Jay helping out newbies | Page 5 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Rules of the jungle for Newbies 8 replies

Which FX Trading Course/System is Good for newbies? 41 replies

Fully recovered!! Newbies take note!! 33 replies

Test for newbies 17 replies

Attachments: Jay helping out newbies
Exit Attachments

Jay helping out newbies

  • #81
  • Nov 16, 2012 4:06pm Nov 16, 2012 4:06pm
hello i want to ask what moving average should i use to trade keeping following things in mind


I am an intra day trader
Look at 15m 30m and 1H charts
Trade Eurusd only


i read in book of john j murphy tht many ppl use 14 8 9 MA should i be using that for intra day trading and should it be SMA or EMA
  • #82
  • Nov 16, 2012 6:22pm Nov 16, 2012 6:22pm
Jay, I am a newbie,Where do I start Which books do I read. I have finished my MBA in finance and what to use some of my knowledge on FX trading. Is there some sort of manual on getting started.Do I join a fx platform to get started.I need your help thanks..
  • #83
  • Nov 18, 2012 9:18am Nov 18, 2012 9:18am
Quoting 1erTrade
Jay, I am a newbie,Where do I start Which books do I read. I have finished my MBA in finance and what to use some of my knowledge on FX trading. Is there some sort of manual on getting started.Do I join a fx platform to get started.I need your help thanks..
which country?
  • #84
  • Nov 18, 2012 11:19am Nov 18, 2012 11:19am
Quoting Jay Walker
I cannot scalp to save my life. Attempting to adapt long term strategies to short frames to me, has been a failure.

I there are people out there who managed to be consistently profitable year after year purely from scalping, I have not met them.

Someone somewhere will read this and say that I'm full of it all because the past week has been profitable to them and they were scalping. To those I say let's talk in 5 years.

Daily is the frame that works best for me.
In time you will learn to do all kinds of trading, If a scalp trade sets up, I take it. if a swing trade sets up, I take it. If a reversal sets up, I take it. If a long term day chart, top or bottom shows up, I will take it , but I am still learning the " Stay the Trade " 150 pips to 250 pips and I bail the trade. The More You Learn, The More You Earn.....
The More You Learn, The More You Earn.....
  • #85
  • Nov 18, 2012 1:53pm Nov 18, 2012 1:53pm
Quoting WideEyed
Jay, I've got a question or two for you seeing as you are being so kind.

The first was going to be "How much can I make?" But, I won't ask that. In an area completely unrelated to trading I'm a well known expert and I constantly get questions like that which can be very frustrating. How long is a piece of string?

A variation on that question is "How much do YOU make?" Again, very frustrating as I don't wish to disclose my personal finances and my company accounts are private. My own earnings are based on the knowledge I've accumulated...
In my case, the question is really easy to answer. I personally make $0.

Have control but don't have ownership. It's a work in progress but if all goes according to planned, soon, I will not even own the clothes on my back.

Quoting WideEyed
But I sympathise with the need to get an idea of the likelihood of success before devoting considerable time and effort to acquiring a skill. Sometimes the question takes the form of "How much does the average xxx make?" Without detailed stats it's difficult to answer this one as well.

So, let me put it this way: Many traders fail. It has very little to do with luck. They have not acquired the required knowledge / discipline / skill. But among those who've succeeded let's say we pick out a hypothetical trader who falls [i]at or near...
The problem with the "how much does the average xxx make" question, especially when it comes to trading, is that it doesn't talk about percentages.

10% of $1000 is $100
1% of $1,000,000,000 is $10 Million

One guy saying "I made $100 last year" will sound like a chump in comparison to the guy who says "I made $10 million". But the same two guys boasting about their percentages and the "chump" role will be reversed.

I'm more interested to aim for and more interested in talking about consistent percentages. Personally, I aim for 10% per month. Some of my trades drag on forever because of the frame I use but it's still what I'm shooting for.

Most traders, even good ones, are undercapitalized. If one is shooting to earn a 10% return every month, you need 10% of what to maintain the lifestyle you have now? If ones needs $4000 to keep up with a lifestyle that's satisfying. Providing that you can earn 10% per month, one therefore needs at least $40,000 in capital.

Now those of you thinking "Ok, I'll get $40,000 in capital and start trading!" Slow the hell down!

Demo trade. Demo trade not only to learn to a trading method but also to learn to asses your talents as a trader. Can you get 10% a month? Can you get 30% a month? Or can you only get 5% per month? There is no right or wrong here but it's important to know what you can do as a trader.

