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Emotion in Forex trading

Allan (Arcferreira)
Jan 02 2019 at 10:48
50 posts
There is a big difference between a retail trader and a hedge fund trader. This difference is called market depht. A small retail trader can open a 1 lot trade and ihe will not be noticed by market, because 1 lot is nothing. But a hedge fund can't open 10.000 lots in just one trade. This trade will cause a huge move in market, and his order will be filled in different levels. The other difference is the acceptable volatility. For a retail trader, 25% drawdown is acceptable. For a hedge fund, less than 10%.

Different things... A retail can trade for 10% monthly, an hedge fund for 3%.

Trade safely... Remember, a high Drawdown means a high risk!
vontogr (togr)
Jan 02 2019 at 10:50
4862 posts
Arcferreira posted:
There is a big difference between a retail trader and a hedge fund trader. This difference is called market depht. A small retail trader can open a 1 lot trade and ihe will not be noticed by market, because 1 lot is nothing. But a hedge fund can't open 10.000 lots in just one trade. This trade will cause a huge move in market, and his order will be filled in different levels. The other difference is the acceptable volatility. For a retail trader, 25% drawdown is acceptable. For a hedge fund, less than 10%.

Different things... A retail can trade for 10% monthly, an hedge fund for 3%.


That does not happen often
https://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/7862246/How-a-broker-spent-520m-in-a-drunken-stupor-and-moved-the-global-oil-price.html
Allan (Arcferreira)
Jan 03 2019 at 08:53
50 posts
togr posted:
Arcferreira posted:
There is a big difference between a retail trader and a hedge fund trader. This difference is called market depht. A small retail trader can open a 1 lot trade and ihe will not be noticed by market, because 1 lot is nothing. But a hedge fund can't open 10.000 lots in just one trade. This trade will cause a huge move in market, and his order will be filled in different levels. The other difference is the acceptable volatility. For a retail trader, 25% drawdown is acceptable. For a hedge fund, less than 10%.

Different things... A retail can trade for 10% monthly, an hedge fund for 3%.


That does not happen often
https://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/7862246/How-a-broker-spent-520m-in-a-drunken-stupor-and-moved-the-global-oil-price.html

Yes, near 1/2 billion caused a destruction in oil market...
Trade safely... Remember, a high Drawdown means a high risk!
AniLorak
Jan 10 2019 at 05:48
920 posts
Arcferreira posted:
There is a big difference between a retail trader and a hedge fund trader. This difference is called market depht. A small retail trader can open a 1 lot trade and ihe will not be noticed by market, because 1 lot is nothing. But a hedge fund can't open 10.000 lots in just one trade. This trade will cause a huge move in market, and his order will be filled in different levels. The other difference is the acceptable volatility. For a retail trader, 25% drawdown is acceptable. For a hedge fund, less than 10%.

Different things... A retail can trade for 10% monthly, an hedge fund for 3%.


Got your point; but there have so many traders who started their trading career as a retail trader but now they are the institutional payers!
NascarLover
Jan 11 2019 at 11:04
8 posts
I don't know of ANY retail trader who went into institutional trading. Never heard or seen of anyone do that. Bank traders come straight out of college and then start trading. Retail traders are usually older and already have a day job
kieran (snapdragon1970)
Jan 11 2019 at 14:12
1948 posts
NascarLover posted:
I don't know of ANY retail trader who went into institutional trading. Never heard or seen of anyone do that. Bank traders come straight out of college and then start trading. Retail traders are usually older and already have a day job
I was a retail trader before I got a job as a professional ,I know a few guys who started that way plus its good in an interview.
"They mistook leverage with genius".
Adribaasmet
Jan 13 2019 at 07:42
994 posts
NascarLover posted:
I don't know of ANY retail trader who went into institutional trading. Never heard or seen of anyone do that. Bank traders come straight out of college and then start trading. Retail traders are usually older and already have a day job

