Let me start with your welcome, it’s actually my pleasure to try and help. Firstly when I say help, I don’t mean do your work. I mean help you to do your work. I will help you by first telling you that most of your answers can be found at the babypips school and google. Next all my posts are my opinion and my understanding and what I base my trading on. That doesn’t mean it’s necessarily facts. For example I believe the majority of forex brokers are not scammers but legit businesses. That’s my opinion. 2+3=5. In my opinion that’s a fact. Now onto your questions.
Most traders will agree that brokers would be classified into the following: Dealing Desk/Non Desk. Babypips or Google will define the difference. From there we break it down to: Market Maker, STP, DMA, ECN; same thing babypips school and/or google will give you answers. It’s better for you to do this work, because deciding on what broker and how to choose a broker is key to long term success. Now I’m not trying to be cute or evasive to “where does the lost money go?” If I was lazy and didn’t want to do the research, I would say. . .”Who gives a Sheet?” “It’s not going in my pocket, so I don’t care where it goes as long as I’m not being cheated. I’m more concerned as to why and did I do something that caused the loss. How do I figure out if I’m being cheated? I go learn basics of how brokers are classified from babypips school, then I research the broker to see, then I make an informed decisions based on relevant Facts, Real Options, then I pick the Least of the Evils; not fool proof, but works based on the balance of probabilities long term. (If you don’t understand what that phrase means, “balance of long term probabilities” make sure you look it up, understand it don’t stop until you do then live it. Generally speaking your losses go to the other side of the trade as well your broker takes their cut. For example in my case my broker charges me a % based on lots I trade, so If I had a losing trade and I was long, the short side of the trade gets my loss, my broker gets the % they’ve charged me to trade with them. Like I said Generally.
As far as responsibilities to your account, that’s your broker. Again found at babypips school. Yes brokers take the other side of your trade, and it depends on your definition of cheating. In my opinion, taking advantage of an uniformed situation is not trading. Is it cheating if a broker takes the other side of your trade if you are over leveraged, over trade, don’t have a loss protector? Like you, most brokers who take the other side of your trade are playing long term balance of probabilities. As well I would also say yes some do cheat but personally I don’t believe it’s wide spread, again only my opinion. Brokers will categorize you depending on your winning, losing and profitability. They’ll place you in what’s called “A” and “B” books. I read this somewhere and questioned my broker about it he said in some cases probably true, but in my brokers case he said they take their commission and send it to market. This is what I read; As a new broker client, Forex brokers will keep your trades “in house”. Basically your trades aren’t sent to the real market. The broker will execute your trades and bet against you, taking the other side of your trade. Why do Forex brokers put you in the “B” book? Firstly, because the “B” book is a profitable business model. Statistics prove that 90% of traders lose all of their deposits within 6 months. So the stats favor the broker. IG Markets holds the biggest “B” Book in the world. Why do Forex brokers put you in the “A” book? Brokers will put you into the “A” book if you’re profitable. Brokers send profitable traders out to their liquidity providers because no one wants to bet against profitable traders.
All my trading strategies are the same. I do not trade any economic or major events if I can help it. I wait until after the event. I know traders who do trade news and economic events and they say it’s profitable, but to me, I don’t try and pick tops or bottoms in price moves, I go in between, when there are no events posted or to be announced.
I hope that anwers your question
Gp
I have a question regarding stop losses, or more specifically, their use and usefulness.
I read a lot about whether to use them at all, where to set them, how to work them out etc, and I understand these points. Personally, I will use them if I decide to trade.
But I also hear an argument that it’s a good way of advertising at what point you’re willing to take a loss (to the broker). Does this mean that you’re open to price manipulation by the broker, or is this only really an issue if you’re setting a stop too close to the market price?
I’m unsure as to whether the conflict of interest is warranted when the broker takes the other side of your trade.
Before I even down load a brokers software check out the following.
The Broker has to be in business no less than 8 years
Broker has to be regulated and must be a non dealing desk
Broker has to be reviewed, by some public rating companies, trader net works, both paypips and Forex factory
I gather every piece of information I can before anything. Doing this first has never let me down
Then I check out my rep, how long, what’s is basic storey and I verify all that.
Then I download their software platforms. I only use MT4 so that’s a no brainer
I check their spreads on the currencies I trade, if they are swap free or not.
All trading funds must be held in a Seg Fund.
Then I check customer service and verify
I make a deposit trade withdraw and see how long that takes and why
10 Then I deposit whatever I’m trading with that broker and go to work.
I trade larger accounts, I’m profitable, no trouble (usually) so I normally have a personal account manager who cuts out a lot of BS… In the beginning I did most of this by myself and never hada personal acct manager.
