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Jay helping out newbies

  • #21
  • Nov 11, 2012 3:25pm Nov 11, 2012 3:25pm
Hey Jay, do you have any personal reccomendations on where i could learn more as a new person in the forex world? Im fairly young, but im willing to learn. Any books, sites, or any other things that helped you, or you think would help me become a better trader?

thank you for this thread also.
  • #22
  • Nov 11, 2012 4:27pm Nov 11, 2012 4:27pm
Quoting jdmkid
Hey Jay, do you have any personal reccomendations on where i could learn more as a new person in the forex world? Im fairly young, but im willing to learn. Any books, sites, or any other things that helped you, or you think would help me become a better trader?

thank you for this thread also.
Buy a copy of two books.

Currency trading for dummies. Sounds weird that I recommend a "for dummies" book but I have a copy and I still refer to it.

The other one is Trading in the Zone by Mark Douglas. It talks a lot about the psychology of trading.

babypips.com has and still is helping. I lurk there every now and again but don't participate to the discussion board.

Also look up dailypfennig.com and sign up to Chuck Butler's free newsletter.
Not all sins are created equal
  • #23
  • Nov 12, 2012 12:08am Nov 12, 2012 12:08am
Quoting Jay Walker
miss on some pips because it's a later entry. But it's also a safer entry.
Thank you for this thread.
With Daily TF, what exactly you look for, in confirmation of change of trend. Is eurjpy today is worthy of your attention. I am just curious of the methodologies used by you. You can ignore if too technical.
"Put all your efforts in becoming effortless"
  • #24
  • Nov 12, 2012 12:25am Nov 12, 2012 12:25am
Quoting IamTHAT
Thank you for this thread.
With Daily TF, what exactly you look for, in confirmation of change of trend. Is eurjpy today is worthy of your attention. I am just curious of the methodologies used by you. You can ignore if too technical.
Simply put, no, it's not worthy of my attention today.

http://img820.imageshack.us/img820/8...21111at101.png

As to the why, the image here is today's EURJPY chart on the Daily TF. The funny looking stuff there is an Ichimoku study.

Tenkan-Sen = Blue Line

Kijun-Sen = Red Line

Chikou Span = Cyan

And to simplify the matter, the cloud or Kumo (which coincidentally, is Japanese for "cloud").

There's 2 ways this trade could be entered.

1- On November 6th when the Tenkan-Sen and Kijun-Sen crossed. There was a green candle on that day too.

2- Wait until the Chikou Span goes under the kumo.

The first option has more pips but potentially riskier to have the trade move against you. The second option is potentially safer but offers less money. That's when it becomes a personal decision on what you're comfortable with.
Not all sins are created equal
  • #25
  • Nov 12, 2012 1:01am Nov 12, 2012 1:01am
Quoting Jay Walker
The first option has more pips but potentially riskier to have the trade move against you. The second option is potentially safer but offers less money. That's when it becomes a personal decision on what you're comfortable with.
Thanks for detailed reply.
Do you ever refer to lower TFs like H4 to fine tune your entries?
"Put all your efforts in becoming effortless"
  • #26
  • Nov 12, 2012 1:10am Nov 12, 2012 1:10am
Quoting IamTHAT
Thanks for detailed reply.
Do you ever refer to lower TFs like H4 to fine tune your entries?
Occasionally yes. But I spend large amounts of time away from the computer and if I don't have the time, I don't. I wish I could.

One thing I forgot to mention, EURUSD is a good example of a short entry that I did. There was a cross and I went short but took only half of the position waiting for the Chikou Span to be under the kumo before adding to the position.

http://img440.imageshack.us/img440/1...21111at110.png

Soon, if all goes as planned, I will be adding to that position.
Not all sins are created equal
  • #27
  • Nov 12, 2012 4:27am Nov 12, 2012 4:27am
Quoting Jay Walker
Hi Suraj. Sorry about your blown account.

What type of system do you wish to develop? What trading style are you comfortable with? Do you want to scalp, do you want to be trading long term?

Also, a $100 account is not a lot of money. Are you using this only to learn? Have you considered trading a demo account instead?

