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Information For Beginners

  • #161
  • Mar 16, 2012 5:19am Mar 16, 2012 5:19am
Another aspect to take seriously in trading is psychology. its not a bad idea to learn what makes you tick and why, learn how to control impulses and emotions, as its difficult to let go of a loss and to deal with the emotional impact of that. Its equally as difficult to stay grounded after a good win, to remain grounded and not over confident.
  • #162
  • Mar 20, 2012 3:39am Mar 20, 2012 3:39am
Thanks you very much for all this information.

I ever tried Bavypips, but it seems a little bit complicated for me.
Is there someone who has tried their signals ?
  • #163
  • Mar 20, 2012 6:02am Mar 20, 2012 6:02am
Quoting VladKopek
Thanks you very much for all this information.

I ever tried Bavypips, but it seems a little bit complicated for me.
Is there someone who has tried their signals ?
Analyze yourself and play yourself just so you learn something
More on my Blog...
  • #164
  • May 18, 2012 12:55pm May 18, 2012 12:55pm
Quoting MikeG
Originally posted by Diallist in another thread.

Notice that leverage comes LAST not FIRST. If you put leverage first you are jeopardizing your account. Let me attempt to illustrate with a couple of examples.

The Correct Way (Trader 1)
Account size = $10,000
Currency = EUR/USD (just so I can use simple numbers)
Stop (based on technicals) = 30 pips
Risk = 2% of your Account = $200
Lot size = Mini = 10,000
Pip value for a Mini lot on EUR/USD = $1
Stop of 30 pips * $1 per pip = $30
Position size = $200 / $30...
Is that really true? When you buy/sell FX pair you actually buy base currency and sell a counter currency. In EURUSD case EUR is base currency which means that when you buy 6 lots you buy 60,000 EUR and sell 60,000 * exchange rate USD. Lets say exchange rate is 1.3. That means we are selling 60,000 * 1.3 = 78,000 USD. This gives a true leverage of 7.8 to 1. If SL is 1% true leverage is 3.9.
Could someone correct me if I am wrong?
  • #165
  • May 18, 2012 1:41pm May 18, 2012 1:41pm
Quoting MikeG

The Correct Way (Trader 1)
Account size = $10,000
Currency = EUR/USD (just so I can use simple numbers)
Stop (based on technicals) = 30 pips
Risk = 2% of your Account = $200
Lot size = Mini = 10,000
Pip value for a Mini lot on EUR/USD = $1
Stop of 30 pips * $1 per pip = $30
Position size = $200 / $30 = 6.67 mini lots.
Since you cannot trade fractional lots (forget Oanda) you must round the position size DOWN to 6. Always round down to be more conservative.
True Leverage = Position Size / Account Size = 60,000...
Sry, qoute was cut in previous post.
  • #166
  • May 23, 2012 12:25pm May 23, 2012 12:25pm
Quoting MikeG
The Correct Way (Trader 1)
Account size = $10,000
Currency = EUR/USD (just so I can use simple numbers)
Stop (based on technicals) = 30 pips
Risk = 2% of your Account = $200
Lot size = Mini = 10,000
Pip value for a Mini lot on EUR/USD = $1
Stop of 30 pips * $1 per pip = $30
Position size = $200 / $30 = 6.67 mini lots.
Since you cannot trade fractional lots (forget Oanda) you must round the position size DOWN to 6. Always round down to be more conservative.
True Leverage = Position Size / Account Size = 60,000...
MindaugasM wrote:
Quote
Is that really true? When you buy/sell FX pair you actually buy base currency and sell a counter currency. In EURUSD case EUR is base currency which means that when you buy 6 lots you buy 60,000 EUR and sell 60,000 * exchange rate USD. Lets say exchange rate is 1.3. That means we are selling 60,000 * 1.3 = 78,000 USD. This gives a true leverage of 7.8 to 1. If SL is 1% true leverage is 3.9.
Could someone correct me if I am wrong?
You are absolutely correct MindaugasM. Whereas, MikeG and Diallist are wrong. Looks like they were trying to make things simple but instead they got it wrong.
  • #167
  • May 28, 2012 6:18am May 28, 2012 6:18am
Quoting MindaugasM
When you buy/sell FX pair you actually buy base currency and sell a counter currency. In EURUSD case EUR is base currency which means that when you buy 6 lots you buy 60,000 EUR and sell 60,000 * exchange rate USD. Lets say exchange rate is 1.3. That means we are selling 60,000 * 1.3 = 78,000 USD. This gives a true leverage of 7.8 to 1. If SL is 1% true leverage is 3.9.
Could someone correct me if I am wrong?
as far as I can understand u are right)
  • #168
  • Dec 12, 2012 3:55am Dec 12, 2012 3:55am
I have been asked the following question:

