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Best Trading System for a Newbie

  • #1
  • First Post: Aug 11, 2009 12:27am Aug 11, 2009 12:27am
Hi Guys,

I am new to this forum and also the Forex factory I wanted to know from you experts that which trading system is the best one for newbies. I want to learn the basics and see how it goes

All the experts please please reply to this thread. I am also looking for a mentor, if any of you reputed members wants to have me under their wing, i would be delighted

Thanks in Advance
  • #2
  • Aug 11, 2009 12:52am Aug 11, 2009 12:52am
Quoting TheFutureAce
Hi Guys,

I am new to this forum and also the Forex factory I wanted to know from you experts that which trading system is the best one for newbies. I want to learn the basics and see how it goes

All the experts please please reply to this thread. I am also looking for a mentor, if any of you reputed members wants to have me under their wing, i would be delighted

Thanks in Advance
Future, Welcome to FF

Make a promise that you would not put any real money into trading before you learn for few months.

Search for posts of some senior FF members to get some idea about trading - use search feature and may like to use the following key words:

ak4x, Crown, Jacko, James16, PeterFM, Valentine, .........

Also check babypips on world wide web.

Hope this helps. It would be relevant to mention here that no one on this earth can give you a system that works for you. However, you would get some idea about how markets work and learn some fundamental trading techniques. These tools will help you develop a method that goes with your nature and way of thinking. No one method suits everyone, because each one of us has a different brain and therefore think and feel differently.

All the best. Kindly do NOT pm ak4x (or others), just read their posts.
The Thief of Wall Street
  • #3
  • Aug 11, 2009 12:30pm Aug 11, 2009 12:30pm
thanks Chicky, I wrote a long reply and the forum wouldnt post it.

But I will take ur advice all the way. No live account unless I am fully confident
  • #4
  • Aug 14, 2009 9:59am Aug 14, 2009 9:59am
Quoting TheFutureAce
thanks Chicky, I wrote a long reply and the forum wouldnt post it.

But I will take ur advice all the way. No live account unless I am fully confident
Why wouldn't it post? If you are making a long post, try typing it in notepad or any other word processor. Then copy and paste it. I've lost long posts before too. Sometimes if a lot of time elapses while typing, your post will vanish when you hit submit.
  • #5
  • Aug 14, 2009 3:28pm Aug 14, 2009 3:28pm
Quoting TheFutureAce
Hi Guys,

I am new to this forum and also the Forex factory I wanted to know from you experts that which trading system is the best one for newbies. I want to learn the basics and see how it goes

All the experts please please reply to this thread. I am also looking for a mentor, if any of you reputed members wants to have me under their wing, i would be delighted

Thanks in Advance
There are literally a ton of methods listed here in FF. The toughest part for you is sifting through the ones that dont suit your style.

As mention look for some of the threads that have got good solid backing. By that I mean I good star rating and plenty of feedback, then have a look at the thread and see if it suits you. Like I said you will find one eventually that fits your needs.

Before sinking into it ask yourself.

What timeframe do I want to dedicate myself too? That will help to narrow down the field. (scalping, intraday, weekly etc)

I would also recommend spending alot of time playing with the methods on a demo. This will give you a general feel of whether something will suit you without it costing you anything more than your time, and trust me the more time you spend looking and becoming fully acquainted the better off you will be in the long run.

BTW try to avoid the hype threads, the ones that promise 90% wins with 500% Returns (exaggerated slightly but only slightly), they are generally short term options that have not had a great stretch of success.

Take your time, read the entire threads (yes some are 100s of pages long),twice if you have too and once you have started to understand it then ask questions. One thing long time posters dislike is the quick fix, quick info answers that where answered 30 times, 40 pages back. You will get more out of people if you take the time to learn what they have outlined.

Welcome to the best (and at times, most that is, worst) business in the world. Try to stay calm, relax and leave you emotions at bay and you may survive.

Razor
  • #6
  • Aug 14, 2009 4:46pm Aug 14, 2009 4:46pm
I know this can sound not soo good as advice to many people, but here is mine:


1) stop looking for systems in FF and in any other website, remember..? the 95% of traders fail, and you will not find a good system in any website.

As i understand (please correct me if wrong), every system you can find in internet is not profitable, and the only way to let it become profitable is using your experience (that you don't have), so you will loose money with every system you will find in internet.

