# Forex Beginners



## mayoush (16 January 2013)

Forex is short for foreign exchange, but the actual asset class we are referring to is currencies. 
Forex is something like going to a foreign exchange and exchanging one country's currency into another country's currency. 
Due to the fact that business is global there is a need to transact with most other countries in their own particular currency. 
This service has been taken up by the commercial and investment banks on behalf of their clients, but has simultaneously provided a speculative environment for trading one currency against another using the internet.
Join this thread to discuss more of forex - methods, strategies, market news and all.


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## DJG (17 January 2013)

mayoush said:


> Forex is short for foreign exchange, but the actual asset class we are referring to is currencies.
> Forex is something like going to a foreign exchange and exchanging one country's currency into another country's currency.
> Due to the fact that business is global there is a need to transact with most other countries in their own particular currency.
> This service has been taken up by the commercial and investment banks on behalf of their clients, but has simultaneously provided a speculative environment for trading one currency against another using the internet.
> Join this thread to discuss more of forex - methods, strategies, market news and all.




opcorn:


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## TulipFX (17 January 2013)

mayoush said:


> This service has been taken up by the commercial and investment banks on behalf of their clients, but has simultaneously provided a speculative environment for trading one currency against another using the internet.




And they say the only use for the internet is cat videos and arguing with strangers...


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## mayoush (22 January 2013)

ha ha ha ha ha ha!!!! True - so very true!!!!


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## cogs (23 January 2013)

And a good opportunity to show beginners how paint dries lately.


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## AverageJoe (30 January 2013)

cogs said:


> And a good opportunity to show beginners how paint dries lately.




Any one wants a full proof profitable trading system? I have one ...

Start with a small position and use a GIGANTIC stop, then sit back and decide when in profit.


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## CanOz (30 January 2013)

AverageJoe said:


> Any one wants a full proof profitable trading system? I have one ...
> 
> Start with a small position and use a GIGANTIC stop, then sit back and decide when in profit.




what if it hits your stop?


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## Ruby (30 January 2013)

AverageJoe said:


> Any one wants a *full proof *profitable trading system?




Don't you mean "foolproof"?


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## >Apocalypto< (30 January 2013)

AverageJoe said:


> Any one wants a full proof profitable trading system? I have one ...
> 
> Start with a small position and use a GIGANTIC stop, then sit back and decide when in profit.




hahaha so how bigs that stop?


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## AverageJoe (31 January 2013)

>Apocalypto< said:


> hahaha so how bigs that stop?




Ok I have done some testing. Say on a $1/pip ($10,000 position), put in a 1000 pip stop (risk $1000) and then sit back and wait and decide when in profit.


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## cogs (31 January 2013)

> Start with a small position and use a GIGANTIC stop, then sit back and decide when in profit.




In FX??

The best start is to find price direction, whether it be short or long term, but the majority of the time in FX you need to check your 4hr and daily, pick the turn and don't be overleveraged.

eg: (not saying this has legs but more likelyhood than a short position, and get the breakeven in).

View attachment 50713


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## AverageJoe (1 February 2013)

Using your example, Aussie had a double bottom. A simple entry 1.0165. Stop 0.9165. Target RN 1.06 which happens to be a resistance with a further 1.08 exit maybe use a scale exit.


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## >Apocalypto< (1 February 2013)

AverageJoe said:


> Ok I have done some testing. Say on a $1/pip ($10,000 position), put in a 1000 pip stop (risk $1000) and then sit back and wait and decide when in profit.




I understand the idea Joe, but think it's just waiting for a massive wrong move to take out your account or 1000.... Then you are really way behind the 8ball. 

take the eurjpy, on the 20 7 12 it made nice break down out of solid support point that was set up for months... looked black and white for a solid short... well it made a higher low out that turned into a 3014 pip rally till now.... there's a 1000 pips gone, you would really have to be making 2000 pips a win just to cover two mistakes and bang there goes half a year in time... 

If it's working for you great but I wouldn't trade an idea like this in FX... maybe the USD pairs are a little more forgiving.

cheers and good trading to u.

I still remember a guy that bought the AUDUSD @ .98 in 08... paid margin calls all the way and kept holding, not sure when he exited but man he did get it write if he stayed in it! lol balls of steel!


