This post is for all of you wannabe Fulltime Forex Traders

Beginner Questions
1

I’ve been on this forum for about a week now and I am seeing alot of you guys are complete newbies who have no direction whatsoever, or you arent a newbie and you think you know what you are doing, no offense - alot of you don’t. If you are doing something to make a consistant 10%+ a week on your account balance then continue to do what you are doing - this post is not intended for you. If you earn half a million a year or more trading forex - this post is not intended for you. If you dont have to work and you are happy with where you are at right now with your trading - this post is not intended for you. If you know how to take $1000 to $230,000 in 52 weeks - then this post isnt for you. (this this without spending any money in your account.)

I’m not going to sell you guys anything. I’m not going to ask you to believe me or do what I tell you. If you want to learn what I am going to post on here then by all means listen. If you don’t agree with what I am teaching you its probably because you don’t know enough about forex and its not your fault.

I went through the entire babypips.com school just to see what kind of information is being offered. It is an excellent foundation for newbies, but thats just what it is…a foundation.

Whenever I have time I will post some value on here that will help you become better with your trading. Feel free to ask me any questions do so in this post so others can see your question and the answer because I am sure you guys will have the same questions. Try not to ask the same questions. I am a CTA hedge fund manager and have been into forex for several years.

The information referenced in this post arefor educational purpose only, and are not intended to replace individual research or licensed investment advice. Unique experiences and past performances do not guarantee future results. Certain accounts may have worse performance than those indicated or alluded to. Trading currencies involves substantial risk, and there is always the potential for loss. Your trading results may vary. No representation is being made that the information provided in my writings, will guarantee profits, or not result in losses from trading. No information I provide should be construed as providing a trade recommendation or the giving of investment advice. Aregarding a currency can only be performed by a licensed Broker/Dealer. I am not a registered Broker/Dealer or Investment Advisor in any State or Federally-sanctioned jurisdiction. All users of the information I provide are suggested strongly to consult with a licensed representative of their choice regarding any particular trade or trading strategy.

Broker belives that customer should be aware of the risks associated with over-the-counter, spot Forex. Forex trading is highly speculative in nature which can mean currency prices may become extremely volatile. Forex trading is highly leveraged, since low margin deposits normally are required, an extremely high degree of leverage is obtainable in foreign exchange trading. A relatively small market movement will have a proportionately larger impact on the funds you have deposited. You may sustain a total loss of your funds. Since the possibility of losing your entire cash balance does exist, speculation in the Forex market should only be conducted with risk capital you can afford to lose which will not dramatically impact your lifestyle.

Currency trading has large potential reward, but also large potential risks. All information posted by myself should not be construed as representing results everybody can achieve.

That being said, I will post one extremely detailed lessons each weekend. I spend most of my time travelling to foreign countries with my girlfriend, learning how to fly my cessna plane, snowboarding, surfing, training mixed martial arts and learning russian. I promise one post a week of detailed information. Take what you want disreguard what you do not want and feel free to ask ANY questions wheter forex related or anything else you feel the need to ask

Sincerely,

MikeAnthonyB

2

After reading a few of your other posts it sounds like the kind of thing I’ve been studying lately. Look forward to reading more.

3

Just reading your post I already feel I’ve learned something, so a big thank you for offering your time and expertise here. Have this thread bookmarked and excited to read and learn whatever you are willing to share with us newbies.

4

:rolleyes:
hey superhedge

can hardly wait till you dispense your superior wisdom among “newbies” and this all between your superior other activities.:eek::smiley:

5

I read some of mikeanthony’s posts on another thread. DeMark trend lines, fibs, pivots, using macd as a divergence tool, support & resistance etc. Sounds like the stuff I’m getting from the Chris Lori CDs. If it’s anything like those CDs then this should be a good thread to follow.

6

Lesson #1: Choosing your Broker Correctly.

No fluff, all value as promised.

There are 2 types of forex brokers and under each forex broker there are 2 sub-categories if you will. Lets first distinguish the difference between the 2 main categories.

A Dealing Desk and a No Dealing Desk Broker.

A Dealing Desk broker is a broker that will route their orders through the dealing desk and quote you a fixed spread. You want to avoid a dealing desk broker because they make their money from the spreads (which is ok) but they will take positions against their clients. Theyre also known as a market maker because they “make the market” for their clients. WIth a Dealing desk broker you’ll NEVER see the actual price of forex as they will manipulate it to where they need you to be so you can’t really ever win.

A No Dealing Desk Broker will pass your orders directly from the Interbank without feeding it through a dealing desk first. They will fill you without a requote or a pause on confirmations. Giving you the best fill you can possibly get. They will either charge you a commission or a spread. The ones that charge you with a commission will give you the most truest fill since there will be no spread. However, spreads tend to cost less than commissions, it really depends on the broker.