I do not believe the type of broker I look for manipulate and thing. They’re make their money from a commission they earn from my trades and my business.That’s my opinion. I have never found that openly admit they cheat their traders. They make money like we do based on the balance of probabilities
Stop losses have3 main purposes for a new trader in my opinion
Protect you from a loss that wipes out your trading account
Lets you experience losing money without losing you trading account
Gives you the confidence to work on your stop loss strategy to make it more efficient.
Example when I started my Stop loss was 5:1 means 4 winners 1 loss, never worked, lowered my time frames lowered my stop loss ratio had a little success. I only traded 1 pair so I learned lost about the pair allowing me to lower my time frame and stop loss. 8 years later My stop goes in before my entry it’s only purpose is to protect me against a major loss. But this takes time, patience knowledge will power and experience. Be smart pick a ratio 3:1 4:1 play with it, Again my opinion
Best thing my advice don’t do anything. Brokers aren’t going away only the scammers. Take your time and build you forex knowledge that will help you in your decision making policy
Good Luck
Gp
I have always wanted to trade at most 4 pairs swing trading but have always found it hard as I find my self checking other pairs when mine are not showing anything and before you know it you end up missing trades on your pairs coz of the divided attention.
Am wondering how many FX pairs do you trade and do you think it’s a good idea, it’s something I really want n believe it will improve my trading.
It’s also comforting to know that there are people doing the same who can share their experience on trading one or less than 4 pairs.
You’re very welcome. In my opinion. With swing trading you the more you know about the pair you’re trading the more effective your trading method will be. I’m pretty sure that is the way with all trading. For me my swing strategy has been the most effective so far on the 1 hour time frame, with GBPJPY. I trade full time manually. I set up just after Sunday Opening and depending I’m out or at least want to be out by Friday close. On the one hour with pair I find I’m in and out at some specific times. I do have some longer turn trades that are trend and Fibonacci based. They’re more set and forget. But no question for me 1 hour swing trading increases my trading account by the largest percent. I don’t think I can devote anymore time to look at other pairs. Because of Brexit, I am looking at the USDJPY I have been thinking about increasing my business by expanding the pairs I trade using other traders signals, managed accounts, a traders group. But no where near ready to make that decision. I have some heavy personal commitments for the next few months so all I’m doing right now is looking at alternatives to my trading.
Here’s my plan for expanding my business Plan Plan Plan and write down ideas and reduce to a written plan based on facts, options and go with the least of the evils. I will do a lot of research from many different sources before I add anything to my current overall trading strategy. Some I will pay for, most I will do on my own. But I will do it before I add anything. Next put it to the text and see what happens, if it works; another test and so on. My over all strategy is long term.
Hope that helps
Gp
Ok, this thread will be an inspiration and support system for the new traders. As forex is a challenging field, every new baby has the yearning to receive expert guidelines before he can start trading with his real money. I am truelove appreciating your initiative to help the others.
My friend I don’t know every thing. I try to learn something that will help me closer to my goals, and make note of something that could possibly cause me to move away. IO do not like to trade the early Sunday opening. I like to wait a few hours and see if I want to start stetting up. This week I strayed from that as on Friday when I closed out all my open trades there were 2 that were right on the rule for closing but not quite, so I held over the weekend it turned out good based on that info I opened another trade that has not stoppedout, but has reversed and may stop me out. If I followed my Sunday rule to the letter. I would not opined s short trade but based on the info I should have opened a long. Point is make the plan live the plan and thik long term For me it’s a late night:cry:
I won’t do anyone work and I won’t give you mine, but I will how to help you do your own
Gp
Hi Gp.
I have been trading for some time now. At first my journey started well, but later it seems I have never traded before all my trades started going south. It was like my strategy has never worked before and it has really caused me a lot of emotions stress. I now plan on going into more studies. Please what advice do you have for me.
Hi GP, I just found your forum, great stuff. I was wondering if you have any thoughts on a reliable volume indicator for Forex? None that I have tried seem to work very well
Hi, can you help me assess this price pair movement. My brokers platform shows a large downwards spike compared to other brokers. Just wondering what would drive this? Refer attached.
Hi First let me start with saying I’m sorry for the delay in getting back to you. Here’s one of the best pieces of advice I ever got. "ALL PLANS WORK SOMETIME. . .NO PLAN WORKS ALL THE TIME."
Just like money moves up and down, so does trading and don’t let anyone tell you different. You plan your trades according to a good bankroll management, you apply a trading strategy that based on the balance of probabilities will give you more winners than losers, then be patient and try to make the same mistake the least amount of times as possible, realizing mistakes are part of the business.
Hi First let me start with saying I’m sorry for the delay in getting back to you. I the trading volume Indicator I use is free and you can get it with MT4or5 under code base on the platform. It’s "trading_volume_V1. I find to be accurate on 1 hour and below time frames
Hope that helps
Gp
