# Forex for Dummies 2



## tech/a

I think this is a thread which will help more people than myself.
I hope those who managed to destroy the initial thread will have the *maturity *to let this thread be a valuable resource for those of us with genuine basic questions.

Thank you to those who have contributed positively so far.


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## >Apocalypto<

*Re: FOREX for Dummies. 2*



tech/a said:


> I think this is a thread which will help more people than myself.
> I hope those who managed to destroy the initial thread will have the *maturity *to let this thread be a valuable resource for those of us with genuine basic questions.
> 
> Thank you to those who have contributed positively so far.




ask away I am happy to help!

sorry for the last thread tech


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## Cartman

*Re: FOREX for Dummies. 2*



>Apocalypto< said:


> ask away I am happy to help!
> 
> sorry for the last thread tech




nothing wrong with the last thread Apoc ---- no apologies required from where i sit


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## Stormin_Norman

*Re: FOREX for Dummies. 2*



tech/a said:


> I think this is a thread which will help more people than myself.
> I hope those who managed to destroy the initial thread will have the *maturity *to let this thread be a valuable resource for those of us with genuine basic questions.
> 
> Thank you to those who have contributed positively so far.




how about the maturity to sift through the information you want instead of insulting those who freely provide it in the opening of a new thread?

like i said, ask a question in a thread, and let it run. everything is tangential. nothing should be pigeon-holed. all questions posed were answered, as well as other discussions those simple answers bought up.

ill leave you to it. google what you want to know. there are plenty of sites out there to explain pip values and the like.


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## BentRod

Found Fxwords the other day, great site for definition of terms etc.

cheers.


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## lesm

tech/a,

Fire away, have all your original questions been answered?

You may be interested in taking out a free subscription to Currency Trader magazine:

http://www.currencytradermag.com/subscribe/index.php

It provides a range of information on currencies, as well as statistics that you may find of interest.

Can drop 18 months worth of back issues on a CD and mail them to you if you like. Too big to email.

Cheers.


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## tech/a

One thing that has always put me off is the times when FX is traded.
IE when most are asleep me included.

So when do you guys trade FX?
Is it best to trade in particular sessions for particular contracts?


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## lesm

tech/a said:


> One thing that has always put me off is the times when FX is traded.
> IE when most are asleep me included.
> 
> So when do you guys trade FX?
> Is it best to trade in particular sessions for particular contracts?




I would normally start trading around 8:00pm until around midnight to 2:00am, depending on how tired or busy I am.

My preference is for the London and London/New York overlap anyway, due to higher levels of volatility and actvity. Besides sleep, work also gets in the way. 

As a general rule of thumb, individual currencies have a tendency to trade more actively in their own regions trading session, eg. aud, yen, nzd, eur, gbp, usd, etc.

With the major sessions being Sydney, Tokyo, London and New York and depending on which currencies you wish to trade you can select a session to trade in that suits. Just be aware that the level of activity and volatility will vary depending on the session. But, all are tradeable.

The sleep friendly sessions for us are the first three, especially with daylight saving currently in effect. While each of the sessions have time periods where they are open in isolation they also have periods where they overlap.

The periods when the sessions overlap tend to have a higher level of activity, as well as volatility. The London/New York overlap is usually the most active and volatile.

Hope this helps


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## kam75

I'm learning Forex but it simply makes no sense to me (I'm someone who's been trading shares for 8 years, CFDs and options for 4).  

Can some of you guys who make money trading FX please explain to me how on Earth do you determine which way the price is going to go?  In shares, I've got Volume and OBV to show me buying pressure or selling pressure.  In FX there ain't any of this.  I'm completely blind when trading FX.  Please someone Heeelp!


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## white_goodman

kam75 said:


> I'm learning Forex but it simply makes no sense to me (I'm someone who's been trading shares for 8 years, CFDs and options for 4).
> 
> Can some of you guys who make money trading FX please explain to me how on Earth do you determine which way the price is going to go?  In shares, I've got Volume and OBV to show me buying pressure or selling pressure.  In FX there ain't any of this.  I'm completely blind when trading FX.  Please someone Heeelp!





a lot of people use S/R and FIb, alot also use stuff like stochastics and bollinger bands (i dont udnerstand them), a lot use multiple moving averages either exponential or simple, i utilise a MACD (moving average convergence divergence indicator)... ive used VSA for shares in the past but dont use it in forex, but atm im utilising range trading so indicators dont really bother me...

if you download a demo of mt4 from a brokers site you will see all the types of indicators. Gotta be careful around news time tho as analysis can be interrupted or skewed during big economic announcement such as non farm payroll, IR announcements etc


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## >Apocalypto<

tech/a said:


> One thing that has always put me off is the times when FX is traded.
> IE when most are asleep me included.
> 
> So when do you guys trade FX?
> Is it best to trade in particular sessions for particular contracts?




Hi tech

I normally trade from 5pm to 2am Melb time. I prefer the more liquid times of the euro and us sessions. you also get the 1 hour cross over with japan and europe.


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## CanOz

kam75 said:


> explain to me how on Earth do you determine which way the price is going to go?




Why do you need to know this? Isn't it good enough to assume like the other FX traders, that the price may follow the current trend and all you need to do is find a place to jump on. After this, if you manage your risk and your trades, then the miracle of positive expectancy takes over.

CanOz


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## MS+Tradesim

For those with IB, I can offer a dynamic position sizer spreadsheet. It's offered as is...check it thoroughly. I take no responsibility if it's wrong.  It only updates live when you're connected to TWS. A lot more can be done with it but I've been busy on system development.

Ensure you have the API program from IB downloaded and installed. Once installed, open TWS and turn on API/DDE. Then open the spreadsheet and do a Find/Replace all "username123" with your TWS username.


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## lusk

MS+Tradesim said:


> For those with IB, I can offer a dynamic position sizer spreadsheet. It's offered as is...check it thoroughly. I take no responsibility if it's wrong.  It only updates live when you're connected to TWS. A lot more can be done with it but I've been busy on system development.
> 
> Ensure you have the API program from IB downloaded and installed. Once installed, open TWS and turn on API/DDE. Then open the spreadsheet and do a Find/Replace all "username123" with your TWS username.




That looks great thanks, 

Best world time clock l've found to date if anyone hasn't already got it.

http://www.forexfactory.com/showthread.php?t=102905


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## white_goodman

lusk said:


> That looks great thanks,
> 
> Best world time clock l've found to date if anyone hasn't already got it.
> 
> http://www.forexfactory.com/showthread.php?t=102905




wow good link...


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## MS+Tradesim

Bunch of useful stuff here with a lot of introductory reading. Not all good but some gems.

http://www.earnforex.com/forex_articles.php


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## lesm

Oanda has number of free tools available under the FXLabs Section of its website.

http://fxlabs.oanda.com/cgi/fxlabs.pl


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## lesm

Another Fx specific forum:

http://www.moneytec.com/forums/


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## kam75

CanOz said:


> Why do you need to know this? Isn't it good enough to assume like the other FX traders, that the price may follow the current trend and all you need to do is find a place to jump on. After this, if you manage your risk and your trades, then the miracle of positive expectancy takes over.
> 
> CanOz




I see what you're saying.  But I thought the expectancy of a trading system changes with the market.  One month it's positive, the next negative.  At the moment I don't have a FX trading system that's been tried and tested to be positive for years and I have no idea of how to begin developing one.  Any clues would be greatly appreciated.


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## CanOz

kam75 said:


> I see what you're saying.  But I thought the expectancy of a trading system changes with the market.  One month it's positive, the next negative.  At the moment I don't have a FX trading system that's been tried and tested to be positive for years and I have no idea of how to begin developing one.  Any clues would be greatly appreciated.




