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newbee ...

  • #1
  • First Post: Mar 20, 2006 9:53am Mar 20, 2006 9:53am
Halo folks,
i'm new with this forex game and i have a question about forex world ... why everytime i enter the position, either long or short, the situation is always against me ... say if i enter long, the market goes short and vice versa ..
could anyone just explain to me please ... the simple one please .. i'm learning to follow the trend kind of methode instead of using the technical analysis methode ...
thanks
  • #2
  • Mar 20, 2006 1:04pm Mar 20, 2006 1:04pm
g3tmorepip,

I appologize, but I have the same question too
SO do you mind if I profit from your thread too?
Veni Vidi Vici
  • #3
  • Mar 20, 2006 1:29pm Mar 20, 2006 1:29pm
I guess, the best way to answer this question is to get a better assessment of your situation.

How are you basing your trading decisions? Are you using a system? Do you use technical indicators? How big are your stops?

The truth is, you already are down when you enter a trade because of the spread. So if you enter long on the Cable and the spread is 5 pips with your broker, then once you enter the trade you are already -5 pips. This means that if you want to make a 5 pip profit, the price will actually have to go 10 pips in your direction.

I don't know much of your forex background or education, but I would suggest that you demo trade a system and get your feet wet before getting into real trades. There are several good systems on this forum that are free such as Vegas' system. There are also good systems on Strategybuilderfx. Do google searches for "Bunnygirl" and "FX10" strategies. They are 2 prominent day trading strategies that people have and are using.

I hope this helps. If not, please elaborate on your situation more and I'll try to help you out.

Cheers,

-BP
  • #4
  • Mar 20, 2006 10:53pm Mar 20, 2006 10:53pm
Quoting Ki6ania
g3tmorepip,

I appologize, but I have the same question too
SO do you mind if I profit from your thread too?
i do absolutely willing to share with you friend. There is not so much fun rather than helping others too ... right now i'm still learning toward perfection, though there is no a perfect world on forex world hehehe
  • #5
  • Mar 22, 2006 11:55pm Mar 22, 2006 11:55pm
Quoting g3tmorepip
Halo folks,
i'm new with this forex game and i have a question about forex world ... why everytime i enter the position, either long or short, the situation is always against me ... say if i enter long, the market goes short and vice versa ..
could anyone just explain to me please ... the simple one please .. i'm learning to follow the trend kind of methode instead of using the technical analysis methode ...
thanks
haha, One more companions.
I think you should learn how to use target and stop-loss. First of all you should choose a user friendly platform.
  • #6
  • Mar 23, 2006 12:15am Mar 23, 2006 12:15am
Quoting g3tmorepip
Halo folks,
i'm new with this forex game and i have a question about forex world ... why everytime i enter the position, either long or short, the situation is always against me ... say if i enter long, the market goes short and vice versa ..
could anyone just explain to me please ... the simple one please .. i'm learning to follow the trend kind of methode instead of using the technical analysis methode ...
thanks
This is a common experience with all new traders. It has to do with how our minds are programmed, and how this programming distorts what we see on the charts. This phenomenon essentially causes inexperienced to buy right before the markets turn down, and to sell just before the markets turn up. Experienced traders (smart money) know how to take advantage of this and use it to routinely pick the pockets of new traders.

If you'd like a more detailed explanation of the psychological and emotional reasons behind this, then get the book entitled "Mastering the Trade" by John Carter. The first few chapters deal with new trader psychology and emotions. Then the rest of the book covers how to overcome this and begin to trade like the smart money does.

Dial
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  • #7
  • Mar 23, 2006 4:28pm Mar 23, 2006 4:28pm
Quoting diallist
This is a common experience with all new traders. It has to do with how our minds are programmed, and how this programming distorts what we see on the charts. This phenomenon essentially causes inexperienced to buy right before the markets turn down, and to sell just before the markets turn up. Experienced traders (smart money) know how to take advantage of this and use it to routinely pick the pockets of new traders.

If you'd like a more detailed explanation of the psychological and emotional reasons behind this, then get the book entitled "Mastering the Trade" by John Carter. The first few chapters deal with new trader psychology and emotions. Then the rest of the book covers how to overcome this and begin to trade like the smart money does.

Dial
=========================================================
hi diallist and walker,

thanks for your help explaining this .. yes i tried it now and it works for the first day of my experience using the "target and SL system". Although i'm still learning also to diversivied (?) my capital (Money management) kind of things.

I still don't understand "people words" when they explaining the MM ... i browsed through several posts here at FF but still try to understand what they meant ....

is walker or Diallist willing to help me with easy or down to the earth's term ... i'm pretty sure you guys are very knowledgeable in this matter but for me to understand the term is way to far since i have no background whatsoever but i'm willing to learn ...

