new member hoping to start trading soon!

[djbenny1]

Hi guys.

Some of you may have seen my post in the "say hello" thread.

I'm 23, an engineer, working in the construction industry in the UK, but for the last 5 or so years I've had an underlying interest in trading - never had the time or money to really look into it though.

Now I'm living alone and away from home, I have the evenings to finally have a look at it, and if I can crack it, a bit of money to invest.

So.. I've been reading the threads in fair detail over the last week or so, and I think I've now decided that I'm going to trade Forex using an automated system which I will hopefully develop myself.

I've downloaded historical data for 5 or 6 of the main pairs and am going to start trying to build a strategy that works using Forex Strategy Builder in the evenings now.

Obviously, I understand that working on past data is one thing, working on a demo account is another, and real account another still, but I'm a firm believer that reading will only get you so far, and that you learn most by actually doing. For this reason, I'm going to get stuck in to strategy building.

Currently I know virtually nothing about most of the logic settings and triggers in there, so that is all part of the learning curve I'm looking forward to. Hopefully if I spend a good bit of time on it, I will get to a point within a few months of being able to actually build a very basic strategy by myself, from scratch, that works and actually understand why it works.

That's when I expect the real fun will begin and I can start to fine tune the life out of it and then get it into a demo and then real money account!

Very exciting stuff, and meanwhile I'll be saving up a bit of a pot to invest!

Thanks for reading and looking forward to the journey ahead! :clap:

 

[pboyles]

If you really must then I suggest you only look at futures or something else that is traded on an exchange. If you trade forex you are wide open to being defrauded by the broker. Forex brokers are taking the other side of your trade, when you win they lose, therefore they will attempt to stop you winning. Of course a futures broker could do the same, however at least you have some recourse if they cancel your trades or give you a lot of slippage.

If you care to google "forex broker fined" or "virtual dealer plugin" you will see what goes on. Mind you I'm not saying a futures broker won't try to rip you off, just that they have fewer possibilities to do so.

In all honesty I think you should concentrate on work or studying. It's liable to be much more profitable in the long run.

 

[BeginnerJoe]

In all honesty I think you should concentrate on work or studying. It's liable to be much more profitable in the long run.

Is there no training course you can recommend for the OP ? Everything in life takes some training. To omit that as part of a balanced advise seems negligent.

 

[djbenny1]

If you really must then I suggest you only look at futures or something else that is traded on an exchange. If you trade forex you are wide open to being defrauded by the broker. Forex brokers are taking the other side of your trade, when you win they lose, therefore they will attempt to stop you winning. Of course a futures broker could do the same, however at least you have some recourse if they cancel your trades or give you a lot of slippage.

If you care to google "forex broker fined" or "virtual dealer plugin" you will see what goes on. Mind you I'm not saying a futures broker won't try to rip you off, just that they have fewer possibilities to do so.

In all honesty I think you should concentrate on work or studying. It's liable to be much more profitable in the long run.

Thanks for the insight pboyles - I will look into what you've said re Forex vs futures in more detail.

For sure I don't expect to be giving up my job any time soon, if ever!

The way I see it, time where I would otherwise be watching TV or doing something else equally productive can be spent educating myself instead.

Worst case scenario I spend a few months writing a strategy and succeed, only for it to blow up my (small) account which I can afford to lose.

At that point it will be time to reassess whether it's worth continuing!

 

[pboyles]

Is there no training course you can recommend for the OP ? Everything in life takes some training. To omit that as part of a balanced advise seems negligent.

He's not looking for a training course but if he was then indeed there are none that I'd recommend.

 

[djbenny1]

He's not looking for a training course but if he was then indeed there are none that I'd recommend.

You're right - I'm not looking for a training course as in my experience (getting a 1st in my engineering degree), I can learn the same amount by myself in a quarter of the time for a fraction of the cost.

 

[Shakone]

Why not get a job in a bank?

 

[BeginnerJoe]

Why not get a job in a bank?

Yes an engineer's job servicing the bank ATM's could potentially be advantageous. One could potentially wire in some back door PIN's. Much easier to get money out that way than through the markets.

 

[djbenny1]

Why not get a job in a bank?

Not sure why you think I would want a job in a bank?!

I like my job, and for a recent graduate the money is pretty good! I'm just interested in making a little more money (for me, not someone else!) doing something interesting on the side, and to kill a bit of time in the evenings!

 

[djbenny1]

Yes an engineer's job servicing the bank ATM's could potentially be advantageous. One could potentially wire in some back door PIN's.

To be fair we were told throughout university of opportunities within financial industries due to engineers typically being very good with numbers and analysis!

 

[Shakone]

Oh I see. Thought you wanted to learn how to trade. My mistake.

 

[djbenny1]

Oh I see. Thought you wanted to learn how to trade. My mistake.

I understand what you mean now - when you said "a job in a bank" I thought you meant as a cashier or something!

You're right though, when I say I learn a lot more on my own, a big part of that is doing "the job" so in that respect, what better place to learn than trading in a bank.? How many people in a bank actually do trade though? I'm not sure, but it's not something I've ever looked into though, and am unlikely to, as like I say, I enjoy being an engineer too much.

 

[Shakone]

I didn't mean as a cashier.

Not many people trade proprietarily any more, but there's also hedge funds to consider.

 

[djbenny1]

I'm sure there's an irony here, but I've fallen at the first hurdle...

I'm keen to know which programs you guys use to backtest, because I'm struggling with Forex Strategy Builder.

I've downloaded minute by minute historical data from several sources, but I'll be damned if I can get it to work in the program.

It imports it fine, but it just doesn't show up despite changing the data horizon etc., says that the "data is defective until bar 5000".

Any suggestions? Or is this a question for the FSB boards?!

Keen to hear how you guys build and backtest, in any case.

 

[George55]

If you have already made up your mind to trade, then what I can advise you is to enlarge your knowledge on forex as much as possible. When you realize that you have enough bases, then put them into action.Open a demo account and start practicing there. Make your own analysis while trading on demo account, ask for advise the experienced traders and after all when you are sure about yourself pass on to real account..And don’t forget to choose a reliable broker!!
Good Luck

 

[darktone]

I'm sure there's an irony here, but I've fallen at the first hurdle...

I'm keen to know which programs you guys use to backtest, because I'm struggling with Forex Strategy Builder.

I've downloaded minute by minute historical data from several sources, but I'll be damned if I can get it to work in the program.

It imports it fine, but it just doesn't show up despite changing the data horizon etc., says that the "data is defective until bar 5000".

Any suggestions? Or is this a question for the FSB boards?!

Keen to hear how you guys build and backtest, in any case.

Imho, i really wouldnt be too worried about backtesting much. Theres a tendency to fit your tests to the data, get excited about something thats worked in the past, then lose money when you go live.
"The market is exactly the same today as its even been... Its always changing!" Forget who said it but very true imo. A better approach imo is have an idea, then forward test it on demo.

I dont want to plug but im doing a thread atm Keeping things simple.. Im keen to see how a beginner might view the approach, and you seem like the sort who isnt afraid to ask questions. Have a quick scan through and tell me what you think.

Cheers
D

 

[Jack86]

Open demo accounts and practice your trading skills..

 

[Tyger]

Hi
Have a look at
http://www.youtube.com/watch?v=4j_N_-loaXE&feature=youtu.be
Shows you how I do it using Excel spreadsheets