Google 3 ducks. Its a system that you can trade, even if its demo for a while. Then you can get other ideas. Even Stormins system, trade it on a demo and get some ideas. I've been into three x 3 duck trades tonight, all winners too.

Cheers Kam,

CanOz


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## Stormin_Norman

kam75 said:


> I'm learning Forex but it simply makes no sense to me (I'm someone who's been trading shares for 8 years, CFDs and options for 4).
> 
> Can some of you guys who make money trading FX please explain to me how on Earth do you determine which way the price is going to go?  In shares, I've got Volume and OBV to show me buying pressure or selling pressure.  In FX there ain't any of this.  I'm completely blind when trading FX.  Please someone Heeelp!




have a look in the forex4dummies#1 thread. you might pick up some ideas from there.


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## wayneL

kam75 said:


> I'm learning Forex but it simply makes no sense to me (I'm someone who's been trading shares for 8 years, CFDs and options for 4).
> 
> Can some of you guys who make money trading FX please explain to me how on Earth do you determine which way the price is going to go?  In shares, I've got Volume and OBV to show me buying pressure or selling pressure.  In FX there ain't any of this.  I'm completely blind when trading FX.  Please someone Heeelp!




Trade currency futures man. Though there are factors affecting volume that you would have to be aware of, depending on your time frame (whether intraday, daily etc)


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## It's Snake Pliskin

tech/a said:


> One thing that has always put me off is the times when FX is traded.
> IE when most are asleep me included.
> 
> So when do you guys trade FX?
> Is it best to trade in particular sessions for particular contracts?



Tech/a,

The issue is liquidity and liquidity for the time you enter and exit trades. Some periods have little liquidity and others higher. Trading the Tokyo session is one of mine as is the London session. Also the pair you are trading is going to be different in different time zones. 

You can trade the Tokyo session when trading the ASX and then you can avoid getting caught up in the nasty news events that come out of the US.  

Cheers..

*Discussion only. Do your own research.*


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## tayser

lusk said:


> That looks great thanks,
> 
> Best world time clock l've found to date if anyone hasn't already got it.
> 
> http://www.forexfactory.com/showthread.php?t=102905




Europe and London times are showing session starts at 5 and 6pm: Paris/Frankfurt = 6pm, London = 7pm.

All you need to know about opens is that it's 8am in the local timezone and most retail brokers will kick off Monday at New York 5pm Sunday (9am in Australia, 11am in New Zealand) and close 4-5pm New York Friday.

Get the Firefox "Foxclocks" add-on and just put: Auckland, Melbourne/Sydney, Tokyo, Hong Kong, Paris, London and New York in the display.


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## lusk

tayser said:


> Europe and London times are showing session starts at 5 and 6pm: Paris/Frankfurt = 6pm, London = 7pm.
> 
> All you need to know about opens is that it's 8am in the local timezone and most retail brokers will kick off Monday at New York 5pm Sunday (9am in Australia, 11am in New Zealand) and close 4-5pm New York Friday.
> 
> Get the Firefox "Foxclocks" add-on and just put: Auckland, Melbourne/Sydney, Tokyo, Hong Kong, Paris, London and New York in the display.




Yeah l realised that when l first started using it but it seems its like that for a reason and does work quite well. The guy that wrote the program gave this reason for the offset.

"I know that technically that London should be 8am but Forex is always open right? The positions of the opens are more designed to reflect when the market starts to become more active. London institutional traders start to look at the market from 7am to see what Tokyo has been doing. Also things tend to wind down around 4pm in London."


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## Page

I always use the S/R to come out of execute my trades. Very few times, i have used the limit order. I always use the stop loss as well as the S/R to execute my trades.


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## tech/a

Thanks Snake.
Wayne--duly noted.


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## dit1

Can someone please tell me what time each market opens and closes in Adelaide time...I am just glad I'm posting in the dummy thread.
Also the market closing on Friday, what time here?


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## MS+Tradesim

dit1 said:


> Can someone please tell me what time each market opens and closes in Adelaide time...I am just glad I'm posting in the dummy thread.
> Also the market closing on Friday, what time here?




http://www.forexmarkethours.com/
http://forex.timezoneconverter.com/index.cgi?timezone=Australia/Queensland&refresh=5

I like the first link as it gives a nice visual showing overlap of sessions.


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## BentRod

Tech.... If you are up at midnight(our time) watch the Euro or Cable on E-signal or a Metatrader demo so you can see what effect news has on the Currencies.

The first Friday of every month is when the Non Farm Payroll comes out.

Generally it is the biggest market mover, if it surprises tonight there will be some huge moves.


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## dit1

Thanks, yes I like the first link too.


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## Stormin_Norman

BentRod said:


> Tech.... If you are up at midnight(our time) watch the Euro or Cable on E-signal or a Metatrader demo so you can see what effect news has on the Currencies.
> 
> The first Friday of every month is when the Non Farm Payroll comes out.
> 
> Generally it is the biggest market mover, if it surprises tonight there will be some huge moves.




there's lots of news all over the shop tonight. ive had my afternoon nap and expect to be up all tonight.


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## MRC & Co

This doesn't exactly relate to the thread, well sort of does, but is more for you tech.

You have traded stocks for long enough, so there is nothing really to worry about on forex that may bite you unexpectedly.  Just a different market to get used to, and get used to the leverage.  

Forex trends well, and is supposedly the most 'technical' market out there, but the thing with it is, as far as I am aware of, there is no real true volume available, so you won't be able to apply your VSA (which would make a journey into FOREX worthless to you unless you change your style).

If your going to move to the futs, I think, with your background already in stocks, stock index futures are probably the best (though you have to work this out for yourself).  Then comes the hard part, picking which index (or even multiple), you are going to trade.  

Just a few things to think about.  

Don't have my contract specs with me on FOREX, so can't answer the Qs originally posted in the other thread.  A mate took them to borrow.


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## white_goodman

MRC & Co said:


> This doesn't exactly relate to the thread, well sort of does, but is more for you tech.
> 
> You have traded stocks for long enough, so there is nothing really to worry about on forex that may bite you unexpectedly.  Just a different market to get used to, and get used to the leverage.
> 
> Forex trends well, and is supposedly the most 'technical' market out there, but the thing with it is, as far as I am aware of, there is no real true volume available, so you won't be able to apply your VSA (which would make a journey into FOREX worthless to you unless you change your style).
> 
> If your going to move to the futs, I think, with your background already in stocks, stock index futures are probably the best (though you have to work this out for yourself).  Then comes the hard part, picking which index (or even multiple), you are going to trade.
> 
> Just a few things to think about.
> 
> Don't have my contract specs with me on FOREX, so can't answer the Qs originally posted in the other thread.  A mate took them to borrow.




Tradeguider will have you believe you can use volume but its jsut tick volume... I have tradeguider but dont use it at all in my forex systems, plenty of indicators and strategies out there that you dont have to rely on volume in forex i believe


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## Stormin_Norman

what can volume tell you in forex that price movement wont?


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## MRC & Co

Stormin_Norman said:


> what can volume tell you in forex that price movement wont?




That is the problem, you can't attain volume. 

But for many instruments, volume can help, plenty of work done around here by tech on VSA.  

As for you tech, I can't really help, but to say, I've tried trading (along with both US and Australian equities and ETFs), indices including Singapore, HHI, HSI, Taiwan, SPI, Nikkei, NASDAQ, S&P, DOW, commodities including both gold and oil, and currencies including Euro, AUD and Yen.  Didn't like the currencies at all (though did ok on both the Euro and Yen), despite many steering me towards them.  That is my perspective, at the very least.


