4 hour still looks like a sell to me. RSI ( 14 ) still above 70. Shooting star at topp. Looks like a sell to daily pivot 1-41. But risk reward not worth it, almost 1:1.imho
my first target is 1.4160 and 2nd 1.4120 there are good PA formations from 5m to 4H chart, we have hit fibo level, RSI OB, and according to my volatility indicator in the 8H is a low risk tradeā¦ weāll see
Thanks for your responses.
Would like to have your suggestions to be successful in FX Trading.
Since there was a loss with Standard account, I transferred the money from Standard to Micro account. Now Iāve $100 in my account.
I would like to have the following information from you guys, to be successful.
[ul]
[li]How many lots can I trade?
[/li][li]How much risk can I take (in percentage and in pips)? - 2pips fixed spread by broker.
[/li][li]What time frame can I trade? (M1/M15/M30/H1 etcā¦)
[/li][li]What Indicators can I use?
[/li][li]If I go with Trend lines and Japenese Candlestick patterns, what EA/Indicator can I use? I reviewed Candle Patterns which Iāve attached wtih this. Candle Patterns.zip (135 KB)
[/li][/ul]
Please guide me.
Can anyone guide me please?
Hi Kacraj
Sorry itās taken so long to get an answer to your questions. Unfortunately I am at my day job just now and canāt give you a detailed answer. But when I get home tonight I will give you a full answer from a fellow newbies perspective.
HoG
I can help you!
How many lots? Iām trading with a āhigherā capital, and i never open positions in lotsā¦ Iāve a standard account, and a good indicator to calculate the lot size. A trade canāt be bigger than 1-2% of your margin. So this is your risk. if you have $100 your risk canāt be higher than $2/trade. So if you have a micro (cent) account, 1pip is about 1cent by 0.01LOT size? so your SL is 50pip far from your entry price, you can open than 0.04LOT, because than is 1pip=4cent than 50pips=50x4cent=200cent=$2
So this is your risk.
How much do you have for trading?
The best and safetiest time frame is H1 and H4.
Indicators? You can use all the indicators, but than you canāt see the chart:)
I use the indicators only for exit, not for entry signals. Of course i use the indicators, but only to confirm my opening signal.
Iāve some smart indicators, for making the trading easier. I use SMA,RSI,MACD,Donchian,Parabolic,Volumen,ā¦
I think you should stop trading with real money, but keep going with your demo account!
Watch this thread to: newbie/daily technical analysis, and watch the videos to.
I close my week like this with opened trades. So i donāt close the trades only move the SL closer to the price, and i hope that sunday 0:00 we donāt have a big gap and the price keep going to the good way 
iām banned like fxclubusa:( Iāll be a good guy, no advertising, no private messagesā¦
What videos? 
Thanks
Hi Kacraj
Just got home and finished my dinner, so as promised, Iāll give you MY take on your questions. There are a couple of things Iād like to say first though before I get to them.
First thing you should understand is that I am a newbie like you. I have had a live account for almost 5 months now, itās still alive but I am in NO WAY an expert on the subject of Forex. So mine are newbie opinions.
Second thing is that the advice you have received in the previous couple of posts, to stop trading live and go back to trading demo, is good advice. However, since I hardly traded demo and went almost straight into live trading, I am in no position to tell you to go back to trading demo. As long as you can afford to lose that money, just get on with it. Best way to learn if you can afford it if you ask me.
For the purpose of my answers, I have assumed that the cost per pip and margin requirements are standard across different trading platforms, so when I mention figures, I am talking about MY trading platforms money levels, and I am assuming yours are the same. OK ?
One last thing. If I could take my own advice, my own trading would be better than it is. But try to remember you are only learning. You didnāt learn to walk in one day, you didnāt learn to talk in one day. And learning to understand women will takeā¦well, weāll NEVER learn that ! Along the way during this reply Iāll mention mistakes I have made that I will be stunned if you havenāt already made, or wonāt make in the future. Again remember, you are not alone in making those mistakes. Millions of traders have made them before you.
