My philosophy of Trading

[SpiderX]

Hi Bob,

How do you see the Ebola outbreak and its impact on forex ?
Could it stop the USD bull run and cause a Gold run instead ?

Cheers

[nanningbob]

Hi Bob,

How do you see the Ebola outbreak and its impact on forex ?
Could it stop the USD bull run and cause a Gold run instead ?

Cheers

I doubt it however, if it cant be contained then who knows. I didnt expect the GBP to run so much just before the Scottish elections either. I personally think we are not being told how easy it is to get this thing. People are getting it who are wearing all sorts of protection. I mean if I wore all that stuff I doubt I would catch a cold but this thing can be picked up off of a surface like a doorknob.

[Lee]

Hi Bob,

I've been reading with interest your views and philosophy on trading Forex. I have been through the retail trading apprenticeship, from discovering the forex market, believing that it will solve all my problems, stumbling on popular forums, and implementing the latest and greatest systems! Switching from one to another, trying my hand at scalping, and dare I say it ‘auto’ trading, until finally I decided that trading forex can’t work, or if it does then it’s far too complicated for my small brain and so I gave up!

Then, you know what comes next, yes I’m drawn back in with the thought that it must be possible and if so then what I did before can’t be the right way to do it.

I then came across someone that did it different to what was being taught to the masses. They traded unleveraged positions. Each trade consisted of multiple entries to average the cost of the trade as a whole and they turned the most fundamental teachings on their head, they cut their profits and let their losers run … to an extent. They only traded one currency USD, and the total positions wouldn’t go above 8 or 10:1 in total. 5% per month seemed not problem to them and most likely 10%.

This way of trading has changed my whole way of thinking. The forex market is always seeking equilibrium and so most price movements come back to their origin which enables the astute trader to capitalise on this phenomenon.

I am at the outset of my journey but it is not dissimilar to your own. Now that I have a sound plan that I could see would work before I even placed my toe in the water, I am giving myself 5 years to build up an account and learn my craft. In 5 years’ time I will re-assess the situation but I’m confident it will be a positive re-assessment.

Again, it was great to read your ideas and views, and if you don’t mind I’d like to recommend a small PDF booklet that will interest you, if you haven't already read it? (https://www.olseninvest.com/customer/pd ... de_5.2.pdf). It’s by a guy called Richard Olsen whom I’d never heard of before but now realise he was the co-founder of OandA. He pretty much gives away the secret to trading!

Thanks again,

Lee

[Gertje]

The balance between the too extremes is the range of a currency. As we can see from the typical Euro range the price of the currency is entering its lower range of 2004,2005,2008,2010,2012. The real big boys will be preparing to start placing their buys. (Watch the COT reports) So when everyone else is selling the big boys are getting ready to place their buys because they understand that the EURO is nearing its bottom. The SNB is once again buying massive amounts of EUROs and Selling CHF because they can sit on a currency for months and years knowing that once it bottoms out, it will go up again.

If you trade low leverage, like 1:1, the difference between 1.25 and 1.20 is five cents. That is why traders trade in tiny fractions of a dollar, or euro, or jpy, etc. but the big boys trade in real money or pennies. If they buy in the 1.20 to 1.25 range and price goes to 1.50 like in Jan. 2008 and 2010 and you make 15-20% on billions and billions of dollars, like the big banks do, you can see the profit potential can be massive.

So if you look at the SNB reserves they are close to 47% of its holdings and they are now increasing their holdings in the euro. They know that the value of the EURO will go up starting at some point, probably next year and they load up on the cheap price and are selling the USD which is now at a high price.

We cant trade that way because we dont have the assets to trade that way but I like watching the big boys and when they start buying you know 6 months, a year down the road the currency will move back up. The old adage of buy low and sell high is fundamental to trading. My questions is this, how many people were buying stocks in 2008? Were you? That was the time to buy.

Message of br0ker;

Over the past several weeks there has been an increase in pressure on the EUR/CHF peg as well as a build-up of short CHF positions in the broader marketplace.

As such, any breach of the 1.2000 peg could see a significant appreciation of the CHF.

Due to this the majority of our upstream liquidity providers have raised their margin requirements to as high as 8% on our connected credit accounts.

[SpiderX]

Looks like some crazy moves on the NZD yesterday.

Cheers

[MurphyMan]

This just in from CitiFX. FYI

Dear Client,

The forthcoming Swiss referendum (to be held on Nov 30th) creates the possibility of extreme volatility and market gapping. Please be advised that as this event approaches we will continue to monitor the margin that we charge.

As a courtesy to you, we would encourage you to ensure that you:

Are familiar with the margining and closeout process of your FX trading account with Citi
Understand that we may be required to increase margin levels on some currencies, especially the key CHF pairs with little or no warning
Adjust your position sizes and order levels to account for potentially higher volatility
Fund your account appropriately, and well in advance, to support the positions that you may wish to hold
We would like to specifically draw your attention to the fact that we are obliged to close out your positions in case of insufficient margin. In a highly volatile market environment this may become more likely so your prompt action to add further margin or to reduce your positions is highly recommended.

If you have any questions then please don’t hesitate to contact us.

Sincerely,

[EverEMan]

This just in from CitiFX. FYI

Dear Client,

The forthcoming Swiss referendum (to be held on Nov 30th) creates the possibility of extreme volatility and market gapping. Please be advised that as this event approaches we will continue to monitor the margin that we charge.

As a courtesy to you, we would encourage you to ensure that you:...

Thanks. Sounds like they're ready for some margin calls. & all as a courtesy to us.

[astral77]

... And I'm sorry if my comment seemed snippy. I guess, to a larger point, I thought I was expressing my results in terms of Nanningbob's style of trading, which I think is the ultimate goal with HGI... Simply put, to replicate Bob's amazing trading skill and results...But I do see your point as well...

Above is part of John`s post in HGI thread and I thought it more appropriate to reply here. IMHO traders entering retail forex should have the following objectives:
1. Stop making losses
2. Longevity (i.e. SURVIVAL), it seems people who last three or more years in this game have a very good chance of making money.
3. Be PROFITABLE.

Once you have reached number 3 then you can then optimize and fine tune your trading techniques. Moreover, just like any other profession you have to keep up with latest developments and fine tune your skills. That is why experienced established traders such as BOB, AL, MACMAN, etc, keep developing and looking for new methods and system. Finally, I am a very average or below average trader, coding is all Greek to me and my understanding of the fundamentals has a lot to be desired. If I can be profitable so can you. The sermon is over and you should get back to HGI thread where the action is.

Kind regards

[NewTrader]

Hey Bob,

Have been reading the TMA PDf you sent out. Was looking at the TMA histogram indi you use in your examples. Really like it. I know you mentioned the re-paint issue and how we can learn to work around it for the strength the indi offers. But I was just curious did you or anyone ever develop a non re-painting version of the TMA Histogram indi. Would it matter or even work? I know there is a True TMA (Bands i guess) you use in the edsel etc. But I really like the visual of the histogram.

Thanks,
Chris

[milanese]

Hey Bob,

Have been reading the TMA PDf you sent out. Was looking at the TMA histogram indi you use in your examples. Really like it. I know you mentioned the re-paint issue and how we can learn to work around it for the strength the indi offers. But I was just curious did you or anyone ever develop a non re-painting version of the TMA Histogram indi. Would it matter or even work? I know there is a True TMA (Bands i guess) you use in the edsel etc. But I really like the visual of the histogram.

Thanks,
Chris

Try the attached one..

10.2TMA_True_slope_mod.mq4

Cheers

Tommaso