Seeing that it was NFP today I thought i would comment on it a bit.
I see many comments about brokers widening spreads et. Believe me this is normal and any market not only forex does this.
I have spoken to the guy at a website calling themselves forexbastardsdotcom and explained to them that the way they trade is impossible in the real world when trading with banks and that their subscribers are beind led down a false path. The fact is that even if you trade for a bank it is impossible to capture the initial movement on news and very few traders attempt this. Should you come to a bank with a trading record then they will look whether you trade anomilies or actual market moves. They know its impossible to capture the initial moves and they will filter that. News trading is impossible...what is possible is having a position before the announcement and if you are right your payoff is great if you are wrong you HOPE they executed your stop not to far from your STOP level....because you know you will get slippage.
I received a pm asking for who i traded, forgive me for not saying as i might say some things that might angry my previous employer so for the sake of speaking freely i will not mention my previous employer. However if you are willing to give me all your information and phone me so we can speak person to person i will give ou this information. What i can give you guys is that I used Goldman Sachs, Danske Bank and HSBC Hong Kong as brokers and had a constant feed to their prices at all times.
The great thing about having a personal relationship with your broker is using stops. MANY many a time I left a stop with my broker and the market moved pass my stop and I wasn't executed. I phoned immediately asking whats going on...the usual answer was that they thought my stop was too close to the market and the market could turn around. I was flabbergasted at this and wondered what my damage would be should the market continue against me and my stop was not executed. Well, the worst "slip" I ever had to take was 45 pips but I took that smiling given the many times that the market should have removed my stop but my broker kept me in and protected me until the market went my way. So thats one more lesson and reason to trade with a large bank...the broker protects you.
I see many comments about brokers widening spreads et. Believe me this is normal and any market not only forex does this.
I have spoken to the guy at a website calling themselves forexbastardsdotcom and explained to them that the way they trade is impossible in the real world when trading with banks and that their subscribers are beind led down a false path. The fact is that even if you trade for a bank it is impossible to capture the initial movement on news and very few traders attempt this. Should you come to a bank with a trading record then they will look whether you trade anomilies or actual market moves. They know its impossible to capture the initial moves and they will filter that. News trading is impossible...what is possible is having a position before the announcement and if you are right your payoff is great if you are wrong you HOPE they executed your stop not to far from your STOP level....because you know you will get slippage.
I received a pm asking for who i traded, forgive me for not saying as i might say some things that might angry my previous employer so for the sake of speaking freely i will not mention my previous employer. However if you are willing to give me all your information and phone me so we can speak person to person i will give ou this information. What i can give you guys is that I used Goldman Sachs, Danske Bank and HSBC Hong Kong as brokers and had a constant feed to their prices at all times.
The great thing about having a personal relationship with your broker is using stops. MANY many a time I left a stop with my broker and the market moved pass my stop and I wasn't executed. I phoned immediately asking whats going on...the usual answer was that they thought my stop was too close to the market and the market could turn around. I was flabbergasted at this and wondered what my damage would be should the market continue against me and my stop was not executed. Well, the worst "slip" I ever had to take was 45 pips but I took that smiling given the many times that the market should have removed my stop but my broker kept me in and protected me until the market went my way. So thats one more lesson and reason to trade with a large bank...the broker protects you.
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