Newbies Guide To Becoming A Forex Trader

[Forex_Verified]

I’m so wrong then, I taught us/Eu will drop back if Britain stay, which I think they’d stay. I was thinking that the market is building up the buffer for it to drop back as its only logical that Brit stay and they knew it would. My bad… … :). No, I’m not trading as I’m still learning on demo.

Doesn’t mean I’m right and you are wrong, it’s just what I think will happen. Tomorrow might end up me being wrong and you being right. If your system tells you to stay EUR/USD short then go for it. My system said EUR/USD long and I’m sticking to it (but keeping an eye on it in case I need to react )

Besides, I think USD has already been overpriced as everyone expected a rate hike this month. It didn’t happen.

[siangmimi]

Sorry, yes. It’s eu/us not the other way round.

[eddieb]

As 10pm struck in UK, GbpNzd gapped 200 pips down. Within 5 minutes it gad climbed back up again.
A perfect example of why NOT to trade big news events

[nvp]

Guys I would recommend you simply trade what you see…you can’t outguess the market …today on my scalping thread I shared a lot of action…the volatility of the g8 today was breathtaking so I will be up,early tomorrow

If you have a robust trading system then follow it tomorrow…you should be rewarded with much bigger momentum swings than normal trading days

I made about 10 times more than an average trading day today…although I actually also,traded a lot more than usual,as I figured it was going to be good

Trade what you see…

N

[eddieb]

Guys I would recommend you simply trade what you see…you can’t outguess the market …today on my scalping thread I shared a lot of action…the volatility of the g8 today was breathtaking so I will be up,early tomorrow

If you have a robust trading system then follow it tomorrow…you should be rewarded with much bigger momentum swings than normal trading days

I made about 10 times more than an average trading day today…although I actually also,traded a lot more than usual,as I figured it was going to be good

Trade what you see…

N

Hi.
Not sure if you’ve posted here in error, this thread is really aimed at newbies and im only discussing Brexit and recent moves to highlight why new traders should not try trading news

[nvp]

@eddieb

Most traders win more often than they lose…FACT
The chart below, taken from the DailyFX Traits Of Successful Traders, shows that over 50% of trades are wins…

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…which begs the question, why do the vast majority of new traders lose on their trades?

this next chart, from the same source, shows the average difference in the size of losses incurred in pips.

Now we’re beginning to get the picture! If you look at EurUsd, the most commonly traded pair, you’ll see that average loss value is almost double the average win value, and thats not even the worst performer!

This highlights why new traders need to Cut Losses, Let Profits Run, and one of the keys to this is knowing how and where to place your stops when you first enter the trade.

Fixed Stops

First, calculate the maximum amount of pips you would be prepared to lose before entering the trade. You can use the Babypips Pip Calculator for this to save you doing the maths. For example, say your trading 10,000 units of EurUsd. the calculator will show you that each pip movement has a value of $1. If you can only afford to risk $20, and your brokers spread is 1 pip, then you could place your stop at no more than 19 pips (20 minus 1 for the spread) from your entry point.

However, this doesn’t mean you should place it there. Consider the following;

1. What is your Risk:Reward (R:R) level? If you’re looking to win 20 pips with a R:R of 1:2, your stop should be at around 10 pips.
2. Where are the (Support and Resistance S&R) levels? As price frequently returns to these levels, its prudent to place your stop on the side of these that you dont expect price to reach - if you enter a buy trade at 1.1200 and Support is at 1.1185, its worth making sure your stop is below 1.1185, so long as you dont go outside your 19 pips acceptable risk.

Trailing Stops
These are stops which can follow your trade as it moves into profit. Say you set the Trailing Stop at 10 pips. As soon as your trade is 10 pips in profit, the Trailing Stop is activated, right on your breakeven point. This ensures that, even if price then reversed and fell, you would be stopped out without a loss. Its useful if you are away from your pc and want to protect your trade to a degree but I wouldnt recommend using it if you are able to watch live, for the reason that since price rarely moves in a straight line, a Trailing Stop is likely to stop you out of many trades before you can maximise your profit.

