New member to the minefield of FX Trading

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Roger Dodger

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Hello, not sure if this is where to ask a question, but here goes, from new member.

I'm quite new to trading, i.e 5 months, I only trade FX GBP/JPY. To view the market I use a free demo account with MetaTrader from North Finance, and to make the actual trades I use IG INdex.

When viewing the FX market, using MetaTrader, I just use two charts, fxcruiser HAMA PAD, and Ravi FX Fisher.

My trouble is, I am geting to many false indications of when to go long or short.

Therefore, I was thinking of buying VantagePoint software, but at $3,900 I need to have some reassurance by experienced traders, if they think it's a good investment to purchase the software.

I trade in England.

Thanks.
 
I am an owner of Vantage Point software.

If you wish to know more facts and/or my opinions before purchasing then please feel free to ask.
 
Trader333 said:
Read these first:

http://www.trade2win.com/boards/commercial-systems/13697-vantagepoint-software.html

http://www.trade2win.com/boards/software/8626-vantage-point-software.html


Paul
Click to expand...

OK, many thanks Paul. It seems VP is a waste of money. Glad to have read the numerous comments in the forum before I bought it. I thought VP might be too good to be true. Thanks for the ulta quick response.
Is there an easy to understand book, or dvd etc on trading pairs for the novice trader like me you could recommend?

Roger
 
Mp -- Here We Goes Again !

Roger Dodger said:
Hello, not sure if this is where to ask a question, but here goes, from new member.

I'm quite new to trading, i.e 5 months, I only trade FX GBP/JPY. To view the market I use a free demo account with MetaTrader from North Finance, and to make the actual trades I use IG INdex.

When viewing the FX market, using MetaTrader, I just use two charts, fxcruiser HAMA PAD, and Ravi FX Fisher.

My trouble is, I am geting to many false indications of when to go long or short.

Therefore, I was thinking of buying VantagePoint software, but at $3,900 I need to have some reassurance by experienced traders, if they think it's a good investment to purchase the software.

I trade in England.

Thanks.
Click to expand...

=============================================================

FIRST -- just to examine the purely mechanical problems youre having ---- no two brokers are showing the same prices or moves so what youre getting may fall into the realm of "false signals because of differing data feeds and etc"

Now I know nothing of IG Index and how they work, but whew . . . . . . $4000 dollars can be considered a bit "much" for what is really information commonly available to those who wish to study and learn.

You are obviously a product of "the marketing of forex", where the world is told to trade forex with this or that "robot" and make a million, each and every day, every year, every generation, every millenium !

SEND ME THE MONEY AND ILL TRIPLE IT IN 4 MONTHS, and you can continue to sit on your butt and collect your "winnings!"
NO, not being serious, but ill keep it short and sweet --- forex is its own culture, rules and behaviors and the land is populated by 2 legged sharks who are way smarter than you are and will take your $4K and then anything else you wish to add to the pot and spit you out BROKE, BATTERED and BLOODY !

If I could put a program into a PDA that would tell me how to be a heart surgeon, I would have done it years ago (I loves nurses !), but NOTHING like that exists and that applies to most any program that will make you rich quick ! To get the information and training that a heart surgeon goes thru means GOING THRU that time and training to learn the craft !

I make a very decent profit for my clients thru forex, but i WORK at it and its taken a few years to get good enough to keep staying ahead of the market and continuously make that profit, so go ahead, buy some program or another and watch $4K RUN away from you !

all it takes is some experience, cause there aint no golden goose living in the land of forex, although with experience and care, theres a very decent amount to be made !

enjoy and trade well

mp
 
Hello MP,
Many thanks for the reply, and I do appreciate your time and advice. I won't be spending money buying expensive software just yet, I think I will have to do alot more research first. Perhaps I need to concentrate more on current economic conditions rather than charts? Trouble is, I don't always understand how to interpret this information at this stage, for example, if the price of oil goes up quickly does it mean the GBP will rise against the JPY or vice versa? If the Bank of England lowers it's interest rate will this mean the GBP will rise against the JPY?

Thanks again, Roger
 
Stop! Don't spend any money on anything!

There is a ton of resource on here and read everything in the first steps, all the forex threads, take a look at investopedia and the traderpedia and any books recommended here on this site.

As MP says, there is no such thing as a black box that will make you rich. It takes a good couple of years at least of study and experience and I probably speak for many here saying if I could start again, I would....

Read, read, watch, experience, study, learn, spend months upon months without spending a penny or even attempting to do or spend anything...

Have a good old read through the boards and learn what it is your looking at and so you understand everything from supply and demand through to interest rate changes.

The richest men and businesses in the word are related to trading and inevsting and the markets, don't expect to waltz in and take a cut without knowledge, time and good old hard work!