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## cogs (1 February 2013)

What you suggested is possible with say $10k opening account and trading 1 microlot, and a bucket load of patience. If that suits your trading style, put it into action.

Problem with FX is over the distance you are talking, countries can go broke, new prime ministers or presidents can be elected and wars can be faught and won all of which can ruin initial trading plans.

How was it you made that 'simple entry' at 1.0165 again? In reality if you can find that type entry point repeatedly, you don't need wide stops. One of the first probs I see with your suggestion, from my trade is the AUD is on its way down, mine was a counter trade.

How about you make a call now and lets see if it plays out, just for fun. Drop it on a demo and post it. 

Apocalypto, that long @ 0.98 would have been gold, especially with the good swap longs, but would have driven me crazy letting it play out Think I would have had to raise a bunch of rug rats to take my mind off it.


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## AverageJoe (1 February 2013)

cogs said:


> How was it you made that 'simple entry' at 1.0165 again? In reality if you can find that type entry point repeatedly, you don't need wide stops. One of the first probs I see with your suggestion, from my trade is the AUD is on its way down, mine was a counter trade.




How complicated do you want it to be? Throw in fibs, elliot waves, some math indicators perhaps?

Double bottom on the way up to triple top, clasic range bound. 1000 pips was an arbitrarily figure.

Apolacypto, that was not a swing high/low but really in the middle of nowhere (GBPJPY). I know you are using an example.

Just out of curiosity, who is using math indicators in their trading and was it useful? Afterall we are discussing the basics of trading and I am throwing ideas around. 

Cheers,

AJ


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## cogs (1 February 2013)

> How complicated do you want it to be? Throw in fibs, elliot waves, some math indicators perhaps?
> 
> Double bottom on the way up to triple top, clasic range bound. 1000 pips was an arbitrarily figure.




Not sure what or who's comment you are replying to, but it doesn't really make much sense to any of the postings?


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## cogs (1 February 2013)

cogs said:


> Not sure what or who's comment you are replying to, but it doesn't really make much sense to any of the postings?




My point previously was that if you choose the correct entry you may not even need a stop, the poorer your entry decision the wider stop. If you chose the entry you did 1.0165 then (IMO) that would have been a good entry, and (IMO) has no reason for a 1000 pip stop, but a ~30 pip stop instead.


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## AverageJoe (1 February 2013)

cogs said:


> My point previously was that if you choose the correct entry you may not even need a stop, the poorer your entry decision the wider stop. If you chose the entry you did 1.0165 then (IMO) that would have been a good entry, and (IMO) has no reason for a 1000 pip stop, but a ~30 pip stop instead.




Let me understand from your post here. Are you saying that you are trading with MANY MULTIPLES RR because most of your trades are 'chosen' with perfect entries with no spikes at all hence MINIMAL stop? Lets put it another way, do you have a commercial super fund? If yes, did your fund invest in the Telstras' of this world with a tight stop or no stop? Or maybe they diversified into a basket of stocks so it evens out the kink. Why can't you do it with Forex?


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## >Apocalypto< (1 February 2013)

AverageJoe said:


> Apolacypto, that was not a swing high/low but really in the middle of nowhere (GBPJPY). I know you are using an example.
> 
> Cheers,
> 
> AJ




AJ, example I used was the EURJPY.... 

Not trying to knock you as I mentioned, USD base pairs don't normally move the JPY pairs... 

To back your idea, take a look at the eurusd daily. If you waited till the down trend was broken by this current up move it would be working very well now. let’s say we entered at 1.2865 had a stop of 1000 you would be under the last JUL low and up 799 pips atm. so there is some merit here... I personally just don't have the stomach to trade like this!

cheers


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## >Apocalypto< (1 February 2013)

cogs said:


> My point previously was that if you choose the correct entry you may not even need a stop, the poorer your entry decision the wider stop. If you chose the entry you did 1.0165 then (IMO) that would have been a good entry, and (IMO) has no reason for a 1000 pip stop, but a ~30 pip stop instead.




A 30 pip stop won’t be suitable for trading off a daily time frame cogs... I think AJ looking at trading higher times frames is this right AJ?


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## AverageJoe (1 February 2013)

>Apocalypto< said:


> A 30 pip stop won’t be suitable for trading off a daily time frame cogs... I think AJ looking at trading higher times frames is this right AJ?




