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u0362565

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Everything posted by u0362565

  1. It's times like in the attached image, Oct 18-dec 18. The FTSE saw declines over an extended period of time. If your view even over the short term eg days is that the market will recover the falls, in this case that isn't true. Basically I think I need to learn how to short, as long trading isn't always the right thing to do.
  2. Yeah i'm talking about trading. I think what i'm trying to figure out is how i'd fair in a crash given you don't really know its happened until its happened. I suspect i would lose money initially but then should be able to turn it around, assuming the market recovers of course. There are also whole years where markets go into reverse trends and again i guess i could trade those but its easier to see that's what's happening once it been and gone, at the time you might always be looking for the market to turn upwards and it keeps trending downwards.
  3. Hi all, do you have any advice about what to do when a market crashes? I would assume a major crash was like what we saw last year when coronavirus broke. I only started looking into trading just after that happened so have not experienced one yet. Although was involved in the recovery which was a baptism of fire..I guess the question is, do you know when you're in a crash scenario? Of course the news might give clues but you don't know how far the market will fall so are you inevitably going to lose money at least in the short term? This especially if you're a long trader. I assume you don't
  4. Thanks THT, yes well i do estimate my possible returns by estimating a target price. Of course if the market doesn't get there then i've got several smaller rolling losses to deal with and i've not figured out yet how i make up for that if it turns out i'm wrong. I'm currently not using a trailing stop for simplicity and the sake of not adding another variable into the mix. However, I imagine that only having a binary situation where the market either hits the stop or target is too simplistic in a fluid market..
  5. Thanks for the replies guys. I brought this up because i try to use tight stops, but due to inaccuracies in finding the turn point i need several attempts to get into a position. Sometimes the running loss can be 1x + ATR so i kind of wonder if the tight stops really make sense. If i'm not estimating the turn well then maybe i should just give it more room and use the multiple ATR approach. The problem i have with this is that i hate seeing the market go against me and with an ATR multiple obviously you're giving it room to move against your entry point by quite a lot, but in theory if it
  6. Hi all, Do you think this is a reasonable approach to setting a stop loss? I've read in various places including van k tharpe's book the idea of using multiples of ATR to set a stop loss whatever your time frame is. The issue for me is that 2-3x the ATR of a time period seems like a massive stop but perhaps to others its entirely reasonable? I tend to have my stop at the low but of course this is an obvious location that could be at risk.
  7. Ok it's the partial closing of force open positions that I can't seem to do. I have 1 click dealing disabled in my account but I often use the IG phone app so I think it just doesn't have the functionality. All I've been able to do is net off with opposing position to partially close. Thanks for the help though.
  8. Hi all, apologies not really a strategy question but this is where its likely to be answered. Not sure if anyone at ig answer on these forums. This might be a stupid question sorry. If I use the net off ticket type and then I partly close the position. How can I open other positions on the same market ideally net off without it closing the former position. Is the only option to switch to force open for subsequent positions? And this won't close the open position that was set as net off? Really I want the functionality of net off i.e. partial closing ability but to make each new position opened
  9. Good point.. but yes I think that does make more sense as the open/close is not so significant.
  10. Hi all, just wondering whether open/closing prices are more important for finding support/resistance levels or are the wicks as important? Depending on the market the high/lows of a period can make a considerable difference to where you might consider a stop loss location for example. Thanks for the advice
  11. Yeah I see what you're saying but it's not really a position you want to be in in the first place. Perhaps I don't understand how much people's accounts fluctuate even if they are are profitable. In an ideal world your account for the most part goes up with the odd dip back here and there but I don't know maybe the swings can be massive but that's not how i'd want to trade. The problem with working a standard job is you get used to a steady paycheck every month so your balance as it were steadily goes up. Very hard to replicate that through trading I assume.
  12. It's not being terrified of losing. I get that you need to lose sometimes to win but in the end of the day your account/expectancy needs to be positive, so I guess it's the fear of repeated losses or the one big loss that you then need to recover from, 2 steps forward 3 steps back. That's of course if you're willing to put yourself in a big loss situation i.e. too big a position size.