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## lusk

white_goodman said:


> Tradeguider will have you believe you can use volume but its jsut tick volume... I have tradeguider but dont use it at all in my forex systems, plenty of indicators and strategies out there that you dont have to rely on volume in forex i believe






Stormin_Norman said:


> what can volume tell you in forex that price movement wont?





It uses tick volume but it does not matter, it is comparative so it still works. Trading without volume is like trying to cross a highway with a blindfold on and then wondering why you got hit.

Plenty of indicators and strategies that are easier to use than learning to read volume like most do.


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## Cartman

lusk said:


> Trading without volume is like trying to cross a highway with a blindfold on and then wondering why you got hit.




understand what u r saying Lusk --- but let me post a chart ---- no volume but very tradeable 

ps i use volume too ---- but its not as important as momentum is on FX --- only my opinion though


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## MRC & Co

lusk said:


> It uses tick volume but it does not matter, it is comparative so it still works. Trading without volume is like trying to cross a highway with a blindfold on and then wondering why you got hit.




Tick volume?  As in everytime the bid or offer is hit (regardless of size), it's added as 1 on the volume?  

If so, not the same.  Not even close.


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## tayser

lusk said:


> Trading without volume is like trying to cross a highway with a blindfold on and then wondering why you got hit.




Not in the FX world.


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## lusk

MRC & Co said:


> Tick volume?  As in everytime the bid or offer is hit (regardless of size), it's added as 1 on the volume?
> 
> If so, not the same.  Not even close.




Never said it was the same, its not actual volume but relative volume that allows you to compare to the previous bar. VSA does work with Forex.


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## MRC & Co

lusk said:


> Never said it was the same, its not actual volume but relative volume that allows you to compare to the previous bar. VSA does work with Forex.




Ok, if you make money trading FX with VSA, then I can't argue.

Doesn't make sense to me though.  A 20 lot hitting is different to a 1 lot, see tape reading.  The entire point of VSA is to watch for high/low volume and it's affect on price, tick data is quite different to that.  Not really getting to see the underlying battle of supply and demand.  

If your happy with that though, then good on you.


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## Cartman

lusk said:


> Never said it was the same, its not actual volume but relative volume that allows you to compare to the previous bar. VSA does work with Forex.





dont want to bog Techs new dummies thread down with idle superfluous chat cause it seemed to annoy him in dummies #1 ---- so perhaps the mods could transfer this line to the old thread if required  ---- but i am genuinely very interested in the application of 'relative volume'  and VSA on Forex -----   

Lusk, any examples of VSA application in this respect would be welcome.  Feel free to open it in the other dummies thread (where the real dummies were !!


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## tech/a

*Mirc,Cartman*

Lusk is correct.
Relative volume works very well with VSA.
If anyone wants the link to a 1.5 hr video of Gavin Holmes's Malaysian conference where he answers the question of relative volume and demonstrates VSA on Forex currencies.

Here it is
http://rs6.net/tn.jsp?e=0016C0pmT1u...ZzV_uryJhglSpZhcmrpzuTMjfjvgOPCOLr3HsHrJG3Asf


Also directly on FOREX

http://rs6.net/tn.jsp?e=001wjOGVuLA...2uHYjP39A8WH3K04zUKAeZXBl7vNjyVuYg-zGJ72WWGAL

Right click and save as (Whatever you like) then run.
It wont run direct from the link.

You have of course advertising blurb by Gavin at the beginning and end.
Its the middle you want!

If you think about it a very large holder of contracts isnt going to dump/buy them in 1 trade but many.

I know you all think Forex doesnt conform to volume analysis but these guys who trade it will definately disagree.


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## Cartman

tech/a said:


> *Mirc,Cartman*
> 
> Lusk is correct.
> Relative volume works very well with VSA.
> I know you all think Forex doesnt conform to volume analysis but these guys who trade it will definately disagree.




thank u for the link Tech ---- i will definitely have a squiz ---

as ive said,  i DO use volume to influence trading decisions, but i also think that in FX, momentum tells the same story ---- and often a little quicker than volume can do ----------- but im talking SHORT TERM here ------- VSA is relative to the time frame ---- i thunk !!!   (thank u Kauri    ---- where the hell is Kauri by the way ----------- i seriously think something may have happened to him


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## tech/a

> but im talking SHORT TERM here




So am I.


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## Stormin_Norman

the fx market is so huge and so liquid that volume is immediately reflected in price.

add up all the volume in all the world's sharemarkets, times it by 5 and you have the daily volume in the foreign exchange markets around the world.


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## MRC & Co

Stormin_Norman said:


> the fx market is so huge and so liquid that volume is immediately reflected in price.




Don't think you understand the reason for VSA.  

Of course, all volume is reflected in price regardless of the market, but in VSA (at least to me), you are looking for important points, which can be seen clearer with volume, and can give you more conviction, than price alone.  Like bottoms, tops and breakouts.  These are the areas of which large volumes will generally show up and be of serious note IMVHO.


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## tech/a

Deleted off topic


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## MRC & Co

tech/a said:


> Deleted off topic




Yes, I saw the post before it was deleted tech.  I am talking long upper wicks with large volume at tops, or long extended moves, or even just high volume, tight ranges (distribution).  Opposite at bottoms.  Simply just high volume reversal patterns. 

At breakouts, good pushes (high volume and closes), through the resistance/support area.  Basic Wyckoff.  

Perhaps move this to techs VSA thread.


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## Stormin_Norman

MRC & Co said:


> Don't think you understand the reason for VSA.
> 
> Of course, all volume is reflected in price regardless of the market, but in VSA (at least to me), you are looking for important points, which can be seen clearer with volume, and can give you more conviction, than price alone.  Like bottoms, tops and breakouts.  These are the areas of which large volumes will generally show up and be of serious note IMVHO.




i understand what youre saying. i think however price makes volume, not the other way around in forex. there are such varied ways to trade in the forex market, and its such a big market that i doubt an absolute truth on this (and many other) issues will ever be absolutely decided.

remember though there is no central market for FX, so any volume figures you obtain from your broker will be only a small part of the market that they are in (abit possible an indication of the wider market).


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## MRC & Co

Stormin_Norman said:


> i understand what youre saying. i think however price makes volume, not the other way around in forex.
> 
> remember though there is no central market for FX, so any volume figures you obtain from your broker will be only a small part of the market that they are in (abit possible an indication of the wider market).




Obviously, volume moves price: supply and demand determine price.  At important levels though, you make a good point, volume will come in dependent on where price is trading.  Again, this is all the same difference and will be seen with VSA.

Your second point is exactly my point.  I have a bad feeling that tradeguider tries to apply VSA to FX to help promote their product to FX traders.  Then again, if lusk trades successfully with it, then it can be done.  But sort of defeats the entire premise of VSA to me.


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## caribean

tech/a said:


> I think this is a thread which will help more people than myself.
> I hope those who managed to destroy the initial thread will have the *maturity *to let this thread be a valuable resource for those of us with genuine basic questions.
> 
> Thank you to those who have contributed positively so far.




Hi ,i'm surprised someone with your ability has the need to ask any kind of questions, even about a market you're only just starting to trade.
In saying that, and not having read all the aswers to your initial questions, it's great to see you and other people interested in currencies,
it might be that currency futures are your thing as they provide true volume,
plus bid&ask volume.
Current symbol for EUR/USD is 6EH9 on Globex.
IMHO currencies are a technical traders paradise, currently best times (assuming you don't want to stay up all night) is starting to get ready around 5:00 PM watch 6:00 pm European open and 7:00 PM London open, i usualy stay up till 9:00 to 10:00 PM, i don't feel the need to stay up any later.
Initial margins on IB are a bit high i think, with maintenance and overnight margins around the $5000.00, per 125000.00 contract ,$12.50 per point(which is the minimum if trading futures).
Good luck with your trading.