Then whether you are a DD or NDD broker there are two subcategories under each of those.
The first is a Straight through processing broker and the second is an Electronic communications network.

A Straight through processing broker sends your order directly to the interbank. The more banks in the system working with the broker, the better fills you will get.

A Electronic communications network broker allows your orders to interact with other clients orders so that you are trading against other customers from that broker, and they charge commission only.

The final rules become effective October 18, 2010 for the new 50:1 leverage laws on all American trading accounts. When Japan went 50:1 several brokers went out of business from the amount of transactions that ceased due to traders moving their accounts to other countries. If you want to move your account offshore it is completely up to you. I for one, even though I’m American, have had my account with an FSA UK broker.

Which honestly alot of brokers will STILL make you trade with the 50:1 leverage if you are a US resident so it will not really make a difference where you put your account. THANK YOU CFTC!

Bottom Line: Have NO DEALING DESK. ECN or STP up to you!

7

Hi MikeAnthonyB,

Look forward to reading more of your posts…but in the meantime I have a question - and I apologise if it’s a really stupid one. A few weeks ago I completed a Forex training course with Knowledge for Action in London. After the course, which I found really good I felt confident that I could trade - albeit, starting off small. So I set up my account (spread-betting account) with MF Global Markets, (one of the 2 platforms recommended by Knowledge for Action) funded it and was all set to go - and then felt completely overwhelmed when I realised I didn’t know whether to place a trade, place an order or what to do. From researching the difference in a trade and order, I still don’t really know the difference and don’t really know where to start.

Any advice you or anyone else can give would be really appreciated. Also, if anyone knows the MF Platform, any info would also be appreciated.

I am determined to crack this, so I will persevere!

8

Was excited to see you already posted your first lesson, thanks :slight_smile:

I just wired my money over to what I think is a ECN, but I never heard of a STP for retail accounts. Where could I find a list of who is actually a credible STP?

Another thing why I chose my ECN (maybe not a true ECN!) is that the theory is that my money is protected up to 100k more or less as they are regulated and a bank now as well. Would any STP have such a guarantee on deposit funds?

9

Doesn’t sound to me like you are ready if you are unsure about the fundamentals of your platform?

Surely, like any platform, you should demo trade to see if it’s the one you want to use. There is an abundance of choice out there…

10

Ok, firstly…spread betting is type of bet that gives investors the chance of making unlimited winnings (and losses), in contrast to the conventional fixed-odds type of bet, where the potential winnings and losses are known before the event. They generally quote spreads wider than the market. Shared contracts for difference are a more sophisticated way of trading. If your new I wouldnt get involved.

Secondly, I dont know about that broker you are using but it sounds to me like placing a trade would be a spot investment or something you are doing right now and an order would be something done in the future.

11

List of No dealing desk brokers:

ECN:

ECN Forex Brokers

STP:

STP Forex Brokers

12

Hi, am new to FOREX this year and also started with a Spread Betting account (UK based), it seems far simpler and easier to learn (demo and real) as it’s pretty straight forward. I choose my pair(s) and usually trade daily so go for a SPOT and just enter my amount i want to trade with (currently £1) and then enter my STOP, this then tells me how much i have risked on my trade so i know what my loss could be. If am going to hold a position for more than 1 day then i go for a FUTURE (think they called ROLLING SPREAD).

When the price reaches a certain amount i just close the trade and take the gain, if it goes the other way i usually either close the trade and make a loss (rather than reach my STOP and lose even more). It seems pretty straight forward and for a newbie it’s ideal, well for me anyway.

I did try a CFD (demo) account but it was crazy! the margins or whatever they are were huge and i would have waxed my account with 2 losses lol!

I would like to know though what the difference is between a Spreadbetting, CFD and proper FOREX account are? and when i should progress to either a CFD or FOREX account? What are the costs involved etc?

Many Thanks

13

Spread Betting vs Forex

Comparing Spread Betting to Forex Trading

and CFDs
CFD Trading FAQs and Symbol Guide

14

mikeanthonyb many thanks for your swift reply! after reading the links it seems to me that there;s no MAJOR difference between FOREX and SB, just with SB it’s TAX FREE and wahooo anything the TAX MAN can;t get off me then am in !!!

As for CFD’s still a lil confused ie: don’t understand the margin\spread and how they operate it, but for now am doodling along on my SB account and learning as i go, so far so good.

This FOREX is amazing and i love it lol! and all the better i have worked out a system all by myself without copying or paying someone else feels all the better! i’ve been doing it since Feb so am still here so i must be doing something right! i can finally see light at the end of the tunnel and fingers crossed all the research, testing will finally pay off!

