Noob Question(s)

[Martin_K]

there are no middle men (it says in the course right “here”…but “later edit” new users can;t post links,even of baby pips com ) that ;s why, witout any disrespect, i said not all things are well explained on the site.

yes… to a degree i agree with you.

we do have somewhat different views, but i think we can accept our differences and also reach a consensus.

of course we can

p.s.: i also don t think trading is like betting…but i tried using the terminology that other users gave.

if you are using the terminology to relate to others, that’s fine
if you believe the terminology , THAT’S A PROBLEM

as for the rest of what you said,
i agree it’s good to know what’s under the hood, i’m like that as well

BUT MATE , PLEASE UNDERSTAND THIS AS WELL OK

• These concepts are really basic for me

• i don’t really want to go into them

• but the main reason , right now (and don’t take this personally ok) I have a lot going on in my life and in my business right now that FAR FAR OUTWEIGHS THIS UNIMPORTANT DISCUSSION.

I have a lot of things on my plate right now, and Respectfully, i would ask that you ask some of the other guys like Trading Viper, Trendswithbenefits, Falstaff , Bob to perhaps answer this is they have the time,
is that cool

I just have too much to think about right now and i know if i answer this i have to answer follow up questions and so on…
i don’t really want to do that right now… ok
IS THAT COOL

thanks mate

[jackrayden]

sure it’s cool man, thanks for the reply and bucket loads of success to you and your business!

[jackrayden]

also if anybody could help with this: I’ve been reading up on the school of pipsology and am currently reading about candle sticks (I know, really basic right)

and the text is talking in terms " a candlestick has a high and a low , a open and a close blabla " what is a bit funny is that they are using the words open and close…so can you trade only at the open of a candlestick and close at the close of the candlestick, or can you trade at any time and it’s just tht the wording is a bit confusing?

[Trendswithbenefits]

No, you can open a position anywhere during the candle…

Opening/closing of the Candle is Timeframe (TF) dependant… so on say the the 1 Hour Chart, a candle closes on the top of the hour and a new one opens… giving you the open and the close. The TF on a all Charts signifies the time between candles opening and closing…

Say on a 1 min Chart, a candle closes every 60 seconds and at the same time the next candle opens.

Hope this is of help…

[jackrayden]

thx for the replies

so I have been watching this talk by Anton Kreil

I am confused because some people here are telling me you are not trading anything just booking bets with your broker and the difference in calculated gain or loss is denominated to your account(withc is one model) and this guy is implying you actually do trade something with other traders (even on dealing desks)

at 34:46 he is talking about the spread in dealing desk brokerage firms in terms of “if the broker has two clients he can buy at 5 and sell at 6”

so he is basically impling that you do in fact trade something with another trader (but who is also part with the same broker)

so withc one is it?

[Trendswithbenefits]

Hi Alex… below is a previous thread that was thrashed out a few months back, read the whole thread.

Who is the counterparty in an exchange?

Hello @philip338, When a retail forex trader places an order to buy or sell a currency pair, his broker is the counterparty to his trade. This is true regardless of whether the broker is FOREX.com or any other retail forex broker. To confirm this, simply review customer agreement of any well-regulated broker. For example, in the US, retail forex is regulated by the CFTC/NFA and all regulated brokers are required to include the following risk disclosure statement which can be found on page …

Every man and his dog put forward their view and had a say…

EdIt: Forex.com found the thread (better description) I was looking for… as I said it’s late…

[jackrayden]

thanks for the reply!! I read your post on the topic, you are basically confirming something I have been recently starting to realize. but may I ask, if this is your true opinion , why are you still on this forum and haven’t ditched forex a long time ago?

at first I was pretty enthusiastic about fx but I am begging to think more and more that I won’t be spending a dime on this shit.

[Trendswithbenefits]

@alexslabu23… It’s 2.30am in my TZ atm… it’s a long answer… I’m making a profit week in week out these days… sometimes small other weeks very reasonable… but I have put in 100’s (maybe over 1000) of hours (really) of demoing, reading, watching and research so I can protect my positions or lower my losses with various risk management techniques…

If you read back through my activity…you’ll see that I’m as pessimistic about the whole box and dice of FX as you are and you haven’t even started…90% lose money in this game, and it is a game against your Broker, I would say the odds are even greater…

[quote=“alexslabu23, post:35, topic:136016”]
At first I was pretty enthusiastic about fx but I am begging to think more and more that I won’t be spending a dime on this shit….[/quote]

If you want real nightmares… watch the video below…

My suggestion… read up a lot more on Forex Trading, open a FREE demo and give it a try for yourself, it won’t cost you a cent and the only thing you will lose is time…then you will be able to make a more informed decision of whether it is worth pursuing or a waste of your time and possibly resources…

DON’T pay for any courses or trading education…you have the school here on Babypips, and 1000’s of useful demonstrations, lessons and ideas on Youtube…

The hard part starting out is sifting through what is of real value and what is just a sales pitch at you…

I hope this is of some help to you…

Edit: To answer your original question… yes, you are trading against your broker, not in the open market…
You never own the currencies, you are trading CFD’s (Contracts for Difference) which is effectively betting whether your trade (position) will go up or go down… that’s it.

