Trading Indicators » real money

Using Trader’s Pivots?

admin — Sun, 02 May 2010 07:54:22 +0000

Does anyone WHO ACTUALLY TRADES with REAL MONEY (preferably commodities and futures) use floor trader pivots? The pivot is roughly calculated by taking the high, low, and close and dividing it by three right? How are the supports and resistance level calculated from there? Also, what time increments are you watching while in a trade and using this indicator?

Trading indicators are best used along with money management and good risk control, using trading indicators alone will not enable you to be a successful trader, even if you learn everything about futures trading indicators the market is just too random and unless risk is controlled, over time your account will slowly get wiped out, regardless how good a “trader” you think you are.

This question was about futures trading indicators and there have been some pretty good answers that should help in your trading, and especially in relation to futures trading indicators, the answer has been posted in the categories listed below:

Why the 95% of Forex traders loosing money instead of making money?

admin — Sat, 24 Apr 2010 19:12:35 +0000

Im studying Forex, and i have the practice program 5 days now, im reading and daily i make virtually almost 4000$ and im loosing more than i make.
So, my humble logic says, learn more, and learn to make only the good trades and not the bad ones.
So, I read books, online stuff etc etc, in 4 days i learn about candlesticks, MACD, Histogram, trading pairs,other technical indicators, pips, leverage, spreads, and so many other things, and I also learn that i have to practice at least a month or two! before i even think to make a trade with real money!
and i see clearly that i need to practice because i really don;t earn money, not even with fake money!
my losses are bigger from my profits!
so, the next logical step is to practice until i will make more profits than losses with the virtual money!

so, how come, that simple thing people don;t follow it and go and loose their money?
at least if vitrually after a month i still loose money, i will not trade my real money and i will have forex as a nice game!
i will be a happy person!
but if i see that i make money , i continue and see how im doing.
I believe that a medium trader should make more than 65% of winnings and a 35 of losses.
My personal goal is to 70 up to 80% success!

Trading indicators are best used along with money management and good risk control, using trading indicators alone will not enable you to be a successful trader, even if you learn everything about Technical Trading Indicators the market is just too random and unless risk is controlled, over time your account will slowly get wiped out, regardless how good a “trader” you think you are.

This question was about Technical Trading Indicators and there have been some pretty good answers that should help in your trading, and especially in relation to Technical Trading Indicators, the answer has been posted in the categories listed below:

Need Help on MetaTrader4 Far As Forex Trading?

admin — Sun, 18 Apr 2010 14:32:11 +0000

Last Friday, I have money invested in Dollar VS Euro. I choose dollar over Euro because of the average indicator and other technical indicator showing that the Euro currency is weakening.

I put 0 on Sell in US/Euro, the Euro value went against me and I have about -0 in my current trade. However, I figured that eventually I can leave the trade alone for the weekend.

Last Monday, I look into my account and noticed that I have a -0. The Euro was more weaker and that my prediction was correct. However, why was I been marked as -9.60 leaving me to pay the broker for the -0.04 that I owed.

What I also noticed that there is a Swap penalty but I need to know more about it. Why am I being charged with Swap penalty and could that be the reason why I lost money?

Here is the screenshot to show my trade….

http://i27.photobucket.com/albums/c160/Bopkasen/lostmoney.jpg

Note: I am practicing on "paper" portfolio and not real value.

How do I avoid that hidden or unseen problem when trading in the forex trading including using the software?

What do I need to do in order to manage my lots position properly?

Net Advisor, I don’t mean to be rude but you are wrong.

There is nothing different between a real money and a paper money.

This isn’t a game, I invest in foriegn exchange like I would with real money.
I have great analyst skill and extremely intelligence.

The last thing I need is an insult to my intelligence.

