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Commonly Asked Questions

  • #1
  • First Post: Jun 6, 2016 10:14pm Jun 6, 2016 10:14pm
Hi rookies!

I am a rookie myself, so I will not be able to answer all of your questions, but if a genie appears in front of you and offers to answer 3 of your top questions about Forex trading, what will it be?

Cheers,
  • #2
  • Jun 7, 2016 2:34am Jun 7, 2016 2:34am
I don't know about three, but I do have one which has tormented me for years and I still haven't figured out the answer: "How do you figure out when range will end?"
  • #3
  • Jun 7, 2016 5:05am Jun 7, 2016 5:05am
being a Fresh Newbie......and I really mean new...2 weeks..... My problem is information overload... I really appreciate everyone's
Advice and help but it all becomes overwhelming and confusing.
My question would be a basic step by step list I can follow that might end up producing an informed and calculated trade.

Just 1 system, simple and able to follow a flow chart....

Cheers.........Rob
  • #4
  • Jun 9, 2016 8:54am Jun 9, 2016 8:54am
mlawson71, there are quite many. My favorite are using MACD and/or 2 SMAs, involving their slope and formation direction.

AussieRob, do you have a source of information that you would trust?
  • #5
  • Jun 12, 2016 6:27am Jun 12, 2016 6:27am
Basically, I don't believe you can.

Quoting mlawson71
I don't know about three, but I do have one which has tormented me for years and I still haven't figured out the answer: "How do you figure out when range will end?"
  • #6
  • Jun 12, 2016 6:52am Jun 12, 2016 6:52am
Quoting edmuliz
mlawson71, there are quite many. My favorite are using MACD and/or 2 SMAs, involving their slope and formation direction. AussieRob, do you have a source of information that you would trust?
Thanks for your reply.....
No, no definite source. Just the usual reads.......any hints?
  • #7
  • Jun 13, 2016 2:39am Jun 13, 2016 2:39am
Quoting edmuliz
mlawson71, there are quite many. My favorite are using MACD and/or 2 SMAs, involving their slope and formation direction. AussieRob, do you have a source of information that you would trust?
Huh, that's a good idea. I need to test it out for myself, but thanks for pointing it out.
  • #8
  • Jun 13, 2016 8:22am Jun 13, 2016 8:22am
This is just a preview of an article I have recently written about how follow the trend. It should partly help answer your question.


Technically, a trend in Forex market is always determined from a larger timeframe by looking at a bigger picture. Furthermore, we have several tools to help us confirm the underlying trend or warn of a possible trend reversal. The two simple trend following tools that we will discuss are moving averages (MAs) and moving average convergence divergence (MACD)...

...Determining a trend technically – the larger the timeframe, the better the resolution is. That said, timeframes such as monthly are not suitable simple because they lag too much. Hence, we will only be concerned with daily and weekly timeframes....

...Using MACD we are only considered about two things. First, do MACD bars form at the top or the bottom side of zero level. Second, do the bars form above or below the trailing MACD average.
From weekly timeframe, an underlying trend can be determined by the position of bars and confirmed by formation of bars relative to the trailing average. If the signals contradict, lets say bars form at the top but below the moving average, this could be a sign of a correction wave...
  • #9
  • Jun 15, 2016 1:08am Jun 15, 2016 1:08am
Quoting edmuliz
This is just a preview of an article I have recently written about how follow the trend. It should partly help answer your question. Technically, a trend in Forex market is always determined from a larger timeframe by looking at a bigger picture. Furthermore, we have several tools to help us confirm the underlying trend or warn of a possible trend reversal. The two simple trend following tools that we will discuss are moving averages (MAs) and moving average convergence divergence (MACD)... ...Determining a trend technically the larger the timeframe,...
Thank you, that was a very helpful explanation. I'll try to test it on a demo account and see how it goes.
  • #10
  • Jun 15, 2016 3:15am Jun 15, 2016 3:15am
BTW, here is the full article (in response to my previous reply).
  • #11
  • Jun 17, 2016 1:47am Jun 17, 2016 1:47am
Thank you for the link to the article, I'll make sure to read it all in detail.
  • #12
  • Jun 17, 2016 5:35am Jun 17, 2016 5:35am
thank you for your article....
Im still trying to get my head around it -))))
Gotta start somewhere...
Cheers Rob 🍻🍻🍻
  • #13
  • Jun 19, 2016 3:39am Jun 19, 2016 3:39am
Quoting mlawson71
I don't know about three, but I do have one which has tormented me for years and I still haven't figured out the answer: "How do you figure out when range will end?"
As promised, I have covered trend reversals/corrections here
  • #14
  • Jun 19, 2016 8:49am Jun 19, 2016 8:49am
Greeting and Happy Fathers Day! I have been trading Demo for 3 months sucessfully and before I go live I want to get feedback on my potential leverage & margin ideas. Ty for reading!