Now, experience mean tons of informations and tips about the market that you can only learn with time, and i mean doing bad trades (loosing money), so i agree it's a good idea to demo-trade, but the time needed to aquire a good knowledge of the market is soo much, and you will not like to demo-trade all this time, so if you open a live account (maybe you'll be very profitable in demo when doing it) please understand that live trading is different for many reason, so probably you will loose everymoney of your first live trading account. Moral: don't put too much money in it.

You will not start to learn soon, there is a point that let you start learning, and it is when you stop asking yourself:

"How to make profit from the market?"

... and instead you ask yourself:

"HOW THE MARKET WORK? WHAT IS THE MARKET?"

When you ask yourself these questions, and start looking for an answer, then you will start to learn.

Trading career is a great career, and it require years to become good like in every other career, so the first you start trading and the first you will have the necessary experience to make profit from trading.

My 0.02
  • #7
  • Aug 14, 2009 5:18pm Aug 14, 2009 5:18pm
Quoting tunera
I know this can sound not soo good as advice to many people, but here is mine:


1) stop looking for systems in FF and in any other website, remember..? the 95% of traders fail, and you will not find a good system in any website.

As i understand (please correct me if wrong), every system you can find in internet is not profitable, and the only way to let it become profitable is using your experience (that you don't have), so you will loose money with every system you will find in internet.

Now, experience mean tons of informations and tips...

Thanks Tunera. I think what you say makes sense. I know i have tons of hard work ahead of me.
  • #8
  • Aug 14, 2009 7:59pm Aug 14, 2009 7:59pm
The best is the one which suits you.
  • #9
  • Aug 15, 2009 5:10pm Aug 15, 2009 5:10pm
1) stop looking for systems in FF and in any other website, remember..? the 95% of traders fail, and you will not find a good system in any website.

As i understand (please correct me if wrong), every system you can find in internet is not profitable, and the only way to let it become profitable is using your experience (that you don't have), so you will loose money with every system you will find in internet.

I cant remember who stated it (might have been Crabel, Buffet or some other Uber trader) but they stated that 90% of stategies that are available, free or otherwise, could be profitable IF the trader HAD a SENSE of DISCIPLINE.

Heres the point, most systems come from an individual who more or less has used it for a period of time, had success and trades it IN A MANNER THAT HE/SHE DEVELOPED. After that point it becomes posted on a forum, novice and beginner traders try, but DONT UNDERSTAND IT, so they meddle with it, tweak it and add 500 indicators and lines until the orginal product has disappeared. Had THEY TAKEN THE TIME TO UNDERSTAND IT, BECOME CONFORTABLE WITH IT AND TRADED IT the way it is traded then they may have found success too.

The other point I will make is that all too often when something fails, people (try to) change it to stop it from failing. How can you change something that is derived from an enviroment on instabilty and randomness. There will be periods where something doesnt work as well as it did, but if you have taken the time to look back on history, and tested it through those periods to see how robust it really is, then you should have your answer. You may need to at times weather the storm, but the skies are always clearer once the storm has passed.


Now, experience mean tons of informations and tips about the market that you can only learn with time, and i mean doing bad trades (loosing money), so i agree it's a good idea to demo-trade, but the time needed to aquire a good knowledge of the market is soo much, and you will not like to demo-trade all this time, so if you open a live account (maybe you'll be very profitable in demo when doing it) please understand that live trading is different for many reason, so probably you will loose everymoney of your first live trading account. Moral: don't put too much money in it.

You will not start to learn soon, there is a point that let you start learning, and it is when you stop asking yourself:

Demo trading has its limitations on the emotional aspects of trading and this is why the transition from profitable demo trading to profitable live trading is so difficult. When you blow a demo account (or more) you ring your provider and simply ask for the demo to be reset and away you go. The emotional burden may seem significant at first. Live is a different kettle of fish because you suddenly need to take ownership of your mistakes. Unfortunatly there is no easy way of learning other than to watch some money trade hands. What you learn is really where you are at as an individual with trading, you also (I would hope) learn how to move past the losses and focus on the next trade. Taking losses is part and parcel with trading, those who cant do need to find a new avenue.

Learning is a maturity thing, but there is a limitation on the usefulness of information in the market itself. By reading every book in the world about trading will not give you the skills to trade, it will give you an insight into the tools. Market time and the execution of trades will give you those skills, hopefully.

Like everything in life, it takes time to become anything. By trying to fast track time and avoid the work that is required a person will find very little success in almost all ventures. For each individual the time process will differ, but the markets will be here for a long time to come. New traders (weve all been here) stop thinking about loading that live account and becoming a millionare this year, next year or even in 10 years, it just wont happen (and if it does I can almost assure you that you will be bankrupt soon after because the risk and leverage works both ways). Take a chill pill, find something that suits your style and do your testing, make it extensive and then give it a really good try.