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## motorway

MRC & Co said:


> Obviously, volume moves price: supply and demand determine price.  At important levels though, you make a good point, volume will come in dependent on where price is trading.  Again, this is all the same difference and will be seen with VSA.
> 
> Your second point is exactly my point.  I have a bad feeling that tradeguider tries to apply VSA to FX to help promote their product to FX traders.  Then again, if lusk trades successfully with it, then it can be done.  But sort of defeats the entire premise of VSA to me.




MRC

If we see strength in a down bar/move

What is the strength we see ?

If you say strength is the volume + price movement ( off the bottom )

Then what comes first the down move or the volume

Did the volume lead the price ( down move )
or did the down move (price ) lead the volume

egg and chicken ?

However 

Substitute changes in liquidty

This must lead both price and volume..

motorway

My  1/2 of


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## tech/a

caribean said:


> Hi ,i'm surprised someone with your ability has the need to ask any kind of questions, even about a market you're only just starting to trade.





I love Sport.
Can bearfoot water ski.
Can snow ski proficiently.
But I cant Surf---- know I'd enjoy it!.

Reckon I could but if I ever took it up would have to ask all the dumb questions.

Infact its quite similar FX and Surfing.
Both have sharks as a hazzard!


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## Stormin_Norman

fx and surfing is very apt.

wait around, watching the bobbles, waiting for the big waves to catch.

you dont really need to know why the waves come, just be in position to catch them when they come!


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## white_goodman

Stormin_Norman said:


> fx and surfing is very apt.
> 
> wait around, watching the bobbles, waiting for the big waves to catch.
> 
> you dont really need to know why the waves come, just be in position to catch them when they come!




unless your too top heavy like me and get pitted and dragged onto the reef


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## caribean

tech/a said:


> I love Sport.
> Can bearfoot water ski.
> Can snow ski proficiently.
> But I cant Surf---- know I'd enjoy it!.
> 
> Reckon I could but if I ever took it up would have to ask all the dumb questions.
> 
> Infact its quite similar FX and Surfing.
> Both have sharks as a hazzard!




Wow i'm impressed by your reply!
The surfing, sharks and all the rest...did you have to think very hard for that  extraordinary piece of writing, and did you understand exactly what you are insinuating ???
Never mind, i have to thank you, you reminded me why i only post in a private forum.


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## MRC & Co

motorway said:


> egg and chicken ?
> 
> However
> 
> Substitute changes in liquidty
> 
> This must lead both price and volume..
> 
> motorway
> 
> My  1/2 of




Yes, it's all the same difference in the end.

I'm not sure I understand what you mean by substitute changes in liquidity?


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## Cartman

motorway said:


> Substitute changes in liquidty
> 
> This must lead both price and volume..
> 
> motorway




i like the way u talk in riddles M/W  ------ i do it too, but my reasons are mainly due to a molecular inconsistency within the sub thermal membrane of my endoplasmic reticulum ----  ---- just joshing with ya!

seriously though ---- i like the way u think ---- if i was to say in regard to yr statement above ---  'Substitute changes in liquidity" etc   that i will substitute yr statement with the following -------

the *position* that volume enters the market in relation to the *position* of both the short, medium and longer term *cycle of the given instrument*, has the *most bearing* on the *importance* of *that* volume  ---- AND  (i know u want more  ---- 

the *position* that volume enters *on a given bar* (particularly high range bars) is of even more importance to a *shorter term* trader ---

would that make any sense to u??? ----- just curious ----- cause most people wont bother to even read what i just wrote lol ----- and who could blame 'em!!


----------



## Cartman

caribean said:


> Hi ,i'm surprised someone with your ability has the need to ask any kind of questions,









tech/a said:


> Infact its quite similar FX and Surfing.
> Both have *sharks* as a hazzard!








caribean said:


> Wow i'm impressed by your reply!
> The surfing, sharks and all the rest...did you have to think very hard for that  extraordinary piece of writing,
> Never mind, i have to thank you, you reminded me why i only post in a private forum.





c'mon u guys --- now who started this !! -----


----------



## tech/a

Caribean

Not until I saw your avatar.
Never gave it a thought at the time.
No direct comparison meant.

My apologies I can see where you'd have been miffed.


----------



## caribean

Apologies accepted, i'd have to be the last person here to be called a "shark"
as i'm always sincere with what i write.
When i said: "a person of your abilities", it wasn't a smartarse remark.
Anyway, good luck with your trading.


----------



## kam75

CanOz and White_Goodman many thanks for your answers.  I've been testing Captain Currency's 3 Duck Trading System for the past week on MT4.  Do you or someone else here day-trade this trading system with MT4?  If so, I have more questions:

1. Metatrader4 currently rejects my stoploss if its less than 60 pips. Why? Can this be changed and how?

2. Can I use Metatrader4 to trade with real money with a broker - how can I configure the software.  (It's currently a demo, do i need to purchase license?)

3. How reliable is the demo data feed?  Do you guys use it to trade for real or use other data, if so which one?

4. Is there an Australian Forex broker you would recommend to trade with, using MT4?

Many thanks
kam75


----------



## BentRod

> 1. Metatrader4 currently rejects my stoploss if its less than 60 pips. Why? Can this be changed and how?




Not sure which demo you are using but that does not sound right. Try another demo.

Try Alpari.



> 2. Can I use Metatrader4 to trade with real money with a broker - how can I configure the software. (It's currently a demo, do i need to purchase license?)




Yes you can use it with a broker free of charge with real money but I would not recommend it. 
Basically MT4 is what all the prime bucket shops use and if a broker is using it, best to steer clear.

MT4 is a good charting platform but useless to trade from , you will get nothing but slippage(Disguised as requotes) and other various problems(read: safety of your money).

The only time MT4 might be useful is if you are using an EA(not the rip-off bought ones though

As soon as you get to decent size they will cut you off anyway.




> 3. How reliable is the demo data feed? Do you guys use it to trade for real or use other data, if so which one?




Data feeds vary within a few pips. I use MT4 for basic charting but execute trades through Oanda. 
This is only because Oanda is such a bad platform, if they had a decent platform I wouldn't use MT4.



> 4. Is there an Australian Forex broker you would recommend to trade with, using MT4?




No.

There is only one, Go Markets, personally I would not recommend them (or any other MT4 broker)


----------



## Stormin_Norman

i just started with go markets to run my MT4 EAs. i previously had used IBFX without any dramas.

ill let you know how go markets...well go


----------



## kam75

Stormin_Norman said:


> i just started with go markets to run my MT4 EAs. i previously had used IBFX without any dramas.
> 
> ill let you know how go markets...well go




Many thanks Stormin_Norman.  Can you tell me what were the spreads like?


----------



## white_goodman

Stormin_Norman said:


> i just started with go markets to run my MT4 EAs. i previously had used IBFX without any dramas.
> 
> ill let you know how go markets...well go




i use ibfx and gomarkets for both my EA's, they both seem the same spread wise...

but on the AUDNZD the ask(red line) always widens the spread when going down to reach one of my sells... not so much for my buys


----------



## Cartman

kam75 said:


> Can you tell me what were the spreads like?




at the current moment ---- different times slightly different spreads ---  Eur/Usd  drops to 2 during peak hours 


EURUSD 	3
AUDUSD	4
GBPUSD	3
EURGBP	6
USDJPY	3
AUDNZD	20
AUDCHF	9
AUDCAD	9
AUDJPY	7
CADJPY	8
CHFJPY	3
EURAUD	13
EURCHF	6
EURJPY	5
EURNZD	37
EURCAD	8
GBPCHF	8
GBPNZD	18
GBPAUD	21
GBPJPY	8
NZDCAD	10
NZDJPY	9
NZDUSD	3
NZDAUD	20
USDCAD	5
USDCHF	3
USDSGD	5


----------



## CanOz

kam75 said:


> Many thanks Stormin_Norman.  Can you tell me what were the spreads like?




