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BTW, it turns out that retail FX traders as a group have *more* winning trades than losing ones. Most traders are net-losers, so they must be taking profits too soon and allowing losses to snowball.
Absolutely and for so many reasons.
Lack of self control and never understanding the concept of the game they are playing.
The CHF is still rocketing-I wonder how low it will go? Wonder if this is just the market. it has been a while, almost all the stops must have been blown through by now??
The CHF is still rocketing-I wonder how low it will go? Wonder if this is just the market. it has been a while, almost all the stops must have been blown through by now??
Blew threw a few accts as well I'm sure. At peak approx. 11 EST. NY session the CHF was the lowest VOL. 85% with nearly 2400% ATR
(7 pairs per ea. collectively).
Blew threw a few accts as well I'm sure. At peak approx. 11 EST. NY session the CHF was the lowest VOL. 85% with nearly 2400% ATR
There will be many unhappy traders all over the world. Watch out for flying bankers.
There will be many unhappy traders all over the world. Watch out for flying bankers.
1 would expect this in small cap and penny stocks, but the currency market....lol I wonder what the end result of black box, neural network and other programed systems will be?
1 would expect this in small cap and penny stocks, but the currency market....lol I wonder what the end result of black box, neural network and other programed systems will be?
Events like pegging/de-pegging are especially hazardous to currency traders. At least for penny stocks you know the risks and can adjust your leverage accordingly.
IMO all trading systems should have some kind of dislocation "safety valves." All strategies have underlying assumptions. When they are broken, it is time to stop trading and enjoy a cup of tea.
Events like pegging/de-pegging are especially hazardous to currency traders. At least for penny stocks you know the risks and can adjust your leverage accordingly.
Risk fundamentals 101 it's a zero-sum game no matter what market you trade. Risk management can be applied to any system if not ignored. So many, 95%+ rely on the "whore of hope" to get them threw it... You know what whores do...lol
underlying assumptions
One of the underlying assumptions every system needs is the "Black Swan" can fly over anytime. Proper risk management will save your butt from a catastrophic event.
Risk fundamentals 101 it's a zero-sum game no matter what market you trade. Risk management can be applied to any system if not ignored. So many, 95%+ rely on the "whore of hope" to get them threw it... You know what whores do...lol
More like the "whore of rope" now. LOL!
One of the underlying assumptions every system needs is the "Black Swan" can fly over anytime. Proper risk management will save your butt from a catastrophic event.
It is quite hard to have proper risk management when the market makes a 2400% ATR move. Many strategies will have to be under-leveraged most of the times. We all know that OPM traders will rather take the tail-risks. :-)
Perhaps it pays to spend more time in defined-risk strategies like long-options or spreads.
Nowadays, so many people are selling options for "income" they are depressing price premiums.
Now since the Swiss are so secretive-I wonder if the central bank decision was communicated to some trader/hedge fund before that? That guy would have made a killing going short. If some one did it froma Russian account, nobody could even trace them.
Now since the Swiss are so secretive-I wonder if the central bank decision was communicated to some trader/hedge fund before that? That guy would have made a killing going short.
Good for him.
Goldman Sachs Recommended 2015 Trade:
#6 – Sell the Swiss franc against the Swedish krona
A monetary policy divergence play.
http://blogs.wsj.com/moneybeat/2014/11/20/here-are-goldman-sachss-top-trades-for-2015/
Only a fool would take advice from a large player in a zero-sum game.
Only a fool would take advice from a large player in a zero-sum game.
Bingo a fool or a "muppet"
Several currency trading firms across the world have gone belly up due to the Swiss bank move. Looks like there were stops slippage, due to the ferocity of the move and many accounts ended up with negative balances-interesting times.
Multiple of billions were lost yesterday... It will take time to digest and see the real cause and effect over time. CHF is still in the bottom range of yesterdays move, lots of head scratching going on.
This will have to be looked at collective over time to acquire a reasonable concept of cost benefit which the lines are being drawn from both sides..
FXCM will be interesting (halted). Could be 0.
Very interesting.
