Where do I start with my fx education?

Hi

I would appreciate some advice please about my forex education. In particular, I'm hoping I can get some help from the "old timers" who are familiar with all of the different approaches, methods, styles and systems on FF and who would have a broad awareness of "what is out there".

My situation is that I have been exploring forex trading for nearly a year but still consider myself a newbie. I do trade a very small account but am very sensible (although still act according to greed and fear occasionally) - I find this psychologically suits me better than demo trading. I don't trade with a system - I wouldn't know what a system looks like really - and I don't have any plan as such (one of the things I would like to address). Ironically, I did trade for a living but this was energy trading in a very physical market and I didn't use technicals or trade "naked" - lots of structured options (accessed through physical storage contracts) and also a fair bit of arbitrage as it was a new market and shit loads of opportunity through inefficient pricing. However, fx is nothing like what I did and I consider myself to be starting from scratch.

I am taking a couple of years out of paid employment now and during that time I will be committing a good chunk of time to learning fx and exploring whether I can treat this as a business, so that I may gain some consistent return after some time (appreciate this will possibly take some years). I have the capital to fund an account but don't have to decide on that now - my long term aim is that fx can provide a supplementary income and I don't need it to be that much.

The crux of my problem is, out of all of the things I have seen on FF, where do I start ? I have spent a few months checking out FF and other websites - I have done Baby Pips and have the basics down but feel I need to now take the next step. One thing I have done is made a big list of possible avenues for further exploration/serious study - I have dozens of places I could start including J16, 4 hr rhythm/MACD, DIBS, plus loads of system based threads. I have a book list as long as my arm and there are 100's of webpages and articles bookmarked now.

If I am lucky enough to get any responses I would be hoping that I might get some advice about WHY I should perhaps follow J16 (as I am sure that a lot of people would support that) i.e. will it give me a good all round appreciation of the different approaches. So, what are the pros and cons of where I start. Even better would be an indication of how my study might develop - what the order of study could be, etc. Without appearing ungrateful up front, I'm less interested in responses such as "get stuck in, read everything you can, etc"

I think it looks like I'm asking a lot - I am up for the hard work and really I'm just looking for some pointers on how to go about this with a bit of wisdom and efficiency. I'm sure this will help someone else if they stumble on the answers (being optimistic I'll get some) - I have resisted jumping in too wholeheartedly without doing the hard work and I suspect many others that have gone before me must have thought "bloody hell, there are so many different approaches and methods, where the **** do I even start".

Anyway, enough waffle - thanks in advance.

hi there, im new to trading too. you're gonna have to educate yourself and start with BabyPips forum. FF is kinda advanced and you're gonna have to read ALOT and get familiar with all the bells and whistles of trading before someone gives you advice. there are plenny of free resources that will educate you on trading forex. take a couple months to read and play with the charts so you're comfortable with indicators, loading up expert advisors, and all datt. from one nooby to another. -ShrShot

Hi, Maybe you can find in here

http://www.forexfactory.com/showthread.php?t=163132
http://www.forexfactory.com/showthread.php?t=39892
http://www.forexfactory.com/showthread.php?t=39514


__________________________

Butterfly Patterns

.

Hello sir,

I myself am a J16 trader (Well, I trade a bit differently nowadays but its still built off a strict foundation of J16 material)

Why should you trade J16 -

Simple method
It's clear why it works
It's psychologically a lot easier to trade than say DIBS
It treats forex like a business
It can be used to improve any other system.
You can actually understand why the market is doing what it's doing


System is a bad word to use in my opinion, you want to learn a method, get a general understanding of how the market works.

I know everyone says in the thread "well start at page one and read the thread" and this is true, because the thread itself actually grows in a very organic fashion.

I know you don't want the whole "how will my education look like" answer but I can't give you that answer because the stuff you get interested in first and feel that you are attracted to won't be the same as what I got interested in. You will probably start by learning the actual price action - the bar types, and then move onto learning what makes up a good location.
The most important part of any learning is simply the work just getting in actual screentime and looking at how price reacts to certain things.

Theres actually an index of the best posts linked off the thread and you could study that stuff under the different headings if you needed.

And to be honest if people can't read the thread and pay special attention to J16's posts, those people probably won't have the patience, dedication and drive to succeed in trading.

At least with J16 Price action, you have a reason why things are happening. Obviously there are no certainties in forex and if it was a perfect science there wouldn't actually be a market in the first place, there is only the ability to tip the % in your favour.

Take a pin bar - It's an extreme reaction, price went one way, then it was forced backwords and closed below the previous high. So it shows more seller/buyers are coming into the market, more supply/demand whatever.

If you start by using an indicator system it will just be a crutch that ruins your progress - It will just give you a reason to trade, oh I will press buy now because of x y and z. Whereas at least with J16 stuff you can say to yourself "At least I know whats occuring here"

I am not saying that there aren't other profitable systems here on FF, I doubt anyone here could comment on them all. I have traded DIBS for a while, and I found it psychologically a lot harder to trade than I liked. It's definately a valid system though but I think its a lot harder to trade in terms of the many small losses you take.

