Could Someone Give Me a Hand Please :-)

Hi Guys,

I am a relative newbie to the forex game, loving every minute of it I might add! Since everyone here seems so lovely and helpful, I was wondering if you guys might take 5 to help me out.

When I started looking at forex last year, I was sucked in by all those 'I will show you how to make thousands a day from forex trading!' You know, all those systems that don't really work!

So, I have started from scratch, and I am reading this forum with delight! I love this place. I am learning how to use the different indicators right now.

Ok, I will get to the point eventually! Sorry!

Can someone please fully explain to me how the parabolic SAR can help determine an entry or exit point in regards to the easy forex system listed in the trading systems thread? I see that that system uses the default setting - .02,.2 Another member then suggested changing the paramaters for better entry and exit positions. The only difference I notice is that the dots are spread differently, but I don't understand how to interpret that.

Look forward to hearing what you guys have to say.
Katie


PS - I am 80 pips in profit today, just using my own version of the Simple Forex System I found here, based on the MA crossover. I forgot that I had registered here way back in Feb!! Until I tried to register here the other day and found my email address was already in use!

The following site provides great information on how to use this indicator: http://www.incrediblecharts.com/tech...abolic_sar.htm. It was developed by Wilder and is often employed with other technical indicators.

Save yourself the aggravation and just skip the indicators. Visit the James 16 threads or trading-naked.com and learn how to trade off of price action. It won't be as intuitive as "buy when price hits a dot", but it will be profitable, eventually.

The problem with all indicators is that they are arbitrary. By that I mean that prices don't move because an indicator says they should, the indicator moves because the price has already done so. Sometimes they will work for you, but the majority of the time price will not move as the indicator says it should and you will lose money.

I could be wrong ofcourse. You could somehow have managed to create an indicator system that is profitable long term, but the probabilities are stacked heavily against you. I'm not trying to take the starch out of your great day. By the way, congratz on your win(s)! I mention all this because I wasted a long time looking at them when I could have been doing much more productive work.

Good luck.

Hi Golden Girl, and welcome to the Factory!

Darkstar is right on. Learn to trade naked using price bars only, and you will take the money from most indicator users. Do check out the James16 Chart for how to do Price Action Analysis on naked charts.

But, regarding your question about PSAR, you might want to look in the systems thread of the beginner's forum and find the systems listed there by MuddBuddha. MB is a great guy and a great trader who has a couple of simple systems that use PSAR.

If you want to learn Forex, this is THE place to be!

Cheers

Dial

Thank you all for your replies. I was up until almost 4am reading, watching charts ect, and I am loving it! I was reading a post which said I would probably be spending 4-8 hours a day breathing this stuff, and I am thinking it is more along the lines of 18-20!! I can't get away from it. I was having coffee with a friend of mine yesterday, and while we were talking about the kids, and other 'motherly' things, I couldn't help but wonder what the market was doing! I am loving it!

I will certainly check out all your recommendations, and if anyone else has any input for me, I will certainly welcome it.

I am about to check out the Vegas Docs too, I saw a thread about that in here.

Have a great day everyone, from Sunny Queensland Australia.
Golden Girl

Welcome Golden Girl to FF, im just below you in "not so sunny" Sydney, Australia at the moment, and you have found a great place to get information on trading and the world of forex.

It seems trading has sparked an enthusiasm in you which is great, and gives you a head start on many others. I remember starting out with the same obsessive thoughts, my wife was sick of me talking about these things called pips, luckily our first bub came along and the topics changed

I will offer you only two point of advice and stomp over them as you will (I am from your enemy NSW after all ):

 

1. Learn to trade, don't learn to trade forex, meaning learn a method that you can use in other markets not just forex, believe me, if you stick with it you'll start wondering about other areas to trade in. The vegas method is an example of a method you could use in any market, however one that relies on things like "take the european range, then on the US open trade at the mid line of the Asian market" (sill example I know) can't be transferred to stocks, future or commodities for example. Forex is a unique market in that it is 24hrs, so there are some forex specific strategies out there.
2. Learn to understand the market, not to understand a trading system. If you do this, when the market sentiment changes, you will be able to recognize and adjust, while those that don't actually understand what their system is interpreting, will just keep wondering what they are doing wrong while their account goes down the gurgler.

I hope you husband/boyfriend/partner is an understanding one ... he may be seeing a little less of you in upcoming months. Best of luck, and feel free to throw me a message if you have questions.

Cheers cobber (that's as good as I could do to sound "typical aussie" .. of course we know we don't speak like that ... strewth)

Hi Golden Girl! Nice to see another lady on the forum. There is one member here named "Antra" who is also from Oz. Brisbane I think. She hasn't posted in a while but she's great.

I share in your excitement about this forex business. It is the most amazing thing I've ever encountered and the regulars on this forum are absolutely fabulous in their friendly willingness to help guide newbies.

As for the Vegas docs, they are great. I'm focused on the Vegas 4 hour Tunnel method myself with some refinements made by one of the forum admins' named Diallist. To see some of those, go check out the "Lost in the Tunnel thread" in the Journal Factory forum.

Again welcome, and I hope to see more of your posts so I can share in your excitement!

Michele UU

golden girl,

on the linda raschke site, theres a nice comcast tutorial about swingtrading, it covers the basics of price action...also buffys article on price action

hello golden girl,

Iam also newbie on this forum, also in forex.I did live for a couple month ago and ..eing ing eng...sometimes profit and sometimes lose .still try to find my trading style, in order to make my consistent trade.hope u can find what you seek here pal.d best forum ever.

Enson AS

I agree totally ! I would suggest you have a look in Dymocks for anything by Daryl Guppy , his thoughts and strategys work well in any market , and the trend trading book will help you by a large factor. Check out Louise Bedford for some good stuff on Candle Stick Charting. The are both Aussie traders and you should be able to find them in any major book store , and most of the public librarys as well.

All the best Golden Girl !

Bear 73
(a Sydney boy in London)