New to the game

[dm88]

Hi everyone,

I'm David and I am new to trading and to T2W :clap:
I have, for reasons unknown to even me, recently become fascinated by the movements of the markets and the dynamics behind these movements. I stumbled across this website following some superficial research, and now I am well and truly hooked. Since that time I have read everything in sight, downloaded podcasts, trawled these forums, FAQs, beginner guides etc. and I would greatly appreciate the input of some of the experienced guys on the site here.

I have initially set my sights on trading Forex due to the large liquidity, the 24-hour trading capabilities and due to the small initial deposits required for live trading. More specifically, I had identified the EURUSD as a starting point for my trading, although not for any good reason other than it seems to be the largest pair and I read somewhere it was a good place to start for new traders like myself.

I am based in the UK and plan to develop a trading plan after another few months of reading and research. I am getting to grips with the basics of technical analysis and plan to spend some quality time with the charts before I even consider a trading plan, entries and exits. I feel that I need to become completely comfortable with the various indicators before i start trying to apply them in real time.

My questions to the forum;

1)As a UK resident is spread-betting a better option for trading than a traditional forex trading account due to the inherent tax benefits? Are the mechanics of spread betting similar to those of Forex? How do the trading platforms, charting packages etc. weigh up against each other?

2) Can anyone recommend the best broker for a new trader that will provide both a demo and micro account that won't be devastated by commission costs on a small (<£500) initial live trading account? I don't envisage live trading for at least six months and probably longer, but would like to get used to a platform and tools during my learning. this will obviously depend on the answer to the above question.

3) Where is the best place to access charts from, for example, the previous 24 hours on the EURUSD? Is there anywhere that provides these along with the ability to play through them in real time? This would allow me to go back through the charts and read them as I would be reading them while live trading.

My long term aim is to be able to develop and consistently follow a trading plan which is profitable in the long term. I am realistic about the time-frames required and due to the nature of my full time job I am not dependent on trading as a source of income. Although it would be lovely to have a bit of pocket money as a by-product of trading, I am focussing at present on learning as much as I can about the subject and hopefully in the future I can apply this to my trading to become consistent and profitable.

Any words of wisdom are more than welcome, I am an enthusiastic student :smart:

Cheers!

DM

 

[timsk]

Hi David,
Welcome to T2W!

1)As a UK resident is spread-betting a better option for trading than a traditional forex trading account due to the inherent tax benefits? Are the mechanics of spread betting similar to those of Forex? How do the trading platforms, charting packages etc. weigh up against each other?

I've never traded forex, so I'm not really in a position to answer this. That said, typical advice offered to members who've asked these questions in the past is not to be too swayed by the tax benefits of spread betting. Go with the broker and platform you like and works for you - that's your primary concern - tax considerations come second. Besides which, you'll have to make profits in excess of £11,000 P/A before capital gains tax becomes an issue. On a sub £500 account, you're not going to be doing that any time soon!

Regarding platforms, charting software and brokers etc., this post of mine might be of interest.

2) Can anyone recommend the best broker for a new trader that will provide both a demo and micro account that won't be devastated by commission costs on a small (<£500) initial live trading account? I don't envisage live trading for at least six months and probably longer, but would like to get used to a platform and tools during my learning. this will obviously depend on the answer to the above question.

As per my answer above, forex isn't my area. That said, almost all forex brokers will provide both a demo account and micro account option.

3) Where is the best place to access charts from, for example, the previous 24 hours on the EURUSD? Is there anywhere that provides these along with the ability to play through them in real time? This would allow me to go back through the charts and read them as I would be reading them while live trading.

Regarding charts in general - your broker will offer their own software and, in addition, most will offer the ever ubiquitous MetaTrader4 platform. The playback facility will be harder to solve, and may not be available for free. Ensign Windows offer it and I'm pretty sure that eSignal does as well. Sierra Charts may offer it - but I don't know for sure.

Good luck!
Tim.

PS. For the sake of clarity, the comments in the first paragraph relate to all trading vehicles other than spread betting. Currently, under U.K. tax laws, spread betting is tax free.

 

[dm88]

Thanks for the reply Tim!

It sounds as though most brokers have functionality for MT4 so i suppose this is unlikely to be an issue. I may have to just have a look at the charts as I go along if I can't access past charts or playback.

I plan on starting on a micro account following demo trading to see if any trading plan I can put together can be consistently profitable. I will not risk my capital until I can make profits on a micro account. Therefore the spread betting/tax issue will be an issue if I can develop a consistent strategy and move on from my micro account to a larger size. All bridges I can cross closer to the time I suppose, but again if anyone has any experience or opinion on the subject I would welcome it.

On another note, currently reading Technical Analysis of the Financial Markets by John J Murphy, really interesting read with insights into underlying psychology of the market involved in eg. Resistance/Support levels. Very good read and it will hopefully help me to develop my trading from here on.