Kam, hows the 3 ducks system going? Have you got some results yet? I've been trading it over my holidays and this week and will have two weeks worth of results soon that i'll post. 

Maybe we can start a separate thread on that system?

Cheers,


CanOz


----------



## Stormin_Norman

kam75 said:


> Many thanks Stormin_Norman.  Can you tell me what were the spreads like?




as above i think but 2 on eurusd and 3 on aussie.

http://www.gomarketsaus.com/forex


----------



## tech/a

Dumb question 101

When do you know when to trade the next periods contract and when to stop trading the current?


----------



## BentRod

Tech,
        Most here don't trade the futures.

Only Spot.


----------



## Gundini

tech/a said:


> Dumb question 101
> 
> When do you know when to trade the next periods contract and when to stop trading the current?




When you are on a massive profit,

or

when your stops are triggered, and you are tired.


----------



## tech/a

BentRod said:


> Tech,
> Most here don't trade the futures.
> 
> Only Spot.




Spot.

This is english--no?

Speak slowwwly I no understand your lingo.


----------



## BentRod

Gundini said:


> When you are on a massive profit,
> 
> or
> 
> when your stops are triggered, and you are tired.




Gundi.....He's asking about the rollover.

Wayne or Trembler would know, I have no idea Tech???
When liquidity starts to dry up I guess.


----------



## BentRod

tech/a said:


> Spot.
> 
> This is english--no?
> 
> Speak slowwwly I no understand your lingo.




There are two ways to trade Currencies.

1)Futures

2)Spot

There are advantages/disadvantages of both.

Spot is more common as you can open small accounts and get more leverage.

Google "spot vs futures" .

http://www.learningmarkets.com/inde...n-9-forex-futures-vs-spot-forex-accounts.html


----------



## lesm

tech/a said:


> Dumb question 101
> 
> When do you know when to trade the next periods contract and when to stop trading the current?






> The expiry months specified for foreign currency futures contracts are March, June, September and December. All currency futures contracts expire at 12:00 two business days prior to the third Wednesday of the expiry month or, if that day is not a business day, then the previous business day




Can someone who trades currency futures please verify the above quote, believe it is correct.

As a rule of thumb, as a currency futures contract approaches its expiry date you should expect to see the prices start to track (converge) with the spot market prices.

You can consider rolling the contract over into the next period or close the position (contract). You will need the advice, as to the pros and cons, from an experienced currency futures trader on this. Some trading accounts are set up to auto rollover.

As mentioned previously, most of us are trading spot (FX).

Cheers.


----------



## Stormin_Norman

your broker will automatically roll the position over.


----------



## lesm

Stormin_Norman said:


> your broker will automatically roll the position over.




Yes, that is usually the default, but the client can elect to close the position. Either activity will usually occur two days prior to the expiry date.

Always pays to ensure what the default activity is, rather than take anything for granted.

Cheers.


----------



## tech/a

Ok got it.

I'm cutting my teeth on the SPI.
People tell me its harder than most anything else.

Anyway its spot I want.
Thanks for the help.

I'm trading with IB.
Whats a code I can have a look at?
Have live at home at last!

Im using Esignal and I'm missing something in the code.
For AUD I have AUD AO-FX,4  (4 min)
For AUDGBP AO-FX,4  

But nothing loads I'm missing something?


----------



## tech/a

tech/a said:


> Ok got it.
> 
> I'm cutting my teeth on the SPI.
> People tell me its harder than most anything else.
> 
> Anyway its spot I want.
> Thanks for the help.
> 
> I'm trading with IB.
> Whats a code I can have a look at?
> Have live at home at last!
> 
> Im using Esignal and I'm missing something in the code.
> For AUD I have AUD AO-FX,4  (4 min)
> For AUDGBP AO-FX,4
> 
> But nothing loads I'm missing something?




Got it worked thanks


----------



## Kryzz

What time frame (s) did you guys look at when first dealing in FX? Just playing around with a demo, seems that a 10 or 15min time frame would be suitable to trade 'actively', and still not be stuck in front of the screent the whole day, used in conjunction with a 1 and 4 hr timeframe, to help identify the trend perhaps?

Also, what are people's experiences with classical chart patterns when applied to currencies, i understand many people use S+R and fib etc, would one expect a head and shoulders or ascending triangle breakout to follow on with it as it may do in the stock-market?

Cheers, 

Shaun.


----------



## supermatt

if your new higher time frames are better because they have less market noise. 1 hr or 4 hour combos. If you dont know what your doing the lower tfs can give you false signals. Higher tfs = more pips for less work. 

Its up to the individual as to what their trading style is though. It takes some time to figure out.

Absolutely, Chart patterns in forex break out with more force because of how liquid it is. The issue is finding a good pattern. A pattern on a higher timeframe will be more meaningfull than a pattern on a 5 minute chart. Anything on a longer tf is more meaningful than on a lower tf. 

Also the time of day is a big factor, You need to be trading when the big fish are out so when you get a break out it actually follows through and not just stumbles. 

For us aussies the action generally starts from 5pm to 2-3 am on average.


----------



## Wysiwyg

Some info. about MetaTrader 5

http://www.fx1618.com/mt4/mt5-a.html


----------



## knocker

I found this book useful:

http://w13.easy-share.com/1699551211.html


----------



## Stormin_Norman

Wysiwyg said:


> Some info. about MetaTrader 5
> 
> http://www.fx1618.com/mt4/mt5-a.html




from what ive heard it mightnt be adopted by the brokers. i guess time will tell.


----------



## Wysiwyg

For anyone interested in trading the foreign exchange market here is an insight from Peter on forexpeacearmy. The full post is there.




> What they don't tell you.....spreading the prices....Did you know that if the price the broker gets from the liquidity providers is less than 1 pip (which it often is, at the time of writing the price I see from my provider is 1.41764/770) They can widen the price a keep the difference. Did you also know that they can also choose for the trade to hit their book rather than allowing it to offset direct with the liquidity provider. And as some one else in this forum suggested they can choose weather they allow the clients prices to match off against each other or not.
> 
> So all is not what it seems eh! The brokers have different prices from each other different terms of business and are able to manipulate almost every part of the process. No change there then and those that have suggested its a level playing field need to get their heads out of the sand. I saw someone moaning about the slippage on the platform over numbers and with stop loss order, geez fella get a life!!! what you forget that these positions end up on real peoples desks at the liquidity providers and they have to manage them, so over numbers and in times of volatility the machines don't work.
> Currenex is not a matching engine it is not EBS.
> 
> That said if you choose the right broker i.e. a larger one tyha doesnt need an prime broker and doesn't widen the prices and offers low $/per million then your off to the races the technology is fantastic and I use it everyday.






> from what ive heard it mightnt be adopted by the brokers. i guess time will tell.




Eventually it will I think Storm.


----------



## Stormin_Norman

yeah. im looking to move to either OandA or dukascopy (spelling). just have to re-code the EAs; which shouldnt be that hard.

if go markets are the 'best' mt4 retail broker; then get me the hell out of here!


----------



## Wysiwyg

FXCM have a web based forex trading platform that shows market depth and offer as much as 1 pip less spread than other services.
Market depth is absolutely essential, in my view, for any short term trading.


