Tradefair & Financials
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Certain posters are claiming tight stops and short time charts are the way to go in the current climate.I put forward that if you are doing that you are most certainly losing your shirt.The trading enviro has changed,Those who stick to the old ways are already bankrupt.They just have'nt lost all their cash yet.
The new superfast trading means that ultra wide stops are required if you want to make trading pay. Witness the 200+ point rises and falls in the dow 2/3 times a week. Gold was 1600 and change 10 days ago, now above 1700. Copper through the floor and then through the roof in a 3 week period. Two weeks ago the AUD was below parity, now headed for 105.The euro was below 1.33 before sitting just shy of 1.40 2 days ago.
It is simply not possible to consistantly trade such fluctuations with tight stops. If you did happen to catch a runaway trade in your favour, profits would be eroded over and over again by getting stopped out.
Anyone trading a 5minute chart would with traditional thinking have lost their shirt months ago.
The new paradigm in trading is WIDE STOPS. Lower contract numbers.Short term charts could still be used for those glued to their screens. I will go further and say that ULTRA WIDE stops are even better. Once getting into a postion that turns profitable either take that profit OR move the stops up or down so as not to watch the profit disappear.
I would like to see someone convince me how tight stops work in todays trading enviro. As proof they could post a trade in real time.
No doubt those who do not actually trade will not understand what I'm talking about and will claim the theory of tight stops is valid.They will not however be able to provde dynamic data to back that up.
The new superfast trading means that ultra wide stops are required if you want to make trading pay. Witness the 200+ point rises and falls in the dow 2/3 times a week. Gold was 1600 and change 10 days ago, now above 1700. Copper through the floor and then through the roof in a 3 week period. Two weeks ago the AUD was below parity, now headed for 105.The euro was below 1.33 before sitting just shy of 1.40 2 days ago.
It is simply not possible to consistantly trade such fluctuations with tight stops. If you did happen to catch a runaway trade in your favour, profits would be eroded over and over again by getting stopped out.
Anyone trading a 5minute chart would with traditional thinking have lost their shirt months ago.
The new paradigm in trading is WIDE STOPS. Lower contract numbers.Short term charts could still be used for those glued to their screens. I will go further and say that ULTRA WIDE stops are even better. Once getting into a postion that turns profitable either take that profit OR move the stops up or down so as not to watch the profit disappear.
I would like to see someone convince me how tight stops work in todays trading enviro. As proof they could post a trade in real time.
No doubt those who do not actually trade will not understand what I'm talking about and will claim the theory of tight stops is valid.They will not however be able to provde dynamic data to back that up.
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The 5 minute chart traders are doing fine. Whoever posted this drivel is getting slaughtered though:
"My main sells are gold, silver, copper,any metal really." Copper UP over 20pc since this mug posted to short it. You couldn't make this stuff up even if you tried. I mean it takes a special empty cranium to perfectly time a 20pc swing....THE WRONG WAY !!!  |
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If it was all so obvious at the time, at least to Menelaus, that Benny's call was going to be wrong by 20 % in direction, then why didn't he immediately counter it with a call in the opposite direction ?.
Probably because he didn't have any firm idea of which way it was going to go. This does not translate into him being a smarter trader than Benny. It just translates into him being an after timing armchair critic. No use to him nor to us in fact. I ignored Benny's call, but I didn't do it because I KNEW a better way to trade at the time. I ignored it because to me it was just one man's public guess, no more no less. |
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Benny old boy, if you're trading off a 5min chart then you must use a tight stop. In general, the shorter the TF the shorter the stop. With a 5min chart you shouldn't hold the position for more than a few mins (30-60mins MAX). A large stop is pointless in that instance. If the trade has gone against you you're better off accepting the loss rather than watching it increase in the miguided hope that it will reverse in your favour.
Benny if you use Metatrader then I might be able to PM a program for you that can help with stops, reversals etc...? Or... if you're worried about stops but you're sure about direction then have you considered binary fx? |
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Hi Pastie. I was before an uber short trader.using 2 and 5 min charts mostly.Totally agree re the stops using those time frames.
I no longer believe that it is consistantly possible to trade those charts and profit.Markets are no longer as they were.Superfast trading has put an end to it. On a given day perhaps one can eke out a profit but all will be given back on one of the massive range days. Thats why I;m changing to mega stops and lower contract numbers. The current rally has short squeeze written all over it. I'm not a meta stock user, but thanks for the thought. |
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WTF ARE MEGA STOPS? I've read my share of rubbish on here over the years but this chap has raised it to an entirely different level.
Stops are a tool for managing risk. Stops are set to prevent taking a loss on the trade that shifts the risk/reward ratio against the trader, in case the market goes in the wrong direction. Stops are not a number you pull out of your arse as this chap seems to think, they are set using a very specific set of rules and risk assessment. You may as well not have any stops, when you consider 500bps when trading a currency a.........."stop". What epic nonsense. |
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the more you post the dumber you sound melly.
the object is to make $$$$. Not be right. its a pity you dont READ others posts b4 automatically rejecting everyone ideas.Your an arrogant ego driven loser. |