First of all what is the definition of a discretionary trader? Jack Schwager says: In other words traders who rely on their own judgment as opposed to solely relying on technical indicators, chart patterns, price patterns, forex robots, etc. The traders who solely rely on concrete technical indicators signals, chart patterns, etc and never deviate from them …
On February 14, 1994, there was a St Valentines Day Massacre for plenty of traders that were caught wrongly positioned in the currency markets. Certain floor traders got wiped out. Take a look at the floor trader named Jeff Ansani from the movie Floored Episode 4 on Babelgum. Scroll to the time of 2:00 to start …
Some of the biggest obstacles in trading have to do with over trading and attempting to trade a choppy market. There are some traders who want to place five trades a day in the currency markets and expect to nail 100+ pip moves on each and every trade. Most of those traders expectations are just out of …
Evolve Or Die Trend following systems only work some of the time. They only work when there are huge sustained trends that occur in the markets. Those types of trends eventually reverse or there are many years where the markets can stay in a range for a long time. Trend following systems get destroyed in such market …
People wonder what type of trading returns and gains they can make. Some people ask the question even before they take the leap to commit to learning how to trade. They want “to see if it is worth it.” As if they believe they are going to make huge trading gains from the very beginning. …
Almost every type of trader looks at charts, at least some of the time. Plenty of retail traders, high net worth traders, hedge fund managers, macro traders look at charts. Everyone looks at charts. Even George Soros and Paul Tudor Jones. When Paul Tudor Jones saw the stock market crash in 1987 and 2008 he …
There is a common held belief among many investors that diversification is good. It may have been taught to them in school. It may have been taught to them by their parents. It may have been taught to them by many financial advisors. And to many people, it makes logical sense. Most people are risk …
If you have watched USD/JPY at all, it has usually been making these weird spikes upwards sometimes for 50 pips, other times for 100 pips that usually get corrected within minutes. Since the August 4th, 2011 intervention by the Bank of Japan, I count the market as making six of these spikes up. All of …
One of the many misconceptions about order flow trading is that it is only tape reading. Many people believe that you can only trade order flow if you do tape reading, or ultra short scalping, or some form of statistical arbitrage, or high frequency trading. Tape reading can definitely be one form of order flow trading. You …
You need to be very careful about currency correlations, or currency pair correlations with some other market like the stock markets or a commodity like crude oil or gold. There can be correlations between currency pairs and some equity index and commodity. Many traders can link both trades together. For example, someone could potentially go …