Forex Trading

[crashy]

why trade stocks AT ALL?

forex is much better:

- 24 hour market
- greater volatility
- no costs
- tighter spreads
- better liquidity
- T/A works better
- better trends
- no scams
- better breakouts
- no research required
- no emotional attachment to what you trade
- better leverage
- can trade as little as $1 a pip
- and more

I started trading forex a month ago, and took 1450 pips in my first 3 weeks....pity it was only $1 a pip.....now I trade $2-$3 a pip, when Im convinced I 'dont suck' at that I will move up to $5.

I have never been able to daytrade with success before. I find FX moves are easy to trade. Set a buy order 3 pips above resistance, wait for breakout. Resistance and support are very reliable. Often its a 100 pip move. Trendline breaks work especially well, as do Fibb levels. And none of these are lagging indicators.

Central banks force trends. They buy when a trigger price is hit, and dont stop buying until another is hit. Their 'curbs' create fantastic trading channels. Central banks dont use a moving average, CCI or any other dodgy lagging indicator, so why should an FX trader?

well I post my trades on #t2w-forex chatroom on the othernet server if you want to join in......

 

[wayneL]

Re: FOREX

Crashy as you move up in size, consider currency futures.

The tighter spreads and cheap brokerage thru IB or similer will reduce your costs.

Downsides are:
1/ 1 contract = USD$12.50 a tick (ticks in futures) so less flexible than forex...

2/ only USD/EURO USD/YEN are liquid enough to daytrade without slippage.

3/ best timeframe is late at night Oz time

But I tend to agree that forex would be a lot more fun than Aussie stocks.

I daytrade USD/EURO plus a small selection of US stocks.

Cheers and the best of luck.

 

[DTM]

Re: FOREX

Hi Wayne, Crashy

Where would I be able to learn more about FX. Do you have any suggestions?

Any little bit of advice would help me greatly.

Regards

Daniel

 

[positivecashflow]

Re: FOREX

http://www.forex.com/ is a good site for basics.

 

[crashy]

Re: FOREX

there is a lot about FX to learn, but if you have T/A sorted out thats 95% of it. Basicly just dont be in a position when news is about to come out, set tight stops and wait for good setups and you should be fine.

I have a log of 100 questions I asked a gun trader so email me if you want to learn.

 

[wayneL]

Re: FOREX

<<Basicly just dont be in a position when news is about to come out,>>

LOL, Yes, too true.

 

[markrmau]

Re: FOREX

I find FX moves are easy to trade.

I am interested to hear you say this - I always assumed that FX traders had the most information/money resources so that an amateur like me would get screwed.

 

[crashy]

Re: FOREX

the biggest FX 'traders' are not looking to screw amatuers. They are central banks, only interested in keeping their own currency stable. They dont buy so they can sell a few ticks higher. Remember how the RBA lost $4b on FX when the AUD fell few years back?

Im sure there are some big traders who try to screw the amatuers, but FX is bigger than all other markets combined so its hard to manipulate things.

The smallest 'traders' are the average vacationer changing their money at Thomas Cook. think of how many of those there are. Or even Joe average buying something from overseas over the net with his credit card. these are all minor but numerous FX deals.

from my limited experience, FX has less whipsaws and false breaks than equities.

"easy to trade" should be "easier to trade"

 

[DTM]

Re: FOREX

Hi Crashy

Re: Gun FX Trader's answers to your 100 questions.

Have been trying to email you with the email adress on your website regarding the answers to all the questions you posed to the above trader.

Any luck finding my email?

Daniel

 

[crashy]

Re: FOREX

logs were sent out bout 1 hour ago

 

[Qlds007]

Re: FOREX

Crashy

Yes thanks for my email this morning made interesting reading.

 

[DTM]

Re: FOREX

Crashy

Many thanks from me too.

Daniel

:bier:

 

[crashy]

Re: FOREX

www.oanda.com

spreads:

eurusd - 1.5
audusd - 2
usdchf - 3
usdjpy - 2.8

those spreads are a lot lower than cmc. setting up an account was very easy. Only downside is 50x leverage vs cmc 100x.

setting stops / ranges etc is far easier. Charts go as low as 5 sec intervals.

 

[wayneL]

Re: FOREX

www.oanda.com

spreads:

eurusd - 1.5
audusd - 2
usdchf - 3
usdjpy - 2.8

those spreads are a lot lower than cmc. setting up an account was very easy. Only downside is 50x leverage vs cmc 100x.

setting stops / ranges etc is far easier. Charts go as low as 5 sec intervals.

Those are great spreads Crashy. Contrary to my previous post, it's not worth going to futures at all. I like the totally elastic position size as well, great for money management.

Cheers and Thanks

 

[Would Be Trader]

Re: FOREX

Crashy

I was wondering how you are going with your Forex trading. I am considering learning Forex trading myself and any advise will be greatly appreciated.

Compared to stock trading do you require lots more money? How much capital would be needed to achieve a return of say 80-100 pips per month? (I realize that there is no guarantee in return) using a T/A system?

Thanks in advance

 

[money tree]

Re: FOREX

going great thanks

I trade small and aim for lots of pips, rather than trading big and shooting for a few pips. It makes more sense in terms of risk.

my advise is to not treat FX like stocks. Indicators DO NOT WORK. Use fibonacci, support, resistance, trendlines.....nothing else and you will be fine.

stops should always be 5 pips below support. many traders place stops 10 pips below entry and odds are they will get stop after stop that way. Buying breakouts I find is a great strategy also. Leverage with FX is high, so I guess less money is required but many trader over-leverage.

Having done this for 5 months now I find it hard to understand why anyone would want to trade while paying brokerage, GST, slippage and the like in and out. Its so.....last millenium....

 

[Would Be Trader]

Re: FOREX

Crashy/Money Tree

Thanks for your advice and prompt response. Is there any way I could get a copy of the 100 questions you asked the Gunn traders as you offered back in January? I tried to email you by looking at your profile but the system replied that it is not possible.

Also How much capital do you suggest I should be starting trading with?

Thanks again

 

[money tree]

Re: FOREX

I dont still have it but maybe someone else here does?

 

[DTM]

Re: FOREX

I dont still have it but maybe someone else here does?

Would be trader. I have it if you want it. PM me your email address.

Daniel

 

[money tree]

Re: FOREX

www.ac-markets.com

- some pairs tighter spreads than oanda ($yen = 2, gbp$ = 3)
- better interest rate spreads than oanda
- no slippage
- better leverage than oanda
- new java platform
- selective liquidation
- eur spread of 2

Looks like I will be doing carry trades with acm, as well as GBP and YEN trades, but do EUR, AUD NZD trades with oanda.....