I'm thinking about trading forex - any advice?

[badoshi]

Hi,

I'm new to these forums, and slightly overwhelmed with the amount of information/forums on offer here. I Hope someone can help.

I'm thinking about trading forex mainly because my work involves irregular hours, and like the idea of a market that's open most times I am available. I've also started working for the FX&MM dept in an investment bank albeit in an IT role, but work alongside developers who can teach me the basics of how trades work & the fundamental concepts. Is this a stupid reason to choose forex? Should I be considering any other markets?

If someone could also give me a good forex book recommendation for beginners, there are hundreds available on amazon. I've only read 2 investment type books so far, Naked Trader, & The Spreadbetting handbook. Both books were excellent, & inspiring but I felt held back because of my irregular hours.

Any advice is much appreciated.

 

[rathcoole_exile]

read Mastering The Trade by John Carter, then trade the US cash session of the YM (mini Dow) futures - if your irregular hours should suit US timings ?

 

[rols]

read Mastering The Trade by John Carter, then trade the US cash session of the YM (mini Dow) futures - if your irregular hours should suit US timings ?

Forex advice?

Preserve your account.

A few pointers here.

 

[plandtrader]

Short and sweet. Do lots of homework and don't even think of even risking your hard earned cash until you have deom traded for several months.

 

[BBPI_FXTrader]

read read read as much as you can, at least 4 hours a day for one year -two years.
open a demo-account and if you are profitable open a mini-account.
blow your mini-account
study again for 1 year, do an analysis on yourself, where did you go wrong, what did you do etc ? make a trading plan, swear to abide by your money and risk management rules, and then open another mini-account.
at least that's how i made it, and i'm profitable now

 

[h0rse]

Nice attached file, rols!

 

[shadowninja]

I noticed in the attached file that it recommended trading news rather than not trading news. For people who trade off support/resistance or swing traders, is this wise advice?
(15) Not Trading Around News Time – Most of the big moves occur around news time. The volume is high and the moves are real; there is no better time to trade fundamentally or technically than when news is released; this is when the real money adjusts their positions and as a result the price changes reflect serious currency flow (compared to quiet times when Bank traders rule the market with their customer order flow).")

I am also a bit confused by the following: 33) Over-Relying on Risk Reward – There is zero advantage in risk reward. If you put a 20 point stop and a 60 point profit your chances are probably 3-1 that you will lose. Actually with the spread its more like 4 to 1 (from entry point if it goes down 17 points you lose, or up 63 - you win; 17/63 is close to 4-1). Does it mean just relying on R/R without having a decent system in place?

 

[FXSCALPER2]

I noticed in the attached file that it recommended trading news rather than not trading news. For people who trade off support/resistance or swing traders, is this wise advice?
(15) Not Trading Around News Time – Most of the big moves occur around news time. The volume is high and the moves are real; there is no better time to trade fundamentally or technically than when news is released; this is when the real money adjusts their positions and as a result the price changes reflect serious currency flow (compared to quiet times when Bank traders rule the market with their customer order flow).")

I am also a bit confused by the following: 33) Over-Relying on Risk Reward – There is zero advantage in risk reward. If you put a 20 point stop and a 60 point profit your chances are probably 3-1 that you will lose. Actually with the spread its more like 4 to 1 (from entry point if it goes down 17 points you lose, or up 63 - you win; 17/63 is close to 4-1). Does it mean just relying on R/R without having a decent system in place?

You should always trade the news provided you have a live news feed and you know what you are doing. Unless you have a special reason for not doing so, avoiding high volatility times indicates that the trader is missing the point and should probably not be trading at all.

With the R:R thing, Jimmy (whom I know a bit) is talking about r:r on a trade by trade basis. There are people who say nonesensical things like 'never take a trade unless you can have a 3:1 r:r'.

 

[shadowninja]

Ah, I see what you mean.

WRT news, why do some people say don't trade just before and after news, then?

 

[FXSCALPER2]

Ah, I see what you mean.

WRT news, why do some people say don't trade just before and after news, then?

I would guess because they don't really know what they are talking about. It is one of these things people say about trading.

 

[monkeymoney]

I would guess because they don't really know what they are talking about. It is one of these things people say about trading.

Yeah but is it easy for us small guys to trade news with retail brokers such as FXCM and not
get screwed?

 

[aleclaw]

Hi,

I'm new to these forums, and slightly overwhelmed with the amount of information/forums on offer here. I Hope someone can help.

I'm thinking about trading forex mainly because my work involves irregular hours, and like the idea of a market that's open most times I am available. I've also started working for the FX&MM dept in an investment bank albeit in an IT role, but work alongside developers who can teach me the basics of how trades work & the fundamental concepts. Is this a stupid reason to choose forex? Should I be considering any other markets?

If someone could also give me a good forex book recommendation for beginners, there are hundreds available on amazon. I've only read 2 investment type books so far, Naked Trader, & The Spreadbetting handbook. Both books were excellent, & inspiring but I felt held back because of my irregular hours.

Any advice is much appreciated.

Hi,
I read "Currency Trading for Dummies" £15.99 from Amazon - brilliant!

 

[forexpipz]

Read in conjunction with paper trading

read read read as much as you can, at least 4 hours a day for one year -two years.
open a demo-account and if you are profitable open a mini-account.
blow your mini-account
study again for 1 year, do an analysis on yourself, where did you go wrong, what did you do etc ? make a trading plan, swear to abide by your money and risk management rules, and then open another mini-account.
at least that's how i made it, and i'm profitable now

Get to grips with your emotions first before any of that theory bull. Trade microfx first and foremost. Its painfree but involves little cash if you trade single lots. $2.5 margin required. Wide stops to avoid noise. Its great to get started. Much better than paper trading. Only paper trade to get to grips with the platform.

 

[forexpipz]

Dont trade the news

You should always trade the news provided you have a live news feed and you know what you are doing. Unless you have a special reason for not doing so, avoiding high volatility times indicates that the trader is missing the point and should probably not be trading at all.

With the R:R thing, Jimmy (whom I know a bit) is talking about r:r on a trade by trade basis. There are people who say nonesensical things like 'never take a trade unless you can have a 3:1 r:r'.

This is the golden rule especiall if you are new. Your reactions and timing entries and exits have to be quick. It very emotional and your are likely to fail pretty quickly. Its not new fx territory.