Info for beginners to Forex

[Cartman]

Thanks! My starting capital was 50,000, playing in a standard account, $10 per pip. I havn't been recording what I'm doing yet, so I'm not sure on percentage success rate.
I'm not sure even if what I have been doing is a system, I am VERY new to any trading. I mainly read the candle graphs. I havnt been setting a stop loss at all and have only been aiming for 20-30 pip limits. I'm watching the screen the whole time I'm doing this so I can sell if I do see it dropping by alot, but it generally goes back up.
I don't know if I've just been lucky or what, but I've only had one trade I lost on. That was about $700.
I have mainly been playing EUR/USD, GBP/USD, AUS/USD.
Where do you guys get this information on systems to trial?

So should I just keep playing demo's for alot longer?

hi Dit ---- no stop is fne if u r monitoring yr position and have a mental stop (and stick to it) ---

if the $700 loss was your 'real money' how would u have handled that -- honestly ?? ----

definitely keep doing the demos --- but try and make it real by simulating yr real life position ie how much capital u r starting with --- how much pain u will be in when X amount of that capital is being wiped out by a bad trade etc etc.

MM and a sound trading plan will work great on FX but put yrself under REAL pressure ---- dont pretend with a demo cause that will come back to haunt u when its YOUR cash being wiped out --- good luck with it

 

[Stormin_Norman]

Thanks! My starting capital was 50,000, playing in a standard account, $10 per pip. I havn't been recording what I'm doing yet, so I'm not sure on percentage success rate.
I'm not sure even if what I have been doing is a system, I am VERY new to any trading. I mainly read the candle graphs. I havnt been setting a stop loss at all and have only been aiming for 20-30 pip limits. I'm watching the screen the whole time I'm doing this so I can sell if I do see it dropping by alot, but it generally goes back up.
I don't know if I've just been lucky or what, but I've only had one trade I lost on. That was about $700.
I have mainly been playing EUR/USD, GBP/USD, AUS/USD.
Where do you guys get this information on systems to trial?

So should I just keep playing demo's for alot longer?

i dont know how much capital u are looking to play with. but once you have the idea with demos; put $1000 into an account and lose that.

youll learn 10 times more losing that $1000 then anything youll learn on a demo account. once real money comes into things the game changes dramatically.

because of this you need a plan. so youre not trading a $500/$5000 loss. youre trading your plan. similarly you dont just close out a $250 profit cause its 'there' you close the trade out on your plan.

even if you dont have a stop loss; you MUST have one. and you MUST stick with it; or else youll lose too much of your equity eventually and kill your account.

there are many systems to look at on sites such as www.forexfactory.com . my suggestion is to look at some indicators to add to your candle reading.

i find the market kills me when im too clever. the more simple i keep it, the more discipline i have trading my plan and the more patience i have waiting for a 'set up' for my plan the better my results.

personally i would play the demo until you think you can 'do it'. then open a $1000 account (maybe OandA?) and lose your money on it. you might chow through 2 $1000 accounts; but youll learn a hell of a lot. if you blow your 3rd $1000 account; perhaps its not for you.

 

[BentRod]

I havn't been recording what I'm doing yet, so I'm not sure on percentage success rate.

Dit,
If you are using Metatrader, right click your account balance and select "Save as detailed report", that will give you some stats on your trades.

I agree with Norm regarding a real account, you will learn faster when you have real money on the line even it is only a small amount but learn to use stops on demo first.

no stop is fne if u r monitoring yr position and have a mental stop (and stick to it) --

CM...what happens when internet goes down,power out, hard drives craps itself etc??

 

[prawn_86]

CM...what happens when internet goes down,power out, hard drives craps itself etc??

When i scalp forex i use a mental stop, but always have a trailling stop say 20 pips away fot he reasons above. That way if there is a power outage etc then i am still protected.

 

[Stormin_Norman]

ive invested in a prepaid mobile broadband, so if the power goes out i can still trade on my laptop.

worth looking into for the $30 a month or whatever the cost is.

 

[dit1]

Hi thanks guys for all the help,

I'll start setting stop losses and see how it goes. I'm planning on starting with at least 10000, if I start with 1000 I'll definitely lose it won't I? I know I'll have losing trades.

I do have mobile broadband and a laptop, so I guess I'm safe in that manner.
Thanku for the info on systems too.
I guess everyone has different opinions, I am glad to hear and learn as much as I possibly can.
I don't have metatrader, I'm on FOREXTrader, but I did find the account summary.

 

[AbundantIncome]

First loss

I made my first loss of 23 bucks on first try. well a demo money that is ...

