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Some questions from a real newbie

  • #1
  • First Post: Sep 25, 2008 12:37am Sep 25, 2008 12:37am
Hi guys

First post ever, so please excuse the stupid questions.

I have gone through the stickied threads and found some great info. But just have a couple if things Id like to ask.


1) How long does a deal stay open for? I ask this because if you were to purchase for example USD and did not nominate a Stop-Loss and the dollar tumbled, whats stopping me from sitting on the deal for weeks or even months untill the dollar rises again?


2) I have been a FOREX practice account for the last few days. When I BUY currency, a window will pop up asking me to enter finer points of the deal (ie Limit, Stop-Loss, Pips etc). However, this window does not always pop up. Is there a reason for this?


3) What is the difference between a Deal and an Order?


4) How do you customize the leverage? What I mean is if I deposit $1000 in my account, and buy a 100,000 unit. This means the leverage is 100:1, I think. So using the demo account as an example, how can I change the units from 100,000 down to say 5,000, giving me a leverage of 5:1? Or is this not possible in a demo account?
  • #2
  • Sep 25, 2008 2:23am Sep 25, 2008 2:23am
Quoting Niandra_lade
1) How long does a deal stay open for? I ask this because if you were to purchase for example USD and did not nominate a Stop-Loss and the dollar tumbled, whats stopping me from sitting on the deal for weeks or even months untill the dollar rises again?
Nothing but the available margin in your account. So if you trade small (leverage 1:1) you can wait forever.

Quote
2) I have been a FOREX practice account for the last few days. When I BUY currency, a window will pop up asking me to enter finer points of the deal (ie Limit, Stop-Loss, Pips etc). However, this window does not always pop up. Is there a reason for this?

Don't know what platform do you mean?

Quote
4) How do you customize the leverage? What I mean is if I deposit $1000 in my account, and buy a 100,000 unit. This means the leverage is 100:1, I think.

Right.

Quote
So using the demo account as an example, how can I change the units from 100,000 down to say 5,000, giving me a leverage of 5:1? Or is this not possible in a demo account?

Just buy only 5,000 units. Nothing stops you from doing this. Most MT4 bucket shops offer down to 1,000 units (= 0.01 lot). Oanda even offers down to one single unit!

If you can't buy only 5,000 units then you have some kind of a "standard account". Choose the mini one...
  • #3
  • Sep 25, 2008 7:42am Sep 25, 2008 7:42am
Quoting Xaron
Nothing but the available margin in your account. So if you trade small (leverage 1:1) you can wait forever.



Don't know what platform do you mean?

Right.


Just buy only 5,000 units. Nothing stops you from doing this. Most MT4 bucket shops offer down to 1,000 units (= 0.01 lot). Oanda even offers down to one single unit!

If you can't buy only 5,000 units then you have some kind of a "standard account". Choose the mini one...
Thanks for the feedback mate.


If by platform you mean the screen/program I am using to trade, I downloaded the Practice version from http://www.forex.com/.

I am very new to this so Im not even sure if there are better ones to use to trade.
  • #4
  • Sep 25, 2008 8:45am Sep 25, 2008 8:45am
You might want to check out babypips.com
They have an excellent beginners forex course that you can complete quickly. It'll answer a lot of questions and save you much time and frustration in your new venture.

All the best
Bill
  • #5
  • Sep 25, 2008 10:46am Sep 25, 2008 10:46am
Quoting Niandra_lade
Hi guys

First post ever, so please excuse the stupid questions.

I have gone through the stickied threads and found some great info. But just have a couple if things Id like to ask.


1) How long does a deal stay open for? I ask this because if you were to purchase for example USD and did not nominate a Stop-Loss and the dollar tumbled, whats stopping me from sitting on the deal for weeks or even months untill the dollar rises again?


2) I have been a FOREX practice account for the last few days. When I BUY currency, a window will pop up asking me to enter finer points of the deal (ie Limit, Stop-Loss, Pips etc). However, this window does not always pop up. Is there a reason for this?


3) What is the difference between a Deal and an Order?


4) How do you customize the leverage? What I mean is if I deposit $1000 in my account, and buy a 100,000 unit. This means the leverage is 100:1, I think. So using the demo account as an example, how can I change the units from 100,000 down to say 5,000, giving me a leverage of 5:1? Or is this not possible in a demo account?
That depends on what margin requirement you've set up for your trades. But if you are not using a low trading leverage you can lose a lot of money. Most traders recommend that you should not trade more than 10% of your account at one time. I haven’t proven that but I think that’s a good advice. Also you can change the platform you are using. The MT4 platform is very useful and allows you to quickly calculate your trading leverage and tell you if you are over leveraging your account.
Life is a party!!! will you seat or will you dance?
  • #6
  • Sep 25, 2008 11:24am Sep 25, 2008 11:24am
Quoting billflet
You might want to check out babypips.com
They have an excellent beginners forex course that you can complete quickly. It'll answer a lot of questions and save you much time and frustration in your new venture.

All the best
Bill
Hi, Niandra. Welcome to the forum.