Here we go.
How Many Lots Can I Trade ? ( Would probably be better phrased 'How Many Lots SHOULD I Trade ? )
In actual fact you can trade as many lots as you want. However, the higher the amount of lots you use, the higher the chance you will wipe your account out in no time.
In a micro account, the cost per pip for 1 lot is 10 cents. ($0.10). And for every lot you trade of EUR/USD, your trading platform will set aside $4 from your balance as your margin requirement.
So you trade 1 lot, your dealer puts $4 to one side to cover your trade, leaving you $96 to trade with, and each pip is worth $0.10. When your trade is finished, assuming you havenāt lost your entire remaining balance, your dealer will put your $4 margin back into your balance.
But if you decide to trade 10 lots, your dealer will set aside $40 margin ( 10 lots x $4/lot margin = $40 ) And now each pip is worth $1 ( 10 lots x $0.10/lot = $1 ) So now you only have $60 to use in a trade, and if each pip is worth $1, your entire account will be wiped out if your trade goes 60 pips against you.
So the answer to the question, How Many Lots SHOULD I Trade ?, is 1. And only 1 !!!
Now I know this amount may seem frustrating to you, only playing for 10 cents a time. After all, youāre here to make money !! But thatās how I lost so much of my original account, and thatās probably one of the reasons you had to re-capitalise your original account. So trade 1 lot at a time. We are BOTH far far away from being in the position to trade bigger lots. OK?
- How Much Risk Can I Take ? ( % and pips )
Good money management dictates you should NEVER use more than 2% of your entire balance on any trade. Now that doesnāt mean you can have 15 different trades running at the same time, each using 2%. NEVER have more than 2% of your balance at risk at any one time.
Figures wise this works out like this:
$100 balance.
2% of $100 = $2. In a micro account $2 = 20 pips. ( each pip in 1 lot = 10 cents. 20 pips = $2 ) So this means if your balance is $100, your MAXIMUM risk in any 1 lot trade would be 20 pips. This is why it is important to pick your entry levels carefully. Try to buy near support, try to sell near resistance. Donāt just enter a trade anywhere through impatience, because price can easily make a 20 pip move and stop you out.
So in your micro account, your MAXIMUM risk is $2 ( 20 pips ) per trade on a balance of $100. Obviously as your account balance increases, your 2% will increase with it.
Againn I have been guilty of risking way too much on a trade in the past and it will deplete your funds quite quickly if you continue to do it.
- What Time Frame Can I Trade ? (M1/M15/M30/H1 etcā¦)
For me, the answer to that depends on what sort of trading style you plan to adopt. Recently, due to circumstances Iāll explain a bit later, I have made losses on longer time frame trades, but recouped some of those losses scalping. I seem to be quite good at scalping although I dislike it.
When I scalp, I use the 1 min chart
If you intend to trade intra day ( not holding a trade any longer than a day ) youāll probably use all charts from 5, 15ā¦ all the way up to the daily.
If you intend to hold trades for the longer term, ( over a period of days ) the SMALLEST time frame youāll probably use is the 1 Hour.
But I guess that in general, ( unless you are scalping ) it would be good practice to start with the 1W chart to get a general idea of what the BIG picture is. Then have a look at the 1D and start to pick out levels of Support and Resistance.(Start drawing the S&R lines in ) The 4H and 1H will also give you an idea of Support and Resistance levels. Any SMALLER timeframe than the 1H should only be used to pin-point the best entry/exit points to a trade you have indentified on the LARGER timeframes.
- What Indicators Can I Use ?
Since I started, I have used the following indicators : MACD, Slow Stochastics, RSI, EMA, SMA, Fibonacci, Alligator, Donchian Channels, Pivot Points, Fractals, trend lines, S&R levels. Even tried to understand Ichimoku and Elliot Waves.
