Tips in Entering a Position

Any tips in entering a position?

maybe the veterans here can give tips or research links in getting to know more about a currency before entering a position?

You mean one particular currency or pair? Don’t know. but if you just mean in general… bp school is a good general introduction to get you started.

as a pair actually. I don’t know but the way am looking at it now. (and am a complete newbie) the movements of the major currency pairs seems to be very erratic?

also, what is a bp school?

see for your self, Forex Training Online: Learn Foreign Exchange (FX) Currency Trading
its not a bad idea to go over it a few times :wink:

Price may look chaotic, but there is method in the madness.

ah yeah, been reading it since last month and going it over and over.

actually trying some stuff i reviewed now and mad $1600+ just this hour. But still not confident enough without understanding the fundamentals and to know when to enter :slight_smile:

First and most important “tip” in entering a position is
DON’T
until you have completeted the school os pisology [/SIZE

then come back and ask any questions
best regards

Your trading system will tell you when to enter and exit, otherwise you don’t have a system. Are you “playing” with a demo account ?

yup playing with my demo account and trying to find out what system works best for me.

are you using any particular methodology or just gambling. There are many good systems available on this site depending on what type of tradering style is a fit for you. IMHO you really must take the time to learn one system and be very careful when playing with demo as it is easy to instill bad practice which you will carry to your live account

so far what works for me is I choose pair and pull up a 15min and a 1 hour chart and see when I can enter.

am wondering though, excludingthe psychological factor involved in playing a demo account and a live account - how accurate are the movements ofthe market in a demo account compared to the live one?

This sounds scary. What are you using for entry and exit signals. what platform are you using ?

am using a combination of the bollinger bands RSI MACD and the stochastics

plus am banking on what I understand from the news of the weaker dollar against the other currency pair except jpy where I think their govt is trying to devaluate their yen

I take that it is your own system then. You don’t use MA or SR ? If this is the system thats suits you then imho you need to understand the indicators which in turn will enable you to determine your enrty and exit criterea. I can offer no further advice as it is not a Strategy that I use , but hopefully someone else here may be of assisstance
best regards
Dave

Since everybody is so into money management and risk reward.
Use this tip.

  1. Flip a coin.
  2. Buy on head. Sell on tail.
  3. Use risk of 1 and reward 2 or more.
  4. You win 50% of time, but you will come a winner.

That’s it.

Random entries can be very profitable (if you know how to manage them), but this is complete and utter nonsense.

You will not win 50% of the time. You will win around 33% of the time and you will gradually lose because of transaction costs.

Posts such as yours should result in an immediate ban for stupidity and ignorance !

At least somebody sees what I see.
Money management and risk reward cannot prevent the
"Black Swan."

If you don’t know what a Black swan is, do your own research.
This means mm and rr cannot be that important.

Its precisely because “black swan” events occur that you need to manage risk, and you do that through position sizing.

If your smart (or lucky), you’ll be on the right side of most black swan events, I’ve yet to see one where the technicals didnt clearly give the game away, and that includes 9/11, the 7/7 london bombings and the recent UK banking crisis.

If only being on the right side was that easy?
Just because you believe or your indicators believe the trend is up or down,
does this mean the market is up or down??

Is the market confined to your believe or the indicators???

Predicting the right side of the market is pretty much irrelevant. You’ll either be right or wrong. You could toss a coin and get the direction right 50% of the time

All you need is a framework to let you know when you are right, and when you are wrong, and a plan to manage those trades accordingly.