Good luck...
 
Roger Dodger said:
Hello MP,
Many thanks for the reply, and I do appreciate your time and advice. I won't be spending money buying expensive software just yet, I think I will have to do alot more research first. Perhaps I need to concentrate more on current economic conditions rather than charts? Trouble is, I don't always understand how to interpret this information at this stage, for example, if the price of oil goes up quickly does it mean the GBP will rise against the JPY or vice versa? If the Bank of England lowers it's interest rate will this mean the GBP will rise against the JPY?

Thanks again, Roger
Click to expand...

==============================================================

AH WEEDHOPPER --- so much adventure before you ! That i could do it again !

both fundamentals (news) and technicals (the charts) are important with my "nod" to the technicals, because the "news" only serves to move currencies for the short term.

Short term trading (a day to 3 days) is now very IN, and is what you see with the many rallies and selloffs going on, while economic direction pretty much maintains the overall trend, as noted in the DAILY through MONTHLY charts.

If the bank of england drops its rates it has a negative effect on the pound, for a SHORT PERIOD (enough for daytraders to make good money anyway) and then you can bet the pound will return to trending the direction it was moving in.

the USD was falling WAY BEFORE the latest news and lowering of interest rates, so its trend was and is already down --- it will reach a point, prob by summer, where it reverses (IMO) but we will wait to see --- meanwhile being short the dollar doesnt appear to be a bad choice.

u have much to do and learn, and its a fascinating process along the way as you accumulate knowledge and things begin to make sense to you, but like learning ANYTHING, it does take time and that time is up to you and how fast you learn.

just keep trying and listening and asking, and along the way youll begin to understand, and with that understanding comes the time to try trading with some of that money you would have given to others ---- at least then, its YOUR money and what happens after that is because of YOU.

best of luck

theres a lot of good people here --- youll begin to recognize the crap from the context in relatively short time, and learn from those who went before you.

gl newbie -- its a fascinating journey

mp
 
wasp said:
Stop! Don't spend any money on anything!

There is a ton of resource on here and read everything in the first steps, all the forex threads, take a look at investopedia and the traderpedia and any books recommended here on this site.

As MP says, there is no such thing as a black box that will make you rich. It takes a good couple of years at least of study and experience and I probably speak for many here saying if I could start again, I would....

Read, read, watch, experience, study, learn, spend months upon months without spending a penny or even attempting to do or spend anything...

Have a good old read through the boards and learn what it is your looking at and so you understand everything from supply and demand through to interest rate changes.

The richest men and businesses in the word are related to trading and inevsting and the markets, don't expect to waltz in and take a cut without knowledge, time and good old hard work!

Good luck...
Click to expand...

Wasp, Thank you for the message. I will take the time to do what you say and look into investopedia and traderpedia etc. It seems then, that I need to do a whole lot more than just guess if the trades going long or short and rely on my two charts. When I do make a bit of money it's a good feeling. But when you lose, the feeling it quite awful, to say the least.

Many thanks again, Roger
 
i can recommend to take a close look at ig´s advanced charts, and develop and backtest some simple indicator based systems. you will get a better feeling of what is working.

by the way, i´m trading all the yen pairs and gbpjpy seems quite difficult to trade. the price moves are sometimes just violent, maybe try out eurjpy for smoother moves.
 
tornhill said:
i can recommend to take a close look at ig´s advanced charts, and develop and backtest some simple indicator based systems. you will get a better feeling of what is working.
Click to expand...

I'd say the opposite, load up a blank chart and imagine watching a tug of war between buyers and sellers and learn to read and see the fight between the two. Watching with indicators will have you concentrating on them, and not the market (people/traders), teaching little IMO.

tornhill said:
by the way, i´m trading all the yen pairs and gbpjpy seems quite difficult to trade. the price moves are sometimes just violent, maybe try out eurjpy for smoother moves.
Click to expand...

That I would agree on, there are plenty of others you can trade less manic than gbpjpy.
 
MP -- sneaky little trick for choosing what to trade !

while i mostly trade GBPUSD cause i love being shoved off a cliff at times, I will often go in search of an easier one to play, perhaps to add to my fun or if GU has decided to sit still for a while.

what I do is open an H1 chart and take a fast look at how the candles are progressing (either up or down). If the candles tend to be uniform and maintaining a steady move, without flying off in this direction and that, I will trade that currency because its movements are not being violent and i know my life should be pretty simple, give or take a shock here and there.

it takes only a few seconds to run through the majors and check them, and if you want to get closer, move in to the 15 minute and see how it moves there !

try it --- think you may like it !

enjoy and trade well

mp
 
Lee Shepherd said:
I am an owner of Vantage Point software.