Numerous FX Brokers Shutter After Suffering "Significant Losses" Following SNB Stunner
Several currency trading firms across the world have gone belly up due to the Swiss bank move. Looks like there were stops slippage, due to the ferocity of the move and many accounts ended up with negative balances-interesting times.
Can they be negative? Many retail FX accounts are not setup as proper margin accounts. Not sure if they can go debit. At least, they may not be able to collect.
Brokers in the US are better regulated. Outside of this country, many are just modern day bucket shops.
Looks like there were stops slippage, due to the ferocity of the move and many accounts ended up with negative balances-interesting times
Brokers also jump the tracks with hedging various currencies to be able to chase traders stops using trader money basically margining themselves with trader money.
This should give pause to the banking institutions who do the same thing with depositor funds. Lots of brokers claim to be ECN and no dealing desk but that is simply not true.
Not to mention they also setup subsidiaries less regulated brokers in other countries.
It's a rough neighborhood my friends....
FXCM will be interesting (halted). Could be 0.
Very interesting.
Numerous FX Brokers Shutter After Suffering "Significant Losses" Following SNB Stunner
From the article, if seems most retail traders are caught short. This is so exciting. :-)
Idea: perhaps currency trading is an exercise of comparative religion? :-)
Idea: perhaps currency trading is an exercise of comparative religion? :-)
And can be applied to all markets big and small....
Idea: perhaps currency trading is an exercise of comparative religion? :-)
And can be applied to all markets big and small....
Yep, trading is really an analysis of beliefs.
Brokers in the US are better regulated. Outside of this country, many are just modern day bucket shops.
MF Global?!!!
Brokers in the US are better regulated. Outside of this country, many are just modern day bucket shops.
MF Global?!!!
LOL, sometimes even regulations can help you so much.
I don't know about buying gold at 1275 however it's a great spot to test short positions with a stop just above 1285.... lol While your at it get into some short OIL, CAD, CHF, AUD, and JPY products.
That way your all in.... The perfect low risk contrarian trades.
One more thing don't forget to sell when your in profit.
Yes, but the change (gains) will be currency dependent and vary by currency.
That I correct- now you understand gold! Gold doesn't rise or fall it is stable and currencies react to it.
Gold doesn't perform it endures
I don't know about buying gold at 1275 however it's a great spot to test short positions with a stop just above 1285.... lol While your at it get into some short OIL, CAD, CHF, AUD, and JPY products.
You may be right if you are trading paper gold contracts.
Really there are far better ways to make money than trading gold paper.
Gold should be held in physical form in an insured allocated vaulted account as insurance , not for speculation
You may be right if you are trading paper gold contracts.
Really there are far better ways to make money than trading gold paper.
Money is money, that's why I added;
short OIL, CAD, CHF, AUD, and JPY products.
Your all right smaulgld, you remind me of Hank Hill and his selling of propane and propane accessories... Charcoal just can't match up with propane.
I no longer consider gold sacred. It is a value store only because people believe in it, and they do so mostly because the supply is limited. In this regard, it is not better than cryptocurrencies.
I no longer consider gold sacred. It is a value store only because people believe in it, and they do so mostly because the supply is limited. In this regard, it is not better than cryptocurrencies.
Lets just hope that hedge is never "needed" in the form or degree it's portrayed.
BTW
BITUSD at $120+/- and LTCUSD at whatever it is if/when BITUSD gets to that level will be a great speculation trade.
Yes, but the change (gains) will be currency dependent and vary by currency.
That I correct- now you understand gold! Gold doesn't rise or fall it is stable and currencies react to it.
Gold doesn't perform it endures
You can say the same about escort rates. Rin?
I no longer consider gold sacred. It is a value store only because people believe in it, and they do so mostly because the supply is limited. In this regard, it is not better than cryptocurrencies.
Or Malomars. Just try to buy them on the west coast. The only thing gold has going for it is history. That is what backs gold.
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The Swiss National Bank this morning announced that it was abandoning the Franc Euro peg and was taking its interest rates further into negative territory.
https://smaulgld.com/bank-switzerland-drops-franc-euro-peg/