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Help for Newbies (Discussion Thread)

  • #541
  • Oct 13, 2011 6:00pm Oct 13, 2011 6:00pm
Quoting vereina
I suppose one of the things that appeals to me is it is the head game you can play without involving anyone else's head?

I am getting a sense already that, for me, it is a little like gardening. A question of observing how the currencies behave in various circumstances until it becomes second nature, while always allowing for random factors and protecting yourself, insofar as you can, against the fallout?

yeah many times the games being played are within your own head, but you know if you listen to what the pundits say and then copy it down and check their predictions you will begin to see another part of the "game."

It will begin to become more clear even the pros rarely get much of anything right in this game. Realize further that you "could" be profitable with only a success rate of around 40%, but most lack the fortitude of long strings of losses.

If you don't like head games, this market is probaby not for you... but this day and age every market is a head game to some degree.

Gardening? yeah I can see the simularities. LOL.
  • #542
  • Oct 19, 2011 12:59pm Oct 19, 2011 12:59pm
Good Morning All,
I'm wondering how the more experienced traders decide what the best pairs to trade.
Is it best to use a more volatile currency as you could expect a higher reward, but also a higher risk!
Is there a more favored pair when starting out.
Kind regards
Alan

  • #543
  • Oct 20, 2011 3:50am Oct 20, 2011 3:50am
Quoting oceanwandere

Is it best to use a more volatile currency as you could expect a higher reward, but also a higher risk!
You decide how high is your risk. Volatility has nothing to do with it.
Count money not pips.
  • #544
  • Oct 20, 2011 7:07am Oct 20, 2011 7:07am
Quoting oceanwandere
Good Morning All,
I'm wondering how the more experienced traders decide what the best pairs to trade.
Is it best to use a more volatile currency as you could expect a higher reward, but also a higher risk!
Is there a more favored pair when starting out.
Kind regards
Alan

Everything is much simpler. They take currency pairs they have good results with.

Regards,

Josef
  • #545
  • Oct 20, 2011 8:01am Oct 20, 2011 8:01am
Quoting oceanwandere
Good Morning All,
I'm wondering how the more experienced traders decide what the best pairs to trade.
Is it best to use a more volatile currency as you could expect a higher reward, but also a higher risk!
Is there a more favored pair when starting out.
Kind regards
Alan
Just starting out stick to the pair(s) with the lowest spread. Stay away from exotics or big spread pairs.

As you gain understanding of how the FX market works and how price flows you can then later branch out and trade additional pairs.

Just realize some traders never trade more than 1 pair... while some trade them all. This decision is best left for when you have more experience.

Good Luck.
  • #546
  • Oct 20, 2011 8:28am Oct 20, 2011 8:28am
Can someone explain me in simple words what is spread betting? (Without referring me wiki, google, etc.)

Thanks
  • #547
  • Oct 20, 2011 8:38am Oct 20, 2011 8:38am
Quoting Oliver_Chart
Can someone explain me in simple words what is spread betting? (Without referring me wiki, google, etc.)

Thanks

Here is some info that might help...

Quoting Financial Spread Betting
LINK
Forex Spread Betting

A spreadbetting account allows traders to buy and sell foreign exchange contracts either intraday or over a longer term period, so you can hold positions for just a few minutes to weeks or even years.
Minimum stakes amongst the providers typically range from 50p or £1 a point and the spreads just 2 ticks on the main spot rates and 10 to 12 on the equivalent forward contracts. Margin requirements are about 1 to 2% of the total exposure (or typically 40 to 100 times the stake). The tick size is usually 0.0001 so if a pound is worth $1.6345 the quote would be 16345. Providers say foreign exchange betting tends to revolve around four currencies: sterling, the dollar, the euro and the yen.
Spot FX or Rolling Bets

For shorter-term positions it can be better to use a spot currency bet. These follow spot foreign exchange trading in the interbank markets and close at 8pm UK time and settle at the prevailing spot rate, although it is possible to rollover them over into the next day at a small additional cost. Rolling bets are usually suitable for short-term trades of up to 3 weeks or less.
Forward FX

