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Help for Newbies (Discussion Thread)

Well, I'm very new in Forex. This is my 3th week, je, like a baby. And have blown up 2 times the same account, a mean, I did very good profit, and then it happened... lost it all.
I have to say that after reading your thread, I have found in it definitions for many of the things I was thinking when I was winning and later, when I was losing trading in a blind way, without any guidance or method, just blind.
Now it is time for me to decide whether I go deeper and keep the practice like I'm doing now in my free time, to understand how is it possible to get profit under the current global economic situation. For me this thread is an invitation to keep looking for answers, and to let the training period lead me to the right way of trading.
Concluding, I want to thank you for your work and time you are puting on it. I was looking for a place to see what happened to others, and understand what happened to me, and you have provided it.

Thanks again Peter
Thanks for your kind comments, I'm glad the thread has helped.

Be prepared for a couple of years of hard study to even crack the surface .

To speed up the process a little, I would suggest you spend the next couple of weeks concentrating on Support and Resistance and learn to see how price works around these areas. Start out on the monthly/weekly charts and stick some horizontal lines at obvious places of reaction (keep an eye out for those points near round numbers ie 1.500 - 1.600).

When you get into Jim's PA thread and start getting a feel for Price Action you can start looking for it at those areas. Keep to daily charts for now, as a minimum, and learn where to look for the best action.

Good luck on the journey.
Hi Peter!

Can you steer me toward what you consider the best
area of the forum for Money Management info?

Thanks for the thread and the help!

Best Regards,
Brent
Quoting FXSurfer
Hi Peter!

Can you steer me toward what you consider the best
area of the forum for Money Management info?

Thanks for the thread and the help!

Best Regards,
Brent
Well that's a huge question. There is stuff scattered all around the place and I doubt if you could get two traders to agree on anything when the subject comes up.

Is there a particular aspect that concerns you?

Here's a couple of places to start.

Forex Articles You'll need to scroll about half-way down for the specific MM stuff (Money/Risk/Trade Management) but check all the sections as I think there are some odds and sods in most of them.

This is the other one in a thread created by Diallist Information For Beginners Unfortunately it isn't a Sticky anymore so folk don't get to see it as often nowadays. Scroll down to post #17 and start from there.

You may know some of this stuff already but it doesn't hurt to go through it again. If there's something else you need to know come back here and I'll try and help.

You may sometime or other get into a debate about taking partial profit. If you want some serious arguments against it read my Mathematician's help needed thread from way back.

Hope this helps, if not ask again. If I don't have the answer I expect I'll know a man that has.
Hi there, what do you think about those non-indicators users pro-price action strategies?
Fxsurfer...are you talking about a MAM??? cause i just instaled it and even if a friend told me that it is a great tool to manage a master account as you have 3 or 4...i still don't get it cause as far as i know...you can't make different orders with those sub accounts...neither changing the pairs...so?? what's the point?????
Quoting PeterFM
Hope this helps
Many Thanks Peter! Yes. Just what I was hoping for!
I'll pour through the articles this weekend and beyond.

It is a broad subject and now that you got me to think about
what it is specifically that I wanted, I guess that it falls more
in the category of trade management.

I'm really narrowing in on my trading method, which is becoming
ultra-simple really...and guess what...simple works much better than
complicated! LOL. But, you knew that:

Quoting PeterFM
That's all I do now - Trade the Trend - and look for Price Action at Support & Resistance.
......
I look at every move at any S/R as having the 'potential' to hold or fail. I take no trades until the market tells me what it has decided to do at each level. I also assume that until the market has told me that the current trend is over I play the current direction.
.......
So as I am right now there is NOTHING on my charts other than S/R levels
I'll tell you, I about crapped myself when I read this reply of yours today.
Really exactly what I'm working on doing. Maybe this is where people tend to end
up eventually. The days of searching the forum for systems is over for me.

In a way I think that the real work has just begun for me.
But, that's fine with me!

