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Showing content with the highest reputation on 06/10/19 in all areas

  1. 1 point
    @Mercury, You hit the nail on the hard for me in that reports come after any turn has occurred. That is spot on for me. One can see through the price action any significant change before it comes through data released by organisations around the world. This is why for me price action is king. I think one has to remember that the market is looking into the future so there will be times when the price does not match the current supply and demand fundamentals as it is looking at say six months in advance. So if the outlook for Coffee looks more promising in the future, the current price action can reflect this which catches a lot of traders out. They sometimes cannot understand why the price is behaving the way it is based on today's news. In fact forecasts (future predictions) play an important part in Commodities trading. If I come across anything of significance in relation to Coffee then I will be sure to share with you and rest of the IG Community. 👍
  2. 1 point
    @Mercury, I am not looking at getting into an argument or heated discussion as both of our styles and mindset are totally different. Anyway I just saw your coffee thread and did not want to comment on that but with Commodities and 'Soft' Commodities especially, 'Demand and Supply' plays a very important role. It is one of the main drivers of Commodity prices. Combine this with weather conditions, potential future harvest scenarios and whether there is more demand than supply or more supply than demand will lead to the price level. You may be interested in the following: International Coffee Organisation http://www.ico.org This may also be of interest to you in aiding you in your decision making when looking to trade Coffee. https://www.agra-net.com/agra/international-coffee-report/analysis/production/ From a 'Contrarian' perspective, I can see why Coffee would be attractive as when it turns there could be a large profit potential on the cards. For me right now the only play has been short for a while now. If and when there is a price breakout which is trending strongly (then I think the speculators will join in along with Hedge Funds) and we will all know when this is based on the price action. For that to happen there is going to have be a fundamental shift in the supply and demand dynamics which could be caused by a number of factors but we are not quite there yet. I think you are right to look at Coffee. There are some other Commodities which are in a similar situation to Coffee and and so there are plenty of potential opportunities. Also I agree with you that 'Soft Commodities' like Coffee are less likely to move significantly based on Brexit or some economic news about a specific country and more on supply and demand news.
  3. 1 point
    @tehka, You may wish to consider below. Joint account and power of attorney https://www.ig.com/uk/joint-account-and-power-of-attorney
  4. 1 point
    @TREBOR84, I think the issue of 'slippage' has been brought up before on a few occasions on the IG Community. If you search hard enough then you may find these. From memory the answers being provided were similar to the one above in that it depends on the asset you are trading, the volatility involved and most importantly the liquidity.
  5. 1 point
    Hi, regarding slippage I've not heard a definitive answer to this as I think it depends on the normal liquidity of the particular market and then the available liquidity during increased volatility. So a poorly traded stock could have a greater chance of slippage than a more heavily traded index. The order level is right though you may be informed the chosen level is too close to current price and you could also suffer slippage if the market open is different to the close. Orders are processed on a first come first served basis and yours might be way down the list.
  6. 1 point
    Time is a problem @dmedin, no question. It seems there are people on the forum who devote 100% of their working time to trading but most of us must juggle it with other things. Frankly I am not one of those who even wants to be sitting in front of the charts all day, it would drive me nuts and it is only really necessary is you are trading very short time frame charts. I did try it at first, mostly because I had no trust in a system, or the market for that matter. Mostly I had no trust in myself and for good reason, I had not put in the work and taken the time to gain the experience. And I lost and lost. Where else would you see people diving into something they have no training and experience of and risking their hard earned capital. "Down the dog" maybe... But then I stopped and decided to take a different approach. Everything I read led me to a simple conclusion. Professional or retail it doesn't matter, if you are competing against the high frequency algo traders and prop traders you need to take a different approach. It seemed to me that most, if not all, of the people who had been on this journey and successfully broke through the early days of losses and stumbling about and frustration and negativity did a few things in common as follows: Got a grip on themselves and the emotional part of their brain that was driving them to jump in at wrong times without a clear premise. This is chiefly about controlling the fear of missing out syndrome and dreaming of another life. Took the time to study and develop a methodology for analysing, trading and managing their account in a professional business like manner. Changed the way they traded to few bigger better at longer time frames. I am sure there are people on this forum who will disagree and tell you that you can make money on day-trading and scalping but if it doesn't suit you then don't do it. It didn't suit me, I couldn't see the woods for the trees down at 5mins etc. So I tried something else and it works much better for me. When asked about his rules for investing Warren Buffett replied, "don't lose money". It was a bit of a joke but there was a serious message there, the key is to limit losses and ride winners so as to max your profits. In this way you don't need to worry about hit rates and pushing the 50/50 coin toss to 55/45 in your favour. You just need to win big and lose small. I will typically lose 8 out of 10 times but I scratch quickly if price action does not go according to my thesis and move stops to break even as soon as possible. If on the 9th or 10th try I hit it then I am a net winner. Trading is a long term activity. The key to success is to be net ahead over a year not a day or a week. You cannot think in terms of getting a regular income, it just doesn't work like that. Also you have to take some profits when offered to keep your account ticking over or you risk running out of runway. Regarding your point on wave recognition, it is a problem but it is the same for everyone, professional and retail alike. It is called price discovery, the market participants watch the evolution of price and take into account other factors (like fundamentals) and create a premise. Then they test this premise by placing a trade. This is simply how it works. In terms of my specific comment, I really don't care at this point whether US large caps have just made a wave B or a wave 2 as the next wave in either case (C and 3 respectively) will be in the same direction, which is up. I will assess the price action as the move develops and make decisions about when to cash and when to reverse later based on my analysis. Deciding when to cash is where you want to be, not that it is much easier than anything else in trading... EWT note: an A-B-C can look very similar to a 1-2-3 (or 5) so context is critical.
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