Forex Beginners

mayoush · 16 January 2013

Forex is short for foreign exchange, but the actual asset class we are referring to is currencies.
Forex is something like going to a foreign exchange and exchanging one country's currency into another country's currency.
Due to the fact that business is global there is a need to transact with most other countries in their own particular currency.
This service has been taken up by the commercial and investment banks on behalf of their clients, but has simultaneously provided a speculative environment for trading one currency against another using the internet.
Join this thread to discuss more of forex - methods, strategies, market news and all.

DJG · 17 January 2013

mayoush said:
Forex is short for foreign exchange, but the actual asset class we are referring to is currencies.
Forex is something like going to a foreign exchange and exchanging one country's currency into another country's currency.
Due to the fact that business is global there is a need to transact with most other countries in their own particular currency.
This service has been taken up by the commercial and investment banks on behalf of their clients, but has simultaneously provided a speculative environment for trading one currency against another using the internet.
Join this thread to discuss more of forex - methods, strategies, market news and all.

opcorn:

TulipFX · 17 January 2013

mayoush said:
This service has been taken up by the commercial and investment banks on behalf of their clients, but has simultaneously provided a speculative environment for trading one currency against another using the internet.

And they say the only use for the internet is cat videos and arguing with strangers...

mayoush · 22 January 2013

ha ha ha ha ha ha!!!! True - so very true!!!!

cogs · 23 January 2013

And a good opportunity to show beginners how paint dries lately.

AverageJoe · 30 January 2013

cogs said:
And a good opportunity to show beginners how paint dries lately.

Any one wants a full proof profitable trading system? I have one ...

Start with a small position and use a GIGANTIC stop, then sit back and decide when in profit.

CanOz · 30 January 2013

AverageJoe said:
Any one wants a full proof profitable trading system? I have one ...

Start with a small position and use a GIGANTIC stop, then sit back and decide when in profit.

what if it hits your stop?

Ruby · 30 January 2013

AverageJoe said:
Any one wants a full proof profitable trading system?

Don't you mean "foolproof"?

>Apocalypto< · 30 January 2013

AverageJoe said:
Any one wants a full proof profitable trading system? I have one ...

Start with a small position and use a GIGANTIC stop, then sit back and decide when in profit.

hahaha so how bigs that stop?

AverageJoe · 31 January 2013

>Apocalypto< said:
hahaha so how bigs that stop?

Ok I have done some testing. Say on a $1/pip ($10,000 position), put in a 1000 pip stop (risk $1000) and then sit back and wait and decide when in profit.

cogs · 31 January 2013

Start with a small position and use a GIGANTIC stop, then sit back and decide when in profit.

In FX??

The best start is to find price direction, whether it be short or long term, but the majority of the time in FX you need to check your 4hr and daily, pick the turn and don't be overleveraged.

eg: (not saying this has legs but more likelyhood than a short position, and get the breakeven in).

View attachment 50713

AverageJoe · 1 February 2013

Using your example, Aussie had a double bottom. A simple entry 1.0165. Stop 0.9165. Target RN 1.06 which happens to be a resistance with a further 1.08 exit maybe use a scale exit.

>Apocalypto< · 1 February 2013

AverageJoe said:
Ok I have done some testing. Say on a $1/pip ($10,000 position), put in a 1000 pip stop (risk $1000) and then sit back and wait and decide when in profit.

I understand the idea Joe, but think it's just waiting for a massive wrong move to take out your account or 1000.... Then you are really way behind the 8ball.

take the eurjpy, on the 20 7 12 it made nice break down out of solid support point that was set up for months... looked black and white for a solid short... well it made a higher low out that turned into a 3014 pip rally till now.... there's a 1000 pips gone, you would really have to be making 2000 pips a win just to cover two mistakes and bang there goes half a year in time...

If it's working for you great but I wouldn't trade an idea like this in FX... maybe the USD pairs are a little more forgiving.

cheers and good trading to u.

I still remember a guy that bought the AUDUSD @ .98 in 08... paid margin calls all the way and kept holding, not sure when he exited but man he did get it write if he stayed in it! lol balls of steel!

cogs · 1 February 2013

What you suggested is possible with say $10k opening account and trading 1 microlot, and a bucket load of patience. If that suits your trading style, put it into action.

