Guys,
Yesterday the Euro had a 335 pip swing going up enough first to knock out 3 days of people who set their stop right above the previous days high. Only people who set their stop 1 at the top of last weeks bar were spared getting falsely and I say criminally stopped out. And then to rub salt in the wounds, the Euro/USD then at 8am, completely reverses direction and winds up down huge on the day.I was short with my stop above the previous days high on 1 lot and above the 72 hr moving average on the others! I was wiped out of the position faster than a lion devours a steak.So were ALL of you who were in that. Imagine, larceny so greedy that you stop out the longs, the shorts, the day traders, the swing traders and in fact anyone not holding with a 500 point weekly stop got run over both ways. This also happened in ALL the EUR pairs and almost ALL the JPY pairs. This is not going to be the last time. I was waiting months for something screwy to happen to add some spice into this very very boring Forex market. Anyone feel the same as I? That this market went to sleep this last 6-12 months? This means we may see huge "flash crashes" and wild stop outs occurring in the future. And from what I see, when the big boys want to move the market, they can move every JPY pair up the exact same number of days! Look at your charts. Ever see that before in yoru life. Such pre3cision at controlling this market. Do you know that 10 banks control 70% of the volume of this market. I suspect another 10 control 15-20% more. There might be 3 trillion being traded daily but the real players might number 100. That makes for an awfully slow day, a worse week, and the most boring month imaginable, no?
So, how can we capitalize on this?
Here are my opening thoughts. I don't like to stay in a trade less than 6 hours and hopefully several days-2 weeks. Why? I don't like paying the spread 12-20 times a day. Even once a day in and out is over 600 commissions per yr. Per pair! Not for me. So short time frames (under 60m are out.) Yet, if we remain traders of daily bars, which I prefer, look at how we get whipsawed and stopped. I am well ahead for this year using a system that places its stop 1 pip above the previous days high. But don't think I do not know, the market makers know thats exactly how many swing and daily chart traders will do it and they are just waiting for that free lunch maybe once a week or once every 2 or 3. Thing is, Im tired of being some bodys dinner for free. Yesterday i assure you, the brokers who take sides in a position had the best day they ever had in many yrs. They destroyed all their customers at once. And this may just be why systems suddenly stop working and "pro's" go back to driving a cab.
So, what is a good first start to devise a system to either bypass this or take advantage and get in at the top of these false spikes? These guys cant change their minds when they set something in motion. Our advantage is, we can. It took them 6-8 hrs to pull that debacle of yesterday off with all the EUR and JPY pairs at one time!!!! How could that not be planned out way ahead of time. The scam of the year, IMHO.
Idea's anyone?
Yesterday the Euro had a 335 pip swing going up enough first to knock out 3 days of people who set their stop right above the previous days high. Only people who set their stop 1 at the top of last weeks bar were spared getting falsely and I say criminally stopped out. And then to rub salt in the wounds, the Euro/USD then at 8am, completely reverses direction and winds up down huge on the day.I was short with my stop above the previous days high on 1 lot and above the 72 hr moving average on the others! I was wiped out of the position faster than a lion devours a steak.So were ALL of you who were in that. Imagine, larceny so greedy that you stop out the longs, the shorts, the day traders, the swing traders and in fact anyone not holding with a 500 point weekly stop got run over both ways. This also happened in ALL the EUR pairs and almost ALL the JPY pairs. This is not going to be the last time. I was waiting months for something screwy to happen to add some spice into this very very boring Forex market. Anyone feel the same as I? That this market went to sleep this last 6-12 months? This means we may see huge "flash crashes" and wild stop outs occurring in the future. And from what I see, when the big boys want to move the market, they can move every JPY pair up the exact same number of days! Look at your charts. Ever see that before in yoru life. Such pre3cision at controlling this market. Do you know that 10 banks control 70% of the volume of this market. I suspect another 10 control 15-20% more. There might be 3 trillion being traded daily but the real players might number 100. That makes for an awfully slow day, a worse week, and the most boring month imaginable, no?
So, how can we capitalize on this?
Here are my opening thoughts. I don't like to stay in a trade less than 6 hours and hopefully several days-2 weeks. Why? I don't like paying the spread 12-20 times a day. Even once a day in and out is over 600 commissions per yr. Per pair! Not for me. So short time frames (under 60m are out.) Yet, if we remain traders of daily bars, which I prefer, look at how we get whipsawed and stopped. I am well ahead for this year using a system that places its stop 1 pip above the previous days high. But don't think I do not know, the market makers know thats exactly how many swing and daily chart traders will do it and they are just waiting for that free lunch maybe once a week or once every 2 or 3. Thing is, Im tired of being some bodys dinner for free. Yesterday i assure you, the brokers who take sides in a position had the best day they ever had in many yrs. They destroyed all their customers at once. And this may just be why systems suddenly stop working and "pro's" go back to driving a cab.
So, what is a good first start to devise a system to either bypass this or take advantage and get in at the top of these false spikes? These guys cant change their minds when they set something in motion. Our advantage is, we can. It took them 6-8 hrs to pull that debacle of yesterday off with all the EUR and JPY pairs at one time!!!! How could that not be planned out way ahead of time. The scam of the year, IMHO.
Idea's anyone?