…

The shame of it is that the eu for me is a really average pair to scalp…both usd and euro,to me can be pretty sluggish and generally i,am chasing yen and or gpb in a pair to spice up my gains

Cut you losses and run your gains is a sensible piece of advice but harder to do in the real world…with proper training I can ensure that a trader keeps losses to a minimum…but running gains is the problem…especially in scalp,conditions …but again experience is all and having the ability to be objective and stepping back from any trade is vital if you want to add a few pips,overall to,each good run

You also need to be knowledgable of the personality of the currencies involved and how to play that re exits…for example scalping the GU is miles different from scalping the EA…

Why ?..well if you don’t know then you are not yet proficient in scalping those pairs …right ?

Expertise experience practice research and focus …all will eventually get you there…but it’s not an overnight thing

N

[eddieb]

…

The shame of it is that the eu for me is a really average pair to scalp…both usd and euro,to me can be pretty sluggish and generally i,am chasing yen and or gpb in a pair to spice up my gains

Cut you losses and run your gains is a sensible piece of advice but harder to do in the real world…with proper training I can ensure that a trader keeps losses to a minimum…but running gains is the problem…especially in scalp,conditions …but again experience is all and having the ability to be objective and stepping back from any trade is vital if you want to add a few pips,overall to,each good run

You also need to be knowledgable of the personality of the currencies involved and how to play that re exits…for example scalping the GU is miles different from scalping the EA…

Why ?..well if you don’t know then you are not yet proficient in scalping those pairs …right ?

Expertise experience practice research and focus …all will eventually get you there…but it’s not an overnight thing

N

Wouldn’t disagree, the problem for most new traders is surviving long enough to gain experience and expertise.
Thanks for sharing, I’m not a big scalper myself so its good to hear from someone who can comment better on this style of trading

[eddieb]

Okay, so the referendum is done with. Some massive swings, no doubt some big winners and losers.
Time to move on and start thinking about our next move, whether thats another trade or some more learning. See what comes out over the weekend and prepare for next weeks trades

[Forex_Verified]

I’m so wrong then, I taught us/Eu will drop back if Britain stay, which I think they’d stay. I was thinking that the market is building up the buffer for it to drop back as its only logical that Brit stay and they knew it would. My bad… … :). No, I’m not trading as I’m still learning on demo.

See It turns out I was wrong and got stopped out slightly above breakeven. On the other hand I had two sell stop orders on GBP/USD at 1.458 and 1.445 (when the price was at 1.49 - the logic was: if I’m wrong, the GBP will spike down and it will go to at least 1.42) and they were triggered (and went lower than I thought, and I closed at 1.33)… so it turned out fine after all. But as eddieb said these types of situations should be avoided by beginner traders. But once you know what you are doing you can make some profit when they happen.

[caharsh]

See It turns out I was wrong and got stopped out slightly above breakeven. On the other hand I had two sell stop orders on GBP/USD at 1.458 and 1.445 (when the price was at 1.49 - the logic was: if I’m wrong, the GBP will spike down and it will go to at least 1.42) and they were triggered (and went lower than I thought, and I closed at 1.33)… so it turned out fine after all. But as eddieb said these types of situations should be avoided by beginner traders. But once you know what you are doing you can make some profit when they happen.

I think one should trade such events, I made 931 pips yesterday.

[eddieb]

I think one should trade such events, I made 931 pips yesterday.

You got lucky, you could just as easily have lost. Hopefully you’re trading on demo and not live

[caharsh]

M trading with a live account, no offense I m pretty happy getting lucky again & again…

[eddieb]

M trading with a live account, no offense I m pretty happy getting lucky again & again…

No offence taken, its your money to trade as you wish.