Problem with FX is over the distance you are talking, countries can go broke, new prime ministers or presidents can be elected and wars can be faught and won all of which can ruin initial trading plans.

How was it you made that 'simple entry' at 1.0165 again? In reality if you can find that type entry point repeatedly, you don't need wide stops. One of the first probs I see with your suggestion, from my trade is the AUD is on its way down, mine was a counter trade.

How about you make a call now and lets see if it plays out, just for fun. Drop it on a demo and post it.

Apocalypto, that long @ 0.98 would have been gold, especially with the good swap longs, but would have driven me crazy letting it play out Think I would have had to raise a bunch of rug rats to take my mind off it.

AverageJoe · 1 February 2013

cogs said:
How was it you made that 'simple entry' at 1.0165 again? In reality if you can find that type entry point repeatedly, you don't need wide stops. One of the first probs I see with your suggestion, from my trade is the AUD is on its way down, mine was a counter trade.

How complicated do you want it to be? Throw in fibs, elliot waves, some math indicators perhaps?

Double bottom on the way up to triple top, clasic range bound. 1000 pips was an arbitrarily figure.

Apolacypto, that was not a swing high/low but really in the middle of nowhere (GBPJPY). I know you are using an example.

Just out of curiosity, who is using math indicators in their trading and was it useful? Afterall we are discussing the basics of trading and I am throwing ideas around.

Cheers,

AJ

cogs · 1 February 2013

How complicated do you want it to be? Throw in fibs, elliot waves, some math indicators perhaps?

Double bottom on the way up to triple top, clasic range bound. 1000 pips was an arbitrarily figure.

Not sure what or who's comment you are replying to, but it doesn't really make much sense to any of the postings?

cogs · 1 February 2013

cogs said:
Not sure what or who's comment you are replying to, but it doesn't really make much sense to any of the postings?

My point previously was that if you choose the correct entry you may not even need a stop, the poorer your entry decision the wider stop. If you chose the entry you did 1.0165 then (IMO) that would have been a good entry, and (IMO) has no reason for a 1000 pip stop, but a ~30 pip stop instead.

AverageJoe · 1 February 2013

cogs said:
My point previously was that if you choose the correct entry you may not even need a stop, the poorer your entry decision the wider stop. If you chose the entry you did 1.0165 then (IMO) that would have been a good entry, and (IMO) has no reason for a 1000 pip stop, but a ~30 pip stop instead.

Let me understand from your post here. Are you saying that you are trading with MANY MULTIPLES RR because most of your trades are 'chosen' with perfect entries with no spikes at all hence MINIMAL stop? Lets put it another way, do you have a commercial super fund? If yes, did your fund invest in the Telstras' of this world with a tight stop or no stop? Or maybe they diversified into a basket of stocks so it evens out the kink. Why can't you do it with Forex?

>Apocalypto< · 1 February 2013

AverageJoe said:
Apolacypto, that was not a swing high/low but really in the middle of nowhere (GBPJPY). I know you are using an example.

Cheers,

AJ

AJ, example I used was the EURJPY....

Not trying to knock you as I mentioned, USD base pairs don't normally move the JPY pairs...

To back your idea, take a look at the eurusd daily. If you waited till the down trend was broken by this current up move it would be working very well now. let’s say we entered at 1.2865 had a stop of 1000 you would be under the last JUL low and up 799 pips atm. so there is some merit here... I personally just don't have the stomach to trade like this!

cheers

>Apocalypto< · 1 February 2013

cogs said:
My point previously was that if you choose the correct entry you may not even need a stop, the poorer your entry decision the wider stop. If you chose the entry you did 1.0165 then (IMO) that would have been a good entry, and (IMO) has no reason for a 1000 pip stop, but a ~30 pip stop instead.

A 30 pip stop won’t be suitable for trading off a daily time frame cogs... I think AJ looking at trading higher times frames is this right AJ?

Forex Beginners

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Home runs feel good, but base hits pay bills!

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