Is it possible to grow the amount of capital by using only the Mini account if i'm using MM .... i know it sound silly but this is the amount i'm willing to sacrifice to learn ... (as far i understand the MM will work fine if i use the the regular account which is about 10000 or so above) am i wrong ... thank you guys for helping me so far ...
  • #8
  • Mar 23, 2006 5:38pm Mar 23, 2006 5:38pm
Quoting g3tmorepip
Halo folks,
i'm new with this forex game and i have a question about forex world ... why everytime i enter the position, either long or short, the situation is always against me ... say if i enter long, the market goes short and vice versa ..
could anyone just explain to me please ... the simple one please .. i'm learning to follow the trend kind of methode instead of using the technical analysis methode ...
thanks
One answer is that the market breathes. It inhales and exhales. So let the market breathe, or it ebbs and flows it's just natural for it to do that. Just go with the flow, and don't use 200 pip stops. Good luck and welcome.
  • #9
  • Mar 23, 2006 6:33pm Mar 23, 2006 6:33pm
Quoting bluemonkey
and don't use 200 pip stops.
LOL... I guess 200 earned it's mark on you blue..
  • #10
  • Mar 23, 2006 7:41pm Mar 23, 2006 7:41pm
One more person fairly new to forex here.

I have stopped having the problem you describe, but if you go through the progression I have been going through, you will find that there are other and different problems ahead of you. I find that I am making lots of pips off of lots of good trades EXCEPT that I am often getting out of good trades too early, sometimes staying in bad trades too long, and fairly often lacking the confidence in yourself to wait for a trade to mature while it goes against me for a small number of pips or only very slowly gains just a few pips. Timing is one of my biggest problems.

I am open to any kind of advice on how to cure these problems and I suspect that they are fairly common probems and represent a phase in the development of many traders.

I know that part of my problem is that I am financially challenged which makes me overly cautious. I am sure that curing my financially challenged condition will fix this. It prevents me from putting my stops where they should be because I cannot afford to lose that much. I am fairly certain that this part of my problem is lack of finances because when I paper trade with stops where I believe they should be I usually do well and do not get kicked out of good trades.

I am not certain that there is a cure for my problems but I am open to any and all suggestions.

I am currently using an assortment of technical indicators to direct my trading, as well as buying and selling pressure as a further confirmation.
I sometimes trade the news, and when I do I only sometimes do well, again timing is a problem.
  • #11
  • Mar 23, 2006 7:53pm Mar 23, 2006 7:53pm
Quoting moonchild

I know that part of my problem is that I am financially challenged which makes me overly cautious. I am sure that curing my financially challenged condition will fix this. It prevents me from putting my stops where they should be because I cannot afford to lose that much. I am fairly certain that this part of my problem is lack of finances because when I paper trade with stops where I believe they should be I usually do well and do not get kicked out of good trades.
Moonchild,

I'm by no means a expert at this but if you are not putting stops where they should be then you should adjust (lower) your lot size to allow you to use the stop position you want to.

I believe that would help you alot.
Shootist - Have Pip Shooters Will Travel
  • #12
  • Mar 23, 2006 8:08pm Mar 23, 2006 8:08pm
I agree with what you suggest except that I have almost never traded more than 1 or at most 2 mini lots. It is harder to get smaller than that.

By the way, there is one indicator which I have been hearing about but have not studied, pivot points. Could someone explain that to me?

I have been looking for sources of information about day trading methods and have tried to look up FX10 and bunnygirl without any luck. I would also like to find out where to start on the vegas system. I keep coming across references to it but would like to start at the beginning. Could someone direct me toward the right locations? Thank you
  • #13
  • Mar 23, 2006 8:32pm Mar 23, 2006 8:32pm
Quoting moonchild
I agree with what you suggest except that I have almost never traded more than 1 or at most 2 mini lots. It is harder to get smaller than that.

By the way, there is one indicator which I have been hearing about but have not studied, pivot points. Could someone explain that to me?

I have been looking for sources of information about day trading methods and have tried to look up FX10 and bunnygirl without any luck. I would also like to find out where to start on the vegas system. I keep coming across references to it but would like to start at the beginning. Could someone direct me toward the right locations? Thank you
Pivots are a set of support and resistence points that the market tends to congragate around. They were and are still heavely used in the pits and on the floors of most exchanges, because they are quick to calculate. They work, because lots of traders use them, pure and simple. I personally think they do not work much more than about 50 or 60% of the time.

In my charts, I have written mathmatical formulas to produce these pivots and they are readily available with a Google search.

The m1 through m4 pivots are just mid points between the other main pivots, that I have noticed price congregate at.

Have fun with it...SMJ

Here are the formulas I have come up with:
pivot = (DayClose + DayLow + DayHigh) / 3;

s1 = 2 * pivot - DayHigh;

r1 = 2 * pivot - DayLow;

s2 = pivot - (r1 - s1);

r2 = (pivot - s1) + r1;

m1 = (s1 - s2)/2 + s2;
m2 = (pivot - s1)/2 + s1;
m3 = (r1 - pivot) / + pivot;
m4 = (r2 -r1)/2 + r1;
  • #14
  • Mar 23, 2006 8:37pm Mar 23, 2006 8:37pm
Quoting moonchild
I agree with what you suggest except that I have almost never traded more than 1 or at most 2 mini lots. It is harder to get smaller than that.