Using 300% leverage:
Margin Call for 1 trade, size 0.10 miniLot is -37 pip, losing $37. So you can trade $1/pip with $40 deposit.
Margin Call for 1 trade, size 1.0 Lot is -37 pip, losing $370, so you need $400 deposit.
Using 400% leverage:
MC 1miniLot: -28pip or -$28, MC 1Lot: -28pip or -$280.
Hence Higher Leverage means your MarginCall is less pips.

My plan is to deposit $100 with 300% leverage to trade $1/pip. I will have a built in SL @MarginCall -37, and still have $63 after 1 losing trade.

Is this correct? I am aware of the 3% risk rule, but my eventual goal is to trade 1Lot for 10pip, TP: $100 no matter my account size.
Hence as my account grows the risk reduces.
  • #15
  • Jun 20, 2016 12:52am Jun 20, 2016 12:52am
Quoting edmuliz
{quote} As promised, I have covered trend reversals/corrections here
Thanks, that also answered my question.

Would you use MACD, price action and SMAs to follow the trend in Forex as well?
  • #16
  • Jun 21, 2016 3:30am Jun 21, 2016 3:30am
Quoting FXern
{quote} Thanks, that also answered my question. Would you use MACD, price action and SMAs to follow the trend in Forex as well?
Yes, as mentioned in the first part of this thread, "How to determine trend reversals" can be considered as a follow up of "How to follow the trend"
  • #17
  • Jun 22, 2016 11:19am Jun 22, 2016 11:19am
Hello I am new to forex factory and new to forex in general (about 6 mos) I was just wondering if anyone had some literature suggestions? Obviously literature focused toward beginners is most helpful. Thanks!
  • #18
  • Jun 23, 2016 3:19am Jun 23, 2016 3:19am
If it was a genie my question would be something that (I strongly believe can't happen) How can I achieve 100% of winnings - a holy grail? If it is just a common question a rookie does to oldest members would be, how can I predict that the currency that I will buy today from a lower low would move upper from the previous higher high and collect easy at least 80% of the times, an easy set-up and forget profit.
Looking for profitable short term trades ...|
  • #19
  • Jun 25, 2016 1:06am Jun 25, 2016 1:06am
Hello,

I am a Rookie Trader in Forex, though I am familiar with Stock Trading.

Is there any step by step guide post in ForexFactory on Forex Trading including Technical Analysis / Fundamental Analysis / Trading Platform / Software ?

i.e. I am looking a thread that will guide the rookie to learn as much as possible in a systematic way ...

I know Forex Factory is a ocean of resources and I just want to swim safe and quick ..

Thanks in advance.
  • #20
  • Last Post: Jun 28, 2016 4:00am Jun 28, 2016 4:00am
Quoting elysium017
Hello, I am a Rookie Trader in Forex, though I am familiar with Stock Trading. Is there any step by step guide post in ForexFactory on Forex Trading including Technical Analysis / Fundamental Analysis / Trading Platform / Software ? i.e. I am looking a thread that will guide the rookie to learn as much as possible in a systematic way ... I know Forex Factory is a ocean of resources and I just want to swim safe and quick .. Thanks in advance.
Hi Elysium, if you wan to "swim safe and quick" I haven't seed a better academy than this one. There are many that are good but they tend to lack some essential concepts or are conversely over packed.

This should also help the guys above, who are searching for FX literature.
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