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Help for Newbies (Discussion Thread)

  • #361
  • Feb 4, 2011 12:18am Feb 4, 2011 12:18am
Quoting the redlion
There is NO support or resistance per say.

in the sense that price wont really respected. this is psycological game, support/resistance HELPS identify SUPPLY and Demand.

look at your 1 hr chart and draw a line of where has price stopped moving up or down. I believe, that the longer time frame will give you a clearer picture.

but you could identify this areas in you 1 minute or 15 min or 5 min chart. where has price stopped falling, and moved up, where has priced topped.

THEY OFFER NO RESISTANCE AND NO SUPPORT

they merely help you gauge supply...
Wanted to dissagree at first,
but after changing from stocks to forex,
i do not draw sup res lines, only fibs and some trend lines..
How to opt out annoying user signatures ??
  • #362
  • Feb 4, 2011 1:01am Feb 4, 2011 1:01am
same goes with stocks, any equity market

let me ask you, what keeps prices from moving through a line drawn on the chart?

nothing

support is not support, its the area where people collectively decide to stop selling and begin buying

resistance is not resistance, just where people are scared holding a high price.

at any moment for any given reason, mentality can change

just gives us traders order, and an indication of supply and demand
AVT INVENIAM VIAM AVT FACIAM
  • #363
  • Feb 4, 2011 1:19am Feb 4, 2011 1:19am
real life example;

just now with the euro/usd right before the european open,
the euro was over sold i thought

with parabollic SARS on the bottom
major area of SUPPORT with fibonacci retracement 23.60%
stochastics upwards MACD with momentum upwards and lines had crossed at the bottom upwards

in the 1 hr price had pierce bollinger bands down, and in three different days 25th and 28th and many times today, the price had bounced off of my imaginary support.

i was thinking maybe price will retrace to main pivot before heading down as
the Moving average lines seemed to be curving usually a sign they ll cross upwards.

on my minute chart the 4hr equivalent SMA 240, and the 15 sma 60 sma had all exploded upwards not too long ago, i was sure
i was right.

guess what? either i completely miss read all the signals, and european opened and hit my stop, maybe i was COMPLETELEY WRONG
but it all seemed reasonable to me.

where was the support that had been tested? what changed?

people sold, out goes my assumptions, support goes down the toilet.
i lost all my gains of the day.

oh well there will be more trades.
for the mean time, i need to continue to learn
AVT INVENIAM VIAM AVT FACIAM
  • #364
  • Feb 4, 2011 5:19am Feb 4, 2011 5:19am
Quoting OceanOfPips
Hedging is taking a position in a currency pair, and then taking the opposite position on the same currency pair. (Btw, U.S. forex brokers no longer allow hedging on trading accounts.)
Could someone please explain to me why you would hedge a trade, rather than simply closing it? In my mind, hedging vs closing a trade have the exact same effect on your account, except that hedging incurs additional costs of opening and closing the hedging trade.
  • #365
  • Feb 5, 2011 2:44am Feb 5, 2011 2:44am
Hi there,

I'm a newbie with a micro account. I won a trade last night on USD/CHF, I bought 0.01 lot and the profit was USD8.06. How many pips is that? I minus my TP'ed price and the price that I bought, its 0.00769.

Does that mean it's 769 pips profit?
  • #366
  • Feb 5, 2011 11:00am Feb 5, 2011 11:00am
0.00769 would be 76.9 pips, friend...
  • #367
  • Feb 5, 2011 4:52pm Feb 5, 2011 4:52pm

Im just wondering what got everyone into forex to begin with and why you are learning to trade forex. The reason I am learning to trade forex is because I want to work from home. I also have a large amount of debt I would like to pay off and by learning to trade forex I will eventually be able to do these things.

1. What is the reason you want to learn forex?

2. What is the number one thing you are or was struggling with your forex trading? - if you solved it how long did it take you and where did you find your answer?

3. What would be the most important thing you would suggest to someone new (ahem* like me) to avoid the struggles you went through originally?

  • #368
  • Feb 6, 2011 9:15am Feb 6, 2011 9:15am
One more question.

How is it possible to lose more than your initial capital?