Razor

PS great post tunera, just added my thoughts to it
  • #10
  • Aug 20, 2009 6:17am Aug 20, 2009 6:17am
Quoting Razor_trader
1) stop looking for systems in FF and in any other website, remember..? the 95% of traders fail, and you will not find a good system in any website.

As i understand (please correct me if wrong), every system you can find in internet is not profitable, and the only way to let it become profitable is using your experience (that you don't have), so you will loose money with every system you will find in internet.

[color=royalblue]I cant remember who stated it (might have been Crabel, Buffet or some other Uber trader) but they...
Neither of the above comments is 100% true. Yes, there are systems here that are profitable but finding them is a very hard work.

Also, if all needed would be discipline, there would be no markets because computers can trade systems very easily without discipline problems.

I always like to point people to the following document, long time ago this method was the eyeopener that eventually lead to my profitability - google "turtle rules pdf" [by curtis faith, one of the original turtles] - there are so many gems of information inside that document especially for the beginning trader. Just remember that this is a journey that takes years and years [and is totally worth every moment].
  • #11
  • Aug 20, 2009 5:10pm Aug 20, 2009 5:10pm
Quoting mikkom
Neither of the above comments is 100% true. Yes, there are systems here that are profitable but finding them is a very hard work.

Also, if all needed would be discipline, there would be no markets because computers can trade systems very easily without discipline problems.

I always like to point people to the following document, long time ago this method was the eyeopener that eventually lead to my profitability - google "turtle rules pdf" [by curtis faith, one of the original turtles] - there are so many gems of information inside that document...
Mind if I ask...

Don't you think it needed discipline to work hard day by day just to find the right system for you?

Don't you think those turtles would fail unless they apply strict-to-the-rules discipline to their trades?

Discipline is certainly not all that needed to succeed in this business, but don't you think it's the first requirement you need to have before everything else?
  • #12
  • Aug 23, 2009 12:58am Aug 23, 2009 12:58am
good discussion...

I myself is a newbie n kinda late to found this thread.

I think most, if not all, do n don't that have been stated above are true, especially finding the profitable system / ea in the internet. Nope, I can't find one, at least that what I am thinking after putting my money in real accounts.
  • #13
  • Aug 24, 2009 12:14am Aug 24, 2009 12:14am
read the whole school from babypips.com Read the FF forum for a couple of months. Try different systems form other members, just to see that a mechanical system will not work in the long run.

When MA 25 and MA 50 intersect and Bolliger Band is whatever, and MACD is whatever then .... these systems do not work, at least not in the long term.

Study the charts, learn how a currency behaves, how it moves.

I only use Heiken-Ashi(it's like candle sticks but it filters out a bit of noise), and price action. That's it. Sometimes, rarely i also use PSAR. Just watch the charts, learn how a currency moves, and know where support and resistance is, that's all you need.
Twitter: @forexpokerpro
  • #14
  • Aug 24, 2009 9:09am Aug 24, 2009 9:09am
I joined a future trading company for three months already.
Due to my inexperience, I let a broker in the company to handle my account, for the 1st month, it was a hopeful success for me (and my broker).
It took a grim turn in the next month,
I had a US$ 1900 in just one trade,
okay, we fixed that, I injected more fund, and tried to 'repair' things.
a couple of weeks passed without any profit, and suddenly I got another margin call and forced to inject more fund (to date I had injected US$ 10000 already).
and the grimmest day of all is 21st of august..
Again, my broker carelessly made some transaction.
Now, I am trapped in a hedge/locking
with a GBP/USD open buy and aGBP/USD open sell with floating loss about US$ 5500s. Currently I had US$700 of equity and margin of US$200.

My great trader seniors, I beg you for a help...

can I escape this lock?
is there any way I can save my fund?

thanks a bunch for the help beforehand...
  • #15
  • Aug 26, 2009 12:08pm Aug 26, 2009 12:08pm
Hey zfyn,
you should really start your own thread with this...that way it doesn't sidetrack the original thread, plus your question will get the attention it deserves. I'd offer my advice, but as I'm a rank beginner I'm not even able to understand the situation you describe. Good luck to you.