15

TalonD
Never heard of Chris Lori, I searched and found he is with Peter Bain. I hope you did not pay over $1500.- for the crap.:slight_smile:
You should know there money is not made with trading, there money is done from the “suckers” buying the courses.
If you did buy, I am a bit disappointed, I expected you would know better after over a year on Bpips.
Enclosed 2 charts from the “Forexmentor” what a joke and actually it was a waste of bandwith downloading it.:eek: :slight_smile:
stop chasing the “holy grail” start trading instead.:slight_smile:



16

That must be a different Chris, nothing in the CD looks as complicated and colorful as those charts. I didn’t pay anything for the CDs :smiley:

I hope no one objects to me posting a link.
Chris Lori | About Chris Lori | CTA, FX Managed Funds

Not intending to distract any attention from mikeanthony, just saying… so far they have similarities. Also there is a similarity with the methods of the former BP poster ICT. It’s all very basic stuff, support & resistance a few trend lines, consolidation areas etc.

No, I’ve been around enough not to fall for bunk, playing with fapturbo was my one folly. :smiley:

Never heard of Peter Bain, thats probably a good thing from the looks of those charts. I get dizzy lookin at those!

17

Peter Bain, man, he goes a long way back.

18

And yeah, $1500 for that piece of crap? Stay WELL away!

19

Chris Lori is awesome!!! He is by far the best trader I have ever seen, and believe me I have seen alot. His focus is on key levels, highs, lows, pivots, fibs ets and how price reacts at these levels. His money management is by far thee best I have ever seen and the kicker is it so completly simple and a common sense, unconfused approach.

Chris Lori gets 5 stars from me and btw no affiliation with peter bain as far as i know.

20

Congratulations, you’re learning that 99% of the Forex world is bull****.

People sell “ebooks”, Triaining videos, and other **** that doesn’t work (think about it. If they worked, they would be using them themselves, not selling the info to saturate the market). It’s basic supply and demand. If I have a method that makes me $10000 per day, I’m going to use it and make $10000 a day. I’m not going to give it away and have competition that is going to take away some of my $10000 per day. Yet how many threads do you see on all the Forex forums that say “EASY $10000 per day method!!! Click here!!” It’s all bull****. The poster just wants some e-cred, or is speaking hypothetically. Sure, you could make $10000 per day, but you’re not going to.

Not only that, but 99% of the time the “ebook” or whatever is written so poorly that there is no information to be gleaned from it, anyway. It’s a “feel good”, “empowering” book that makes you “feel” like you can go out and own the world, but you weren’t even actually given any concrete examples so you’re still ****ed. I can tell you trade with the trend, use a stop loss, dont risk more than x% of your account etc." and you think that you are getting good advice, but you’re really not. Do you know how to do any of that stuff, or is it just all high-level semi-specific bull? Do you know how to use fibbonaccis? I mean, I just told you to do it, but I didn’t tell you how to do it. Tricky, right? Of course, the next 50 pages in the ebook are talking about all the money, mansions, and chicks you will get when you are making $10000 a day without doing any real work at all, so you end up feeling good about it even though a week, a month, a year from now you still won’t have made any money.

The people who sell methods are not profitable. The people who ARE successful guard their methods with their lives. They sure as **** do not give them away for $500 to the first 10 people and $1500 to everyone after that.

Decide what you want to do. Learn everything about it, and DO IT!

Try different things. You may fail your first few times. I thought about making products to sell like DVDs and Ebooks but why even bother? Id rather spend my time on a nude beach in Greece with my girlfriend or on our 60ft yacht trading from an internet satellite card.

Also keep this in mind:

99% of people lie.

99% of people on Forex forums are lying about what they do, how they do it, and how much they make. I absolutely guarantee that.

The bottom line, same as with anything, is don’t take advice from people who bull**** around. If you ask questions and get vague answers, they’re probably bullting. Have a question? Get a specific answer. If you ask “how do I do [such and such]?” And the answer isn’t specific, then either the person helping you is just messing with you or doesn’t really know the answer or doesn’t want to give you the answer. Do you have time to waste doing that? I know I don’t. Put them on your Ignore List and move on. This goes TRIPLE if you’re paying for information. If I were to pay for info I expect absolutely technical, no room for interpretation, no bull, no hippie crap, absolutely specific information about EXACTLY whatever the subject matter is. “First do [this], then do [that]. Do them specifically this way. Here are diagrams, charts, and examples.” Don’t settle for bull**** like “Imagine how much MONEY you will have once you do [this] and [that]. WOMEN will want to ******** YOU. You can QUIT YOUR JOB!” No, that’s not information that you pay for, that’s bull****, and sadly, that’s what most of the FOREX world is. Idiots sell bull**** to other idiots.
90% of the threads on Forex forums are worthless. They’re e-pissing contests.

Most importantly, learn that FOREX is not easy like all the eBooks and online “gurus” say it is.