In all honesty Iām the first to admit I didnāt fully understand how ANY of these indicators worked properly. HOWEVER, even though I have been advised of this in the past, it has only been since I have been using the candlesticks on there own to scalp in the last week or two, that I have realised that the only indicator that REALLY tells you what price is doing, is price itself. (ie candlesticks )
What I was finding when using all these āFancyā indicators, was that I was making trading decisions based on what the indicators were telling me, and not what the Price Action was telling me. And by doing this, more often than not, I was wrong with my trades.
So clear your charts of ALL indicators. Just have the candles. Then go to your large timeframes, and start to add in some levels of Supprt and Resistance as YOU see them. No need to ask others what the levels are. Just look at what you believe recent highs and lows are, and draw the lines on your chart.
BEFORE you use ANY OTHER indicator, read about it. Read what it does and what itās supposed to show you. But remember, only use these indicators to confirm what the Price Action tells you, DONāT use the indicators as your decision makers.
From MACD, Stochastics and RSI, pick 1. Not ALL, just 1. Maybe have a moving average or two, learn to use Fibonacci. But START with a clean chart, then only add your indicators to confirm what the candles are pointing to.
I guess everybody is looking for that 1 indicator that will be 100% accurate everytime. But it doesnāt exist. Regardless of what some people will tell you, or try to sell you, it doesnāt exist. Candles are as close to real time Price Action as youāre going to get. Use them with your S&R levels, maybe have RSI running to give you an idea if pair is overbought/oversold.
NEVER buy/sell a pair because an indicator is telling you itās overbought/oversold. Price can stay overbought/oversold for a long time.
I believe the 200 period SMA or EMA is used a lot on larger timeframes by big traders. It I reckon it doesnāt hurt to have the daily Pivot Points on your chart at all times either ( just gives another indication of support and resistance levels )
Fibonacci levels are also extensively used so learn to use them properly ( again more support and resistance )
And if I was you that is what I would use to get me going. Remember, DONāT go for the Home Run trade all of the time. Build it slow and steady.
In the short time I have been trading Kacraj, if I was asked to pick out the 1 MOST IMPORTANT piece of advice to give to any other newbie, the 1 thing I have learned is essential ABOVE ALL else, I would say it would have to be BE PATIENT !
I usually go to work in the morning before the start of the London session. And I donāt get home until well after mid-day in the New York session. So obviously I miss the most active trading period of every day.
So what tends to happen to me is that when I get home, I turn on the computer and go looking for a trade, just because I want to trade. I did this last night. I shorted GBP/CHF and lost 10 pips and shorted EUR/USD which lost another 10 pips. But the reason those trades ent against me was simply because those trades werenāt really there. I just tried them because I wanted to trade.
I know what my ideal set-up is. On the days when I have been off work and been able to sit in front of the computer with Bloonberg on the TV, I have done well with my trading. I can view the charts during the busiest trading period and I use Bloomberg to watch the direction of the Stock Indexes and USDollar., and having that information on hand as it happens helps my traing.
But at night, when London and New York are closed, and the pairs are moving slower, I find myself placing trades that I shouldnāt, just because Iām frustrated at missing the action during the day. This is where the PATIENCE comes in. I know it is essential for my trading future to get a hold of those frustrations and ONLY to trade when I have a clear set up that is telling me to buy or sell. And this is what you need to learn to.
Donāt trade because youāre bored. Donāt trade just because you want to get involved. Donāt trade just because you want to trade. Be Patient, wait for the trade to show itself to you. I know only too well how you feel. Youāre itching to get involved, thatās only natural. But you will learn, and hopefully you will do it while you still have money in the account.
Forexclubusa is right when he says it is a good sign that you are asking about learning rather than asking about how much you will make. This shows you are willing to take the time to learn. So take your time, this is a marathon, not a sprint.
I also know that this reply has turned into a bit of a ramble so I will cut it off here. Hope some of it helps. Maybe some of the more experienced guys will give you a better take on your questions too. But any questions whatsoever, just post them here. Some-one will answer you, it may take a few hours, but some-one will.
