If you re a news trader then the best way is to follow the set direction on the release of the news.
If you re a fundamentalist, you may be concerned that Mubarak's resignation may cause the outflow of money to unknown places, bring instability and may spread to other countries.
If you re a chartist, then u merely follow the chart and not question the moves.

Hi,

Forex noob here, been demoing for quite abit but mostly unsuccessful (hovering around break even), due to work, inconsistency ..etc etc. Is this the right place to post charts? Need some feedback on the trades i've been taking.
Anyhows, here is a chart, looking to go short, resistance at 61.8 fib level



Euro/CHF

This post has been edited by nezzy: Feb 13 2011, 10:07 AM

Question: Why use Nov peak and not Oct peak?

normally i just go with the most recent obvious peak

Hmm then why not use the 1.337 peak?

doesnt look like much of a peak ?

So, what determines it as a peak to use?

Hmm I cant really help with this. I dont use Fibo and my charts is 15M only ...
I daytrade only. hehehe ..

But to me ... in any trading technique .. the most important part is to understand that price always travel along "path of least resistance".
I first found this idea in Elliot Wave .. even though I dont use EW in my trading ...

Livermore's mantra - path of least resistance

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Added on February 13, 2011, 11:32 amBtw actually fibo can also use in 15m chart

This post has been edited by maxforce: Feb 13 2011, 11:32 AM

Fibo can be used in any timeframe... but its not necessary for me .. hehe ..

I only use candlesticks (only for take profit) .. and daily pivots level ...

Hehe neither do I use fibo anymore as fibo needs assistance from other tools to strengthen the buy/sell signal.
That said, I also no longer use candlestick nor pivot.
Yet still, my method would be considered as pure technical.
LOLz!

Easily visible, normally i just choose the obvious peak and bottom, draw the retracement and look for exhaustion at support/resistance levels and if there is a suitable price action . Works pretty well for 38.2 and 50 so far but been messing around with other trades.

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Added on February 13, 2011, 1:19 pmhave i gotten the fibonacci levels drawn wrongly? should i use the Oct peak instead?

This post has been edited by nezzy: Feb 13 2011, 01:19 PM

There is no right and wrong.
The above was to make you start thinking about fibo.
Now that you mentioned exhaustion in support/resistance - is there exhaustion?
Another thing - why does it work well with 38.2 and 50 but not other numbers? Is it really the magic number that made it worked? Or is it more of the exhaustion which you ve just mentioned?

before you SHORT i suggest you to read the candlestick pattern around the fibo area. Look for reversal sign like dark cloud,hanging man, shooting star.

This post has been edited by imax80: Feb 13 2011, 09:30 PM

i think i m the last one... but it will take a while...

Due to leverage ... no matter what type of trader you are .. u must have good technical analysis and money management ...
Most importantly.. to be a daytrader you must get yourself familiar with

1) path of least resistance (based on pivots levels alone)
2) how to profit from panic (market reverse).

Prices travels between levels to levels along the path of least resistance ..
but when it fails to do so .. panic sets in and the market will reverse.

Just get familiar with this principle ..and you can make money no matter where the markets going (up or down).

Maybe tomorow, if I have time .. I will post some screenshots ...

Leverage is a little overrated in my opinion.
1:25, 1:50, 1:100, 1:400 etc etc

To me, it merely affects the money management.
Eg. Say I am a fundamentalist,
I think a particular pair is bullish/bearish
I take into account of the volatility.
Then I take position with lots of holding power.

Say I am a news trader.
I listen to the announcement.
I quickly decipher what it means to the pairs which I am going to trade.
I enter the trade.
As the movement began to stifle, I exit.

Say I am a chartist, which I am. LOLz
I look at the chart.
I enter the trade based on the preset money management system.
I exit based on the said preset system.

Hence, although, I am a chartist, I d only say that the leverage only affects the money management part. Technicals are optional - depending on your preference.

Depends on how u use the leverage ... for me ... I need a broker that offers 1:500 leverage ... lower than that .. is not to my liking ..
Its because when I daytrade .. I levered my account to up to 1:200 .. 1:300 .. more room for leverage the better ... that's the only way
make a profit without worrying about how many pips to capture ... I dont think in terms of pips ... only in % gain/loss ...

Of which, I d interpret it as:-
Based on the capital structure which you have, you d like to have a certain leverage.
This is in line with your money management system
Additional leverage provides comfort as there is more margin for error

At the same time, you re not overly concerned with the exact number of profit/loss
You re more concerned in % as it reflects more accurately what was the performance of the trades

Betui tak?

tq for the advise