And in ways, "education" isn't a good word to describe a way to approach forex, simply because it is inherently imperfect - because the forex market is a creation of the human mind, it's not based on a science. Really what you want is experience.


I think I rambled there for a bit, apologies. Hope it was of some use to you, if you have any further questions J16 about it I am sure I can answer them to the best of my ability.

Regards,
Jig

hello frenchpips,

read the stickies at the top of this rookie forum. then start your own journey 2 find your own success in fx trading.

few things u need 2 address. how will u trade fx?? analysis using fundamentals(news) or technical ?? do u like 2 trade using price action, or with a system/method of indicators?? your lifestyle n temperament will decide whether u will be a long-term or short-term trader. trading with the trend from the 4hr n above charts or intraday trading. maybe u like 2 scalp n take smaller profits?? then it's the broker u choose. r they honest?? will they screw u?? can u trade the way u want with that broker??

price action(j16 thread in the interactive trading forum)
support/resistance( no brainer trades by billyrayvalentine interactive trading forum)
trading with trend( jacko's house of pain n pleasure trading discussion forum)
long term trading( strat's long-term stress free trading journal forum)
silent service clockwork71 trading systems forum
auslanco 15m

go n explore the 5 star threads n come 2 your own conclusion n style that suits u. no style is better than the other. although some will tell u otherwise. some will tell u that trading the higher timeframe brings more money n less stressful. but if u like trading the 1m or 15m timeframe, what will u do?? take their advice n trade in conflict within your mind!!!

trade what suits u n u feel comfortable with. a style or method that makes u money n with consistency. trading with conflict with yourself will cause u 2 burn n crash!!

some say bank traders only look at the daily timeframe. but floor traders scalp here n there. there r many good traders n gurus who share their methods. but does all who learn from them succeed??? no, because some of them will not get it or the methods taught does not suit the trader who seeks 2 learn!!!

bottom line, use what works 4 u. r u ready 4 it, cause there's hard work involved. with frustrations ectasy thrown in. just my humble views from a fellow learner. trade well.

Thanks for the replies - I appreciate them very much.

Apart from a few good nuggets of wisdom which have provided food for thought, just asking the question was helpful.

I know what I have to do.

Thanks again



Andrew

What you need to do is simple, find a forex mentor.

I have been trading professionally for over 5 years now. Actually come to think of it, it is 6 now. One thing I can tell you is that to be successful in this business you will always be learning. I pick up something new every week.

I highly recommend at first to pick one or two pairs max. That's it. Keep it to the majors (USD, GBP, EUR, JPY, CHF, CAD, or AUD crossed with the USD). Then watch. Yep you heard it right watch as many hours you can for at least a couple of weeks.

Then find out what kind of trader you are by taking a test (can't think of a website off the top of my head but there are a few out there). Are you a short term trader, trend trader, etc?

Then learn about fundamentals vs. technical. You will find currency trading is mostly technical, however it helps to understand the fundamentals.

Then you want to learn about indicators and figure out which one or ones you like the best.

Then you want to paper trade. Then practise trade. Then trade for real with a small amount of money. Then progress.

Your best bet is to start with a training program. There are a few out there. One that is popular is www.forexmentor.com . There are others so do a web search and be sure to look on the forums to find out which ones help, etc.

More than anything, you will find that the biggest adventure in Forex is you. Yep you read that correctly. Those that really make it in this industry, along with any trading/investing are the ones that work on the mental side of trading/investing. This takes a long time and is often overlooked by a large percentage of traders. You should always be working on yourself. Meditation; hypnosis; hypnotherapy; EFT (Emotional Freedom Technique); NLP (Neuro Linguistic Programing (Tony Robbins)); Sedona Method; etc. There are many avenues and it depends on your personality. You will be very hard pressed to find any who make it that don't work on themselves.

I hope it helps. Be patient. Be persistent. Once you start making money you will never regret it.

Best wishes to you.

baiscally, i would love to suggest you some good forex e-book for beginners to read more and more, but you should have a basic awareness of all the trading terminology. Once you feel you are aware of most of the terms, start trading, but the ideal way is start with a demo account. there are loads of them available on internet today!

One of my rules of thumb is that when a tout starts talking about 'secret' or ancient secret' or similar crap - then its probabaly just that - crap.

FP it seems you have the right mind set and direction.

You said:

"....if it was a perfect science there wouldn't actually be a market in the first place, there is only the ability to tip the % in your favour. "

Casinos only need to add the 0 and 00 to their roulette wheels to make them winners.


Get more monitors...I have 12 but trade nearly everything....3 or 4 should do 4U.
Craigslist for good used 17' TFTs and a 4 port vid card and you're set.
Or buy a monster monitor.