Trading indicators are best used along with money management and good risk control, using trading indicators alone will not enable you to be a successful trader, the market is just too random and unless risk is controlled over time your account will slowly get wiped out, regardless how good a “trader” you think you are.

how can I find a proficient day trader who will show me the ropes?

admin — Mon, 12 Apr 2010 17:30:26 +0000

I figure most guys who sell advice aren’t making any money, so they have to sell books or CDs. The guys making the money are too busy trading to share their expertise. Also, why would they want to let the world in on their secrets?

You can’t always rely on perceived wealth as an indicator of proficiency either. Could be a trust fund guy who trades stocks as a hobby and makes no real money from his trades.

Day trading SPY options: How can I do this better? (Long question)?

admin — Tue, 06 Apr 2010 17:26:44 +0000

(Note: I have real money experience with options going back to 2000, first covered calls in my IRA and then long calls in my cash account though no day trading experience with real money. I have the 25K to park in an account to satisfy the pattern day trader rules and another 10K to make the actual contract purchases.)

I have a job that allows me to keep an eye on the real time stock market. Starting in January I started playing with the Virtual Trading engine at OptionXpress, daytrading options on SPY. My strategy is rather modest; I buy 5-10 ITM contracts, either put or call depending on market direction, and sell when I see the trend reverse. I chose 10 contracts because I believe that with an order size that small, if I submit a sell order at the bid it should fill immediately unless the market is moving very fast allowing me to lock in a profit if the trend reverses. I open one position at a time, I never leave my desk with an open position and I am 100% cash at market close every day. I use SPY because being a basket of 500 stocks it is buffered from sudden drastic moves in price giving me time to get out of a position with minimal loss if the price goes the wrong way on me. My immediate goal is 0 after commissions per round trip, a target that requires only a {content}.15 move in option price. I don’t always guess right on direction, 4 out of 5 is typical, and I am netting between 0 and 0 a day on 6-7 round trips. My 00 initial play money stake has grown to about ,000 since 1/19 when I started doing this seriously. I won’t get rich doing this but over the course of a year that is an extra person’s worth of income for my family. If it lets me do nothing more than pay off my house and fund future college for my 3 kids it is worth it.

Now that I have proven to myself that this seems to be a reasonable strategy I am trying to understand what I can do better and am now in the area of "I don’t know what I don’t know." I know about Level 2 quotes but if these are something that can help me I am not clear how to use them. I know that there are all sorts of indicators that technical traders use but I don’t know if these scale down to the day trading level. I know about the existence of the Greeks, and while I understand roughly what the numbers and equations mean, I don’t know if these will help me on positions lasting 15 minutes or less.

My main interest in posting this question is to find out if there are tools I can use to help me make better choices about getting in or out of a position or tell me more about what the market is doing. This strategy seems to be working okay and if I can translate this to real money I will consider myself successful. I don’t want to be greedy but I certainly would like to know if I can do what I am already doing more effectively.

I spent time on 888options and optionetics.com but it seems much of the content out there deals with strategies like spreads, butterflies and condors, things that simply don’t apply to what I am doing. I know there are options day traders, even some specializing in SPY, who read these questions, and I’d be appreciative if I even had a list of books or even just some things to go research and learn about that you have found helpful in your experience.

Thanks for reading this far and any help y’all provide.
I definitely understand the problem with fills; in fact, I asked a question about that here the other day. I had noticed that I could put in a sell at a price like 3.10 and a minute later see a bid/ask spread of 3.15/3.20 with my sell order still open. My only thought was "What the ****?!" I was told by another answerer that in reality, on an order that small an ask below the bid would never stay open on something as liquid as SPY.
Regarding filling at the mid, on SPY I could live with this. The options on SPY move enough intraday that even if every buy order filled at the ask and and sold at the bid I’d still make money because I am looking for moves of .15 on options that can move .30 or more in a short time. I’ve gotten good enough at picking the trend direction that I will buy options that are 3 or 4 points ITM. This gets me my .15 or more move with only a small move in the price of SPY.