You're getting a lot of good feedback so far but this advice from billflet is an absolute must-do. As bill mentioned, you can complete the entire course very quickly and your learning curve from that point onward will be significantly decreased. Babypips isn't only for beginners. It's a great educational resource for nearly all skill levels.

After you've finished the babypips course you'll want to check out investopedia.com. You'll see why when you get there. Bookmark it in your browser because you'll find yourself referring to it often.

Remember you owe it to yourself to have fun.
  • #7
  • Sep 25, 2008 12:52pm Sep 25, 2008 12:52pm
I do have to agree the course in babypips is a great one, I found it after I finished a mini course in tradeview. Both helped me out a lot the first one helped me understand the second one a lot easier. Good advice.
  • #8
  • Sep 26, 2008 12:13am Sep 26, 2008 12:13am
Babypips and especially MetaTrader4 are great, as many have said.

One bit of newbie advice I wish I'd heard is to check out the Interactive Trading Forums for the pair you pick. EUR/USD is a very commonly picked pair, and during the main trading sessions the thread is extremely active with posted charts and analysis, much of which is quite newbie-friendly. The EUR/USD thread is here:

http://www.forexfactory.com/showthre...0372&page=2294

I lurk there 100% of the time I'm trading, and occasionally even participate.
  • #9
  • Sep 26, 2008 9:58am Sep 26, 2008 9:58am
Quoting Niandra_lade
Hi guys

First post ever, so please excuse the stupid questions.

I have gone through the stickied threads and found some great info. But just have a couple if things Id like to ask.


1) How long does a deal stay open for? I ask this because if you were to purchase for example USD and did not nominate a Stop-Loss and the dollar tumbled, whats stopping me from sitting on the deal for weeks or even months untill the dollar rises again?


2) I have been a FOREX practice account for the last few days. When I BUY currency, a window will pop up asking me to enter finer points of the deal (ie Limit, Stop-Loss, Pips etc). However, this window does not always pop up. Is there a reason for this?


3) What is the difference between a Deal and an Order?


4) How do you customize the leverage? What I mean is if I deposit $1000 in my account, and buy a 100,000 unit. This means the leverage is 100:1, I think. So using the demo account as an example, how can I change the units from 100,000 down to say 5,000, giving me a leverage of 5:1? Or is this not possible in a demo account?

In think you’re answering your own questions.
Maybe you’re just worried and you should be. It seems that you’re trading without a plan.
What would happen if everything goes wrong? You are asking like everything is going to be exactly as you imaging it. But in Forex you must never wait for that.
  • #10
  • Sep 27, 2008 3:55am Sep 27, 2008 3:55am
Quoting profitmaker
In think you’re answering your own questions.
Maybe you’re just worried and you should be. It seems that you’re trading without a plan.
What would happen if everything goes wrong? You are asking like everything is going to be exactly as you imaging it. But in Forex you must never wait for that.

I havent even thought about a plan yet.

I am brand new to this, I am reading as much as I can on Forex and I am starting from the ground up.

I definitely arent worried as I dont plan on using any real money for a while til I have studied thoroughly and feel comfortable to take the next step.
  • #11
  • Sep 27, 2008 3:56am Sep 27, 2008 3:56am
Quoting billflet
You might want to check out babypips.com
They have an excellent beginners forex course that you can complete quickly. It'll answer a lot of questions and save you much time and frustration in your new venture.

All the best
Bill

Thanks buddy.

That site looks sensational, have already started reading and it looks like it will be my main study material as a newbie.
  • #12
  • Sep 28, 2008 12:37am Sep 28, 2008 12:37am
Quoting Niandra_lade
I havent even thought about a plan yet.

I am brand new to this, I am reading as much as I can on Forex and I am starting from the ground up.

I definitely arent worried as I dont plan on using any real money for a while til I have studied thoroughly and feel comfortable to take the next step.
Niandra,

It is alright if you do not have a plan yet, as you stated, you just started. You need to "play" with the platform for starters, just to see how it works. I would try out a Metatrader 4 platform, as it is the most common. (I personally use two different brokers, Interbank FX (Metatrader 4 platform) and Interactive Brokers. (Greatest broker in the world for several different markets.....platform is a damn joke though.)

I remember I learned with Oanda's platform at first. To be honest, you just need to learn about things like order types, etc. at first. Don't worry so much about being "right" in your trades. It's all a learning experience.

As far as you not planning on playing with real money until you are comfortable.....thank God. There aren't enough newbies out there that take that kind of attitude. That in itself will go quite a ways towards your survival.

I remember reading everything I could about Forex trading in the beginning as well. To be honest, about 90% of what's out there won't do you much good. I would recommend a few threads here to start. In fact, I recommend 4 specifically.

1) James16 threads. (I am biased, I am part of the group. lol)
2) Jacko's House Of Pain and Pleasure
3) The System with Irony (1 and 2)
4) Anything by BillyRayValentine

There ARE other good ones, but to be honest, these 4 have everything you need to know really. Just remember this: The more simple you keep it, the better off you will be. Most successful traders seem to say this. Also, don't get hung up on smaller time frames at first. Start out with daily candles. Forex really isn't that exciting, there's no need to sit at the computer all day.