If you're consistently getting a 5% return every month, congratulations! You want to trade for a living on 5% a month and want $5000/month to live on? Great! The math shows that 5% of 100,000 is 5000. Therefore, you would need $100,000 in capital.

If you don't have the capital, start being undercapitalized and roll it over.

Also, demo trade to asses your comfort level on what percentages makes you comfortable. You will hear all sorts of opinions about this and none of them matter including mine. Some people are just not comfortable risking 10% of their capital while others don't give a damn risking 90% of their capital. The more you risk, the less room you have for more trades in case something goes wrong. I usually go for 10% but there are times that I'll risk more.

Sorry for the long post. I hope it helps.
Not all sins are created equal
  • #86
  • Nov 18, 2012 2:06pm Nov 18, 2012 2:06pm
Quoting usmanp
hello i want to ask what moving average should i use to trade keeping following things in mind


I am an intra day trader
Look at 15m 30m and 1H charts
Trade Eurusd only


i read in book of john j murphy tht many ppl use 14 8 9 MA should i be using that for intra day trading and should it be SMA or EMA
I am the worst intraday trader in the world. If someone with the answer can chip in, me and usmanp would both be grateful.

I'll still try to answer your question the best I can.

Sma is slower but will save your skin from fakeouts. Also, the larger the time frame, the less chances of a fakeout. With an H1 chart, you should do alright.
Not all sins are created equal
  • #87
  • Nov 18, 2012 2:08pm Nov 18, 2012 2:08pm
Quoting 1erTrade
Jay, I am a newbie,Where do I start Which books do I read. I have finished my MBA in finance and what to use some of my knowledge on FX trading. Is there some sort of manual on getting started.Do I join a fx platform to get started.I need your help thanks..
Trading in the zone. http://www.amazon.com/Trading-Zone-C...ng+in+the+zone

Currency trading for dummies. I didn't know they had a second edition. I'll be buying it. http://www.amazon.com/Currency-Tradi...ng+for+dummies
Not all sins are created equal
  • #88
  • Nov 18, 2012 3:04pm Nov 18, 2012 3:04pm
Quoting usmanp
hello i want to ask what moving average should i use to trade keeping following things in mind


I am an intra day trader
Look at 15m 30m and 1H charts
Trade Eurusd only


i read in book of john j murphy tht many ppl use 14 8 9 MA should i be using that for intra day trading and should it be SMA or EMA
I'm also an intraday trader (M1/M5) and my advice is don't use any moving averages.
  • #89
  • Nov 19, 2012 8:59am Nov 19, 2012 8:59am
Quoting Jay Walker
In my case, the question is really easy to answer. I personally make $0.
Are you serious?

I take it you're investing on behalf of someone else, perhaps it's your employers. So when do you plan to start working for yourself?
  • #90
  • Nov 19, 2012 9:14am Nov 19, 2012 9:14am
Hi everybody. This is a really great forum and I have just joined.
I want to say hello and ask everyone a question.
I’m a university student in Japan.
Mt.Fuji is really close by and there is fresh snow on it now.

As you know, Japan is in a state of appreciation of the yen never ever experienced this market right now.
Recently, I thought that I want to take this opportunity and I want to start FX.
So I learned a little bit about the FX in college. But I'm a novice on FX.
If you're the same position as me, from what do you start? Please give me some advice!
  • #91
  • Nov 19, 2012 9:47am Nov 19, 2012 9:47am
Quoting WideEyed
Are you serious?

I take it you're investing on behalf of someone else, perhaps it's your employers. So when do you plan to start working for yourself?
I DO work for myself. And yes, I am serious.

Having control without ownership can be a beautiful thing. Learn more about tax avoidance.
Not all sins are created equal
  • #92
  • Nov 19, 2012 9:58am Nov 19, 2012 9:58am
Quoting Take
Hi everybody. This is a really great forum and I have just joined.
I want to say hello and ask everyone a question.
I’m a university student in Japan.
Mt.Fuji is really close by and there is fresh snow on it now.

As you know, Japan is in a state of appreciation of the yen never ever experienced this market right now.
Recently, I thought that I want to take this opportunity and I want to start FX.
So I learned a little bit about the FX in college. But I'm a novice on FX.
If you're the same position as me, from what do you start? Please give...
私の妻は名古屋市からです。どうぞよろしく！

Study this site. Lots of information here. Also, check the two books I mentioned above.

The Yen is too strong. I theorize that this is why Softbank acquired 70% of Sprint/Nextel in the U.S. There has been other business acquisitions as well done by Japanese companies. Use an overvalued Yen to buy assets before it comes back down.
Not all sins are created equal
  • #93
  • Nov 19, 2012 12:08pm Nov 19, 2012 12:08pm
Quoting Jay Walker
I DO work for myself. And yes, I am serious.