Yes, weekly setup. As I said earlier we are all talking examples so 1000 pips may in fact be less dependent on what rough optimum figure I can come up with. I usually do this on stocks no leverage but I appreciate FOREX is a different animal. I suppose with a weekly TF, even a 2 moving average has merit.


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## >Apocalypto< (1 February 2013)

AverageJoe said:


> Yes, weekly setup. As I said earlier we are all talking examples so 1000 pips may in fact be less dependent on what rough optimum figure I can come up with. I usually do this on stocks no leverage but I appreciate FOREX is a different animal. I suppose with a weekly TF, even a 2 moving average has merit.




1000 pips on a weekly is not strange... as pointed out AJ there's some strengh to your idea I have been going over daily charts on the Major USD pairs a few nice one jump out... main thing is entry and being sure a new move is move. But hey no matter what time frame or method you trade that's a problem we all face!

 keep us posted with you trades, and on the next clear trend change i might  have a swing at one on the eur/usd.


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## cogs (2 February 2013)

> A 30 pip stop won’t be suitable for trading off a daily time frame cogs... I think AJ looking at trading higher times frames is this right AJ?



Yes, I agree mostly. Still not my point though, if AJ wants to use such huge stops there would be no need if his entry was a wise one. 
But talking about this is one thing, taking the plunge and placing a live position is another. I have posted many live trades here recently using my methods (all in profit). 

Setting such wide stops is quite acceptable unleveraged and stops well beyond 1000 pips is normal.

I am using leverage so I'll just stay out of this conversation I think.


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## AverageJoe (2 February 2013)

cogs said:


> Yes, I agree mostly. Still not my point though, if AJ wants to use such huge stops there would be no need if his entry was a wise one.
> But talking about this is one thing, taking the plunge and placing a live position is another. I have posted many live trades here recently using my methods (all in profit).
> 
> Setting such wide stops is quite acceptable unleveraged and stops well beyond 1000 pips is normal.
> ...




I would love your input as to what constitute a 'wise trade trigger' ? This is not a trick question. You said that you have posted many live trades so maybe an example will be good for my learning exercise. I am not interested in the 100pip movement but significant multiples of that. The only observation I came across is the time frame, the style ie. trend following or swing, and the size of the stops. Leverage is only a tool of efficient use of capital. In my earlier example if I had $10K real cash and I open a $10K position and 1000pip stop(example) then my risk is 10%=$1K. I don't see that to any different to say buying a speckie and wait. So for some one highly leveraged into a trade might think this is just too much risk but from my perspective it is not because I know how much I am willing to lose. 

Now to the strategy, it would be nice if some of the season traders/investors talk briefly about their trading for us newbies. 

Cheers,

AJ


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## bailx (2 February 2013)

AverageJoe said:


> I would love your input as to what constitute a 'wise trade trigger' ? This is not a trick question. You said that you have posted many live trades so maybe an example will be good for my learning exercise. I am not interested in the 100pip movement but significant multiples of that. The only observation I came across is the time frame, the style ie. trend following or swing, and the size of the stops. Leverage is only a tool of efficient use of capital. In my earlier example if I had $10K real cash and I open a $10K position and 1000pip stop(example) then my risk is 10%=$1K. I don't see that to any different to say buying a speckie and wait. So for some one highly leveraged into a trade might think this is just too much risk but from my perspective it is not because I know how much I am willing to lose.
> 
> Now to the strategy, it would be nice if some of the season traders/investors talk briefly about their trading for us newbies.
> 
> ...




AJ Sure thing, FX trading is really not as complicated as it may appear. It all comes down to doing your own research, minding your own business and keeping your head ( Above water )to the books, ( internet ). So to speak. After reading past threads, thier's a lot of confusion, towards wear to to start and how to make a successful trade. To continue the process and to keep a profitable upkeep, and keep it that way only to improve.
May I first introduce to my reference and philosophy to trading. 
	

		
			
		

		
	

View attachment 7HabitsTrader.pdf

	

		
			
		

		
	
 I understand were you are coming from I have a couple of very successful strategy's, that do me fine and are very successful. And as far as I'm concerned it's all mind over matter! If your don't have piece of mind over your situation, than it don't matter. ( Forget it ).
Being Strategic in the FX market involves the same principle as it deserves and the same respect....
To be honest with you; it comes down to  the Fundamentals and your Technical Analysis, to derive the the situation, and purchase buy, Sell, FX. Not exactly the same as investing in the equity market for retirement. You need to be on your game and in the thick of the economic news and its data. This in turn gives the push for you to use your TA experience ( Strategy ). To establish Buy, Sell opportunities in the Market.
Then this & everything begums obvious, and delightfully the basics. As you may well know. 
As for strategy's, its bit like trying to pull fish out of the water. Everyone to their own!
Although i would like to give an insight to starting a strategy.......