Thanks Peter and friends!
Brent

P.S.

Quoting Jetson
Fxsurfer...are you talking about a MAM???
I'm not sure what this is Jetson. I'm fairly computer illiterate. LOL
A spreadsheet maybe? I'm more interested in MM concepts and
approaches, I suppose. Good Trading To You!
Quoting T-rexx
Hi there, what do you think about those non-indicators users pro-price action strategies?
I would say that Peter likes 'em!
http://www.forexfactory.com/showpost...9&postcount=95
What's not to like?
First step is to understand the significance of the Close relative to Support and Resistance.

So, here's your starter for 10 (UK TV quiz show joke).

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Attached Images
Quoting PeterFM
First step is to understand the significance of the Close relative to Support and Resistance.

So, here's your starter for 10 (UK TV quiz show joke).

----------
Thanks for helping us understand S/R and PA!

Do you use Evens for S/R also, or mostly price bounces?
Quoting FXSurfer
I would say that Peter likes 'em!
http://www.forexfactory.com/showpost...9&postcount=95
What's not to like?
Apperently he is into price action strategy, which is good to me. I happen to be using all kinds of indicators trying to find a good strategy, however I have received a few advices from some non-indicator users. I've come to the idea of learning more, and practicing even more to get into that point where you can analyze the trend without using any other stuff. Take care.

Hi everybody, happy weekends...

Learning, is a never ending processs...
That would be for me the best idea of an experienced trader. Indicators are for us good stuff. I know that experience trader is an expert on that also. So I want to continue my study in indicators an now they have advantages to give me some pips. And as the link http://www.forexfactory.com/showpost...9&postcount=95 says “It couldn't be more simple - but you do need patience to wait for seriously good setups to arrive. If you can develop that life improves dramatically” it’s a matter of patience and constancy.
Quoting FXSurfer
Thanks for helping us understand S/R and PA!

Do you use Evens for S/R also, or mostly price bounces?
If you're asking whether I just play blind entries with a fixed Stop below Support or above Resistance then the answer is no, not generally.

I will normally wait for some concrete evidence that the region has held. The thing to remember is that, as with everything in trading, we are dealing with potential Support/Resistance. The same would apply to Fibs, MAs etc, they only show areas where potential S/R may be found.

Every technical analysis method will fail at some point if the market decides the direction it's travelling in is more important than some theoretical concept you've got on the chart.
Quoting PeterFM
Every technical analysis method will fail at some point if the market decides the direction it's travelling in is more important than some theoretical concept you've got on the chart.
Great point to ponder and remember, Peter. Well said!

As to my previous question, I was wondering to what extent,
if any, that you look to Even Numbers (e.g. .00, .25, .50 etc.)
for potential S/R?

But, I think that I can see from your last reply how you're
looking at it. Makes really good sense.

Have a great weekend, Peter...and Thanks!
Brent
Quoting FXSurfer
Great point to ponder and remember, Peter. Well said!

As to my previous question, I was wondering to what extent,
if any, that you look to Even Numbers (e.g. .00, .25, .50 etc.)
for potential S/R?

But, I think that I can see from your last reply how you're
looking at it. Makes really good sense.

Have a great weekend, Peter...and Thanks!
Brent
I don't use Round (Even) numbers as such. If you think about the last significant Close it can be related to action around one of those numbers.

If you look at these images again you'll see I've put a line at 1.9400 and, if I'd been trading this I would have taken the inference that we had a strong Support area there. But I don't actually draw these lines on my chart as a rule, the only thing that counts for me is that, as a rule, price changed direction at the Close. Why it did what it did doesn't interest me as much as the fact that it did and what can I look for the next time it gets there.

I'll look to mark these areas as potential Take Profit on a retrace when I'm in a trade. Whether I take my money off the table at that point or wait will depend on how I see PA at the time.

Try it yourself, on demo of course, and stick the major round numbers on your chart. But remember to take notice of the Close.