If you wish to know more facts and/or my opinions before purchasing then please feel free to ask.
Click to expand...

Thanks for the reply regarding the VP software. I would of course value experienced traders advice, and I appreciate your time.

I do realise, and have been told that trading on the FX market is a type of gambling, which I accept. But with the use of VP I thought the risk would be greatly reduced.

The video on VP's website looks very interesting and it gives the impression that it's the best software in the world, and that this is further supported because the company is an Inc 500 company. After watching the video I thought it would be ideal for someone like me who is new to FX trading. The video explains numerous facts, (many of which I don't understand at present), including the use of their charts. They say using Lagging Indicators is not a good idea because they only show where the market has been and not where it's going. They recommend using their predicted Moving Averages charts because the lag has been removed.

They go on to say that some traders simply rely on using their predicated moving averages crossover charts to make very successful trades.

I have done a little research on VP and so far like comments on this forum, it seems that what VP can do is a little far fetched. I do realize that nobody can predict the future, but VP claim of 80% accuracy certainly had me highly interested.

I wonder if the city traders at the London Stock Market or on Wall Street use VP software?

As other members have highlighted caution with VP I have to respect their opinion as I am new to trading. Perhaps because at the moment as I'm still learning, and as I only do day trading , with one currency pair, and with limited funds, VP might not be suitable for me at present.

Regards Roger
 
tornhill said:
i can recommend to take a close look at ig´s advanced charts, and develop and backtest some simple indicator based systems. you will get a better feeling of what is working.

by the way, i´m trading all the yen pairs and gbpjpy seems quite difficult to trade. the price moves are sometimes just violent, maybe try out eurjpy for smoother moves.
Click to expand...

OK, thanks for the information, I will look into it, and the other currency pair.

Like you say GBP/JPY is very erratic, I just thought all currency pairs were the same.
 
wasp said:
I'd say the opposite, load up a blank chart and imagine watching a tug of war between buyers and sellers and learn to read and see the fight between the two. Watching with indicators will have you concentrating on them, and not the market (people/traders), teaching little IMO.



That I would agree on, there are plenty of others you can trade less manic than gbpjpy.
Click to expand...

OK, thanks, I'll load a chart and look into it more. It seems that perhaps I've picked a difficult currency pair to learn and start on. I thought it was very volatile - especially as the direction keeps changing, and so quickly. (make the heart race abit too.)

Regards.
 
Roger Dodger said:
OK, thanks, I'll load a chart and look into it more. It seems that perhaps I've picked a difficult currency pair to learn and start on. I thought it was very volatile - especially as the direction keeps changing, and so quickly. (make the heart race abit too.)

Regards.
Click to expand...
==============================================================

Roger, please take this as something meant to help and not hinder ---- forex is a culture and a very serious vocation and form of producing profit for a great number of people and institutions, and they all know how to do the dance well ---- YOU DONT !

SECOND POINT ---- IN NO WAY IS FOREX "GAMBLING" unless your trading method is throwing darts at a chart !

IT IS LEARNABLE, thats all I can say, but it takes time as does su8ccess in anything that has rules, culture and money involved.

While there are certainly "tamer" currencies to trade (and they vary from day to day and week to week) you MUST learn first because trading is NOT just plugging in a robot and letting it go, ESPECIALLY if your choice in trading is short term flipping and daytrading.

for a newb, the longer timeframes are easier, although you will have to watch your money decrease (drawdowns) as the market goes one way and then finally comes backk the other in its normal intraday ups and downs.

there are advantages and disadvantages to each timeframe (shorter or longer) BUT there are instructions to follow, experience to gain and people who know the truth and its not something you learn in five minutes !

Now, your system might indeed be a good one, or at least a fair one --- most systems work sorta kinda in one way or another , but im not familiar with it so have no opinions ------- while I really dont like teaching elementary school, send me a pm or look for me on yahoo IM (mp6140) and maybe I can give you some ideas !

mp
 
Last edited:
Roger Dodger, it's smart of you to ask about VP before spending your money

the only 'prediction' tools I know of are fibos, various trendlines plus EW all of which
work to greater and lesser degrees; no blackbox

I do tho have a couple of free MT4 'prediction' indicators I'll post later this week
 
Trdr said:
Roger Dodger, it's smart of you to ask about VP before spending your money

the only 'prediction' tools I know of are fibos, various trendlines plus EW all of which
work to greater and lesser degrees; no blackbox

I do tho have a couple of free MT4 'prediction' indicators I'll post later this week
Click to expand...

ok, I'll look into fibos, thanks for the advice.
I'll look forward to seeing the MT4 predictions but how will I find them on the forum?
 
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