This is best influence I can give to strategy. After cir-cumming your fundamental and economic news to give you direction, and to establish your input towards the market. Use indicators MACD, STO , RSI, as TA and follow the market down, from wk , dy, 8, 4, 1h to establish the best value and your buy and sell points. 

This is a basic strategy. And Flexible Strategy as I'm sure your will learn your way from there.

All the best guy's and  I hope as I'm sure this information will be use full towards your trading and of assistance to your strategic views....


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## bailx (3 February 2013)

DAY-TRADING STRATEGY...........

Finding support and resistance for a day-trader can keep him alive in a volatile market. Here's one idea, implemented with others, to find those target areas. My personal preference for day-trading and short-term trading is to buy dips and sell rallies.
Two components are needed to make this strategy work. First, you have to be trading in the direction that gives you the best chance of success.
Second, you have to be able to identify potential support or resistance for that trading day. I'll discuss one technique from each of these components that make up my day-trading approach.
The first step is to determine which way the market is likely to go today – in other words, is the trend up, down or sideways?
One method to determine the market trend involves a couple of old standby technical indicators that are available on virtually any charting software: the Moving Average Convergence Divergence (MACD) and the stochastic indicators. These oldies but goodies really can be useful if used in the proper combination.
Look at both the MACD and the Slow Stochastic on a daily chart to determine in which direction you want to trade the next day. For the MACD, I use a little longer time value for my inputs than the standard –
say, around a 10-30-10 exponential moving average combination. I also use a slow stochastic indicator with an input value of somewhere around 20 days.
Both of these indicators should be displayed together under the price data. Look for situations when both the MACD indicator and the stochastic indicator are on the same side of the signal line.
If both are above their respective signal lines, then trade the buy side. If both are below their respective signal lines, trade the sell side. Quite often you'll find the MACD and the stochastic indicators are on the opposite sides of their respective signal lines. In these cases, avoid the market. The accompanying charts show this simple combination eliminates a lot of noise from the market and identifies those times when the market has the best chance to make a trend move. Throw these indicators up on any chart together, and you will see this combination works infinitely better than either indicator alone.




There's a lot more to this strategy and for more info be in contact......

Good luck.............. Bailxtrader@gmx.com


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## bailx (6 February 2013)

I've learnt that in my experiences in surfing and doing me home work that it doesn't cost anything. And I now trade with every confidence that I know what I'm doing. Every trade a Winner.
But we all have had our episodes;

View attachment StrikeFX.pdf
View attachment FXWeek.pdf
View attachment HST.pdf
View attachment Day_Trading_CurrencyII.pdf

	

		
			
		

		
	
,  

Spend a little hear and there just to get sum from the insider.  Because I know where you guy's are at, and I can understand your frustrations, in being so close to the answer. I thought it best to throw in these pdf 's files that will keep any reader interested, and give you extra momentum, and it may assist with your mind set towards trading. I don't  believe I trade these systems or need to trade them, but suggest you try them out because you may evolve  into a millionaire investor, or a season pro. They are very cost affective and you should learn aimlessly should you invest. If you have a couple of dollars to educate your self yourself try these authors out...............I know I will......................?!!!

kind regards,

Bailx


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## TulipFX (22 February 2013)

AverageJoe said:


> Now to the strategy, it would be nice if some of the season traders/investors talk briefly about their trading for us newbies.
> 
> AJ




There are as many ways to trade the market as there are to skin a cat (curious idiom, has anyone here actually skinned a cat before?). What is good for one trader, may not be for another.

One system which may work for one may not for another. Systems for manual trading, no matter how many indicators or rules have a significant reliance on the human driving the trades. There are grey areas involving market feel, weighing up of fundamental factors when entering or exiting a trade. Further murking these waters is the under recognised effect of emotions. The saying 'cut your losses and let your profits run' is a wise saying, but it is more difficult to do than is often credited. Personally I have no shame in saying I failed in controlling my trading emotions and adhering to the above rule.