Forward FX bets are suitable for taking longer-term positions of up to 6 months. In the underlying markets, a forward currency is an agreement of a rate today at which currencies will be exchanged on an agreed date in the future. The Forward FX bets are very similar, except rather than exchanging currencies, bets are simply expired based on the spot rate at 8pm London time on the expiry date of the contract. With a quarterly forex spread bet you don't incur the daily financing charge (unlike the daily rolling) although the spread will be a little wider. At any point in time the forward rate will reflect the current spot rate and the effect of the interest rate differential between the two countries over the remaining time to expiry. For example interest rates in the USA are currently lower than those in the United Kingdom so the GBP/USD forward rate will be a little less than the prevailing spot rate to make up for the loss of yield through holding the money in dollars.
For example, let's say the spot rate of GBP/USD is 19910/19922. Someone who thought that sterling would continue to strengthen against the dollar over the next three months could buy a forward FX bet on the sterling/dollar rate at 19922 for $2 a point. This bet would be the equivalent of buying £20,000/selling $39,844 in the foreign exchange market and would require an initial margin deposit of just $600. Should sterling appreciate against the dollar and the quote move to 19980/19992, the position could be closed at 19980 for a profit of 58 points or $116.
  • #548
  • Oct 20, 2011 9:18am Oct 20, 2011 9:18am
Inserted Video
May the Force be with You
  • #549
  • Oct 20, 2011 12:46pm Oct 20, 2011 12:46pm
Quoting alex_000
http://www.youtube.com/watch?v=MayMeORzE1o
good video
  • #550
  • Oct 21, 2011 1:59am Oct 21, 2011 1:59am
Quoting pip_seeker
Here is some info that might help...
Thank you!
  • #551
  • Oct 21, 2011 7:32am Oct 21, 2011 7:32am
Quoting Oliver_Chart
Can someone explain me in simple words what is spread betting? (Without referring me wiki, google, etc.)

Thanks
In practice, there is no difference in technique between 'normal' FX trading and spread betting. You look at your charts, decide on the perceived direction of a pair and place your order. If you're right you win; if you're wrong.....

In the UK the key difference is in the (current) tax position. In basic FX trading you make a profit from buying or selling the underlying, so a capital gain has occurred. The tax man will take a share of that profit from you.

Under current UK legislation, with spread betting you are simply betting on the movement of the underlying and no tax liability is incurred if you win. By the same token you can't offset loses either, which I understand would apply with normal FX trading.

It may well be that, as in the US, spread betting is not available in Germany and/or UK SB firms will not accept your application. The taxation rules may also be different should you find that you can open an account in the UK.

As usual, due diligence is the key.
  • #552
  • Oct 22, 2011 1:00am Oct 22, 2011 1:00am
Up to now I've not been moved to post in FF. I simply have to say that what you've written is some of the best advice I've read or heard for new traders.
  • #553
  • Oct 22, 2011 10:42am Oct 22, 2011 10:42am
Quoting Lulubelle
Up to now I've not been moved to post in FF. I simply have to say that what you've written is some of the best advice I've read or heard for new traders.
Considering that you've been a member since Aug 2, 2010, I'll take that as a compliment.
  • #554
  • Oct 22, 2011 7:22pm Oct 22, 2011 7:22pm
Yes, PeterFM it is definitely a compliment .
  • #555
  • Oct 24, 2011 10:39am Oct 24, 2011 10:39am
I'm trying to keep a record of how much I am losing to the spread in Oanda. I have a trade record of 43 activities in Oanda, but I'm not sure how to find how much each trade actually costs me in transaction costs. Does anyone have any idea on how to do this?
  • #556
  • Oct 25, 2011 9:46am Oct 25, 2011 9:46am
I often read the comment: " the 4hr timeframe is in control today" or "the 1hr timeframe is in control" and I wonder what is meant by this and why it matters.

Is it for example that there is a clear trendline on say the 1hr timeframe and the market is respecting this trendline - hence the 1hr timeframe is in control.

The application being then to wait until the trendline crosses a key support or resistance for confluence and a possible set up.

cheers, rupkali.
  • #557
  • Oct 25, 2011 9:52am Oct 25, 2011 9:52am
Another question if I may.

Are buy and sell zones the same as support and resistance levels?

If different, why or when are they different?

Would a set up be to find a support or resistance sitting within a buy or sell zone?

Many thanks.
  • #558
  • Oct 25, 2011 6:11pm Oct 25, 2011 6:11pm
Quoting rupkali
I often read the comment: " the 4hr timeframe is in control today" or "the 1hr timeframe is in control" and I wonder what is meant by this and why it matters.

Is it for example that there is a clear trendline on say the 1hr timeframe and the market is respecting this trendline - hence the 1hr timeframe is in control.

The application being then to wait until the trendline crosses a key support or resistance for confluence and a possible set up.

cheers, rupkali.
IMHO, this is when a particular indy is doing what is expected on a particular time frame chart.

  • #559
  • Oct 26, 2011 4:26am Oct 26, 2011 4:26am
Hi,

I have a problem. MT4 doesn't let me to put SL or TP on a market execution. They only let me to place SL or TP just on a pending order.

How can i solve this ?

http://imageshack.us/photo/my-images/696/unleddks.jpg/
  • #560
  • Oct 27, 2011 6:33pm Oct 27, 2011 6:33pm
Hi everybody,

As a newbie to this forum, I spent more time reading and learning than trying to join in the postings. However, I do have this very "newbie" question to ask:

- Can I read this forum posts using tapatalk plugin on BlackBerry?

The reason is that I travel a lot in my current job, so the idea of accessing the forum every time I need with a laptop is what I am not so fond of. I learn that the forum administrators need to install the plugin before we can actually use it.

Thanks very much for reading.

Regards,
ness558
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