----------



## Trembling Hand

Stormin_Norman said:


> yeah. im looking to move to either OandA or dukascopy (spelling). just have to re-code the EAs; which shouldnt be that hard.
> 
> if go markets are the 'best' mt4 retail broker; then get me the hell out of here!




Stormin why are you F'in around with these jokers. Why not move to IB and use their API


----------



## >Apocalypto<

Wysiwyg said:


> FXCM have a web based forex trading platform that shows market depth and offer as much as 1 pip less spread than other services.
> Market depth is absolutely essential, in my view, for any short term trading.




very interesting!

FXCM really trying to clean up the image.


----------



## >Apocalypto<

Trembling Hand said:


> Stormin why are you F'in around with these jokers. Why not move to IB and use their API




Hey TH,

Oanda, joker for sure....

dukascopy, ECN that is on par with IB for FX.......

they have the cheapest 1 mill brokerage in the bizz right now, I think but IB is very close them.

cheers,


----------



## Wysiwyg

Being supple, flexible (not defiant) when trading is a good quality. When the market moves against one you have to agree with it. Here is a layman view of the newbie forex trader from another poster. Stage 3 at the moment personally (flitting back to Stage 2 sometimes). 



> The learning cycle for a newbie trader
> 
> --------------------------------------------------------------------------------
> 
> Hi folks.
> 
> Many of you don't know, but I used to be involved in training people in various things (not trading) and I thought I might share with you the journey that you take when beginning anything new. also if I show you my kind of writing style you might just buy my beginners forex book
> 
> This cycle is as true for trading as it is for learning to drive a car and consists of five components.
> 
> I'm going to take you through each stage so you can recognise exactly where you are in your trading journey.
> 
> *Step One: Unconscious Incompetence.*
> 
> This is the first step you take when starting to look into trading. you know that its a good way of making money cos you've heard so many things about it and heard of so many millionaires.Unfortunately, just like when you first desire to drive a car you think it will be easy - after all, how hard can it be?? - price either moves up or down - what's the big secret to that then - lets get cracking!
> 
> unfortunately, just as when you first take your place in front of a steering wheel you find very quickly that you haven't got the first clue about what you're trying to do. you take lots of trades and lots of risks. when you enter a trade it turns against you so you reverse and it turns again .. and again, and again.
> 
> you try to turn around your losses by doubling up every time you trade - sometimes you'll get away with it but more often than not you will come away scathed and bruised
> 
> Well this is stage one - you are totally oblivious to your incompetence at trading.Stage one can last for a week or two of trading but the market is usually swift and you move onto stage two.
> 
> *Stage Two - Conscious Incompetence*
> 
> Stage two is where you realise that there is more work involved in this and that you might actually have to work a few things out.
> 
> you consciously realise that you are an incompetent trader - you don't have the skills or the insight to turn a regular profit.
> 
> During this phase you will buy systems and e-books galore, read websites based everywhere from Russia to the Ukraine. and begin your search for the holy grail.
> 
> During this time you will be a system ***** - you will flick from method to method day by day and week by week never sticking with one long enough to actually see if it does work. every time you came upon a new indicator you'll be ecstatic that this is the one that will make all the difference.
> 
> *you will test out automated systems on Meta-trader, you'll play with moving averages, Fibonacci lines, support & resistance, Pivots, Fractals, Divergence, DMI, ADX, and a hundred other things all in the vein hope that your 'magic system' starts today.
> 
> you'll be a top and bottom picker, trying to find the exact point of reversal with your indicators and you'll find yourself chasing losing trades and even adding to them cos you are so sure you are right.*
> You'll go into the live chat room and see other traders making pips and you want to know why it's not you - you'll ask a million questions, some of which are so dumb that looking back you feel a bit silly. You'll then reach the point where you think all the ones who are calling pips after pips are liars - they cant be making that amount cos you've studied and you don't make that, you know as much as they do and they must be lying. but they're in there day after day and their account just grows whilst yours falls.
> 
> You will be like a teenager - the traders that make money will freely give you advice but you're stubborn and think that you know best - you take no notice and over leverage your account even though everyone says you are mad to - but you know better.
> 
> you'll consider following the calls that others make but even then it wont work so you try paying for signals from someone else - they don't work for you either.
> 
> This phase can last ages and ages - in fact in reality it can last well over a year - My own period lasted about 18 months.
> 
> Eventually you do begin to come out of this phase. You've probably committed more time and money than you ever thought you would, lost 2 or 3 loaded accounts and all but given up maybe 3 or 4 times.
> 
> Then comes stage 3
> 
> *Stage 3 - The Eureka Moment*
> 
> Towards the end of stage two you begin to realise that it's not the system that is making the difference.
> 
> you realise that its actually possible to make money with a simple moving average and nothing else IF you can get your head and money management right
> 
> You start to read books on the psychology of trading and identify with the characters portrayed in those books.
> 
> Finally comes the eureka moment.
> 
> The eureka moment causes a new connection to be made in your brain.
> 
> you suddenly realise that neither you, nor anyone else can accurately predict what the market will do in the next ten seconds, never mind the next 20 mins.
> 
> You start to work just one system that you mould to your own way of trading, you're starting to get happy and you define your risk threshold.
> 
> You start to take every trade that your 'edge' shows has a good probability of winning with.
> 
> when the trade turns bad you don't get angry or even because you know in your head that as you couldn't possibly predict it it isn't your fault - as soon as you realise that the trade is bad you close it . The next trade will have higher odds of success cos you know your simple system works.
> 
> You have realised in an instant that the trading game is about one thing - consistency of your 'edge' and your discipline to take all the trades no matter what.
> 
> You learn about proper money management and leverage - risk of account etc etc - and this time it actually soaks in and you think back to those who advised the same thing a year ago with a smile
> 
> you weren't ready then, but you are now.
> 
> The eureka moment came the moment that you truly accepted that you cannot predict the market.
> 
> Then comes stage four
> 
> *Stage 4 - Conscious Competence*
> 
> Ok, now you are making trades whenever your system tells you to.
> 
> you take losses just as easily as you take wins
> 
> you now let your winners run to their conclusion fully accepting the risk and knowing that your system makes more money than it loses and when you're on a loser you close it swiftly with little pain to your account
> 
> You are now at a point where you break even most of the time - day in day out, you will have weeks where you make 100 pips and weeks where you lose 100 pips - generally you are breaking even and not losing money.
> 
> you are now conscious of the fact that you are making calls that are generally good and you are getting respect from other traders as you chat the day away.
> 
> You still have to work at it and think about your trades but as this continues you begin to make more money than you lose consistently.
> 
> you'll start the day on a 20 pip win, take a 35 pip loss and have no feelings that you've given those pips back because you know that it will come back again.
> 
> you will now begin to make consistent pips week in and week out 25 pips one week, 50 the next and so on.
> 
> this lasts about 6 months
> 
> then comes Stage Five
> 
> *Stage Five - Unconscious Competence*
> 
> Now were cooking - just like driving a car, every day you get in your seat and trade - you do everything now on an unconscious level.
> 
> you are running on autopilot. You start to pick the really big trades and getting 100 pips in a day is becoming quite normal to you.
> 
> This is trading utopia - you have mastered your emotions and you are now a trader with a rapidly growing account.
> 
> you're a star in the trading chat room and people listen to what you say. you recognise yourself in their questions from about two years ago.
> 
> you pass on your advice but you know most of it is futile cos they're teenagers - some of them will get to where you are - some will do it fast and others will be slower - literally dozens and dozens will never get past stage two but a few will.
> 
> Trading is no longer exciting - in fact it's probably boring you to bits - like everything in life when you get good at it or do it for your job - it gets boring - you're doing your job and that's that.
> 
> You can now say with your head held high "I'm a currency trader"


----------



## roland

I'd like to offer up some good reading that has taken me all day to get through.

http://www.babypips.com

I ran though the "School" and found it to be very informative and well written.