That is why I trade exclusively using algorithmic trading. There is no emotion involved in trading decisions by statistics. There is also no gut feel and fundamental factors outside of avoiding news announcements are very difficult to include in a syntaxed trading instruction to a computer.

The underlying methods of trading however can and often are similar. One automated system might look to recognise a strong trend and trade the pull backs. Another might look to trade the breakout from a range, or alternatively trade within a range. All methods used by manual traders too. The implementation of these systems differ slightly due to the comparative advantages and disadvantages of manual and automated strategies.

Where automated trading can have a good advantage over manual trading is in systems where multiple trades on multiple pairs are used together. As an example one system in development has gained 33,000 pips in 3 months, managing on average 200 positions across almost all pairs concurrently. This degree of market/position checking would be impossible for a human. 

Alternatively, manual, price action only trading can be done to great effect by a human, but would be near impossible to do to the same effectiveness by an automated computer syntax.

Most important, is that whatever system, whatever style you use is that you are consistent, manage your risk responsibly and are profitable in the long term. Noone, no system will always make money with no risk. If it could its owners/traders would quickly rake in all the money in the entire world. That will never happen.

So good luck! If you wish to learn how to manually trade there are many free resources on the internet. Make use of them. There is no need to pay for training courses or fool proof systems, especially not at the very start. Sign up to a brokers demo and have a go. If you are successful at that, fund a small account (say $1000) and see how you go with the added emotional pressure of real money.

It is common wisdom that to become an expert at something it takes 10,000 hours of practice. Be it plumbing, medical or in our case trading. So don't expect it to come quickly or easy. Discipline, mistakes, lightbulb moments and periods of despair will lie between the start and profitable trading.


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## AuthenticFX (23 February 2013)

> There is no need to pay for training courses or fool proof systems, especially not at the very start.




- totally agree, worst mistake I ever made, spending dollars thinking it would somehow push me to the front of the queue. There will come  time to spend, but in the beginning save all the time by getting whatever you can for free... 

BTW Dutch, Fox is far harder to skin ;-)

Erron


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## TradingCulture (4 March 2013)

If you're strapped for cash your first option is to find free information, learning tutorials and anything else that can help you with understanding forex. 

*Robots*

What I would advise against is the need for any new trader being sucked into buying trading software/robots. If someone is selling you a 'robot' that claims to make 'X' amount of dollars per month, why are they charging such a low amount for it? Like $97 once off fee, if you had a system that could make double digit figures per month wouldn't you sell it for a much higher price? 

Try not to get caught up in the hype of Forex trading. Yes it is exciting but it's not a get-rich quick scheme. If you still feel the urge to purchase a 'robot' first try find someone that has made high returns off it besides the person selling it the system.

In short, you should avoid trading programs like the plague and stick to learning the fundamentals of Forex through Free online tutorials such as www.babypips.com these guys really keep the language in plain English and make it easy to understand the most complicated concepts. For quick & basic video tutorials also check out http://www.forex.com/au/forex-video-tutorials.html.

*Training*
With reference to paying for training or coaching, It really depends on your personality, if you are confident in learning on your own then self-learning is the way to go. If you're in need of insight and support then coaching and training would be a more suitable option. 

Self-Learning
Pros of self learning: It's Free
Cons of Self learning: Feedback and Adjustments are measured by account performance (can be a good or bad indicator for a trader)

Coaching
Pros of Coaching: Expert Advice and Insights on what not to do and how to identify opportunities
Cons of Coaching: Fees are high (But fees can potentially outweigh the costs of losing vast amounts of money on  your own)

I agree AuthenticFX, in the beginning get what you can for free, books, seminars, learning tutorials, video tutorials anything. It will take 6+ months (average) to understand and learn Forex and another 6 months of constant trading to adjust your trading strategy for consistency and results. Consider training/coaching services once you're ready to take your trading to the next level.


Good luck! Any questions feel free to contact me via email: pablo@tradingculture.com

Regards, 

Pablo


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## Gringotts Bank (1 July 2013)

Hi forex beginner here,

Say I'm capable of capturing 20 pips per day on USDAUD, and I want to make $500 profit from that, how many lots do I need to trade?

Thanks.


