Posts by "shane"

so lets stop the catfight and respect eachothers opinions. Ashraf and catnip are bears and that is something handicapping both of them at this time. I think they are right about euro but wat i cant really practically do it and so do many of the new or small traders. We are kind of scalpers and swing traders and lack patience for long term trades. BTW i do understand that in any case bears will start positioning themselves if we go above 1.36 thats how it is when the people are selling its time to buy and when they are buying than its time to sell . The big guns make this market not us so i guess we may see 1.40 so that they can sell at good prices and than we may see a bigger downside. Due to fundamentals i do think euro gains will be limited. But as always who knows wat the big guns are thinking.

when are we guys going to learn , The market doesnt move in one direction , u can make money going short or long euro u just have to pick the high probability low risk corrective moves in both directions. Making futuristic assumptions and prophecies dont work in this market.

For now short euro or pound at 1.3560 and 1.60 is the right thing to do u guys may catch the bigger downside.

Position Trading

Pros:
- The most forgiving type of trading - small mistakes are more easily absorbed in market movement and the size of your eventual profit.
- The easiest to learn. It is estimated that up to 25% of position traders learn to become profitable.
- Less stressful than intraday or swing trading.
- Easier to become successful with smaller startup capital.
- Much easier to predict the market as in general you will be following the overall trend.
- In general position trading is the most profitable.
- Less time consuming than day trading.

Cons:
- Compounding has a lot less effect on profit than both intraday and swing trading.
- Because positions can be highly leveraged and trades remain open for extended periods of time, unable to reap consistent benefits of interest.
- There is inherent risk in keeping positions open over night. It is quite possible for drastic changes to occur in the market while you sleep.
- Money can be tied up for an extended period of time. This can prevent entry into new positions as they arise.
- Because of the length of time involved in position trading, traders can experience significant drawdown with the expectation that it will turn around and start trending back in the desired direction. Psychologically this can have a very negative effect.

As far as i am concerned i am still trying to figure out the trading techniques the best and most fruitful i have found is adding small positions in pairs like usdjpy who are at market extremes and other pairs which tend to move within a 1000 pip range such as eurgbp. Volatile pairs like eurusd are not my type and i hardly trade eurusd .

Pip i dont trade with CMC , however i dont rule out the possibility of forex companies playing dirty thats exactly wat happens when u hand over a glass cookie jar to a boy and he can see all the cookies , i bet he will try to eat as much as he can and this is exactly wats happening right now . Some one is eating the cookies. I learned it when i started trading so here is the tip i trade small, keep ur risks limited .

If you want to know my opinion i would not like to be stuck with this euro short right now but here i am in the middle of it , markets dont move in a straight line thats fair and square so i am holding to see some red candles and try to evaluate if its a correction or a reversal and than cancel my positions.