I have an account with MBT and blew $400 in a week doing all the wrong things.

The highlights for me were:

1. Learn to read charts properly and understand the charting tools
2. Study more than one timeframe to get a wider perception of trends
3. Create a system and test it in demo before throwing away $$'s
4. Stick to your (tested) system

I am now excited with the power of charts and the indicating tools, it's not unlike having the lights switched on in a darkened room


----------



## Qed

FANTASTIC.. u see the light.. ur paper trading works time after time , as soon as u put ur $$ down u lose WHAT THEN?


----------



## brettc4

Can someone tell me how difficult Tax time is for a spot trader?
I am assuming most trades are very short term, lots of wins and losses.
Does this make tax a nightmare, or does the broker provide tax statements for you??


----------



## Stormin_Norman

Qed said:


> FANTASTIC.. u see the light.. ur paper trading works time after time , as soon as u put ur $$ down u lose WHAT THEN?




then you learn a lesson youd never learn on a demo.


----------



## Stormin_Norman

brettc4 said:


> Can someone tell me how difficult Tax time is for a spot trader?
> I am assuming most trades are very short term, lots of wins and losses.
> Does this make tax a nightmare, or does the broker provide tax statements for you??




profits - losses = taxable income.


----------



## Stormin_Norman

>Apocalypto< said:


> very interesting!
> 
> FXCM really trying to clean up the image.




FXCM's active trader is also on MT4.


----------



## Qed

hehe  stormin .. u learn discipline , if u dont ur dead in water


----------



## Wysiwyg

roland said:


> I'd like to offer up some good reading that has taken me all day to get through.
> 
> http://www.babypips.com
> 
> I ran though the "School" and found it to be very informative and well written.
> 
> I have an account with MBT and blew $400 in a week doing all the wrong things.
> 
> The highlights for me were:
> 
> 1. Learn to read charts properly and understand the charting tools
> 2. Study more than one timeframe to get a wider perception of trends
> 3. Create a system and test it in demo before throwing away $$'s
> 4. Stick to your (tested) system
> 
> I am now excited with the power of charts and the indicating tools, it's not unlike having the lights switched on in a darkened room




Good one Roland. I would like to add 

# Avoid trading a currency at impacting news time.

100 pip plus jumps are only good if one jags the direction.


----------



## Kryzz

anyone know how to sync MT4 with your computers system clock??

thanks,

shaun


----------



## Stormin_Norman

Kryzz said:


> anyone know how to sync MT4 with your computers system clock??
> 
> thanks,
> 
> shaun




as in make the time match your computer's time?

you cant. unless u can convince your broker to re-work their system.


----------



## nickdp

Kryzz said:


> anyone know how to sync MT4 with your computers system clock??
> 
> thanks,
> 
> shaun





The time shown in MT4 is the local time wherever the price server is located in the world.  Eg GoMarkets is GMT+2, but GoMarkets themselves are in Melbourne (GMT+10)


----------



## roland

A week's trading has me a little negative - around 3% down.

Slowly learning to find better entry points but still having trouble with handling losing positions.

My attached trading chart shows that I have a better than 50% win versus loss ratio, but my loss values are higher.

So far have just been using manual limit orders with the ocassional "panic" market sell.

I have spent the day studying the order types with my platform and going through the video tutorials to add some loss management with stop loss orders.

I am wondering what sort of strategies others have with short term stop loss placements within a similar trading timeframe to mine: Major trend from 1d, swing trends from 1h, trading trend from 15m, entry and exit from 1m

I am happy to take 5 pips or better, so I am guessing my stop losses should be very tight.

Some of my wins have been because I have held through and waited for a reversal, so stop losses would null these out - hopefully a trailing stop will help with letting the winners run.


----------



## overit

Have collected a few bookmarks with useful information over the time. Some things that interested me for some particular reason or another.

Forex E-books - As the name suggests, a bunch of e-books.

Market structure - A thread on forex factory about how the markets/brokers are structured. Worth a read.

Peter Crowns Dibs Method - Scroll through the first 7-8 pages and look for the peter crowns posts. A very articulate and seasoned trader offers up some good advice and a simple method. I am about to take this system live myself.

Spudfires MTF Stochastics - Another thread on FF. Interesting system using multi timeframe stochastics.

Candle stick patterns - Just an ebook with some useful info on candle sticks. NIce easy to read explanation.

Forex Factory and Baby Pips - Mentioned a million times but incase you havent been there yet 2 very useful forum sites.

James16 and Jacko's Thread - Threads on FF with some useful info and a strong following.


----------



## Kryzz

Roland,

What pair are you trading? Do you keep trading each day until you get your 5 pips or better or call it quits after _x_ number of losses?

cheers,

Shaun.


----------



## roland

Kryzz said:


> Roland,
> 
> What pair are you trading? Do you keep trading each day until you get your 5 pips or better or call it quits after _x_ number of losses?
> 
> cheers,
> 
> Shaun.




Hi Shaun, 

I'm not looking for 5 pips per day, but 5 pips per trade.

I have decided on GBP/JPY which I have found to have a good daily range of around 100 - 150 pips and can get quite frantic with very quick moves of 20 -50 pips.

I initially started by over trading and getting whip sawed all over the place, so I am slowly learning to wait for better entries and less of them. Having targets is certainly not a bad idea but right now for me I'm going to concentrate on better loss management and creating better rules for myself.


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## roland

Definately getting better. Since around 125 on the chart I have been concentrating on better set ups and less frequent entries.

Also now I am looking for swing rebounds rather than trying to catch a speeding train.

I'm also holding longer if it goes against me, since I feel my setups are better giving me more confidence against being whipsawed.


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## roland

Sticking with 1 pair is definately a benefit as one learns the nuances. The following is a classic hiccup which seems to occur around 10.30pm every night with GBP/JPY. I was ready for this one and caught 14 pips, could have taken a lot more but my entry and exit were not ideal. Pretty happy anyway!


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## caribean

roland said:


> Sticking with 1 pair is definately a benefit as one learns the nuances. The following is a classic hiccup which seems to occur around 10.30pm every night with GBP/JPY. I was ready for this one and caught 14 pips, could have taken a lot more but my entry and exit were not ideal. Pretty happy anyway!




Hiccup at 10:30 PM ???? what could it be???
it seems you may have discovered something no one else has !
Let us know if it keeps occuring around that time.
http://www.forexfactory.com/calendar.php (if allowed )


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## roland

caribean said:


> Hiccup at 10:30 PM ???? what could it be???
> it seems you may have discovered something no one else has !
> Let us know if it keeps occuring around that time.
> http://www.forexfactory.com/calendar.php (if allowed )




I haven't read your link, but will, probably have read it before.

You want to know something, self discovery is a lot more satisfying that reading about other peoples discoveries.

At least I am finding pleasure in entertaining myself


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## marknz88

roland said:


> I haven't read your link, but will, probably have read it before.
> 
> You want to know something, self discovery is a lot more satisfying that reading about other peoples discoveries.
> 
> At least I am finding pleasure in entertaining myself




The link is referring to the non-farm payroll figures that came out at 10:30pm (8:30US time)

These figures come out the first friday of every month  so yes it is a recurring pattern, but it could break either way depending on the figures (as expected/better than expected/worse than expected)


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## Stormin_Norman

careful. nfp can be a bit of a roulette wheel.


