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  • #1
  • First Post: Sep 14, 2007 4:21am Sep 14, 2007 4:21am
Hi, can someone kindly explain what is short-term, medium-term and long-term in the context of forex?

Thanks
  • #2
  • Sep 14, 2007 4:53am Sep 14, 2007 4:53am
Quoting shiva
Hi, can someone kindly explain what is short-term, medium-term and long-term in the context of forex?

Thanks
I'm not sure there's a definitive answer, but here's mine.

  1. Short-term - up to and including 4 hour charts
  2. Medium-term - Daily
  3. Long-term - Weekly/Monthly

A scalper's context might be

  1. Short-term - up to and including 5 minute charts
  2. Medium-term - 30 minute charts
  3. Long-term - Hourly charts

  • #3
  • Sep 14, 2007 5:11am Sep 14, 2007 5:11am
If you read Dr. Alexander Elder's Come into my trading room he suggest increasing timeframes by multiples of 5

So if you trade longer term this could be daily, weekly,monthly

On a shorter term using MT4 charts for example it could be 1hr,4hr,daily

It depends a bit on what timeframes are available on your charts

What is short term or long term depends on each person and their trading
The greatest enemy of a good plan is the dream of a perfect plan.
  • #4
  • Sep 14, 2007 5:58am Sep 14, 2007 5:58am
Hey guys, thanks a lot, i know my question sounded kind of juvenile, but I HAD to know lol!

The reason I asked this is, I am long on GBP/USD and most forecasts and analysis points to medium-to-long term bullish trend... So, after taking a hit of 45 pips, I am kinda contemplating if I shold hold and if yes how long. Your answers have helped thanks
  • #5
  • Sep 14, 2007 6:41am Sep 14, 2007 6:41am
Quoting shiva
Hey guys, thanks a lot, i know my question sounded kind of juvenile, but I HAD to know lol!

The reason I asked this is, I am long on GBP/USD and most forecasts and analysis points to medium-to-long term bullish trend... So, after taking a hit of 45 pips, I am kinda contemplating if I shold hold and if yes how long. Your answers have helped thanks
You're still in the trade?
  • #6
  • Sep 14, 2007 6:45am Sep 14, 2007 6:45am
It depends on the context but lets assume the analists are talking about a weekly trend.
Looking at the graph the trend is still strong if the price drops to the trendline intersection at around 2.0000
And the trend isn't broken until a close below the last rising low at 1.9650
Attached Image (click to enlarge)
Click to Enlarge Name: gbp.gif Size: 16 KB
The greatest enemy of a good plan is the dream of a perfect plan.
  • #7
  • Sep 14, 2007 7:25am Sep 14, 2007 7:25am
Quoting PeterFM
You're still in the trade?
Yes... I was in cable at 2.0189, continuing to do so ...

PS: This is the free $100 account from fxclub.com, the money (all $100 of it)is real, so is the pain (LOL), waiting for my life's first margin call on my very first real traing acount
  • #8
  • Sep 14, 2007 7:43am Sep 14, 2007 7:43am
Quoting shiva
Yes... I was in cable at 2.0189, continuing to do so ...

PS: This is the free $100 account from fxclub.com, the money (all $100 of it)is real, so is the pain (LOL), waiting for my life's first margin call on my very first real traing acount
For any one else who reads this - THIS IS NOT A TRADE CALL

I'm long from 2.0120 plus a couple of add-ins (small lots) based on weekly fibs and Trendline
Attached Image
  • #9
  • Sep 14, 2007 7:50am Sep 14, 2007 7:50am
Will cable recover before the end of the trading week? I am contemplating adding some funds (about $100) to avoid margin calls. I reckon that if stick on to position cablemust eventually recover by Monday. This is only an uneducated guess LOL. I have discovered forex only about a month ago and kind of having fun so far and now I guess its time to see the "pain" side of no-pain-no-gain mantra
  • #10
  • Sep 14, 2007 7:54am Sep 14, 2007 7:54am
Today in an email newsletter Felix Homogratus said "Buy on GBP/USD if the number will be -0.1% or more negative" And the said indicator is = -0.4% ! - Did I do right??? Am I seeing a trend reversal in the offing?
  • #11
  • Sep 14, 2007 8:03am Sep 14, 2007 8:03am
Quoting shiva
Will cable recover before the end of the trading week? I am contemplating adding some funds (about $100) to avoid margin calls. I reckon that if stick on to position cablemust eventually recover by Monday. This is only an uneducated guess LOL. I have discovered forex only about a month ago and kind of having fun so far and now I guess its time to see the "pain" side of no-pain-no-gain mantra
It's OK to play with a broker's money, but if you really want to feel pain then do it with your own. It's a different level of pain, I can assure you.