Have a good weekend yourself and take care.

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Attached Images
Quoting PeterFM
I don't use Round (Even) numbers as such. If you think about the last significant Close it can be related to action around one of those numbers.

If you look at these images again you'll see I've put a line at 1.9400 and, if I'd been trading this I would have taken the inference that we had a strong Support area there. But I don't actually draw these lines on my chart as a rule, the only thing that counts for me is that, as a rule, price changed direction at the Close. Why it did what it did doesn't interest me as much as the fact that it did and...
Really helpful and clearly put, Peter. Thanks!

Your chart note about not getting spooked really touches
upon one of my biggest issues - getting shaken out of trades
too early. Using the close seems helpful. Does that method
ever keep you in a loser too long though?

Thanks!


(I'll hold any more questions for a bit - not to wear out
my welcome here on your thread. LOL)
Quoting FXSurfer
Really helpful and clearly put, Peter. Thanks!

Your chart note about not getting spooked really touches
upon one of my biggest issues - getting shaken out of trades
too early. Using the close seems helpful. Does that method
ever keep you in a loser too long though?

Thanks!


(I'll hold any more questions for a bit - not to wear out
my welcome here on your thread. LOL)
This was all about finding solid locations to look for entries.

Exits are a different thing all together and will be very much down to each trader. It's seems to be common feeling that put two traders into a trade at exactly the same place and they will come out with different profit levels, or you'll even have one making a loss when the other makes money.

So, here's a 1-2-3 approach to S/R - Finding an Entry - Finding an Exit.

And also how I look for S/R to hide my Stops behind as I trail a winning trade. That's the blue line in the images. I will do this on the 4-hr chart as well.

Bear in mind things don't always work as sweet as this one but it shows what can be done with a simple method based on S/R and Price Action.

If you like to take some off the table at certain points then this would be a great 1st target. If you take it all off at that point you can get back in after the bar that closes below the Green Support Line. The Pin (ish) looking Bar at the bottom of the screen is your signal to get out (+70 pips).

If you were bold you could trade that back up to the Green line which would now be Resistance, or wait to see if there is any PA after the retracement. Bearing in mind that you're in a downtrend at this point and longs are more risky than shorts you make your call and keep a close eye on any long trades you take in this sort of situation.

I won't be around much next week as I have an eye operation on Monday but do keep the questions and thoughts coming.

---------
Attached Images
Quoting FXSurfer
Really helpful and clearly put, Peter. Thanks!

Your chart note about not getting spooked really touches
upon one of my biggest issues - getting shaken out of trades
too early. Using the close seems helpful. Does that method
ever keep you in a loser too long though?

Thanks!


(I'll hold any more questions for a bit - not to wear out
my welcome here on your thread. LOL)
I'm always doing this - reading a post and missing the point.

My Stop is always based on 1% of the account equity. I decide, based on S/R where my stop is likely to be safe. I then switch from the Line chart to the Bar chart and see the highest high or lowest low beyond that point. I add in a bit for the spread and then arrive at the number of pips stop I need. Divide that into my 1% and that tells me how many lots I'm trading this time.

Normally, I'll stand back and take my hit if the trade goes wrong but I have closed early if my gut instinct tells me the market sentiment has changed. I don't do this very often as I have already written the 1% off in my mind so I don't get emotional if I've had a loser.

The other thing that does happen is you can move your stops (on a winning trade) up to the next area of S/R and get taken out by some extra noise, say around news time. So if I'm setting my trails based on the 4-hr chart I tend to wait until the next level has proven to hold before moving them up. I will get quicker to move my stops if I'm getting to a target area and I want enough room for the trade to bounce a bit without giving too much back to the market.

It's hard to explain, but once you've done it for a while you understand how it works.
Quoting PeterFM
I won't be around much next week as I have an eye operation on Monday
---------
Wishing you a very speedy recovery, Peter!

Thanks for the great replies. They really do help!

Brent
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