[jackrayden]

TRUE ECN/STP isn’t even possible to do from a technical point of view…there are a few ways It can be implemented but they are theoretical and not at least slightly practical…well firstly…one problem is that you can’t conduct business by unilaterally closing and opening trades, only bilaterally witch is a bit complicated to implement!! for any transaction to be completed both parties have to give their confirmation !! either a open is paired up with a close (of the same currency) but it gets tricky because the system would have to get you a person at just about the exact same time you open or close to exchange the exact same value (but idenominated in opposite currencies) witch is further more made difficult by the fact that price has just fluctuated for both of you, so what are the odds of pairing up at the exact same TIME with somebody that has your exact same VALUE after price fluctuation… ALSO another problem arises, do you know how much it actually cost (not to mention how much time it takes ) to physically exchange money from a credit account to another? you also need either somebody to be sufficiently stupid to send their money first, and then the second …to probably a third party! further more if and only if all these eh just 3 things come togheter at the exact same time (more chances for all the planets aligning) + plus the other a few little inconvinieces of how the transaction from entity to entity is actually done…well as you see it’s too complicated and the odds of it happening are really slim!! it’s either this model of little odds syncronicity OR partially closed traids and dividing a bigger trade from a party into more little trades witch also has it’s problems, I won’t get into because the post is already going for too long…also if there really was the possibility to trade other people well if everybody is buying (based on a pattern) than who’s willing to sell? NOBODY…so where’s the liquidity? basically at one time the number number of buyer / total bought capital has to exceed the number of sellers and total sold capital (or the other way around)…so somebody has to get stuck !!!(id’s say probably a lot of people) all in all these things summed up and the fact that a lot of factors have to happen in sincronicity make true ecn/stp brokers impossible, and impractical…but hey we still have the bucket shops that spy on our trades and [Removed due to Forum policy]

[jackrayden]

yes but I guess demoing and going live are 2 different things (even if your starting in demo capital is equal to the starting capital in live ) because I guess the broker can rape you with different tweaks.

are you actually trading profitably ? because before you edited your post you said you were consistently profitable week in and week out…was that just demo?

[jackrayden]

I am wondering what do the so called ecn/stp brokers PRETEND they are giving you the opportunity of trading ?

[Trendswithbenefits]

because before you edited your post you said you were consistently profitable week in and week out…was that just demo?

Didn’t edit that part…?

Live…otherwise I would be wasting my time… for example this week the first 3 days,12 positions across the NZDUSD, USDJPY and USDCHF for over 100 pips…the US Dollar was strengthening (advised a member on this forum prior who didn’t take the advise) and I profited from it… Thursday - 26 pips… Friday + 17… I work on 2 - 4% per day…Compounding is a money management strategy on it’s own…

I was trialing a strategy via PM with another on this forum…

One of the best strategies can be found here… I trade a slight variation of this…it works…

Trading the Trend with Strong Weak Analysis

Hi Everyone, I have been running a popular thread in the Trade Journals forum ( same title) , and this might be a more suitable place for it. I do my own unique version of a strong weak analysis where I identify the strongest down to the weakest of the 8 major currencies, the idea being to match the strongest with the weakest and trade that pair. Combining this with good technical analysis and trading in the direction of the trend has lead me to consistent profits over the last 3 years. Thi…

[jackrayden]

thank you , i have a question …did you not point me toward another thread (a few posts above)? (it seems it has been modified to who is the counterparty in a exchange? ) …i was trying to read it (the original)

[Trendswithbenefits]

I put up a link to the ECN thread… but Forex.com posted the Counter Party thread which was a better quality thread, so I just added it to my post as well… nothing to hide, just answered your question better. See below…

Does a real ECN broker exist?

If you can afford it, then yes they do exist. IB (interactive brokers) [to name one of a few legitimate] min £10k non US resident or as a US resident £1M in assets will grant you access. But, as you quite rightly assume, many many retail brokers offer fabricated ECN accounts which are running off of an underlying market maker or in house settlement business model. But, let's not forget that this is not necessarily a bad thing? It's not cheap to offer true ECN and the broker's that do offer t…

[jackrayden]

i was looking for this particular part of one of your posts where you say suggest the brokers platform (algorithm) is tweaking certain parameters in your trade so that you lose the trade (and he profits)

“I now understand why once I open a position that it instantly goes against me. It’s my Brokers algorithm scrambling to flatten its risk by placing a trade(s) against my position. Some of the “FX Dreamers” on this site seem to think it’s an illusion.”

is this still your opinion ? if yes how to counter-act?

[jackrayden]

I am looking and forex charts and was guessing one candlestick should open where the other (prior) closes but it’s not like this. someone care to clarify?

[Trendswithbenefits]

One candlestick should open where the other (prior) closes but it’s not like this. someone care to clarify?

Are you able to post an image of the chart in question…

It can happen during news releases or especially at Market open on a Monday…

[jackrayden]

[Trendswithbenefits]

Ok, I assume you are referring to the last three white candles…

At times price is moving quick enough that when one candle closes and the next one draws that it “gaps” up or down as the new candle is drawn… especially on short TF charts (like the 1min displayed) It’s just the price feed still flowing in the milliseconds the platform is generating the next candle…

On this particular example, it’s a very small amount, maybe ~0.3 - 1 pip while the new candle was drawing…

How is it possible that a candles open price is not previous candles close price?

I understand a gap can occur over weeknd, but this just happend at GBP/CHF on my metatrader: [image] When I look at the same graph on tradingview, there is no differnce there. Can someone explain?

[jackrayden]

“Since so many traders watch these same levels (support, resistance, candlestick patterns, Fibonacci retracement etc) and place buy and sell orders on them to enter trades or place stops, the support and resistance levels tend to become a self-fulfilling prophecy.”

what I don’t understand is that (if using a ecn broker- if there even is such a thing as true ecn broker) and everybody is buying for example based on a signal or a combination of signals …and there are more buyers than sellers (thus the price going up because of the buying pressure and earning a potential profit for the buyers and loss for the sellers) who ( in ecn type broker trading) is stupid enough to take the other side of the trade and just throw you money?

also if there are more buyers and the price is going up…how can the software find enough sellers (witch are in the minority) in order to pay the buyers?

it doesn’t make sense