So lets say it's you vs the dealer (no other traders have come trading yet). Lets say you buy with a margin account you opened with the same dealer (bucket shop/market maker). Lets say you ended up buying everything the dealer had and paid 10x what ...

Forex Trading Philosophy

It's not so much that the "leverage kills" it's the "bet everything on this correlated instrument with broker offered leverage" that kills. And if "SHTF" and resting liquidity is hit market wide because big boys decided they need to reverse due to ...

Over-leveraging kills: True?

I'm embarrassed to admit I spotted over half of these trades mentioned in time to act on them but had set some hard rules earlier about not making trades without a solid plan. So the mistake was: I didn't have a written plan of how to manage these ...

No brainer fundamental trades

When I go to google and type define:VSRPA this thread is first hit. So I still don't understand your definitions but I'll reiterate mine: A "market maker broker" to me is a "bucket shop". Broker is something that acts on agency basis and market ...

When would chasing a trade be worth it to you?

What about investors that sell options? Most of the FX trade is supposedly in OTC options. And the only thing you hear about options is them expiring worthless. A lot like lottery tickets or insurance policies. Why does the fx market move in ...

Poll: Do You Trade Or Invest?

Well how do you define them? Market makers provide the best quotes and 'lottery ticket' sellers get credit. Since buying/selling underlying is buying 'lottery tickets' which requires margin deposit, my understanding is the liquidity of the ...

When would chasing a trade be worth it to you?

If you have a regular problem that your order are not getting filled then it's possible someone is stepping in front of your order or if its a bucket shop it may be the market maker knows you would make profits and thats less profit for them. In ...

When would chasing a trade be worth it to you?

I wouldn't hold short over weekend if that's not part of your normal plan. While it looked like a low risk short during the day, when looking at 1 minute charts, situation could change at any minute. I'm not certain that "minute" yet happened but ...

USD/JPY Discussion

Head & Shoulders Dandruff pattern.. how will it unfold?

USD/JPY Discussion

Most of the time prices are mean reverting, the market offers the losers and winners ability to exit at +-0 - ending up only paying the spread. So what you are seeing is really just mean reversion with the price often bouncing at a level where ...

Want to know how to get rich?

You brought a clip from my favorite TV series to mind. video (skip first 18 minutes then watch 1 minute : 18:00-18:40) (This series had cool soundtrack too.. 21:00-22:00 is example)

Attack vs Defense trading style

Now imagine that same stuff implemented in automated market making algorithm and you are better informed about live trading than the demo traders thinking their EA will make them "reliably rich". (and instead of "2 pip markup", they'll do as much ...

JPMorgan Apologizes for Criminal FX Market Manipulation

There's really two or three separate things here: 1) the trading hours of marketplaces (eg. many of the markets have various states/phases that depend on venue) 2) times when people involved in some sort of financial activity start doing their thing ...

FF & Oanda contradict FXDD, others on Tokyo session hours?

Think of this: Does market at timezone other than GMT open at say 09:30 GMT ? That's like assuming that every countries market follows the GMT. If you are writing software to backtest time based trades, then you have to have historical knowledge of ...

FF & Oanda contradict FXDD, others on Tokyo session hours?

To answer that question, think about the implications. Easy free money for everyone being one. There are some such trades available but they only work because of some fundamental reason and once that reason is gone they stop working. eg. QE's, carry ...

Is there any EA that really works in a live account?

ECN's: Look at the ECN home pages and the brokers they list. I mentioned one above. If you don't understand the market then it's safest to go with a bucket shop that hasn't chased people after negative balances... I'm not sure if Oanda did cancel ...

Which Broker are you using and Why?

Most if not all industries/business are (in some way) about making money of people less informed (eg perhaps I don't know how to make a good game so I buy a game but I can't be sure it's really good or not - youtube helps in this case lol). Of ...

Much of Forex talk is illusional esoteric talk

And on-topic of esoteric talk ...: Well is anyone here disagreeing this this really. Much of the traders talking are demo traders etc. If there's esoteric talk from real traders it's because they atleast understand that edge known to everyone is no ...

Much of Forex talk is illusional esoteric talk

There was some arguments about this with relation to the CHF unpegging and similar situations. I recall it boiled down to that while leverage is really nice to have, most of the time it results in less experienced traders using it ways that expose ...

Leverage question