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  • #501
  • Apr 19, 2016 7:28am Apr 19, 2016 7:28am
Quoting RichardTrade
I don't know if this the right thread to ask my question,but anyway, maybe someone could help me.What books, in order, would you recommend a complete newbie to read?
Hi mate, without a doubt, trading in the zone, by Mark Douglas. Excellent book, I've been reading and referring to this book for years.
  • #502
  • Apr 19, 2016 10:11am Apr 19, 2016 10:11am
Quoting renasdad
{quote} ​I don't use any indicators. Just price action, patterns and some support and resistance.
Well what exactly do you mean by patterns?
  • #503
  • Apr 19, 2016 12:50pm Apr 19, 2016 12:50pm
Quoting MarketINC
{quote} Well what exactly do you mean by patterns?
Flags and pennants and stuff like that. Google it once​
JOHN 3:16
  • #504
  • Apr 22, 2016 5:40am Apr 22, 2016 5:40am
Quoting renasdad
I have a feeling this is a thread noone has posted before. I love helping people. I know what it is like to not have a clue when it comes to know where to start with this forex jargen. If there is anyone that has questions that they feel are too stupid to ask publically, you can PM me. If there is anything that doesn't make sense to you, ask. If I don't know the answer, I will do my best to find it. I come here everyday looking for the "newbie" questions to find someone already ansered them. I love helping people. There have been so many...
Hello,Im new in forex trading. I had went through a class on bbma technique. But im making more loss then profit that i have to make deposit twice already. Pls advise.Soon
  • #505
  • Apr 22, 2016 7:10am Apr 22, 2016 7:10am
Im new here with all of this been learning a lot. Just a question. with the eur/usd example if the usd drops in price does the pair go long? or short .
  • #506
  • Apr 22, 2016 1:31pm Apr 22, 2016 1:31pm
Quoting Apc
Im new here with all of this been learning a lot. Just a question. with the eur/usd example if the usd drops in price does the pair go long? or short .
In that case EUR/USD would rise (go long).
  • #507
  • Apr 24, 2016 9:40am Apr 24, 2016 9:40am
Quoting soon8778
{quote} Hello,Im new in forex trading. I had went through a class on bbma technique. But im making more loss then profit that i have to make deposit twice already. Pls advise.Soon
Hi.Soon

I would suggest you try a demo account first if you have not so already. PM me if you need a bit of help.

MT
  • #508
  • Apr 24, 2016 12:05pm Apr 24, 2016 12:05pm
me too is struggling with losses still

can advice some thing from new traders please
  • #509
  • Edited Apr 25, 2016 7:05am Apr 24, 2016 7:45pm | Edited Apr 25, 2016 7:05am
Quoting RichardTrade
I don't know if this the right thread to ask my question,but anyway, maybe someone could help me.What books, in order, would you recommend a complete newbie to read?
If you are a complete newbie in order to familiarise yourself with basic terminology, concepts and the scope of forex a visit to BabyPips School of Pipsology before book reads will save much wasted time, frustrations and confusions. - http://www.babypips.com/school
Attached Image (click to enlarge)
Click to Enlarge Name: BabyPips -1.PNG Size: 27 KB
TSLA: 30-Dec-22 123.18 // 16-Jun-23 260.54 **111.51%**
  • #510
  • Apr 25, 2016 6:28pm Apr 25, 2016 6:28pm
how does the flow of funds for rollover interest go from wherever the broker gets it from to your account? how many levels of transfer are there?
  • #511
  • Apr 27, 2016 3:24pm Apr 27, 2016 3:24pm
Hi im posting here because im a new member and I cant currently make a new thread so I thought why not.

Bassically, I was wondering if someone could be so kind as to tell me why an increase in interest rates raises volatility as measured by the VIX index. To me it seems counter intuitive and I was hoping someone could help clear this up.
Thanks,
John
  • #512
  • Apr 27, 2016 4:35pm Apr 27, 2016 4:35pm
Quoting hapax
Hi im posting here because im a new member and I cant currently make a new thread so I thought why not. Bassically, I was wondering if someone could be so kind as to tell me why an increase in interest rates raises volatility as measured by the VIX index. To me it seems counter intuitive and I was hoping someone could help clear this up. Thanks, John
Requires a lengthy answer.. This is quicker -
http://budgeting.thenest.com/volatil...isk-32174.html or
http://www.forextraders.com/forex-an...olatility.html
TSLA: 30-Dec-22 123.18 // 16-Jun-23 260.54 **111.51%**
  • #513
  • Edited Apr 28, 2016 10:46am Apr 27, 2016 5:11pm | Edited Apr 28, 2016 10:46am
Margin Calculations

1 micro lot = 0.01 = 1,000 currency units.
1 mini lot = 0.10 = 10 micro lots = 10,000 currency units.
1 lot = 1.0 = 10 mini lots = 100 micro lots = 100,000 currency units.

