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Forex Newbie asking some advice

  • #1
  • First Post: Jan 7, 2010 12:43pm Jan 7, 2010 12:43pm
After being recently introduced to Forex and starting a demo account, Im looking for some advice on best way to move forward.

Initally I spent alot of time looking for systems based on indicators, however im thinking this isnt the way to go. These indicators simply seem to tell you whats visible from the chart (albeit in a "summarised" form).

Im thinking the best approach is to understand the price action from the chart, specifically around support/resistance and candle stick patterns (even tho these are indicators themselves) and getting to know what these can mean in terms of future price movement.

Obviously, experience and time getting to know the movements and patterns in the charts, however Im wondering if there is any tips on best way to go about this. For example, may using specific programs for viewing previous price action or any specific literature which peopel find helpful and useful.

Or anybody successful - if you had to do it again, how would you approach it?

thanks in advance for any help.
  • #2
  • Jan 8, 2010 4:47am Jan 8, 2010 4:47am
Quoting Lobo2010
thanks in advance for any help.
You're welcome. Here's what happened to me. I spent hours/days/weeks working out a system of my own based on macd, rsi and stochastics and it worked, even as a mechanical system. Statistically I can now see it was no better or worse than most of the indicator based strategies posted here on FF. The problem is draw down. If you don't know what you're doing a mechanical system will take you to the depths of despair before trundling off into profit again.

So your paragraph about price action s/r is spot on. Price action is the market. It's the leading edge. You need to spend a lot of hours to learn it. I mean a lot. I have, and I've still got a long way to go. Make sure your posture is correct and try changing mouse hands so you can use it left handed. When you think you've got it, the market will trip you up and graze your nose over and over again. Get used to it.
Gone to a better place
  • #3
  • Jan 8, 2010 12:47pm Jan 8, 2010 12:47pm
I'm sorry mine was thr only reply you got. Someone ought to fill in the gaps.

By the way, one thing I did was try to identify the good traders in FF and if you click on their names and look at their posts you get an idea of their thoughts by going back in time and looking at the charts. It helps that all the posts are dated and timed. You can learn quite a bit like this. It also helps you find out the bullshitters.
Gone to a better place
  • #4
  • Jan 8, 2010 1:11pm Jan 8, 2010 1:11pm
Quoting smikester
I'm sorry mine was thr only reply you got. Someone ought to fill in the gaps.

By the way, one thing I did was try to identify the good traders in FF and if you click on their names and look at their posts you get an idea of their thoughts by going back in time and looking at the charts. It helps that all the posts are dated and timed. You can learn quite a bit like this. It also helps you find out the bullshitters.
Smike - I think you've pretty much covered the basics.
Lobot seems to have a pretty strong plan in place for someone new to forex as far what he needs to focus in on.

Looking back at my Newbie experiences I would change a couple things:
- I spent too much time looking at designer systems on FF/BP and trying to form fit them to my schedule/personality.
- Not accepting the fact that losses should be considered the cost of doing business
- Not taking trading seriously enough -- if you want to be successful with this it should come before your wife, your kids, your pets, your sleep, etc. until you are successful. The exception is your 'day job' supercedes trading. Consider it a safety Stop Loss for your Life.
- Fully understand the double edged sword that is leverage ... not the definition given on Investopedia ... rather - how the leverage actually works/doesn't work with your strategy and broker in real time.

That's all I can think of for now but you guys both pretty much have it covered.

Good Luck Lobot.
  • #5
  • Jan 8, 2010 2:02pm Jan 8, 2010 2:02pm
Thanks for that. Your reply is very valuable. Seriously enough - yes that is an important point and you made some importat points. I hope Lobo has read these replies?
Gone to a better place
  • #6
  • Jan 9, 2010 6:26pm Jan 9, 2010 6:26pm
Guys, thanks for the replies.

I like the idea about reading back on some of the threads of the more experienced traders - Ive started looking through James16 thread (its massive tho) and theres alot of useful information there.

I have got some historic price data via Forex Tester so Im hoping to spent a good bit of time working through that and try to apply some of the ideas from the threads there before moving more seriously onto demo initially.

Im prepared to put plenty of time and effort into this. Nothing comes to you easily in this world without some hard work.
  • #7
  • Jan 10, 2010 2:56am Jan 10, 2010 2:56am
Only a little advice on reading those GIGANTIC threads. Well, atleast it works well for me.

When it seems it's impossible to read all those thousands of pages, I just read them until I understand the basics and it starts to repeat itself. Then I move like 10 pages before then end of it, and read them. It's ussually not so hard to understand what has changed.