How can we determine ahead of time when a certain EA would be suitable for upcoming market conditions?

I think it may be a right place to publish my comments here too.

That a trading holy grail question. Much more than the one million question LOL.

What we can do is to know if it is working now.

Based on that you can evaluate how much draw-down is logical and calculated within the system. You can use a Monte Carlo simulation based on that knowledge. Check the post about Monte Carlo simulations and the appropriate risk control.

You can use market state analysis as an independent tool too. This a discretionary approach based on the best practices among discretionary traders and this is how far this pragmatic field can go by now (in my eyes of course).

And you can use your fundamental knowledge to have some insight. Sometimes the market state is closely related with fundamental information. Here I can give a historical example: the Swiss/Euro EA, this strategy was based on the Swiss Central bank decision setting a minimum exchange rate of 1.20. Until we were under the same circumstances the EA was expected to work and it worked too well for several months doubling the account many times.

And you can use data mining only for predicting market conditions. That is also possible, however it is not an easy task.

Predicting the future performance of an Expert adviser in Metatrader is not an easy task. Before doing this you need to know what is really the worth of the EA model.

Suggested books:

The Evaluation and Optimization of Trading Strategies (Wiley Trading) by Robert Pado
Trading Systems: A New Approach to System Development and Portfolio Optimisation by Emilio Tomasini and Urban Jaekle

for more you can read on my blog fxhackers
  • #169
  • Jan 31, 2013 1:45pm Jan 31, 2013 1:45pm
Hello traders,
some new people say they are here to learn.
I would like to share my thoughts about news-playing. To those who think that playing the news is smart or is the right way to go, I would kindly ask to to read this post from my Blog.

"Do you think facts and 'Truth' (i.e. market news) make money?"

Read this, think and share your thoughts: http://wp.me/p2oF7p-pr

My opinion, of course, but found that a few successful traders agree with that article.

Let me know your opinions. Thank you
Cheers
"markets traded by programs/HFT offer a significant trading edge..."
  • #170
  • Jan 31, 2013 3:53pm Jan 31, 2013 3:53pm
Very good article thanks for sharing.
  • #171
  • Jan 31, 2013 10:33pm Jan 31, 2013 10:33pm
Quoting fibstalker
Hello traders,
some new people say they are here to learn.
I would like to share my thoughts about news-playing. To those who think that playing the news is smart or is the right way to go, I would kindly ask to to read this post from my Blog.

"Do you think facts and 'Truth' (i.e. market news) make money?"

Read this, think and share your thoughts: http://wp.me/p2oF7p-pr

My opinion, of course, but found that a few successful traders agree with that article.

Let me know your opinions. Thank...
Nice Article and very good blog
  • #172
  • Feb 2, 2013 11:40am Feb 2, 2013 11:40am
Hi Guys,

I'm new to forex trading and this forum.
Had been browsing around and seen people mention about Trade Explorer and myfxbook.
Unfortunately I couldn't start a new thread so I'll add my question here since its relevant to beginners like me.

My question is, are these services free and secure?

Currently I'm trading on a demo account with IG Markets and surprisingly been doing well. Probably because its not real money.
Anyway, its going to expire in a few days time. Is there a demo account's popular and doesn't expire?

