Articles

Rollover & Swap – Brokers Bookkeeping

1169   October 5, 2017 05:26   SwingFish   Traders Library Casual Trader  

Futures & Forex trading in a 24/5 Market environment.

additionally, Forex is not traded through exchanges.

which means at some stage data have to be “synced up”, bookkeeping has to be done (accounting stuff) and so on.

that is called Rollover (more…)

know your Exit ! (or: never trade the Money)

714   September 21, 2017 14:22   SwingFish   Traders Library you should know  

Knowing where to exit is more important than knowing where to enter.

or in other words, Greed Kills ! as the market will tell you where it will likely to go, not your Profits/Losses!!

why? if you enter late, your position size will be smaller, because you will need a wider stop point (not really a big thing, just the reward is smaller, and the time the trade is “red” may be longer, nothing that can kill us, and in the end ist money being made.

but if you exit too late (or greed makes you stay in the trade),
especially in smaller timeframes, that can have Fatal results.

here is a typical Scenario in how to find an exit point.

(more…)

i gonna need a Bigger screen …

700   September 21, 2017 01:43   SwingFish   Traders Library   EURUSD

… for that one EURUSD Candle 😉

Hedging 101 (Trading without a StopLoss)

664   September 20, 2017 01:51   Sam S   Traders Library you should know  

Trading carries a huge risk for losses!
In fact, there is nobody in the world that trades who does not experience losses!
Our mission as traders is to limit the losses we incur so that we can protect our Equity.

As widely taught by educators, financial analysts, and other traders, the easiest way to protect ourselves from losses is to use a Stop-Loss order.

A stop-loss order will close your trade at a specific price set by you to limit the loss in case the trade becomes invalid.

(more…)

Hedging 101 (protecting profits or pause a trade)

640   September 19, 2017 17:51   Sam S   Traders Library you should know  

Hedging occurs when a transaction is entered to reduce exposure to a prior trade turning against you and eliminating profits or increasing losses. Hedging is done to decrease the risks and hold a position until the markets begin to move in the original trade’s favored direction.

Just like finding entries, it is even more important finding exits.

It is especially important in the case a Day-trade turns into a swing trade.

Swing trades usually carry much smaller size because the stop-levels are much wider.
Using the same size on a much wider stop would massively increase the risk of the trade.

(more…)

just like …

582   September 17, 2017 16:31   SwingFish   Traders Library Philosophy  

• … most rain falls in the Ocean
• … most eggs being eaten
• … most water is not drinkable
• … most tasty things not healhy
• …

… most (No) Trade will not make you Rich!

Your Job is the maintain the Equity.

Money is just a Commodity a trader use to get gains,  the more equity the Trader have, the more he/she can gain.

Trading is NOT “free Money”

254   September 15, 2017 00:36   SwingFish   Traders Library Philosophy  

Trading the markets is easy/free money? maybe it is easy .. but it is certainly not free!

If you close a winning trade, someone else have to pay for it.

“someone” is NOT your Broker!

just like with everything else in this world, there is no difference in Trading.

if you work a 9-5, your employer pays you, the money will come out of his account and go into your account.

in other words, your employer will have a “loss” and you will have a “win”.
but instead of a “loss”, for your employer, this is just the “cost of doing business”

in Trading, however, you do not have an employer but a Broker.
the Broker provides you (among other things) the service of finding someone that will lift your offers.

some other trader will have a losing position to close, and the money of the one loss will go to your account.

if you pay for someone else’s winning trade, this is just the cost of being in the Trading business.
this can not be avoided by anyone, anywhere, EVER!

• at some stage you will have to pay someone else’s win,
  your mission is to make sure it’s not too expensive.
• if there is nobody buying at the price where you selling,
  your Order will be filled/executed at a later price that is called “slippage”
  (as stated before, the Broker will not lift your offer and pay your winnings, the market will)

Broker Related example

Let’s imagine you “trade” Fruits on the local Market, but you are not a Farmer, meaning you buy the Fruits from a Farmer in order to re-sell it. that will make you a Broker and in the case of the local market, you will be a Market maker too since there is no Zentralized exchange that tells us the current price of yours Fruits.

your objective is NOT to get rich quick by selling your fruits at the highest price as fast as possible.

your objective is to minimize the risk and try to sell ALL your fruits by the end of the day, as they will go bad overnight and you will have to throw them away.

throwing them away is just the same as closing a losing trade.

selling Fruits or trade the markets, at some stage there will be a leftover which you paid for already by purchasing it. and you have to throw them out (realize a loss) just as in the FInancial markets, there is no way to predict how many customers will buy your stuff at the current day.

1000 Pip “guru’s”

219   September 14, 2017 11:36   SwingFish   Traders Library Philosophy  

ever came across somethings like this ?
 

there is a very simple action you can (and should) take,
if you do see ads like this: STAY AWAY !!!

And here is Why

(more…)

Philosophy of Success

530   September 8, 2017 13:11   AoFX   Traders Library Philosophy  

Did you know that Lion does not succeed in hunting except in a quarter of his attempts, that is, he fails in 75% of his attempts and succeeds in only 25% of them?

Despite this small proportion of which most of the predators participate, it is impossible for Lion to despair of attempts to hunt and hunt.

The main reason for this is not hunger, as some might think, but the assimilation of the animals into the law of “wasted efforts”, the law in which all nature works

• Half of Fish eggs are eaten.
• Half of Bears die before puberty
• The rain of the world is falling in the ocean
• most of the seeds of trees are eaten by birds

Only human beings reject this natural law And the success is not to have a life biography free of pitfalls and hiccups … but the success is to walk over your mistakes And go beyond every stage where your efforts wasted and look forward to the next stage .. If there was a word summarizing this world will be simply: (continue)

Sucessful trading is like getting pregnant…

305   May 15, 2017 10:05   SwingFish   Traders Library Philosophy  

… everyone congratulates you once you done it,
but no one asked how many times you got Fucked first.

• Tom Dante
• trader-dante.com