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## caribean

roland said:


> I haven't read your link, but will, probably have read it before.
> 
> You want to know something, self discovery is a lot more satisfying that reading about other peoples discoveries.
> 
> At least I am finding pleasure in entertaining myself




Hi Roland, from the # of posts you have i'm assuming you have a good understanding of some market at least, if you're interested in Forex, take the time to know when news releases come out, it is very importand IMO, unless of course you deliberately choose not to.
Take a look at the calender from that site or others, it is a great tool to have.
Ohh, not usualy a smart...e, i just couldn't help myself, appologies if i offended you.


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## Kryzz

what time frame would one begin to *not* look out for news announcements? I would have thought 4hrs and above? I understand you would still look at them if your about to enter a trade, but once your already in a trade.


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## caribean

Kryzz said:


> what time frame would one begin to *not* look out for news announcements? I would have thought 4hrs and above? I understand you would still look at them if your about to enter a trade, but once your already in a trade.



I can not answer that, all i know is, there are times i can see the news release "fits" my TA picture, it is predictable, or should i say, as predictable as a trade can be, those times i dared to enter prior to a medium level new release, i did early enough to secure a "buffer" of
15- 20 points or so and can't remember losing one, but, there are a hell of a lot more times i can't  see with any sort of certainty where it's going so i stay out, i can always trade after the initial spike.
Certainly for me news are more of a pain than an opportunity.
If you're going to play the time immediately after the release you'll need charting that can do faster than 1 min TF's, and a broker that executes very quickly...IMHO of course,


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## tayser

roland said:


> Sticking with 1 pair is definately a benefit as one learns the nuances. The following is a classic hiccup which seems to occur around 10.30pm every night with GBP/JPY. I was ready for this one and caught 14 pips, could have taken a lot more but my entry and exit were not ideal. Pretty happy anyway!




One man's hiccup is another's opportunity


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## roland

caribean said:


> Hi Roland, from the # of posts you have i'm assuming you have a good understanding of some market at least, if you're interested in Forex, take the time to know when news releases come out, it is very importand IMO, unless of course you deliberately choose not to.
> Take a look at the calender from that site or others, it is a great tool to have.
> Ohh, not usualy a smart...e, i just couldn't help myself, appologies if i offended you.




No offence taken, I appreciate your "heads up" on the calendar. I have read the Forex Factory's forums in quite some depth. 

Actually it was there that I first learn't about scalping with the Cyrox Rainbow and thought that was the only way to trade Forex - blew my first micro account in no time trying to master 1 second timeframes.


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## tayser

But GBP/JPY doesn't always move like that at 10:30pm every day... in fact it only does it once a month lol.

On the topic of good times to trade, apart from the session opens:

During the European session you'll see either a new direction or a directon confirmed at 7:05pm AEST/9:05pmAEDT as this is when LIBOR is set in London and Central banks, as well as commercial banks, begin daily operations soon after.  9:00pm AEST everyone in Europe is going to lunch and taking profit, 10pm AEST London is going to lunch and taking profit and New York is opening.  11pm London is back from lunch and it's pre-exchange open time (add two hours for AEDT).

The direction during the New York session usually becomes apparent around 9:30am EST (11:30pm AEST/1:30am AEDT) when the American engines of capitalism fire up for the day (NYSE/Nasdaq/CBOT).

2:00pm-3:00pm AEST/3:00pm-4:00pm AEDT can usually set a new direction in the Asian session cos everyone in Tokyo is going to lunch and taking profit before Europe opens and an hour later Hong Kong/Singapore are going to lunch and Tokyo is back from lunch and taking new positions.


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## Kryzz

When do you move your stop to break even?

Only just begun trading so want to keep draw downs minimal, therefore i've been putting my stop to b/e when 10 pips in profit. Am i being too stingy with this?

I've been looking at S/R levels on 1 hr chart, then going down to 15m to refine my entry.


Reason im asking is because i could have caught many of these latest breakouts and feel im missing the boat.


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## Stormin_Norman

keep SL's below the last major support level. (how to measure that is an art as much as a science).

if that means initial stop loss is never the same, so be it. change your lots size, not the SL.

say its -65.

then a new level seems to have formed. youre quite sure now that the support is at -30. so you might set your SL to -35.

then you notice its at +15. so you might set your SL at +5.

hope that prompts some thoughts. zero isnt always the best place to move your SL to.


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## Kryzz

thanks for the reply stormin, what if price zooms straight up though and there is no new difinitive 'level' to adjust the stop too, and then does a big V reversal and u get stopped out for a loss when you were *well* in the money? (assuming you did not move the stop at all, coz no new s/r level)

I do change my lot size according to my entry and stop levels.

Current order for AUD/USD below.
Entry is few pips above recent high, stop is bit below recent support/resistance. 

Doesn't look like it wants to go on with it though imo

(i know a trailing stop would keep some profits, but would then miss out on a big subsequent move)


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## Stormin_Norman

close half your position at profit to cover the SL?

close your position and look to enter should it break the channel (having a profit to offset any potential SL in the breakout trade).

keep SL where it is. if it doesnt get hit and breaks out you havent lost.


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## Kryzz

Thought i'd post my first couple (almost) weeks of trading results.

Account is -3% on starting balance, thanks to the fact i've only been risking 1% per trade. Also helps (psychologically) that i've been trading pips that are usually worth less than 30 cents 
gotta crawl before you can walk though right?

I feel i could have managed my stops a lot better and not look to take profits just because you have some. Don't trade round numbers. If the trade just hangs around and looks like a loser don't hesitate to move the stop right up. Don't adjust your risk % because you think a trade 'looks good' Just some other things i learnt.

Learnt more this last week a micro a/c than i ever did with a demo, so any money actually lost is not actually lost, if that makes sense.

cheers

shaun


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## Stormin_Norman

fantastic news!

they are all things i quickly learnt too -- once i was using real money.

a couple of hundred dollars will learn you a lot more then a 100,000 demo.

are you writing down your rules?


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## Kryzz

Not really to be honest, all pretty discretionary re trades, this may be where i'm getting tripped up. 

My rules more or less:

Shorts of resistance, break of support when in down trend
Longs of support, breaks of resistance when in uptrend
Trend = Slope of 50 period MA on 1 hr tf
No more than 1% risk per trade
Avoid news

(throw in some chart patterns in there for good measure too)


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## Stormin_Norman

try to write down/record trades.

that way you know what is working and what isnt; rather then analysis being adhoc.


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## arco

My tip FWIW

Find a system and stick with it through thick and thin. 

Usually when a system 'stops working' people immediately start looking for a new system, and this carries on until months later when they maybe look at the old system again. Remember that all systems will go through bad patches, and will often need tweaking to adapt to an ever changing market.

Ichimoku is a system with set rules.

Heres an overnight trade on Kiwi. Entry happened as I dozed blissfully unaware.

GTA - arco


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## Kryzz

Can anybody shed some light with regards to the FX market and the xmas period (december) please? It seems many of the $ based pairs are ranging for most of the session from what i've seen this first week of December.

 I read over on FF, that many of the 'big players' in the FX market trade very light or take december off, is there any merit behind these statements?

Cheers


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## lasty

The market does slow down a bit however always expect the unexpected.
As you have highlighted many do take some time off but that can lead to liquidity issues and therefore price exaggeration.
If you want to play in this environment keep your position smaller than usual and widen your stops.
I hope Santa fills your stocking with profits !


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## Kryzz

lasty said:


> The market does slow down a bit however always expect the unexpected.
> As you have highlighted many do take some time off but that can lead to liquidity issues and therefore price exaggeration.
> If you want to play in this environment keep your position smaller than usual and widen your stops.
> I hope Santa fills your stocking with profits !




Thanks lasty, haha yeah lets hope santa is kind this year.


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