[siangmimi]

I think one should trade such events, I made 931 pips yesterday.

Oddly, I’m with him but I may be wrong. Isn’t forex all about volatility? News is where one can make plenty folds in profit and still maintain the same stop loss. So, why lose that opportunity.

[eddieb]

Oddly, I’m with him but I may be wrong. Isn’t forex all about volatility? News is where one can make plenty folds in profit and still maintain the same stop loss. So, why lose that opportunity.

Take the Brexit news as an example as its so recent.
GbpNzd, which I trade a lot, initially went up 200 pips. If you’d expected it to fall you would have been stopped out (unless you had an extraordinarily wide stop position).
If you’d expected it to go up your delight would have been short lived as it then plummeted 1800 pips, so again you would get stopped out.

News events can be seen as an opportunity, the problem is that even if you correctly guess (anyone using the word predict is kidding themselves) you cannot be sure how the market will react.

If you do want to trade high risk news events, I would suggest putting a small portion of your trading money into a separate account just for this. That way the bulk of your money is still safe

[siangmimi]

Take the Brexit news as an example as its so recent.
GbpNzd, which I trade a lot, initially went up 200 pips. If you’d expected it to fall you would have been stopped out (unless you had an extraordinarily wide stop position).
If you’d expected it to go up your delight would have been short lived as it then plummeted 1800 pips, so again you would get stopped out.

News events can be seen as an opportunity, the problem is that even if you correctly guess (anyone using the word predict is kidding themselves) you cannot be sure how the market will react.

If you do want to trade high risk news events, I would suggest putting a small portion of your trading money into a separate account just for this. That way the bulk of your money is still safe

Yes, I’d get a stopped out if it’s 200 pips as my usual stop loss is around 15 pips. Since taking up this forex (learnig), I have yet to look into other pairs to trade on. I think its wise to just concentrate on one, EUR/USD, not forgetting about the fundamentals that I need to catch up on everyday.
Thank you and yes, totally agree on your advice on a seperate small trade account for news event. Thank you, once again. This advice is priceless…

[siangmimi]

What would be your advice, to activate my small account on ipad or laptop?
I’ve been doing my demo with iPad and I also has another new demo with limited $3k on my laptop. I find the way they operate differently. On my laptop I can’t execute a standard lot on the $3k demo but on iPad I can. I can only managed to execute a 0.5 lot with 15pips SL on my laptop. Perhaps, it’s the equity difference of $3k and $100k account.
There are indicators that laptop have but iPad didn’t, not that I’m using them in the near future. What would be your advice? I have 2 little account, don’t know what’s the leverage, lol, that I want to try to see how I react to the emotional side of trading.

[profitfx]

You should get the proper knowledge about forex which is available on the interment and then you should start your demo trading with full honesty and should spend at least two months on demo account then you can become the good forex trader.

[eddieb]

What would be your advice, to activate my small account on ipad or laptop?
I’ve been doing my demo with iPad and I also has another new demo with limited $3k on my laptop. I find the way they operate differently. On my laptop I can’t execute a standard lot on the $3k demo but on iPad I can. I can only managed to execute a 0.5 lot with 15pips SL on my laptop. Perhaps, it’s the equity difference of $3k and $100k account.
There are indicators that laptop have but iPad didn’t, not that I’m using them in the near future. What would be your advice? I have 2 little account, don’t know what’s the leverage, lol, that I want to try to see how I react to the emotional side of trading.

I have something similar. Ive downloaded mt4 from my broker onto my desktop but use their app on my tablet more often just for convenience, even though it has limited features

[Forex_Verified]

I think one should trade such events, I made 931 pips yesterday.

Indeed. If you read the quoted text you’ll see that I also made profit on GBP/USD. But as eddieb said it may have turned the other way around. I’ve been trading Forex for a very long time and believe me, I’ve seen lot of things. This time you were lucky, the next may wipe out your account. But then again, it’s your money and your responsibility.