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## Trembling Hand (1 July 2013)

Gringotts Bank said:


> Hi forex beginner here,
> 
> Say I'm capable of capturing 20 pips per day on USDAUD, and I want to make $500 profit from that, how many lots do I need to trade?
> 
> Thanks.




http://www.babypips.com/tools/forex-calculators/pipvalue.php


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## Gringotts Bank (1 July 2013)

Trembling Hand said:


> http://www.babypips.com/tools/forex-calculators/pipvalue.php




Cheers.


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## >Apocalypto< (14 July 2013)

Gringotts Bank said:


> Hi forex beginner here,
> 
> Say I'm capable of capturing 20 pips per day on USDAUD, and I want to make $500 profit from that, how many lots do I need to trade?
> 
> Thanks.




stop thinking about trading FX in this way. Step one open a demo and try to finish the week in front, go from there.

Plus most brokers offer the AUDUSD not in reverse.


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## dennon (27 July 2013)

AverageJoe said:


> Any one wants a full proof profitable trading system? I have one ...
> 
> Start with a small position and use a GIGANTIC stop, then sit back and decide when in profit.




LOL!! That is IF you have a SUPER GIGANTIC margin to trade with.. 

- - - Updated - - -



>Apocalypto< said:


> stop thinking about trading FX in this way. Step one open a demo and try to finish the week in front, go from there.
> 
> Plus most brokers offer the AUDUSD not in reverse.




Totally agree with Apocalypto!
Don't be emotional attached when trading. Greed is your no 1 enemy.
Aim to have 80% to 90% consistent winning trades within a week or so.. PLUS making sure your draw down ain't too big.. in summary.. trade in moderation and good wisdom comes with lots of trial and errors (in demos). 

All the best!


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## bailx (28 July 2013)

learn everything with 'Babypips.com


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## rrayne20009 (17 November 2013)

bailx said:


> learn everything with 'Babypips.com




yeah...I am newbie and learning from their school of pipsiology


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## leebelisar (16 December 2013)

mayoush said:


> Forex is short for foreign exchange, but the actual asset class we are referring to is currencies.
> Forex is something like going to a foreign exchange and exchanging one country's currency into another country's currency.
> Due to the fact that business is global there is a need to transact with most other countries in their own particular currency.
> This service has been taken up by the commercial and investment banks on behalf of their clients, but has simultaneously provided a speculative environment for trading one currency against another using the internet.
> Join this thread to discuss more of forex - methods, strategies, market news and all.



New trader here and I want to learn more. I want to make profit with my broker that's why I am here. Also I would like to make more friends and meet other traders so we can learn from each other.


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## >Apocalypto< (18 December 2013)

leebelisar said:


> New trader here and I want to learn more. I want to make profit with my broker that's why I am here. Also I would like to make more friends and meet other traders so we can learn from each other.




keep trading demo till you can make a profit 3 months in a row.. open a live acc with 100$ in it... try to make a profit for another 6 months in a row... increase acc to 500 if successful and repeat the 6 months. if you feel this is way to long emotionally you're not ready to trade properly. my


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## Marekzero (18 December 2013)

>Apocalypto< said:


> keep trading demo till you can make a profit 3 months in a row.. open a live acc with 100$ in it... try to make a profit for another 6 months in a row... increase acc to 500 if successful and repeat the 6 months. if you feel this is way to long emotionally you're not ready to trade properly. my




That sounds like a great way to begin although what broker would you suggest? As having such a small account would be susceptible to spreads etc. 

I know IB are good brokers but they mention requiring 10,000 USD to fund the account and 100 executions.

Thanks.


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## >Apocalypto< (19 December 2013)

Marekzero said:


> That sounds like a great way to begin although what broker would you suggest? As having such a small account would be susceptible to spreads etc.
> 
> I know IB are good brokers but they mention requiring 10,000 USD to fund the account and 100 executions.
> 
> Thanks.




Hi, I used IB for 2-3 years.. loved them. but for a beginner it's not your first choice. as noted you need to open with USD 10K minimum 2nd if you're not trading 100K the coms will hurt you. IB are a fantastic Broker but start on a MT4 broker till you get to their required level.