The first currency of a forex pair is the base currency and the second is the quote currency.
Easy rememberance: Alphabetically b is before q → (b) base first / (q) quote second.
Example: GBP/USD = base/quote

The below gives a sense of the scope of available margin ratios and the differences between deposit curency and base currency at parity and deposit currency and base currency subject to exchange rates.

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margin = margin rate x exchange rate x position size in currency units. *

* exchange rate = account deposit currency/base currency

If the account deposit currency is the same as the base currency the exchange rate will be parity (1).

Account Deposit Currency: GBP
Currency Pair: GBP/USD
Position Size: 1 lot (100,000 currency units)
Margin Rate: deposit currency / base Currency = 1 GBP / 1 GBP = 1

  1. 1:100 margin = 1/100 x 1 x 100,000 = 1,000 GBP.
  2. 1:200 margin = 1/200 x 1 x 100,000 = 500 GBP.
  3. 1:300 margin = 1/300 x 1 x 100,000 = 333 GBP.
  4. 1:30 margin = 1/30 x 1 x 100,000 = 3,333 GBP.
  5. 1:60 margin = 1/60 x 1 x 100,000 = 1,667 GBP.
  6. 1:90 margin = 1/90 x 1 x 100,000 = 1,111 GBP.

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Account Deposit Currency: USD
Currency Pair: GBP/USD
Position Size = 1 lot (100,000 currency units)
Exchange Rate: deposit currency / base currency = 1.499 USD / 1 GBP

  1. 1:100 margin = 1/100 x 1.459/1 x 100,000 = 1,449 USD
  2. 1:30 margin = 1/30 x 1.459/1 x 100,000 = 4,863 USD.

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Account Deposit Currency: GBP
Currency Pair: EUR/JPY
Position Size: 1 lot (100,000 currency units)
Exchange Rate: deposit currency / base Currency = 1 GBP / 1.29 EUR

  1. 1:100 margin = 1/100 x 1/1.29 x 100,000 = 775 GBP
  2. 1:30 margim = 1/30 x 1/1.29 x 100,000 = 2,583 GBP

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Account Deposit Currency: USD
Currency Pair: EUR/JPY
Position Size: 1 lot (100,000 currency units)
Exchange Rate: deposit currency / base currency = 1.13 USD / 1 EUR

  1. 1:100 margin = 1/100 x 1.131/1 x 100,000 = 1,131 USD
  2. 1:30 margim = 1/30 x 1.131/1 x 100,000 = 3,770 USD

Note: Some brokers have fixed margins and pairs where the deposit currency and the base currency are not at parity and would otherwise be subject to exchange variation are given an added currency padding and the margin locked at a set value.

# # Weekday and Weekend Margins Dukascopy Bank: https://www.dukascopy.com/europe/eng...counts/margin/

Note: If the Dukascopy link is accessed it will be noted that while Dukascopy designates FX units like for like (1,000 units as 1,000 units) lots are designated as follows: 0.01 lot as 0.001 million, 0.1 lot as 0.01 million and 1.0 lot as 0.1 million (100,000/1,000,000 = 0.1).

TSLA: 30-Dec-22 123.18 // 16-Jun-23 260.54 **111.51%**
  • #514
  • Edited 5:55pm Apr 27, 2016 5:26pm | Edited 5:55pm
Notes on Margin And Risk.

There appears a fundamental flaw in calculating risk percentage against a set capital when that capital includes margin.

Example: Trader A and trader B both trade-

  1. same Broker
  2. same account type
  3. same currency pair - GBP/USD
  4. same lot size
  5. each deposit 10,000 GBP as trading capital to be traded in Pound Stirling.

The norm is to calculate risk at 2% of 10,000 GBP capital = 200 GBP.

Trader A has capital of 10,000 GBP and margin of 1:200 = 500 GBP.
Trader B has capital of 10,000 GBP and margin of 1:50 = 2,000 GBP.

Each of the trader's respective margins are not avaiable as trading equity therefor 2% risk should be calculated repectively against Capital - Margin not Capital with margin included.

  1. The result of any number divided by 50 is 2% of the divided number.
  2. Then → 9,500/50 = 190 GBP = 2% of 9500 GBP (proof: 190/9500 x 100 = 2%)

  1. Any number multiplied by 50 is 2 % of the product.
  2. Then → 190 x 50 = 9,500 and 190 GBP = 2% of 9500 GBP (proof: 190/9500 x 100 = 2%)

Trader A:
Trader A has 10,000 - 500 = 9,500 GBP trading equity.
Then → 9,500/50 = 190 GBP = 2% of 9,500 GBP.