I found it much easier and much more relaxing to watch different time frames of different pairs,and easier to notice trends starting/ending. Plus you can keep an eye on Reuters/BBC/CNN etc. at the same time.

None of that endless toggling between screens (accidentally closing screens while rushing to see something else) and getting arm and neck aches from continuous jacking with the mouse for 14 hours...now I just lean back in the arm chair,or use my rower or cycle exerciser.
Eyestrain is a fraction of what it was.

How many times have you been watching a pair,and only 10 minutes later notice that another has indicated and moved a lot and you missed it??

It takes one half decent trade to pay for the equipment.

Also highly recommend S&P emini,using price action.



You seem on the verge of realizing the major simple truth of the markets..once you do,the world is yours.

true, i started trading forex in June09 with a mentor explaining the basic to me. But then, after few day i start to trade on my own. So far i blew up my account once only compared to my mentor (more than 10 times maybe in 2 years)

Mentor might not able to guide you on how to make money, but he can help you not to lost money.

I'm very much a newb at this myself. But what I found in doing the same searching that you are currently doing is that - and I know this sounds counter intuitive - the more information I surrounded myself the worse trades I made.

I think that once you have an understanding of the basics of how this market works you should develop your own systems and strategies. What works for other people will not necessarily work for you. Like you mention, there is a big psychological factor that needs to be addressed and I think this is more important than any trading system indicator mastery. As a matter of fact, once I stopped using indicators my positions started preforming markedly better.

My uneducated but experiential message is to let the market and your intuition provide you with the education your seeking. And as you know from your experience as a futures trader, risk management is vital. If you are exposed to a 50% loss it WILL hit you.

Having worked with futures traders in almost every commodity, I can tell you that the cockiness they tend to exhibit would be deadly in FX, but as you've discovered these are two distinct animals so I suspect you are already on the right track.

Good Luck.

You start with the tape. Unconsciously know what the h---'s gonna happen on that chart, and have a trigger finger to stop or start each trade. Books here (with apologies about the source).
Then you study your personal reaction and its variety to trading at all. Psychology, that is. Books here; Douglas' book is often noted. I prefer the acrid version here.
Finally, you heap on as many drawing tools and indicators as your personality cares to view at a time, and then refine the mess until you can explain the edge you attained to somebody else.

Good luck. Oh, and ask someone who's actually earned consistently doing this. (Not me.)

I've posted a lot of .pdf reprints of magazine articles
whenever I thought they would help, from mags like
Currency Trader, Futures, SFO (Stocks, Futures and
Options) and Stocks and Commodities magazine.

There are .pdfs at each of these links that you can
download and save. (Some are repeated.)

http://www.forexfactory.com/showpost...6&postcount=15

http://www.forexfactory.com/showpost...50&postcount=6

http://www.forexfactory.com/showpost...8&postcount=14

http://www.forexfactory.com/showpost...7&postcount=18

http://www.forexfactory.com/showpost...9&postcount=16 (Ichimoku system)

http://www.forexfactory.com/showpost...3&postcount=84 (Trade like a Dealer by Boris Schlossberg)

That ought to keep you busy.

I guess the first thing to figure out is this: do you have
the temperament to set your stops and go away from
the charts, or do you have to keep your eyes glued to
the screen for hours at a stretch?

That will determine your approach, your time frame,
your method, etc.

Go to Starbucks or somewhere you can be alone with a pencil and pad of paper. Write down the 10 things from everything you have read are true or you think they are true. In other words, of all the information you have read and seen, which makes the most sense. Now refine that list to 5. Once you have that prioritize the list from top to bottom by importance. Now with number one as your basis begin to develop a trading program.
There is more but that is where to start.

you want a tip.... don't listen to newbies spewing out already regurgitated rubbish they heard 5 minutes ago, you've got enough reading material to take you to next xmas what more do you want to know?.... practice, practice, practice but do it with pennies and dimes.... you are ultimately alone in your endeavour start taking some responsibility.... oh and practice more.

FrenchPips, if you have to ask questions like this.....I'm guessing that you haven't done enough research and aren't serious about FX trading.

That's my opinion and my opinion only. In a previous life I would have fired managers for asking questions like this.

In FX you're the manager, CEO, CFO, CIO, etc... of your own business. You need to be able to answer most of your own questions. When you can't, that's when you bring in advisers or specialist.

If you can't at least do that you're nothing more than sheep in a wolves den.

The best forex trading technique That I have ever come across is Chris Lori's pro trader available from forexmentor. Dont bother with Peter Bains crap, you can learn pivot points anywhere but Chris Lori is the real deal. If I had my time again though I would just join J16 and only do what I was instructed by them until the penny dropped.

hey im quite new to this and im learning from experience and reading up on other peoples mistakes. find you own trading style, whats comfortable for you . and most importantly learn why and what was the mistake you made. hope it helps