Quoting zfyn
I joined a future trading company for three months already.
Due to my inexperience, I let a broker in the company to handle my account, for the 1st month, it was a hopeful success for me (and my broker).
It took a grim turn in the next month,
I had a US$ 1900 in just one trade,
okay, we fixed that, I injected more fund, and tried to 'repair' things.
a couple of weeks passed without any profit, and suddenly I got another margin call and forced to inject more fund (to date I had injected US$ 10000 already).
and the grimmest day of all is 21st of august..
Again,...
  • #16
  • Aug 26, 2009 4:41pm Aug 26, 2009 4:41pm
Quoting zfyn
I joined a future trading company for three months already.
Due to my inexperience, I let a broker in the company to handle my account, for the 1st month, it was a hopeful success for me (and my broker).
It took a grim turn in the next month,
I had a US$ 1900 in just one trade,
okay, we fixed that, I injected more fund, and tried to 'repair' things.
a couple of weeks passed without any profit, and suddenly I got another margin call and forced to inject more fund (to date I had injected US$ 10000 already).
and the grimmest day of all is 21st of august..
Again,...
How can you have US$5,500 floating loss on a US$700 equity? You should have been margin-called already.
  • #17
  • Aug 26, 2009 5:28pm Aug 26, 2009 5:28pm
i agree with Tunera whole-heartedly. the only absolute thing you can rely on is experience. thats it. and i know its already said, but you gotta work on it and it will take a while. even doing it full time takes at LEAST three years. probably more like 6-8 for part timers. and by "it" i mean learning. the best way to learn is to sit there and watch charts. keep watching them till you start recognizing how the pair moves. for a long time, that advice will make no sense at all. you'll think "i dont recognize anything! it all looks the same!" it will be this way for a while and it will seem like you'll never "know" the charts. then you'll start doing something subconsciously, like putting in a demo trade "because you felt like it" but in reality, it was because you knew how that pair was probably gonna react. again, it takes a LONG time before getting to that point.

just learn the charts. stick with one or two pairs, or a group of pairs (like yens, usd pairs etc.) and just watch them for two or three hours a day. just demo trade based on your instincts (instincts are different from emotion to all you anti-emotioners out there). do this for a few years and you will get it. you WONT start making money for a while though. but you will eventually. i promise.
  • #18
  • Aug 26, 2009 5:36pm Aug 26, 2009 5:36pm
Quoting zfyn
I joined a future trading company for three months already.
Due to my inexperience, I let a broker in the company to handle my account, for the 1st month, it was a hopeful success for me (and my broker).
It took a grim turn in the next month,
I had a US$ 1900 in just one trade,
okay, we fixed that, I injected more fund, and tried to 'repair' things.
a couple of weeks passed without any profit, and suddenly I got another margin call and forced to inject more fund (to date I had injected US$ 10000 already).
and the grimmest day of all is 21st...
Hi, i'm very sorry to read your story, all i can say is that for now your moneys are gone, probably would give you much less stress to close the hedge and accept the loss. It happened to me too a story similar to this (my first account), that was a very very bad experience, but at least that experience was a "start" point, so.. welcome to trading!!!

Accept the loss, and trade the 700usd account, or maybe stop for some time and come back to live trading later.
  • #19
  • Aug 26, 2009 5:41pm Aug 26, 2009 5:41pm
Quoting blacksun1
i agree with Tunera whole-heartedly. the only absolute thing you can rely on is experience. thats it. and i know its already said, but you gotta work on it and it will take a while. even doing it full time takes at LEAST three years. probably more like 6-8 for part timers. and by "it" i mean learning. the best way to learn is to sit there and watch charts. keep watching them till you start recognizing how the pair moves. for a long time, that advice will make no sense at all. you'll think "i dont recognize anything! it all looks the same!" it...
It's incredible true what you writed, i think it's like this too.

The market is a big big puzzle to solve, but the unconscious mind start to solve it more quickly then the conscious one, then it's usual for example to know that "the pair will move down now", and if somebody ask you "why?" you can't give a mathematical explaination but just "because i look charts everyday from years and i know it's much probable that it will go down now!"!
But then, i think there's much experienced people that with time also understand why they think it's probable a move down (hypotetically), so the conscious mind will have solved the puzzle.

Anyway, trading without experience is a real kamikaze! Tha hard jungle eheh!
  • #20
  • Aug 26, 2009 9:54pm Aug 26, 2009 9:54pm
Quoting tunera

You will not start to learn soon, there is a point that let you start learning, and it is when you stop asking yourself:

"How to make profit from the market?"

... and instead you ask yourself:

"HOW THE MARKET WORK? WHAT IS THE MARKET?"

When you ask yourself these questions, and start looking for an answer, then you will start to learn.
BEST ANSWER EVER!
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