Hi, I’m new to the forex market…
I have been trading for less than two months
and I am using the ZeccoForex trading account…
i know everyone here has their own method to analyze the market trend
but still I haven’t figured my own way out…
Should I apply both fundamental and technical analysis when I make a trade?
Can anyone suggest a good market analysis website where I can get all the current and UPCOMING news around the world?
I really appreate that…
Thanks
Have you gone through Babypips school? It has a good section on how to come up with a system.
If you haven’t figured out a system of your own yet, then you should not be using a live account without money. You might as well go to the nearest casino and put it all on black. The only way to consistently make money in Forex is to have a specific set of criteria for entries and exits.
Figure out a system, test it in a demo account, and when you’re making pretend money on a consistent basis you can go to live. I know the temptation is to start trading live right away because time is money, but you will only lose at first. You’re better off spending a few months practicing and saving money up to fund an account properly.
As for news, I use Pip Diddy’s daily economic round up here on Babypips. He really knows what he’s talking about.
Personally I trade technically based on my system, but if a big fundamental news event is coming up I hold off on placing a trade until the news event has passed, assuming that my technical entry is still valid. That’s just me though - how much weight you place on technicals versus fundamentals is up to you. Personally, I feel that fundamentals will always trump technicals no matter how strong your setup is.
I like to use both methods of analysis. I am more of a technical kind of guy so I like to watch the charts and use indicators but fundamental info is very helpful to me for gauging the mood of the market. Here are some sites that you can look up for news, etc.
Forex Factory, the news on this site usually takes you to other useful info sites and I have added their RSS feeds to my reader which is helpful. I even found an iCal feed that puts events on my calander.
FX Street
Many brokers put out daily new info when you get a demo account, I have a few and get some good info that way. There is a lot of good info out there but the BabyPips site and school is by far the best place to start, the forum is good too if you can filter all the crap that is put out by some of the more ignorant folks out there.
Let us know if you have any more questions.
When you talked about using a system, were you talking about using the chart indicators?
Which combination of indicators works best for you?
MACD? RSI? etc
How do you know when to buy/sell?
By the way, thanks for sharing the information…
Thanks for the recommendation…
I have looked through both of them…They are really good…
Like you said, you are a technical kind of trader
can I know which indicators you are using?
Which combination works best for you?
Thanks
Yes, I’m talking about indicators when I talk about having a system. Telling you what I use is a bit pointless, because the indicators that work best depend largely on the trading style of the individual, and the time frames used. There are a lot of variables.
A simple example would be the classic moving average crossover. Using that alone (especially on higher time frame charts) would give an indication whether to buy or sell, but it would have a lot of fake outs. Thus you’d use other indicators to confirm your buy or sell signal. If all the indicators in your system are telling you to buy, you buy. If they all tell you to sell, you sell. If your system is giving you mixed signals, you stay the hell out and wait for a confirmed signal.
I think you’d really benefit from going through Babypips school. It’s simple, it’s free, it’s fun, and you’ll learn a lot. If it seems like too much of a chore to read through before you start trading, then Forex probably isn’t for you. You constantly have to be keep reading, learning and adapting.
It’s definitely not a quick, easy way to make billions of dollars in a few weeks without any effort, despite what some unscrupulous brokers would have you believe.
The fact is I have gone through the Babypips School, like few months ago…
I am now getting some practical experience…
and it’s really not the same case as what I have been told from the school (well, just a little part of it is different)
I have been trading in stock market for years…
So, i have some basic knowledges about the investment…
But i know Forex is totally a different issue than stock market…
it’s way more complicated
none of my friends interested in investment, or they probably never heard of the term FOREX…
So, I really need some guidance…
In that case I’d go back to the lesson about creating your own trading system (11th Grade I believe) and use that as a starting point.
Choose the indicators you think will work for you (I use moving average crossovers, stochastics and Raghee’s wave) and enter them into your charting software. I’m not going to tell you exactly what I do because I’m not a financial advisor and I don’t want anyone copying me then blaming me if I screw up and they lose money due to my advice. Besides anything else, I’m not you, so what works for me might not work for you. I might be able to sit glued to my computer 20 hours of the day, you might have a job that precludes you from doing so.
Once you have your charts set up, it’s just a case of waiting for all of your indicators to line up into a buy or sell signal, and place your trade based on that. How much you risk will depend on your money management strategy. Again, I’d do this in a demo account for a few months to see if your strategy consistently provides profitable trades. It won’t be perfect, but you should have significantly more wins than losses and/or your wins are significantly larger than your losses.
Once you can do that, start trading with a live account.
I use pivot points (search babypips for good threads/downloads) for showing S/R levels to give me boundaries to pay attention to and 3 SMA (30/50/100) to show the trend. Research lagging and leading indicators to get an idea of what looks useful to you.
My system works good for my style and personality. But in reality we are two different people so what works great for me might be annoying or ineffective to you. I spent a lot of time putting various indicators on the chart and learning what they meant in order to both gain knowledge of the technical market and find what I like and don’t like. Some people will use many indicators and charts to get info and others will just use 1, 2 or even zero chart indicators. That is the great thing about Forex, it is all up to you to build/test/use your system.
Example, the guy that I learned the 3 SMA from uses it as his primary indicator and only trades on the trend. I look for trades in both the trend and ranging markets so his system wasn’t THE way for me it just became part of my system. I recommend Demo trading as much as possible and research the crap out of anything that you don’t understand, internet searches are wonderful for that.