It’s not common case mate! But I believe it’s possible! The sky has no limit.
Imamul
Jan 15 2019 at 11:21
716 posts
Greed and emotions almost same. Generally beginners attacked by this common human nature. We can control this by proper trading practice as well great discipline.
Tcollinwood
Jan 15 2019 at 11:55
11 posts
I think that it helps to start with a very small Lot size and then increase the amount very slowly (I am talking about the period of a year at least going from 0.01 to 0.1). I think that this helps control emotions and get used to trading with real money
jamesgwyther
Jan 16 2019 at 11:00
289 posts
Emotions are everything in trading, emotions and mind set.
jamesgwyther
Jan 16 2019 at 11:04
289 posts
It is why, although demo trading is great for getting to grips with strategy, live trading at small stakes is essential to develop your trading style.
vontogr (togr)
Jan 16 2019 at 13:55
4862 posts
Emotions makes us humans.
They also make us so bad traders.
Adribaasmet
Jan 17 2019 at 07:34
994 posts
togr posted:
Emotions makes us humans.
They also make us so bad traders.

True; but we need to make sure enough practice before playing with our own capital; we need to learn the tricks for the live trading.
DFisher
Jan 20 2019 at 07:45
12 posts
Adribaasmet posted:
togr posted:
Emotions makes us humans.
They also make us so bad traders.

True; but we need to make sure enough practice before playing with our own capital; we need to learn the tricks for the live trading.

Right. Not all of us get the successful trading for the first time.
AniLorak
Jan 20 2019 at 10:06
920 posts
DFisher posted:
Adribaasmet posted:
togr posted:
Emotions makes us humans.
They also make us so bad traders.

True; but we need to make sure enough practice before playing with our own capital; we need to learn the tricks for the live trading.

Right. Not all of us get the successful trading for the first time.

No way; in my demo I faced MC for 4-5 times; although I used then 3-4% risk; basically consistent SL was my main problem.
iamjacobs
Jan 29 2019 at 13:00
17 posts
togr posted:
Emotions makes us humans.
They also make us so bad traders.

if(emotions makes us humans && emotions makes us so bad traders){
     Humans are so bad traders;
}else{
    You are in 5%, who have profit;
    You are an alien;
}
niceGLer
Jan 29 2019 at 14:53
169 posts
In coming friday, the 1st of February is the NFP release day. I've decided to stay on sidelines until next week. That is emotionally difficult not to take any action. Almost depressing.

I didn't trade so much on demo. Instead, I tried to limit my losses until I get the grip from trading.
vontogr (togr)
Jan 29 2019 at 16:17
4862 posts
iamjacobs posted:
togr posted:
Emotions makes us humans.
They also make us so bad traders.

if(emotions makes us humans && emotions makes us so bad traders){
     Humans are so bad traders;
}else{
    You are in 5%, who have profit;
    You are an alien;
}

Human without emotion is not necessarily alien :)
niceGLer
Jan 29 2019 at 16:29
169 posts
togr posted:
iamjacobs posted:
togr posted:
Emotions makes us humans.
They also make us so bad traders.

if(emotions makes us humans && emotions makes us so bad traders){
     Humans are so bad traders;
}else{
    You are in 5%, who have profit;
    You are an alien;
}

Human without emotion is not necessarily alien :)
Yeah. That is called a high functioning psychopath. I'd rather co-operate with a HFA psycho than a borderline who cannot control oneself ;)
vontogr (togr)
Jan 30 2019 at 11:55
4862 posts
niceGLer posted:
togr posted:
iamjacobs posted:
togr posted:
Emotions makes us humans.
They also make us so bad traders.

if(emotions makes us humans && emotions makes us so bad traders){
     Humans are so bad traders;
}else{
    You are in 5%, who have profit;
    You are an alien;
}

Human without emotion is not necessarily alien :)
Yeah. That is called a high functioning psychopath. I'd rather co-operate with a HFA psycho than a borderline who cannot control oneself ;)

Or simply you convert your trading idea to robot.
Test it with tick data precision over years
Run it on demo
Run it on small account
Run it big
Became independent trader, trading for living.

That is my story in short.
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