DM

 

[dm88]

Hi DRFX,

Thanks for your advice. I have done some reading on technical analysis as a basis for progressing in forex trading. I had plans to pursue intraday scalping rather than swing trading as I had been unable to find any profitable strategies that I had faith in. I have read many good reports about Bob Volmans forex price action scalping strategy which I am going to research a little more. If anyone on the forum has any experience of this to guide me then give me a shout!

I am planning to pursue this strategy focusing on the 70 tick chart and see if I can carry it out in a profitable manner on demo before going live. Hopefully with a bit of hard work and time I can make it successful for me.

 

[dm88]

Hi DRFX,

Apologies if I have misunderstood, but are you claiming to be performing better than the top 10 forex traders in the world?

I may be new, but I'm not stupid. I'm afraid if you're expecting me to start parting with my hard earned cash in order to buy your Holy Grail of forex trading, you may be disappointed.

I am hoping to engage in thoughtful discussion about forex trading to further my education and try to develop a strategy that will be profitable in the long term. If you're simply trying to flog me a book, could you post on the vendors forum section instead?

Again, apologies if I have misunderstood.

Regards,

DM

 

[Forexmospherian]

Hi dm88

Good Luck and I wish you well on your journey

Just to give you a balanced view - I would have to basically disagree with nearly everything DRFX Trading has said.

I am not selling anything - but find out what suits you and be prepared to challenge everything you are told - because there are more myths and untruths in the Forex game than there is at a Dodgy Second hand car sales business based in Peckham and run by Del Boy and Rodney. - YES - that bad

Believe me - its not just one sided neither - the Industry itself is as bent as a nine bob note - even crooks and the mafia laundering their monies must worry.;-)

Check out first whether you are a suitable candidate to even start the journey - as at least 75 -85% of all retail traders fail and give up within one to three years - it's just not for everyone - but if you have the time ,intelligence, commitment, patience,streetwise savvy,right mindset - and just don't give up - then you might get there and find it the best thing you have ever done.

Regards


F

 

[dm88]

Thanks FXMo

I have read through some of your threads and have been able to pick up bits and pieces which even at this early stage have helped with my understanding. Am I correct in saying that you have a slightly different take on scalping? I read that you did some naked chart reading in the past, did you have any experience with the 70 tick chart style of scalping? Appreciate the encouragement, I am going to keep my head down and with any luck I'll have what it takes to be successful.

Regards,

DM

 

[advisor]

Hi everyone,

I'm David and I am new to trading and to T2W :clap:
I have, for reasons unknown to even me, recently become fascinated by the movements of the markets and the dynamics behind these movements. I stumbled across this website following some superficial research, and now I am well and truly hooked. Since that time I have read everything in sight, downloaded podcasts, trawled these forums, FAQs, beginner guides etc. and I would greatly appreciate the input of some of the experienced guys on the site here.

I have initially set my sights on trading Forex due to the large liquidity, the 24-hour trading capabilities and due to the small initial deposits required for live trading. More specifically, I had identified the EURUSD as a starting point for my trading, although not for any good reason other than it seems to be the largest pair and I read somewhere it was a good place to start for new traders like myself.

I am based in the UK and plan to develop a trading plan after another few months of reading and research. I am getting to grips with the basics of technical analysis and plan to spend some quality time with the charts before I even consider a trading plan, entries and exits. I feel that I need to become completely comfortable with the various indicators before i start trying to apply them in real time.

My questions to the forum;

1)As a UK resident is spread-betting a better option for trading than a traditional forex trading account due to the inherent tax benefits? Are the mechanics of spread betting similar to those of Forex? How do the trading platforms, charting packages etc. weigh up against each other?

2) Can anyone recommend the best broker for a new trader that will provide both a demo and micro account that won't be devastated by commission costs on a small (<£500) initial live trading account? I don't envisage live trading for at least six months and probably longer, but would like to get used to a platform and tools during my learning. this will obviously depend on the answer to the above question.

3) Where is the best place to access charts from, for example, the previous 24 hours on the EURUSD? Is there anywhere that provides these along with the ability to play through them in real time? This would allow me to go back through the charts and read them as I would be reading them while live trading.

My long term aim is to be able to develop and consistently follow a trading plan which is profitable in the long term. I am realistic about the time-frames required and due to the nature of my full time job I am not dependent on trading as a source of income. Although it would be lovely to have a bit of pocket money as a by-product of trading, I am focussing at present on learning as much as I can about the subject and hopefully in the future I can apply this to my trading to become consistent and profitable.

Any words of wisdom are more than welcome, I am an enthusiastic student :smart:

Cheers!

