Managing risk is essential for playing reversals, however, can also be deemed "simple". I have a very simple rule of thumb, trade $0.01 lots per $500 in the account. Some of the most successful futures traders I know operate trading 1 ES contract ...

Question for experienced reversal traders

I feel it's important to be dynamic with one's strategy, while also trying to stay objective as possible. Personally, I have certain thresholds that when met, force me to go to larger timeframes.

Preferred Timeframe for Trading

Consistency in the FX markets is a lot easier than the forums make it out to be. Especially here at FF, unfortunately. A gambling approach is usually the overtone with most methods, and unfortunately, it is the downfall of most aspiring traders. ...

A theory of trading

Hi Szymon,Let's take a step back for a minute. One of the factors with FX liquidity is accepting the uncertainty of liquidity as a whole. Having said that, I want you to imagine the "game theory" involved with liquidity. We have both supply and ...

A theory of trading

Right, it's like anything else. If you know the value of peanut butter is $1.00 a jar (value), and price is currently at $.80, you're more apt to purchase the medium, being peanut butter in this case. It adds a layer of context to managing a trade.

A theory of trading

Zebra,Keep on keeping on man Managing your trades via money management as you have just provided is key. I'm in the same boat as you....no stop losses.

Trading Without a StopLoss

I think it's great that threads of this nature are finally appearing on ForexFactory. The concept of value is one thing every aspiring trader should know and understand. It is (at least in my perspective), the only objective way to define a "trend" ...

A theory of trading

Its cheaper initially, but you get what you pay for. You also have the issue of orders being executed on liquidity pools that the public cant see... thats a big issue when it comes to microstructure analysis, which should be the lifeblood of any ...

A couple questions to all the scalpers out there

No not entirely. Even if you get filled, you're paying a ridiculous commission on the fx compared to futs. You also have a greater risk of slippage (in my experience). To paint a picture, 1 tick can net a profit on futs. 1 tick (generally speaking) ...

A couple questions to all the scalpers out there

Sure. I mainly focus on notes (5 and 10 year), and equities (Es, ym, nq, russel)

A couple questions to all the scalpers out there

If you're going to attempt to scalp, I highly suggest steering away from Forex entirely (and this is being brutally honest). It might not be what you want to hear, but odds are skewed against you when you start factoring in PIPS for cost. That's not ...

A couple questions to all the scalpers out there

Trading has, and always will be about inventory. No different than having a store front with inventory.... I feel you're talking semantics here. Just because one has not done enough due diligence for a field, does not mean the rest of the ...

Trading Without a StopLoss

Oh ok. You win.

Trading Without a StopLoss

I feel like this topic has become a beaten dead horse over the past year....You don't need stops to trade successfully. I've been at this for 5 years now, never once used a stop throughout my career. I now trade treasuries at a firm as of the last ...

Trading Without a StopLoss

I look at managing the FX markets no different than running a retail store. If I perceive value of an instrument (let's say Bananas) at $1.00 a bushel, I will continue to buy bananas below that price as long as my perception of value stays the same. ...

Thoughts/Thought Experiments on Money Management and Trading

The market is far from random. It can be looked at in a very objective manner. There are individuals out there with deep pockets that have different agendas than most retail traders, and can seem confusing initially, but I can assure you, it is not ...

Do you believe this market is random?

Breaking one's discipline usually derives some subjectivity rather than looking at the market in an objective matter.

What makes you sabotage your discipline?

I look at it this way Darpa. You can have a room full of economists, and each individual will have their own theory for how the economy operates as a whole (Keneysian vs Austrian economists for instance). It's no different in the orderflow world.

Order Flow - Achieving the mindset

I disagree with this post. Marker makers make up for a lot of activity, sure. But they aren't the 'cause' of why price comes to a balanced range. There's a few books out there that have market makers explain they are dynamic with the market, and ...

Order Flow - Achieving the mindset

Not entirely. It's due to the fact that there's so many different situations, and understanding that context is key. There are many variables that build a case for context, that takes a different mindset to scalp on the DOM.

Order Flow Trading