Having control without ownership can be a beautiful thing. Learn more about tax avoidance.
I'm quite familiar with various offshore structures from trusts to shells, but I don't quite get what you're driving at - the obvious disconnect is that you work for yourself and yet make $0. Maybe you're suggesting you've arranged an offshore vehicle for trading activity which offshore vehicle you don't appear to own. If that's the case then, yes, I can see that all profits would rest with the offshore entity with you making dividend withdrawals as and when necessary (or perhaps instead of dividends you use the popular tax mitigation strategy of back-to-back loans ).

Anyway, I didn't mean to quiz you on your personal affairs. It's just that you said you were not making any money personally from trading and that seemed strange given the extent of your experience as indicated by your posts here and length of time you've been "in the game".

Returning to the percentages point you raised, which is a good one - give it to me in percent then. What's your guess on the percent profit of the median trader?
  • #94
  • Nov 19, 2012 12:21pm Nov 19, 2012 12:21pm
Quoting WideEyed
I'm quite familiar with various offshore structures from trusts to shells, but I don't quite get what you're driving at - the obvious disconnect is that you work for yourself and yet make $0. Maybe you're suggesting you've arranged an offshore vehicle for trading activity which offshore vehicle you don't appear to own.
Bingo!

Quoting WideEyed
It's just that you said you were not making any money personally from trading and that seemed strange given the extent of your experience as indicated by your posts here and length of time you've been "in the game".
Personally, I make nothing

Quoting WideEyed
Returning to the percentages point you raised, which is a good one - give it to me in percent then. What's your guess on the percent profit of the median trader?
I don't know what other people make and cannot speak for them. I shoot for 10% per month. This past month, I didn't get it. That doesn't mean I'm shooting for more this month. I just shoot for it again.
Not all sins are created equal
  • #95
  • Nov 19, 2012 1:03pm Nov 19, 2012 1:03pm
You've been most helpful.

Moving on....

What's your charting software recommendation for newbies - MT4/MT5/NT/MC/something else?
  • #96
  • Nov 19, 2012 1:11pm Nov 19, 2012 1:11pm
Quoting WideEyed
You've been most helpful.

Moving on....

What's your charting software recommendation for newbies - MT4/MT5/NT/MC/something else?
MT4. But...Use a different broker's chart.

For instance, if you use Oanda as your broker, use another broker's chart on MT4. And I don't use MT4 to trade, only for charting.
Not all sins are created equal
  • #97
  • Nov 19, 2012 3:20pm Nov 19, 2012 3:20pm
Quoting Jay Walker
http://fxtrade.oanda.ca/help/policies/margin-rules

There is no mention of a $250,000 deposit requirement. Either it's a misunderstanding or a myth. Do you have any evidence you can submit backing up your claim?
No. And that is why I started shopping around. I never had an issue with Oanda. I'm not in with $250,000 with them but this is what I was told by a rep from OANDA when I was chatting with them. I had to deposit additional funds to get to $250,000 is what he told me. But can I proof he said that? No, I can't but I never intended to leave Oanda and I am pretty upset reading this. I have been trying Questrade and FXCM for a while for that reason.
Argue for your limitations, and sure enough, they're yours. Richard Bach
  • #98
  • Nov 20, 2012 8:29am Nov 20, 2012 8:29am
Quoting pipsel
No. And that is why I started shopping around. I never had an issue with Oanda. I'm not in with $250,000 with them but this is what I was told by a rep from OANDA when I was chatting with them. I had to deposit additional funds to get to $250,000 is what he told me. But can I proof he said that? No, I can't but I never intended to leave Oanda and I am pretty upset reading this. I have been trying Questrade and FXCM for a while for that reason.
My theory is that you spoke with and idiot. I'm sure they'd say something different if you called them today and spoke with someone else.
Not all sins are created equal
  • #99
  • Nov 20, 2012 11:47am Nov 20, 2012 11:47am
Quoting Jay Walker
And I don't use MT4 to trade, only for charting.
Why not?

And what's the alternative? Do brokers offer their own bespoke platforms and is that preferable for the trading side of things?
  • #100
  • Nov 20, 2012 11:52am Nov 20, 2012 11:52am
Quoting WideEyed
Why not?

And what's the alternative? Do brokers offer their own bespoke platforms and is that preferable for the trading side of things?
Because frankly, stories I heard enough stories of delays, slippage and charts freezing that it scares the living daylights out of me.

Also, it helps to see if there's a discrepancy in charts between two brokers. It happens more often than you think.
Not all sins are created equal
0 traders viewing now