DM

only your own experience the moust important thing in Forex
i can recomend you "good" and "bad" broker)
If you will not use ECN commissuion than you will not have Good exeqution.
If you not scalper at news or at m1 - than you dont need ECN not comission (depends from strategy)

Good luck and Profits :smart:

 

[Forexmospherian]

Thanks FXMo

I have read through some of your threads and have been able to pick up bits and pieces which even at this early stage have helped with my understanding. Am I correct in saying that you have a slightly different take on scalping? I read that you did some naked chart reading in the past, did you have any experience with the 70 tick chart style of scalping? Appreciate the encouragement, I am going to keep my head down and with any luck I'll have what it takes to be successful.

Regards,

DM

Hi dm88

Yes have used many different types of tick charts - from 5 and 10 seconds to 70 ticks

To scalp you do need to learn a special skill involving timing for entries and exits

I originally was a big Al Brooks and Lance Biggs fan - some good reading - not really looked at Bob Volman's works - but seems good from what I hear.

Any questions of assistance i can give you on scalping fx is no problem - get to learn the basics etc etc - and then when you are ready - feel free to fire away with any questions etc etc

All the best


Regards


F

 

[gerryg]

Hi dm88

Yes have used many different types of tick charts - from 5 and 10 seconds to 70 ticks

To scalp you do need to learn a special skill involving timing for entries and exits

I originally was a big Al Brooks and Lance Biggs fan - some good reading - not really looked at Bob Volman's works - but seems good from what I hear.

Any questions of assistance i can give you on scalping fx is no problem - get to learn the basics etc etc - and then when you are ready - feel free to fire away with any questions etc etc

All the best


Regards


F

What do you think is the most convenient pair for scalping? The one which have the smallest spread?

 

[Forexmospherian]

What do you think is the most convenient pair for scalping? The one which have the smallest spread?

Hi gerryg

For years - I used to scalp the EU because my spread back in 2005 to 2009 was under 2 pips - whereas the EJ and GJ and even GU were from 3-6 pips - and therefore put me off

However over the last few years - and with more competition from brokers - you can get the EU with spreads of only 0 2 - 05 pips - but most of other majors under 2 5 pips

I prefer the EJ and even GU to the EU nowadays and the actual extra 1 pip or so of spread is nothing when other pairs might might do larger moves in the same scalp time period - ie

EU say 0 4 pips spread move say 12 pips in 25 mins - and I make 11.6 pips in that time

Meanwhile the EJ on say 1.3 pip spread moves 19 pips in same 25 mins - net gain - 17.7 pips

And something like the EA or GJ - might move 25 -40 pips in under 30 mins and so even 3 pip spread is great value.

The EU nowadays can be very difficult to scalp at busy sessions -as it being played with so much - that its not nice PA - messy etc - and not an easy trade

AU and UJ can be a lot better pairs to scalp with PA - and normally their spreads are under 1 - 1.8 pips still.

Hope that helps


Regards


F

 

[dm88]

I am going to focus on the EU to begin with, at a later date once i get to grips with what I am actually doing I will be able to explore other pairs. Sounds as if the other pairs offer some clear advantages though to the experienced trader.

A small update - just finished the free online learning resources at babypips.com, any other newbies lurking about I would strongly recommend going for a look. Contains a lot of great information and resources and all for free. Also my Bob Volman book arrived yesterday in the post so I am looking forward to getting stuck into that :smart:

I have opened a demo account with MB trading and I am slowly getting acquainted with the NinjaTrader charting package that I have also downloaded. Hopefully over the course of the next few weeks I can become more proficient at using these programs.

DM

 

[dm88]

I have spent the last few days reading Bob Volman's book and looking through as many examples of the setups he suggests as I can. I have also started following the EURUSD in real time when I get home from work. Although I have seen some nice BBs and RBs, the market during the hours I am watching seems really flat. Sometimes it is taking ~10 mins for a single bar to form.

I am starting to think that the time frames I am able to trade (normally 6pm -10/11pm UK time) are not going to provide me with the necessary liquidity and movement to take advantage of these scalping techniques.

Can anybody shed any light on this? I am worried that I am wasting my time studying this technique, as I seem to have overestimated the activity in the market during my available trading hours.

DM

 

[Tavurth]

DM. When asking about any specific numbered chart, (70 tick) please understand that the psychology of price is as analogue as the ocean.
Beware of trusting too much in a single digitization, removal of data is nearly always prevalent.

 

[dm88]

First ever FX trade made today on EURUSD demo account. In hindsight the RB didn't have enough pre-breakout tension which meant that the bulls exhausted themselves a few pips after the range break. The boundary was tested a few times but eventually bearish pressure became dominant and I closed out the position for loss of a few pips.

Learning point - optimal entries on range breaks are when there is a build up of pre breakout tension as this will add momentum to the resulting price move.

Any comments/thoughts welcome.

DM

 

[SlowlyButSurely]

To be honest the best time to trade the EURUSD would be from 7am - 5pm UK time (GMT/BST).

Anything outside of the main session hours will be slow due to low volume and low liquidity.