By the way, there is one indicator which I have been hearing about but have not studied, pivot points. Could someone explain that to me?

I have been looking for sources of information about day trading methods and have tried to look up FX10 and bunnygirl without any luck. I would also like to find out where to start on the vegas system. I keep coming across references to it but would like to start at the beginning. Could someone direct me toward the right locations? Thank you
oops, one number was dropped.
the m3 = (r1 - pivot) /2 + pivot
  • #15
  • Mar 23, 2006 8:42pm Mar 23, 2006 8:42pm
Quoting moonchild
I agree with what you suggest except that I have almost never traded more than 1 or at most 2 mini lots. It is harder to get smaller than that.

By the way, there is one indicator which I have been hearing about but have not studied, pivot points. Could someone explain that to me?

I have been looking for sources of information about day trading methods and have tried to look up FX10 and bunnygirl without any luck. I would also like to find out where to start on the vegas system. I keep coming across references to it but would like to start at the beginning. Could someone direct me toward the right locations? Thank you
Also, I think there is an excellent discussion of Dow Theory and a simple method of entry and exit that is explained by MuddBuddha in this very forum in another thread. you should go read that one. You cannot go wrong with the oldest method of trading there is. It still works today.

SMJ
  • #16
  • Mar 24, 2006 12:44am Mar 24, 2006 12:44am
Quoting bluemonkey
One answer is that the market breathes. It inhales and exhales. So let the market breathe, or it ebbs and flows it's just natural for it to do that. Just go with the flow, and don't use 200 pip stops. Good luck and welcome.
thank you bluemonkey ...
yes i noticed that couple hours ago when i tried to enter the position ( i have two different accounts - demo off course ) it went up - went i enter short and went down - when i enter long ( which in this case i have to stay on long since the whole or for the sake of trend says that it needs to go long).

The problem is how much is how much for SL on the small/mini account ... since according the "rule" out there never exceed 1% or 2% (that makes only 10 dollar or 20 wouldn't it ? since i used only $ 2500 fake money .... ) well lets say i played on both account (small and standard account) ... on one "i'm willing to lost" about $ 100/$200 but when on the other account is $ 10 or $ 20 . on the mini account has a big chance to get whipped out easily than the standard account since i can use small leverage on standard account ... correct me if i'm wrong.

still amazed with this game and getting addicted day by day .. thanks by the way.
  • #17
  • Mar 24, 2006 7:28am Mar 24, 2006 7:28am
Seems like a big part of the problem you are having is that you don't have enough money to trade with. If using a bigger stop loss will put you outside your 1-2% risk level, then you either need more money, or you need a broker with better "granularity"; or the ability to take smaller positions.

For example Oanda (www.fxtrade.com) allows you to trade as little as $1, whereas a "mini-lot" at most other brokers is $10,000. If you can't find more money to trade with, you may want to take a look at this type of broker.
  • #18
  • Mar 24, 2006 1:13pm Mar 24, 2006 1:13pm
Quoting Darkstar
Seems like a big part of the problem you are having is that you don't have enough money to trade with. If using a bigger stop loss will put you outside your 1-2% risk level, then you either need more money, or you need a broker with better "granularity"; or the ability to take smaller positions.

For example Oanda (www.fxtrade.com) allows you to trade as little as $1, whereas a "mini-lot" at most other brokers is $10,000. If you can't find more money to trade with, you may want to take a look at this type of broker.
=========================================================

Darkstar,
thank you for your suggestion ... i know my problem is the capital/money that i'm using is so minimal, though i do believe that the reward also would be minimal too as well.

But i also believe that if i have a good trade, good MM and right timing would that help a lot ? I also believe if other can make money out of it, wouldn't that others able to make it too as well ?

The problem is most of the time people don't want to learn and willing to take a risk & also lacking of knowledge and objective (ie : high expectation out of the small investment)

I'm glad i found you guys here at FF, in other forum i'd be bashed around and even get more confused. thanks to you all ...
  • #19
  • Mar 25, 2006 6:03am Mar 25, 2006 6:03am
Quoting g3tmorepip
Halo folks,
i'm new with this forex game and i have a question about forex world ... why everytime i enter the position, either long or short, the situation is always against me ... say if i enter long, the market goes short and vice versa ..
could anyone just explain to me please ... the simple one please .. i'm learning to follow the trend kind of methode instead of using the technical analysis methode ...
thanks
That's what common sense says in this game...When you follow logic, everything is usually ending up and reversing...If you are experiencing this on a demo account, then I think you are just putting your feet on the right path, because you now know what doesn't work at no charge...


Thanks,

Nader
  • #20
  • Mar 25, 2006 1:03pm Mar 25, 2006 1:03pm
Quoting narafa
That's what common sense says in this game...When you follow logic, everything is usually ending up and reversing...If you are experiencing this on a demo account, then I think you are just putting your feet on the right path, because you now know what doesn't work at no charge...


Thanks,

Nader
Good Point... Demo Dollars can't pay the rent, but they don't cause bounced rent checks either.

SMJ
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