What systems interest you and why is something I'd really need to know to help you better.
thanks for your reply,

I want to practice first so instead of a demo account i want to open a 'cent' account with a broker which will convert my $10 to as if i am trading $1000.

i want to kindof day trade, but trade lasting 1-2 days will also do.
i dont want to do scalping and trade in very small timeframe nor i will be able to wait for a trade which runs for 2-3 weeks so somewhere in between.

like each trade with 40-60pips profit target and stoploss 20-30.

actually i found stochastic to be a very good thing but can you suggest evn more good indicators.

Please provide some key points or key components of my trading plan.

thanks!

a system
  • #28
  • Nov 12, 2012 4:50am Nov 12, 2012 4:50am
Quoting surajkincity
thanks for your reply,

I want to practice first so instead of a demo account i want to open a 'cent' account with a broker which will convert my $10 to as if i am trading $1000.

i want to kindof day trade, but trade lasting 1-2 days will also do.
i dont want to do scalping and trade in very small timeframe nor i will be able to wait for a trade which runs for 2-3 weeks so somewhere in between.

like each trade with 40-60pips profit target and stoploss 20-30.

actually i found stochastic to be a very good thing but can you suggest evn...
My trades do run for weeks at a time. Maybe I'm not the person to answer that question.

I'd still recommend a demo account for the first few months so you can experiment with stochastic as well as other indicators. I already mentioned that I use that as well as Ichimoku.
Not all sins are created equal
  • #29
  • Nov 12, 2012 6:30am Nov 12, 2012 6:30am
Quoting Jay Walker
My trades do run for weeks at a time. Maybe I'm not the person to answer that question.

I'd still recommend a demo account for the first few months so you can experiment with stochastic as well as other indicators. I already mentioned that I use that as well as Ichimoku.
thanks for help i will update about my account to you if i get sum successs with it.
  • #30
  • Nov 12, 2012 8:28am Nov 12, 2012 8:28am
Quoting WideEyed
Where do you suggest I start? (For example, I don't know how to backtest any strategies I develop)
I may be able to help on this point - MetaTrader 4 has a tester that is OK and you can import data. Here is link to thread on topic of data : http://www.forexfactory.com/showthread.php?t=337930. As stated, it is OK for longer time periods and reasonable Stop-Losses / Take-Profit values, but has issues when these values are comparable to the size of 1 minute bars. The reason for this I suspect is that it has minimum resolution of 1 minute and therefore can not tell for sure whether the TP or SL would have been hit first if both are triggered in a single bar. It seems to try TP first and so gives better results than reality when TP gets below about 15 pips.

MetaTrader 5 is now available, but last time I looked you could not import external data and so seems to be not so popular - afterall a simulation is only as good as the data.

There are other programs available and some go down to tick level, but I am not sure all are free.

MetaTrader 4 uses a simplified psuedo 'C' language, while version 5 is more 'C++'.
  • #31
  • Nov 12, 2012 8:32am Nov 12, 2012 8:32am
Quoting Jay Walker
http://www.forexfactory.com/showthread.php?t=190646 describes a methodology that I like using.

Slow stochastic is another one as well.
Thanks, I will look at that - hope you don't mind my earlier answer to someone else's question.
  • #32
  • Nov 12, 2012 8:37am Nov 12, 2012 8:37am
Hi, jay walker, i want to know which type of analysis is profitable in the long run, i want to trade the news too, but the technical jargon and also not knowing how to filter out the sentences that are important from the reports issued by "big guys'' for the news release. That also mean that i have to know more about the economy and it's current shape etc, it's just overwhelmingly hard to understand. Why is forex trading so hard?
  • #33
  • Nov 12, 2012 8:41am Nov 12, 2012 8:41am
Jay I need your opinion.

If you trade daily and your trades run for weeks at times, how do you manage the roll over charges?

I never trade longer than a day because I was told that by the end of the NY session there will be daily roll over charges, and especially for weekends. All of my positions will be temporarily closed and reopened the next day according to my broker. But how about the 24/7 hour thing?