Won't the trade be stopped out if our capital hits zero?
  • #369
  • Feb 6, 2011 4:35pm Feb 6, 2011 4:35pm
Quoting robhghes
[indent]...
1. Financial Independence.
2. Emotional trading is my biggest obstacle. It's what most traders struggle with. It's a constant battle not to get too greedy nor too fearful while trading.
3. The most important thing for any trader is to always follow proper money management. In other words, don't let your greed tempt you to risk too much money on any one trade. No matter how "right" you feel you are, there's always a risk you could be wrong...so don't bet the farm.
  • #370
  • Feb 6, 2011 7:37pm Feb 6, 2011 7:37pm
Hi Peter, very instructive thread and thanks for your patience and willingness to teach.

When I run the EA I get this message in the terminal under the "expert" tab -- 2011.02.06 17:29:55 Firebird v63G trader seven USDCHFm,M5: Account equity = 5000 -- and it keeps on draining the CPU with repetitions.

Can Peter or someone please help?
  • #371
  • Feb 10, 2011 4:27am Feb 10, 2011 4:27am
Quoting robhghes

large amount of debt I would like to pay off and by learning to trade forex I will eventually be able to do these things.


Man, if you have a large amount of debt learning forex is the last thing you should do before living in a cardboard box.
Gone to a better place
  • #372
  • Feb 11, 2011 1:09am Feb 11, 2011 1:09am
Quoting smikester
Man, if you have a large amount of debt learning forex is the last thing you should do before living in a cardboard box.
Have to agree - speaking from personal experience! Approaching forex as a way to quickly pay off bills with little trading experience?

Save yourself some time, head to Vegas and go large on black - chances of making money in a short timeframe would be much higher LOL!
  • #373
  • Feb 12, 2011 8:47pm Feb 12, 2011 8:47pm
...the gentleman did use the words 'learning', and 'eventually'.

@robhghes,

Everyones doing this as a means to one end or another, and those reasons are as good as any.
Suggestions?
Consider whether or not trading is something you actually ENJOY doing. And if it is, be prepared to put the work in, and refuse to be discouraged.

Trading is a craft. And developing a craft takes time.

  • #374
  • Feb 13, 2011 9:22am Feb 13, 2011 9:22am
Quoting daveindubai
Have to agree - speaking from personal experience! Approaching forex as a way to quickly pay off bills with little trading experience?

Save yourself some time, head to Vegas and go large on black - chances of making money in a short timeframe would be much higher LOL!
I second that. It's definitely a bad idea to depend on forex trading to pay your bills. When you put that type of pressure on yourself, it will affect your judgment when you trade.

Forex trading is hard enough. By depending on it to pay your bills, chances are, you'll end up in a worse financial situation. Don't do it.

Only trade with money you can afford to lose. Trade to make profits that will supplement your existing income...hopefully in time that will grow to bigger and better things.
  • #375
  • Feb 17, 2011 6:34pm Feb 17, 2011 6:34pm
Totally. I work my 8 to 5 everyday. And my time after is learning to perfect my trading. I enjoy it and its my hobbie for now. Some day it may turn into my back up plan. But for know its live and learn.
  • #376
  • Feb 21, 2011 2:44am Feb 21, 2011 2:44am
could someone tell me pls is there any correlation between volatility and liquidity?
i mean how do this intentions connect to each other?
  • #377
  • Feb 21, 2011 8:25am Feb 21, 2011 8:25am
Hi,

Just looking for some advice on how much you should start trading forex with? What's the most you can lose in 1 day? Is it $1k i heard? If you have 1 standard lot?

Thanks.
  • #378
  • Feb 22, 2011 5:48am Feb 22, 2011 5:48am
Quoting untitled_war
could someone tell me pls is there any correlation between volatility and liquidity?
i mean how do this intentions connect to each other?
In general, the two are inversely related, meaning the lower the market liquidity, the higher the volatility in price movement, and vice versa.

When there's low trading volume (i.e., low liquidity), lots purchased (or sold) will have more influence on currency rates. When there's high trading volume in the market, trade orders will have less influence on currency rates.

The exception is during news events or key market report releases (i.e., NFP). When the results are unexpected, you'll see a huge rush of trade orders usually in one direction. At that moment, the market is highly liquid. However, since all the trade orders are usually in the same direction (i.e., mostly buy or sell orders), that drives currency rates, at times over a large range of pips (i.e., high volatility).
  • #379
  • Feb 28, 2011 5:05am Feb 28, 2011 5:05am
Simple question:

Is there on Forex Factory list of main true real confirmed ECN brokers? I typed in search box all this and did find nothing.
You should fall, before you stand up!
  • #380
  • Feb 28, 2011 8:21am Feb 28, 2011 8:21am
Hope, this is right spread for newbie question? Can somebody link me to the thread about trade psychology?
You should fall, before you stand up!
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