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Mysticforex

Misc Forex Ranblings

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Please feel free to post any ideas you may have about Forex residing in a corner of your mind somewhere.

 

 

Here's a copy of an Email I just shot off to a friend.

 

Hi XXXX

 

Hope all is well with you and XXXX and the kids.

 

Take a look at yesterday's daily Candle on G/U..... looks very nice but I am little reticent about buying sterling.

 

Sooo.... I am buying a small piece of A/U, just got in @ 10298. s/l 9995 figure I'll just hold for about 10550 ( it is positive roll). ((barely)).

 

 

If it moves faster than I expect, who knows, last July it was at 11084.

 

 

Chris

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I like Forex. I like it a lot. I just do not like trading Forex anymore.

 

Here are a few reasons why I do not like trading it anymore:

 

1) No centralized market or regulations.

2) Most forex brokers are taking the other side of your trade (trading against you)

3) false spreads ( they create the market)

4) No true volume or way to read order flow ( tape) since there is not one AND no time and sales.

 

These are just a few for me. If it works for you awesome!

 

 

I still trade currencies but I do it in the futures market like the GBP futures. Safer , to me , and I can read the order flow and see what is actually happening . Brokers are not trading against you they just make commission( which by the way is cheaper) Candles can only tell you so much.

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FX rambling....

 

50% may not be a fib number but its a handy little number to use for indicating a zone/area to ponder entering a trade on a retracement in a trend - particularly in the EURUSD

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FX rambling....

 

50% may not be a fib number but its a handy little number to use for indicating a zone/area to ponder entering a trade on a retracement in a trend - particularly in the EURUSD

 

That's funny, I was explaining fib retracements to someone the other day. I told them that 50% was not really a fib number, but price has to pass thru it anyway to get to 61.8

 

:)

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I sometimes hear forex compared to poker. The similarities are not actually all that great. No trading session has ever ended with an exchange of insults, spilled whiskey, an upturned table and a gun fight between a bunch of unwashed guys in cowboy hats. Has it?!

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I sometimes hear forex compared to poker. The similarities are not actually all that great. No trading session has ever ended with an exchange of insults, spilled whiskey, an upturned table and a gun fight between a bunch of unwashed guys in cowboy hats. Has it?!

Trader commits suicide after killing 12 in gun spree | World news | guardian.co.uk

 

Some people would be better sticking to cards!

Trading is too violent!

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I sometimes hear forex compared to poker. The similarities are not actually all that great. No trading session has ever ended with an exchange of insults, spilled whiskey, an upturned table and a gun fight between a bunch of unwashed guys in cowboy hats. Has it?!

 

I believe the 2 being compared is quite accurate. Not s much how you mentioned it but as to a game of skill as opposed to a game of chance like roulette or slots or something like that.

 

In poker the ability to read the other players moves before they make them is quite valuable.

 

In trading the same thing applies. Even thoug opyou cannot see anyone physically you still have the ability to read what players might be doing or thinking if you know what to look for and how to do it.

 

In fx specifically this is quite hard but there are other markets that this can be done in once you understand how ether work.

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Mystic - if you still hold the Aussie, you must be nearly at b/e?

 

I see that it was you who sent it to the woodshed - it never recovered after you bought it!

Did you buy above or below the WPP?

 

You might make enough to paint the house shortly!

 

Funny thing is, the darned thing can rally even while the Aussie current account deficit blows out to double the forecast!

 

Go figure!

 

Traders who dabble in macroeconomics are bound to end up insane in one way or another!

Trader.JPG.f34deb4cbab042ab9888f5225364f3ee.JPG

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---------------------------------------------------------------------------------------------------------------------------------------

 

 

https://www.tradingview.com/x/oG5GxHZ8/

 

 

These are the free charts at tradingview.

I was watching them this morning during NFP. My MT4 frooze up, these remained fast.

 

 

P.S crap. I just realized I spelled Ramblings wrong.

Edited by Mysticforex

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1) No centralized market or regulations.

2) Most forex brokers are taking the other side of your trade (trading against you)

3) false spreads ( they create the market)

4) No true volume or way to read order flow ( tape) since there is not one AND no time and sales.

 

 

1) Wild West.. If you have the compound to billions drive, its the best market - liquidity in the true interbank, i mean

2) Use currenex, icap, etc

3) pay to play.. but if the broker is ripping you off - switch

4) there is orderbookfx i think they use the EBS data which is something like 1/5 of the interbank

 

if you aren't that highly capitalized i feel your pain. If you've got 10k USD at least - check out IB. I've been happy with the fills in FX with them, vast majority of the time, good spreads too. NOT AFFILIATED, IB, etc... just a trader

Peace

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The truth:

 

It's important to follow the rules but its more important to know when to quit.

 

You know your sys and style better than me but personally I would ask 'why have I had a good week?'. If it's because of optimum mental focus, good attention and decision making then yes if that's in danger of being diluted after big wins then a break would be in order. However if it's been a good week because of something the market has been doing then it would not make sense to stop - if the market is still in that state then make hay while the sun shines. That could be academic though because as you say it's easy to fluff up and get complacent and over trade if over confident so even if the market is acting optimally you can't trade well if you

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The bible is Trading and Exchanges by Larry Harris. Not a cheap book but worth the read.

 

Also... Foreign Exchange Market Microstructure - Georgetown University http://www9.georgetown.edu/faculty/evansm1/wpapers_files/tour.pdf

 

 

And . . A Guided Tour of the Market Micro Structure Approach to Exchange .http://faculty.haas.berkeley.edu/lyons/Vitale%20survey%20micro%20FX.pdf

 

 

 

And Market microstructure and theory.http://www.amazon.com/Market-Microstructure-Theory-Maureen-OHara/dp/0631207619

 

 

Enjoy:

Edited by Mysticforex

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