You need to be careful, this stupid market can be all-consuming. Trust me, I used to spend 15 hours a day messing with it. Now I am profitable the last 11 months in a row, and the market is lucky if it gets 15 minutes of my time a day. Odd how that works out.

Forex, like all other markets is a tool....nothing else. The real success comes from truly understanding yourself.

Best of luck,

Clockwork
  • #13
  • Sep 28, 2008 5:15am Sep 28, 2008 5:15am
Quoting clockwork71
Niandra,

It is alright if you do not have a plan yet, as you stated, you just started. You need to "play" with the platform for starters, just to see how it works. I would try out a Metatrader 4 platform, as it is the most common. (I personally use two different brokers, Interbank FX (Metatrader 4 platform) and Interactive Brokers. (Greatest broker in the world for several different markets.....platform is a damn joke though.)

I remember I learned with Oanda's platform at first. To be honest, you just need to learn about things like order types, etc. at first. Don't worry so much about being "right" in your trades. It's all a learning experience.

As far as you not planning on playing with real money until you are comfortable.....thank God. There aren't enough newbies out there that take that kind of attitude. That in itself will go quite a ways towards your survival.

I remember reading everything I could about Forex trading in the beginning as well. To be honest, about 90% of what's out there won't do you much good. I would recommend a few threads here to start. In fact, I recommend 4 specifically.

1) James16 threads. (I am biased, I am part of the group. lol)
2) Jacko's House Of Pain and Pleasure
3) The System with Irony (1 and 2)
4) Anything by BillyRayValentine

There ARE other good ones, but to be honest, these 4 have everything you need to know really. Just remember this: The more simple you keep it, the better off you will be. Most successful traders seem to say this. Also, don't get hung up on smaller time frames at first. Start out with daily candles. Forex really isn't that exciting, there's no need to sit at the computer all day.

You need to be careful, this stupid market can be all-consuming. Trust me, I used to spend 15 hours a day messing with it. Now I am profitable the last 11 months in a row, and the market is lucky if it gets 15 minutes of my time a day. Odd how that works out.

Forex, like all other markets is a tool....nothing else. The real success comes from truly understanding yourself.

Best of luck,

Clockwork

Thanks mate, great information and I will be taking all of it on board.


Is there anything wrong with using the www.forex.com platform?

Ive heard a few people, inlcuding you, mention Oanda. I like the interface of the forex.com platfiorm, its easy on the eyes and easy to bring upo charts and see the real time currency movements.


One thing I still dont quite understand is if I did open a real account with REAL money, who the hell is my broker? Is there an option during the registation process to choose one? Guess I havent thought about that too much just yet, but I assume you must choose a broker at some stage cos the commissions have to go to someone, right?
  • #14
  • Sep 28, 2008 5:58am Sep 28, 2008 5:58am
Forex.com is ran by Gain capital.
  • #15
  • Sep 29, 2008 3:38am Sep 29, 2008 3:38am
Quoting Rabid
Forex.com is ran by Gain capital.

Is that a bad thing?
  • #16
  • Sep 29, 2008 6:56am Sep 29, 2008 6:56am
Quote
Is that a bad thing?

No, someone just asked "Who would be my broker if..." well, they'd be your broker.
  • #17
  • Oct 15, 2008 10:08am Oct 15, 2008 10:08am
The word play with the platform is not the best to use in this kind of thread, as I have found out you do not play with money nor real nor fake. If you really want to learn than you must be serious and the only way you are really going to learn is putting your mind into it and don’t think of it as play.
  • #18
  • Oct 15, 2008 2:07pm Oct 15, 2008 2:07pm
Quoting clockwork71
Niandra,
You need to be careful, this stupid market can be all-consuming. Trust me, I used to spend 15 hours a day messing with it. Now I am profitable the last 11 months in a row, and the market is lucky if it gets 15 minutes of my time a day. Odd how that works out.
Great post!

I'm also just getting started and this is what I'm focusing on as a key. I have yet to read a post by a succesful, respected trader that says they trade intraday. I'm just watching the dailies, setting my orders and letting them run with the trailing stops.
  • #19
  • Oct 17, 2008 5:14pm Oct 17, 2008 5:14pm
I see you trade based on the amount of time you have in your day, so what happens if you don’t recover a lose in those 15 minutes do you leave the trade open or do close it an accept the lost?
  • #20
  • Oct 17, 2008 6:52pm Oct 17, 2008 6:52pm
Quoting haley
I see you trade based on the amount of time you have in your day, so what happens if you don’t recover a lose in those 15 minutes do you leave the trade open or do close it an accept the lost?

Haley -

I assume you are referring to my post. I place an order, set my stops and my targets and go on about my day. It's that simple. If I am down when those 15 minutes are up, it changes nothing. If it goes against me, that's what stop losses are for.

Sometimes it works, other times it doesn't. That's trading.

Clockwork
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