Not sure what I am doing yet. Am beating around the bush

Back to babypips I think !

Thanks for the info on this thread .... would come back to read more !

 

[Stormin_Norman]

first two things i can suggest.

position sizing and a trading plan.

the plan doesnt even need to be profitable at this stage. but the discipline to follow one (even an incorrect one) is vital.

 

[AbundantIncome]

Setting account with IB

I want to get some free feeds before subscribe for feeds plus IB seems to cover stocks as well.

I am trying to apply setup account. Now, I am wondering what is the base currency should be and how they work actually ? It mentioned that

"Your base currency determines the currency of translation for your statements, the currency used for determination of margin requirement, and for a Cash Account (only one currency is allowed), the currency of products you are allowed to trade."

I am not understanding the last part. Does it mean I can only trade pairs with AU (if I choose) either way ???? What are the pro and cons ????

Thanks

Al

 

[Page]

There are many currency pairs in this market which we can trader. It is not so easy to understand the terms of this market it requires reading articles and searching for forex sites to learn about the terms used for trading this market. Knowledge about forex market is ok but you must have proper knowledge about trading this market.

 

[pilbara]

Re: Setting account with IB

I am not understanding the last part. Does it mean I can only trade pairs with AU (if I choose) either way ???? What are the pro and cons ????

the last part relates to a "Cash Account" with IB, which cannot trade forex, so it's not relavant.

 

[BentRod]

Great video here describing how the Carry Trade works, the dangers of such a strategy and what it did to Iceland.

 

[jancha]

Hi
Wondering what XT stands for after the volume of a trade?

 

[BentRod]

Hi
Wondering what XT stands for after the volume of a trade?

Jancha,
XT relate to Stocks not Forex.

It is a cross trade.

Have a read of:

https://www.aussiestockforums.com/forums/showthread.php?t=5964

 

[finvik]

Yeah you are right XT is related to stock not forex it's basically what its name suggests: after hours trading allows investors to buy and sell stock after the closing bell. But because the New York Stock Exchange is closed at that time and all the floor brokers have returned home, the trades are filled electronically.Currently, there are two after hours trading systems but more and more online brokers are offering the service each day. The main systems are Instinet, Island, and MarketXT (the XT stands for Extended Trading).

 

[Page]

Really a compact and gr8 informational package for beginners.
first of all a beginner must know as much as he/she can about the forex market and it's trends.
only then he must go to learn about the analysis and to learn about the movements of the market.
Opening a and trading with a demo account is must before you deal with the real market, it will provide you enough information and idea about the trading and how to use forex indecators and technical and fundamental analysis.

don't make it in hurry otherwise you'll feel like

 

[nunthewiser]

Dear stormin norman or trembling hand


after reading another thread and seeing a trade sytem that regards a 20 point stoploss with a 15 point profit target as acceptable by some im just wondering if this is a normal practise with you guys or EA users

i cant get my head around this method as mathmatically it dont add up

am i missing something here and the win loss ratios make up for the obviuos mismatch ? or is this kind of system the general go for trading stuff like forex / futures ? ie having larger stoplosses

 

[nunthewiser]

ps ...

that was a sincere question

 

[Stormin_Norman]

forex is a lot more volatile then other markets. it can go up and down very dramatically.

having a small profit and a large stop may in fact be acceptable; depending on results.

having a small stop might have the position taken out quite regularly, where as a larger stop loss might allow the market to fluctuate and go up to its take profit.

its kind of hard to explain if you havent watched charts a lot.

but an example for numbers sake.

take profit of 25. stop loss of 100. you would need 4 winners per loser. however you may find that your indicators produce 6 winners per loser - a positive expectancy. as long as your money management is calculated on 100 pip stop loss there is nothing wrong with that system.

in a volatile market, u might enter and it drops 25 points, even 50. however it might only very rarely drop 75 or more points. if your stop loss was 25 (1:1 risk ratio) then your trade might get taken out more then half the time, then rise back up to your original profit level.

a larger take profit might see your position gain 25 points, then retreat 50 after that.

im not sure of the markets you usually trade, and what their dynamics are, but risk ratio and % successful trade together gives an indication of a worthwhile trading system; not the risk ratio in isolation.

im not sure if i expressed myself very well, let me know what you make of my waffle.

 

[BentRod]

am i missing something here and the win loss ratios make up for the obviuos mismatch ? or is this kind of system the general go for trading stuff like forex / futures ? ie having larger stoplosses

No your not missing anything,it is the same as stocks.

You better have a good win rate if your going to run stops wider that profit targets.

All the system sellers use wide stops because your average punter thinks it's about being right. That's how they suck em in.