Comparison of error:
At risk 190 GBP trader A can sustain 50 consecutive 190 GBP loses before 100 % margin (500 GBP) call.
At risk 200 GBP trader A can sustain 47.5 (9500/200) consecutive 200 GBP loses before 100 % margin (500 GBP) call.

Trader B:
Trader B has 10,000 - 2,000 = 8,000 GBP trading equity.
Then → 8,000/50 = 160 GBP = 2% of 8,000 GBP.

Comparison of error:
At risk 160 GBP trader B can sustain 50 consecutive 160 GBP loses before 100 % margin (2,000 GBP) call.
At risk 200 GBP trader B can sustain 40 (8,000/200) consecutive 200 GBP loses before 100 % margin (2,000 GBP) call.

TSLA: 30-Dec-22 123.18 // 16-Jun-23 260.54 **111.51%**
  • #515
  • Apr 27, 2016 6:22pm Apr 27, 2016 6:22pm
Quoting Xumm
{quote} In that case EUR/USD would rise (go long).
​not if the euro drops more in comparison. Then it's short.
  • #516
  • Apr 28, 2016 1:28am Apr 28, 2016 1:28am
Quoting Phylo
{quote} If you are a complete newbie in order to familiarise yourself with basic terminology, concepts and the scope of forex a visit to BabyPips School of Pipsology before book reads will save much wasted time, frustrations and confusions. - http://www.babypips.com/school{image}
Thanks Phylo,
I have already read babypips and now I want to go one step further.I want to learn more about strategies and risk management.
  • #517
  • Apr 28, 2016 1:42am Apr 28, 2016 1:42am
Quoting trader447
{quote} Hi mate, without a doubt, trading in the zone, by Mark Douglas. Excellent book, I've been reading and referring to this book for years.
Thanks for the advice.You have read and his first book,the disciplined trader?
  • #518
  • Apr 28, 2016 3:46am Apr 28, 2016 3:46am
Quoting RichardTrade
{quote} Thanks Phylo, I have already read babypips and now I want to go one step further.I want to learn more about strategies and risk management.
Hi Richard, There are thousands of strategies out there - ranging from the simple, to the complex.

Personally, if i were you, i would either look at Mr Pip's thread (do a search in the search box - he only has one thread!), and Youtube videos (start from c. page 700 or so, i think on the first page they tell you where to start from) and that will give you a really good foundation of where the expectation of the market is likely to move. Don't think however that that will be easy to trade, but the explanations will give you an awful lot of brilliant foundation.

Then you can think about developing your own strategies around this concept, using indicators if you wish, or not... it is sort of up to you!

Risk management is a bit of a misnomer... Risk is not the issue, as it is really easy to say 'I will risk 2%, or 10%, or 0.001% of my account - that is the easy bit, and completely irrelevant to trading profitably. For instance, you could have a strategy that wins 10% of the time, but with a risk reward of 1:100.... that will be a winner, but it will have a different risk profile to a strategy that has a 1:1 ratio and wins 51% of the time - they are both winners, but very different outcomes.

There are probably 3 areas you need to look at:

1) The strategy - it could be as simple as a MA cross, or an overbought stoch... whatever it is!

2) The Trade managament - the entries, the exits and the management when you are in a trade

3) Money Management (in my book THE most important thing). This is not about risk per trade - that is trade management, but the overall plan of how you will decide where to put your money and how much, when do you increase lot size - at what point do you do this... etc.

The reason why number 3 is so important, is that as long as you have at least a 1:1 risk reward profile which can only be decided upon after 100 trades as a marker and you have a 51% win ratio, you will be on to a profitable strategy...
  • #519
  • Apr 28, 2016 6:39am Apr 28, 2016 6:39am
Quoting rolandW
{quote} Hi Richard, There are thousands of strategies out there - ranging from the simple, to the complex. Personally, if i were you, i would either look at Mr Pip's thread (do a search in the search box - he only has one thread!), and Youtube videos (start from c. page 700 or so, i think on the first page they tell you where to start from) and that will give you a really good foundation of where the expectation of the market is likely to move. Don't think however that that will be easy to trade, but the explanations will give you an awful lot of...
Thanks roland, your reply is very helpful .I wanted to say money management not risk .As I understand money management is one of the most important problems of new and even advanced traders.
  • #520
  • Apr 28, 2016 7:19am Apr 28, 2016 7:19am
Quoting RichardTrade
{quote} Thanks roland, your reply is very helpful .I wanted to say money management not risk .As I understand money management is one of the most important problems of new and even advanced traders.


I strongly recommend the trading game by Ryan Jones, this is one of the best books for practical application in trading - and far better than a 'system' or 'strategy'!

This is ONLY about Money Management!
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