  13. Sorry captainsamurai, are you actually saying that you won't go bankrupt? In my case no I'd stop trading before that happened but I could sure make a nice dent in my savings first.
  14. Hi all, thanks for the comments. Yes I see that SL should be based on strategy. I haven't yet found a strategy that fits me or that really works but I pick them up and drop them too quickly, partly the problem comes from manual testing which takes patience. It's not a game but somehow it feels like I'm playing one because you want to be right in your beliefs about what the market is going to do and I know trying to be right all the time is not the correct mentality for most. No one wants to lose but I really don't so I wonder if my mind just isnt cut out for short term trading. Should have kep
  15. But those stop points obviously vary depending on your time frame. I have often thought that putting the stop where everyone else is, is half the problem in that it's obvious and those on the other side want to get you stopped out. I've often had my stop at the swing low as it's turning and it gets stopped. If you wait for the move to establish and you still want your stop at the swing low you've got a larger point distance in risk to deal with therefore your profit target also has to go up.
  16. When I say no insight, that's not strictly true. I just know from what I've read that the thing that comes up again and again is is keeping your R multiple losses low Vs your R profits. But thats just an obvious statement.
  17. One problem I have is that low risk to me just means tight stop with very low position size as this way each trade doesn't dent your account much. I have no insight into the market other than this. However, repeated attempts to get into a position with a tight stops ends up like just going in once with a large stop and defeats the purpose somewhat. And at the end of the day, over a period of time is whether you want a very slow drain on your account Vs a faster drain potentially if you go with higher position size. Obviously I want neither of these things but in the end the result I assume wou
  18. Hi Boppers, thanks for that, yeah I understand the conventional way of doing it. They say position sizing is super important and I don't disagree but it assumes you know a sensible place to put your stop in the first place in order to make this calculation. If you don't know what's sensible then that's why I was just thinking put it 1000 points away at £0.5 but I couldn't handle this getting hit as it would wipe out a lot of prior profit and also it's not that practical as for the market to move in your favour by this amount e.g. at least 1R is a big ask when it's 1000 points!
  19. Perhaps slightly going off topic but sort of makes me wonder why the obsession with Forex. Whenever you hear the word trading, Forex always comes up but to me, not that any market can be divided into best for beginner traders but surely Forex is not what you should be looking at to start with.
  20. Yeah I get you on your last point. The question was perhaps too simple. Your distinction between stock markets and commodities over longer time frames e.g. weeks+ I assume is because at that scale a trending method perhaps wouldn't work because there isn't so much upward bias but over shorter times they behave more alike. For instance i'd feel more confident shorting a Forex market more frequently than a stock market because I always feel like you're fighting against the flow (overall) when shorting stocks.
  21. Probably both 😀 Interesting split in opinions here. There's so much variation in the markets that probably all opinions are valid some of the time.
  22. Ok thanks I think that comes as a relief to me as I've been watching one market in particular for some time and at least within that time i feel I am"getting to know" how it behaves. Trends I can make some sense of although when the trend ends your bit like now what.. So I would imagine being able to adapt to the conditions is beneficial but that might require multiple strategies then.
  23. Hi all, I often hear people say the markets are all the same and so if they feel that way their strategy must work equally well on all of them. However, when I look at the markets I don't think stock markets behave the same as Forex for example. I look at Forex and can't make heads or tails of what's going on but I see more structure and repeated patterns in the stock markets. Is this all in my head and I'm just interpreting what I'm seeing or are they truly different and therefore different strategies are required.
  24. The funny thing is though that this could be a sensible risk, stop distance depending on the market and your time frame of trading. Certainly if you were trading over weeks then a stop in the several hundreds to a thousand doesn't seem ridiculous if you use a multiple of the ATR or a long term MA. But for every trade.. The psychology would be hard to deal with I think.
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