So good luck, stay in touch and happy learning !!
HoG
So clear your charts of ALL indicators. Just have the candles.
Perfect! Just like my idea. Clear your charts, because you cant see whats happening with the price!
I think 1 week time frame is to bigā¦I use the S and R levels in daily or H4 time frame. If you open a trade, never change the time frame! Each time frame has her own signal. If iām waiting for a P2 signal on H4, i donāt change my time for H1 frame to open my order a little bit earlier, because often itās a false signal on H1 and no signal on H4!
1-2% risk/trade and alltogether 6-8% from your balance!
You know something about Risk reward? open signals? exit strategys? follow the price with SL? Do you know whatās gonna be you take profit price when you open an order?
HoG nice answer, and even smart!
Thereāre 2 youtube videos, if you see the first page!
Hmm, you mean a 6%-8% from the total account balance, right? And yes, if you change your timeframe in the middle of a trade, the signals are going to go nutsā¦not always but just enough to make you cringe!
Im just going to throw my 2 cents out there.
For your first question about lots and second question about risk %, well they sort of go hand and hand. Usally you should only risk 2% of your account on any given trade, 5% if your good Iāve seen. Letās say you wanted to risk 2% of your account on a trade, go get a āposition size calculatorā (google for one or babypips has one), itāll tell you how many lots you need to buy to keep your risk at 2%.
Yes,exactly!
for MT4 iāve got a nice Risk reward indicator what you can pull on the chart and just with your mouse set up. iāll make a video about it.
I believe that you should always have clean chartsā¦ I use to put many indicators on the demo account but when I will trade live I will have clean charts. Also when I will start my live account I will make a solid plan and I want to make 3% of my account everyday ( so if I put 200$ i want to make 6$).
I made some maths equations and if I maintain this rate for 1 year I will get to 567,862.83 and make more than 17k a day, so that is really good
I donāt know how will this work out but that is my plan
Hi Mianko
Iām not sure I have understood what you meant correctly. Did you say 17k a day ? As in $17,000 every day ? That is more than really good. Iām just not sure how you worked it out or am I missing something ?
But it always good to have a plan and ambitions. My house is less than a mile from a Bentley Car showroom. And it is my ambition to walk in there some day and tell them Iāll take one in every colour.
But justbe careful that setting yourself a daily target doesnāt force you into making trades that you really shouldnāt take, just because you are trying to maintain a set growth plan. If you read back far enough on this thread youāll find that Iāve already tried that. It doesnāt always go to plan.
First of all, before I ask this question, Iād like to apologise to you fxteacher if tis question sounds in any way shape or form, confrontational. I assure you it is merely a question with no malice intended.
This is part of a conversation Buckscoder and I had last week regarding leaving a trade open over the weekend.
Basically Buckscoder was just pointing out that a stop loss was pointless over the weekend should a pair happen to gap dramatically over the weekend.
So with that in mind, and remembering your screen name is fxteacher ( and again I apologise because I already know this sounds a bit confrontational but itās not meant to ) I was wondering what was the point of you moving your stop loss closer to price, and then wondering what kind of advice it was to say to newbies you, " hope that sunday 0:00 we donāt have a big gap "
I know that the bottom line is that we all place trades and hope they go our way, but wouldnāt it be better practice to teach newbies to aim for better than just āhopeā?
Sorry if Iāve misunderstood or offended.
HoG
Hi HoG, fxteacher,
Thank you very much for answering my queries elaborately and patiently.
Thank you once again. Will start follow your guidelines.
HoG the math is like thisā¦ I enter on Forex with 200$ and I try to make everyday 3% of my account so:
first day 200 * 1.03=206 so the profit is 6$
second day 206 * 1.03=212.18 so profit 6.18$
ā¦
the 270 day (1 year) 567,862.83 * 1.03 = 584,898.71 profit 17,035.88$
That is what I mean when I say 3%
Iād be glad to get to 1k a day till i make 24 in May but we will see 