Would appreciate your help Jay. Thanks for being there for noobs.
  • #34
  • Nov 12, 2012 12:36pm Nov 12, 2012 12:36pm
Quoting Kelvin89
Hi, jay walker, i want to know which type of analysis is profitable in the long run, i want to trade the news too, but the technical jargon and also not knowing how to filter out the sentences that are important from the reports issued by "big guys'' for the news release. That also mean that i have to know more about the economy and it's current shape etc, it's just overwhelmingly hard to understand. Why is forex trading so hard?
I follow the news closely because I'm a news junkie but still base my entries/exits on technical analysis. There is lots of contradictory information in news because of what I perceive as a bias some news organizations have. Take the auto bailout as an example. Some news organizations would argue for it and others against it.

I do take news into consideration. If a Eurozone country makes an announcement that they're broke for example, I will consider it. But I prefer sticking to my chart.
Not all sins are created equal
  • #35
  • Nov 12, 2012 12:41pm Nov 12, 2012 12:41pm
Quoting Ishtana
Jay I need your opinion.

If you trade daily and your trades run for weeks at times, how do you manage the roll over charges?

I never trade longer than a day because I was told that by the end of the NY session there will be daily roll over charges, and especially for weekends. All of my positions will be temporarily closed and reopened the next day according to my broker. But how about the 24/7 hour thing?

Would appreciate your help Jay. Thanks for being there for noobs.
Honestly, I never considered that to be a problem.

I don't know which broker you use but closing/reopening a trade would only make sense if the rollover charges are higher than the spread.
Not all sins are created equal
  • #36
  • Nov 12, 2012 3:18pm Nov 12, 2012 3:18pm
Heya complete newbie here. What broker would you recommend for someone who wants to start with less then 1k about 250-500

what general formula should I stick to in regards to risk manangment? like 5% max risk per trade ect?

how would you handle money gained? keep all in the forex account or siphon off into lower risk accounts?

thanks for reading
  • #37
  • Nov 12, 2012 4:22pm Nov 12, 2012 4:22pm
Quoting konk353535
Heya complete newbie here. What broker would you recommend for someone who wants to start with less then 1k about 250-500
Oanda is quick, easy to open and the platform is easy to use.

Quoting konk353535
what general formula should I stick to in regards to risk manangment? like 5% max risk per trade ect?
Keep in mind that everybody's risk tolerance varies. 5% is reasonable as it gives you more opportunities to be wrong which inevitably happens.

Quoting konk353535
how would you handle money gained? keep all in the forex account or siphon off into lower risk accounts?
That depends on how much money it is and what your goals are. At $250-$500, I'd just use the money and roll it over but that's my opinion.
Not all sins are created equal
  • #38
  • Nov 12, 2012 6:20pm Nov 12, 2012 6:20pm
Quoting Jay Walker
I'm not a betting man and didn't even know that was possible.
When I say I took bets I mean I took long and short positions based on hunches.

(I'll get the terminology right one day )

Thanks for answering my post. I've another question for you if I may. Why the emphasis on Forex? People seems to use the term trading as synonymous with Forex. In comparison, there seems to be very little discussion on indices, options, interest swaps; on oil, commodities, metals, bonds. Surely existing pure tech strategies must either work uniformly on all markets ... or not. If they don't, there would seem to be opportunities to develop strategies that work in specific markets. Why don't people try those markets as much as they do Forex?
  • #39
  • Nov 12, 2012 8:07pm Nov 12, 2012 8:07pm
Quoting Jay Walker
Oanda is quick, easy to open and the platform is easy to use.
</p>Kinda depends on where you live. In Canada I was told by Oanda to hold up to $250,000.... I'm still with Oanda by the way and I never proved I had the $250,000. Their platform is very stable though.
Argue for your limitations, and sure enough, they're yours. Richard Bach
  • #40
  • Nov 12, 2012 8:27pm Nov 12, 2012 8:27pm
Quoting WideEyed
When I say I took bets I mean I took long and short positions based on hunches.

(I'll get the terminology right one day )

Thanks for answering my post. I've another question for you if I may. Why the emphasis on Forex? People seems to use the term trading as synonymous with Forex. In comparison, there seems to be very little discussion on indices, options, interest swaps; on oil, commodities, metals, bonds. Surely existing pure tech strategies must either work uniformly on all markets ... or not. If they don't, there would seem to be opportunities...
The reason why is because it's a liquid market where positions can be unwound immediately when required.
Not all sins are created equal
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