Thank you,
Albinas
  • #8
  • Jan 10, 2010 2:57am Jan 10, 2010 2:57am
Guys I need some advice.
I m in Forex for about 3 months and i use MT4. I placed a trade on friday and put Stop loss and went to work. My Stop Loss triggered but it did not stop my loss and my balance started going down and down and i lost significant amount of money due to NFP news on friday. this has never happened to me before. The Stop loss block is red in color and i am not sure why it did not stop my loss. My broker is closed right now , you think he will refund me with the amount lost. I need to know if this has happened to any one before.
Please advise
  • #9
  • Jan 11, 2010 5:58am Jan 11, 2010 5:58am
Quoting Honored
Guys I need some advice.
I m in Forex for about 3 months and i use MT4. I placed a trade on friday and put Stop loss and went to work. My Stop Loss triggered but it did not stop my loss and my balance started going down and down and i lost significant amount of money due to NFP news on friday. this has never happened to me before. The Stop loss block is red in color and i am not sure why it did not stop my loss. My broker is closed right now , you think he will refund me with the amount lost. I need to know if this has happened to any one before.
Please...

Hello! Firstly few questions:

1. What broker are you using?
2. Is it's real account?

It never happend to me before, but I remember once I downloaded a DEMO account which has some "spread bug" and when you open a position with etc. EUR/USD it took 30-40 pips (any time).
  • #10
  • Jan 11, 2010 6:03am Jan 11, 2010 6:03am
If you can get "in the zone" with the chart you're natural abilities will shine through.
  • #11
  • Jan 11, 2010 7:43am Jan 11, 2010 7:43am
Quoting Honored
Guys I need some advice.
I m in Forex for about 3 months and i use MT4. I placed a trade on friday and put Stop loss and went to work. My Stop Loss triggered but it did not stop my loss and my balance started going down and down and i lost significant amount of money due to NFP news on friday. this has never happened to me before. The Stop loss block is red in color and i am not sure why it did not stop my loss. My broker is closed right now , you think he will refund me with the amount lost. I need to know if this has happened to any one before.
Please...
Contact them, if its a platform error then there should be no problems.
  • #12
  • Aug 15, 2017 9:27am Aug 15, 2017 9:27am
As a forex trader my advice for newbies is do not let greed take over. When bidding begins successfully, traders often forget about the previously set goals, hoping for the same successful continuation. However, the market is very volatile and trends may quickly end. Once the target price is reached, immediately withdraw the profit or raise the stop-price to avoid losses. This tips are little but effective, all you should try those.
  • #13
  • Aug 15, 2017 11:59am Aug 15, 2017 11:59am
focus on risk management(RM), that will give you 80% of your profits. The system just need to work 60% of the times.
Focus on what is important and that is RM. Learn where you can put your stops, with what lot you can work, how to move stops, and making 1% a day is huge, if you make more, good lord that is impressive. 1% a day is like 20%/month, imagine it with 100k, thats 20k/month! 240k/year!
You should NEVER lose more than 3% of your acc in a trade, thats just ridiculous. When I lose my loss is at max 0,5 - 1,3% of it.
_______________________________________________________________________________________________________
If I could go back and start again, I would focus on the RM. trade as simple as possible and backtest manually for 3 hours a day for 3 months to get some screen time. Then I would jump to demo for a month to get the gig of it and if profitable for 60% I would go live.
Good luck there!
  • #14
  • Aug 19, 2017 10:10am Aug 19, 2017 10:10am
My advice to all of pro traders please don’t invest your real money for live trading if you are not sure about your trading skill! Here luck is nothing without trading knowledge and experience! In addition, you have to increase your profit ratio gradually!
  • #15
  • Aug 21, 2017 8:00am Aug 21, 2017 8:00am
hey guys, im like totally new to forex and i'm learning how to trade using keltner channels. this indicator doesn't give me a slot to change the EMA to 13 and to 1.6%, please help.
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  • #16
  • Aug 22, 2017 10:15am Aug 22, 2017 10:15am
Well, trading strategy doesn’t mean only indicator based system! Chart reading is a part of technical analysis! On the other hand, fundamental analysis is very much important here! No doubt, for being a successful trader we need to use both kind of market analysis!
  • #17
  • Aug 22, 2017 5:32pm Aug 22, 2017 5:32pm
For me the key is to find one simple indicator, at the beginning I charged my charts with all kind of indicators and systems, now I just go with Moving Averages and Im fine! Money management is also a major Key!
  • #18
  • Last Post: Sep 23, 2017 7:32am Sep 23, 2017 7:32am
Quoting lollerz46
For me the key is to find one simple indicator, at the beginning I charged my charts with all kind of indicators and systems, now I just go with Moving Averages and Im fine! Money management is also a major Key!
Moving average is most popular indictor for the trades who are particularly newcomers. but I didn’t get better result as a newcomer by using this approach as like demo when I have kicked off a live account.
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