try not to enter a enter a market that is STARTING to go quiet (the Harami portion of the typical pattern). Best is to enter just as the tight range doji pattern is ending, maybe tough to do.

5) Enter a moving market - good for you. Take the center third out as profit.
20 pip initial stop moves up quickly (e.g. every 5 min).

6) If my 20 pip stop cannot be moved up within 20 min, I am gone - MM's are sizing up where my stop is and making bad plans for my account.
Your service provider provides both your ACCOUNT and your QUOTES. Not a chance for them to provide your computer with tailored quotes, i.e. 20 pip round trip in 10 sec or less. Just enough to catch the stop you have placed with them. Not a chance, Never happen. (Rrrrightttt !!)

7) Trail the hard stop 20 pips under the current market price.

8) Manual exit on SAR or Woodie CCI or Spec Blowoff, or candle death star, etc.

9) Unfortunately, your service provider will not always let you enter a hard stop. i.e "Rate not valid for conditional parent order" gibberish. Then you are all manual, and probably exit if it does not quickly form the patterns you anticipated.

TC

[iphilosophise]

What is "SAR, spec blow off and a candle death star"?

For the last, do you mean evening star formation as signal of the end of bull market and change other way?

Do you mean stop and reverse?
Cheers,
J.