Lastly as a beginner, I wish to know all the tools available. All tools that are relevant, like those mentioned above, ie Trade Explorer, myfxbook, demo accounts etc etc..

This site is awesome and I believe its where most Traders hang out?

I see people mentioning about MT4 as well. Apparently its a trading system. But, how is it linked to the broker? Or are they a broker themselves? Hm..all these are confusing.
  • #173
  • Feb 6, 2013 3:03am Feb 6, 2013 3:03am
Quoting resting
Hi Guys,

I'm new to forex trading and this forum.
Had been browsing around and seen people mention about Trade Explorer and myfxbook.
Unfortunately I couldn't start a new thread so I'll add my question here since its relevant to beginners like me.

My question is, are these services free and secure?

Currently I'm trading on a demo account with IG Markets and surprisingly been doing well. Probably because its not real money.
Anyway, its going to expire in a few days time. Is there a demo account's popular and doesn't expire?

Lastly...

Yes most of these services are for free. There are several brokers who provide unlimited demo accounts for free. Some of those are Hotforex, Gallant Capital, Exness, etc. You can provide fake info to register with demo accounts. Normally myfxbook & Trade explorer use to analyse your trading results and asses your trading style/ method. Hence your are a newbie, do demo trading until you become confident in trading. Later you can use myfxbook or trade explorer.Hope tis helps.
  • #174
  • Feb 6, 2013 7:14am Feb 6, 2013 7:14am
Thanks for all the info and sharing!
  • #175
  • May 7, 2013 12:07am May 7, 2013 12:07am
Hi everybody,

As this is a new account I still can't make a new thread to ask about this, so sorry about bringing a very old thread back from the dead.

I would like to ask if anybody has any suggestions on where to get live (fast) news on data reports / interest rate decisions etc.

I playing in my baby demo account today, and wanted to trade based on the outcome of the RBA's decision whether or not to move the (Australian) cash rate down from 3.00% to 2.75%. I had live financial news streaming and I was updating the calendar at forex . com, as well as refreshing the RBA homepage, but when it hit 2:30PM (when the data was released), the financial news just kept chatting about Instagram, the calendar did nothing and the RBA website wasn't refreshing due to traffic overload, so by the time I'd found out that the rate had changed to 2.75%, AUD/USD had already plunged 50 points, and I was too late.

Where do the serious traders get their quick information from?
  • #176
  • May 9, 2013 2:39pm May 9, 2013 2:39pm
You can use the economic calender here and you will see the data in second. The high impact news has to be traded instantly or you will see a good spike in first few second and it will be late after it.
  • #177
  • May 9, 2013 3:28pm May 9, 2013 3:28pm
Hi everyone,

I would like to say a big thank you for replying to my last question. Now that I have learned a bit about Forex Trading, I want to ask you guys if you know any proper website I can start trading as Demo or Real Mode.

Thanks,
David.
  • #178
  • May 10, 2013 1:57pm May 10, 2013 1:57pm
I like so many new traders have a really tough time understanding money management. My micro account is around $1000 at the moment. I have 6 positions open and each one the lot size is .01....So if I understand the rational I have about 6% at risk divided up among the 6 positions.

On my trading platform it shows a Balance Equity Margin Free Margin and a Margin Level......At the moment my Margin level is 871.95% and changes as the market changes. I am not clear on what I should watch or how to affect change that will keep my account from evaporating.
  • #179
  • May 10, 2013 7:13pm May 10, 2013 7:13pm
This thread is from 2005.

Humans are still not CAPABLE of predicting the Future, so, most people will still lose in FOREX.
The Black Swan: The Impact of the Highly Improbable
  • #180
  • Oct 3, 2014 4:12am Oct 3, 2014 4:12am
Why is this thread, at least the first page, not pinned on the Rookie forum?

This information is crucial...and buried in a sea of meaningless threads. This should be the very first thread for the newbies to read and refer to.

In my very humble opinion.
Everything easy was hard at first
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