I think Pepperstone or Gomarkets are perfect to start out with. I am with Pepperstone atm. I am not trading a large account. (SUB 2K) I use Pepperstones edge razor acc and i'm happy with it. I also used go markets and think there good as well. both offer unlimited demos. I just find Pepperstones edge razor acc offers better spreads on the GBPJPY which is the only pair I trade atm. 

cheers


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## TulipFX (19 December 2013)

Marekzero said:


> That sounds like a great way to begin although what broker would you suggest?




ICMarkets or Pepperstone.

You can see there is only a slight difference between the two:




Commissions included in that spread shown.

Can play with the broker/spread matrix here: http://www.myfxbook.com/forex-broker-spreads

Hope that helps. Green pips.


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## tradeboy (29 March 2014)

Forex beginners should start trading after only practicing hard in a demo account. It is not adviseable that a trader goes directly in his real account and ignores demo trading, in this way he will take long to become a profitable trader.


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## minwa (29 March 2014)

tradeboy said:


> Forex beginners should start trading after only practicing hard in a demo account. It is not adviseable that a trader goes directly in his real account and ignores demo trading, in this way he will take long to become a profitable trader.




I disagree, demo account should only be used to get familiar with the executions, thats all. You don't learn much when your money is not on the line. Your psychology is different.

Go straight into real account with a decent amount that you will feel for and lose it (most likely). You're going to end up blowing it, might as well get it over with early before playing around. Learn the lessons early on. Cost you less in the long run.


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## CanOz (30 March 2014)

minwa said:


> I disagree, demo account should only be used to get familiar with the executions, thats all. You don't learn much when your money is not on the line. Your psychology is different.
> 
> Go straight into real account with a decent amount that you will feel for and lose it (most likely). You're going to end up blowing it, might as well get it over with early before playing around. Learn the lessons early on. Cost you less in the long run.




In my view a demo account should be used to perfect the use of the platform, practice execution of your stable of plays and collect some decent stats to determine when and IF you go live, you'll have a chance at being profitable. The psychological factors will be easier to overcome if you have confidence in your ability/skill/playbook backed up by a solid run on a sim account...I'm talking hundreds or many hundreds of trades on one market.


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## minwa (30 March 2014)

CanOz said:


> In my view a demo account should be used to perfect the use of the platform, practice execution of your stable of plays and collect some decent stats to determine when and IF you go live, you'll have a chance at being profitable. The psychological factors will be easier to overcome if you have confidence in your ability/skill/playbook backed up by a solid run on a sim account...I'm talking hundreds or many hundreds of trades on one market.




Hundreds of trades, means you are day trading ? You probably are trading futures I beleive not forex because the spreads on demo forex accounts which almost all beginners use, MT4 brokers, are lower than actual live accounts. This greatly skews the results for day traders. I have compared 3 brokers, side by side demo and live. You may find it you get different results when you fund a live account which limits the usefulness of demo accounts.


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## CanOz (31 March 2014)

minwa said:


> Hundreds of trades, means you are day trading ? You probably are trading futures I believe not forex because the spreads on demo forex accounts which almost all beginners use, MT4 brokers, are lower than actual live accounts. This greatly skews the results for day traders. I have compared 3 brokers, side by side demo and live. You may find it you get different results when you fund a live account which limits the usefulness of demo accounts.




I see your point...So why not trade through IB or just trade currency futures?


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## Wysiwyg (31 March 2014)

Another alternative is to purchase a T.A. and trading system testing software package. Acquire historical data (I keep back fills from bought real time data as well as free unadjusted data) and test with the Charting software. That way you can grasp an idea of what may work in real time as well as study price action. Stabbing at prices on a simulation chart won't teach you what you want to know. That is (as Tech.A often quotes) "is this system profitable". First create a system away from the game and then test it on simulated prices. Either way it can be a long road and many do not make it.


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## minwa (31 March 2014)

CanOz said:


> I see your point...So why not trade through IB or just trade currency futures?




I do trade FX through IB, but beginners are not going to, nor will they touch futures. Generalisation but I think it's pretty true in most cases.


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## daniellindsay (17 April 2014)

cogs said:


> Not sure what or who's comment you are replying to, but it doesn't really make much sense to any of the postings?




So true!


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## rcctradings (19 April 2014)

>Apocalypto< said:


> IB are a fantastic Broker but start on a MT4 broker till you get to their required level.
> 
> cheers




Is the MT4 Dealer Virtual Plugin still a concern? Pepperstone/GoMarkets don't use it?


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