If you come out of this trade OK, then treat it seriously as if it WAS your own. Start reading the stuff about Money Management, and get yourself ready for a move to your own cash. If you blow this free account then download one of the demo accounts and start learning before you put any dosh into trading.

Read the sticky stuff in this part of the forum and take your time, it's not that easy!!

Whatever you do, don't put real money on the line yet, it'll take several months to even get a basic grip of what's going on. If you simply have to go live after a couple of months, then trade those nano-lots I go on about (0.01). You can have a lot of losing trades, while you're learning, and still be in the game.
  • #12
  • Sep 14, 2007 8:07am Sep 14, 2007 8:07am
Quoting shiva
Today in an email newsletter Felix Homogratus said "Buy on GBP/USD if the number will be -0.1% or more negative" And the said indicator is = -0.4% ! - Did I do right??? Am I seeing a trend reversal in the offing?
There's better info around here, if you look. Signal services don't help you learn to trade.
If he's wrong, you're wrong, so you've got someone to blame. Learn to trade the charts, and then see if what he says coincides with what you think.

I'd dump his feed anyway, if it was any good all the folk on here would be trading his calls and the Factory could shut up shop.
  • #13
  • Sep 14, 2007 8:08am Sep 14, 2007 8:08am
Quoting PeterFM
It's OK to play with a broker's money, but if you really want to feel pain then do it with your own. It's a different level of pain, I can assure you.
*snipped*
Whatever you do, don't put real money on the line yet,
*snipped*
then trade those nano-lots I go on about (0.01). You can have a lot of losing trades, while you're learning, and still be in the game.
Thanks Peter I guess thats what I will do , I am currently trading lots of 1000.
  • #14
  • Sep 14, 2007 8:20am Sep 14, 2007 8:20am
Quoting shiva
Thanks Peter I guess thats what I will do , I am currently trading lots of 1000.
Essentially, you're trading a basic position size 10X what you should be.

To try and protect that money, even on single lots, you'll

  1. start tightening up your stops = many small stop-outs, gradual decline in account
  2. start grabbing small profits = many small gains with almost as many, or more, small losses, gradual decline in account
  3. start trying to scalp = see above
  4. start trading the news = see above

If you haven't already, start reading Jim's Price Action thread, and get to understand how price is king. It's a whole lotta reading but time is what you need.

If you're a masochist, read my thread, I've been where you are now, and I've made, and still make, all the newbies mistakes. But you may well be brighter than me, and get your shit together quicker.

Don't rush it. FX will be around for a long time.

  • #15
  • Sep 14, 2007 8:31am Sep 14, 2007 8:31am
Thanks Peter, this has been quite a enlightening day
  • #16
  • Sep 14, 2007 8:36am Sep 14, 2007 8:36am
Quoting shiva
Will cable recover before the end of the trading week? I am contemplating adding some funds (about $100) to avoid margin calls. I reckon that if stick on to position cablemust eventually recover by Monday. This is only an uneducated guess LOL. I have discovered forex only about a month ago and kind of having fun so far and now I guess its time to see the "pain" side of no-pain-no-gain mantra
Why on earth would any business GIVE you $100?

For exactly the reason I've highlighted. There is a better than even chance that nearly everyone who signs up will do just that thing.

Say they get 500 new players who all add another $100, after losing their free account. That's $50,000. Now the stats tell us that 90% of new traders blow their first accounts and never come back. That's $45,000 they've made with virtually NO risk on their part. Cheap advertising, I'd say.

Even the remaining 5% will have to be extraordinary traders to build their $100 accounts to a level where their wins out-weigh the brokers overall gains. Even during these traders' winning runs the broker is making money on the spreads.

It's not a level playing field, unfortunately, and certainly no free lunches in FX.

Take care
  • #17
  • Sep 14, 2007 10:24am Sep 14, 2007 10:24am
First margin call, I just did not have enough equity to hold on to my long position.
  • #18
  • Sep 14, 2007 10:44am Sep 14, 2007 10:44am
Quoting shiva
First margin call, I just did not have enough equity to hold on to my long position.
I'm still in, my position size, and stop loss, is still giving me room to move. That's what I meant about getting your trading size right. I may still be wrong, but I won't get a margin call even if I am.

Now you can move on, you've had your 'bit of fun'. Imagine how you'd be feeling right now if it had been YOUR $100. It may not be much to you, I don't know, but I bet you'd have been pi**ed off.

Keep on reading, and demo until you feel you have some idea of the rules, and then start small, as I said.

Take care
  • #19
  • Last Post: Sep 15, 2007 1:06am Sep 15, 2007 1:06am
These are the notes-to-self I have after my margin call

1 Money management may be boring, but IS ESSENTIAL
2 Listen to those who know stuff LOL
3 Basics are beautiful
4 When you lose...don't take it out on the mobile phone

And thanks Peter
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