WallStreetfx:

I also have one question, when I start learning more in this Forex I discovered that price action is the same thing on all time frame and they produce the same signal if you know how to use it, the chart are just algorithms to stimulate the market movement. I hope am true on this?

No last question , ask it and also make it open to the entire house as you have already been doing.

It is #weekendgist, no trading

blackman007:

This is so much appreciated.... I am suppose to ask another last question, but I'm scared lol....Maybe some other time........to all other bosses in the house please don't abandon us... We need you guys....

Karleb:


This question has already been answered.

But since it is weekend, let us type.

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Forex is practical. When you start learning, you are supposed to start practicing.

They'll say demo trade for 6 months, stick to it. If after that you are not getting the results you want, keep demo trading till you at least have confidence you won't blow your account.

Mastering everything is forex is counterproductive. This is why so many brilliant people fail in forex.

Before you get that P. Hd level, you should have specialized. Filter out noises and focus on that area that interest you most.

You said you want to be a technical trader, learn candles, their patterns, support, resistance, chart patterns (don't learn all though), throw away that indicator and practice.

Back test, forward test and bring out a strategy/system.

Strategy/System can be confusing a times though, they are simply ways to trade and rules a certain trader stick to when trading.

Shevychen2:

Definitely reducing risk per trade. A system with a potential 70% historical max expected drawdown on 2% risk per trade can go down to around 10-12% max drawdown if you reduce risk from 2% per trade to 0.25% per trade. And the thing with historical drawdowns is that they are just that:historical based on backtests. Some flash crash or whatever can increase the expected DD in future. All the more reason why you should lower it as much as possible to give yourself a chance to survive forever.

Problem many people have is that they can't lower risk too much otherwise they won't make meaningful money. For example, assuming average sl of 100 pips, someone with $100k can comfortably do 0.25%. Someone with less than 1k can't. The alternative is to go to lower time frames and get entries to reduce the stop loss. But that will also need you to do another backtest to be sure it works.. Bla bla. Summary, reduce risk as realistically as possible for your peculiar situation.

I don't believe in risk to reward ratios. I worry about my risk only and let the market do whatever it wants until I get an exit signal. The exit signal may come where I had in mind originally, fall short of it, or blow past it.

blackman007:



What I have come to realize in Forex is that, money management and risk management is the only thing that can keep you in the business long enough time to stay in the market and garner enough experience to be profitable, if you keep blowing accounts, there's no way you can grow, or have enough experience to be profitable, you need to secure your capital first, before you can think of making money, this is where risk management and money management comes into play...this is my opinion though, with the little experience and the little time I have spent on the charts, it will be hard to blow my account but then anything is possible in Forex... Patapata we go play draw ..... anyways this is my opinion and I stand to be corrected......
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Pipsbasketings:
No last question , ask it and also make it open to the entire house as you have already been doing.

It is #weekendgist, no trading

blackman007:

Yes boss no side talks, this thread seems to be more productive these days more reasons I'm active on here again.... my question is what's the difference between top & bottom traders and reversal traders??.... There seems to be some sort of similarities or I'm I mixing or missing something here

Pipsbasketings:
Chai, great question.
I see no difference between tops/bottoms and reversals, it's just the wording.
Modified: I can add that reversals are traded like, waiting for a particular candle formation or some sort of signal to confirm it is reversing before entering; while tops/bottoms are taking at a particular price based on a bounce from resistance and support or trend line without the need to wait for any sort of confirmation candle.

Again, I don't trade it, meshpips and some others that trade it here can give more details on this.

We would rather establish that reversals/tops/bottoms is different from retracement.
I see retracement as a pullback before a continuation. see attached pips, credit: babypips

IMAliyu:
After seeing enough annoying binary options broker ads I decided to actually take a look at it, because I don't want to completely disregard something without actually having any knowledge of it.

My impressions of it are it's as if betnaija and Forex decided to have a child.
I can see why it exists, it's for someone with a high risk tolerance, low patients, knows a bit about trading and wants to make/lose money fast.
All you need is to guess the direction of the market in a given time frame of your choosing.
If the contract expires in your favour you win a percentage and if not you lose your money.

The option to sell the contract in a loss or profit before it expires also exists.

The problems here that makes this feel like gambling is the time factor, your analysis of the general direction of market can be correct, however you can still lose if your time guess is off by one minute.

Another issue is the risk to reward ratio. You basically risk more than what you are getting.
The highest I've seen is a 90% and lowest 10% return.
So you basically risk say 100# to get 90#. So if the trade goes against you lose the whole 100#.
So your strategy better have more than a 60% win rate.

The app of the broker I decided to experiment on "IQ option", consumes your data like no tomorrow. In the 3 days I had it on my phone thing used up nearly 1gig.
Note: IQ option also offer regular Forex trading, but I don't know if I'll be recommending them.

The thing is enticing. Was able to raise the demo account by 30% in 3 days of testing, I will probably empty it if I continue for like a week.

Anyway I'm not in any place to tell anyone what to do with their money, this is just my experience and impressions of it.
Just know that the odds are even more against you here, even more than forex.

Crixxx:
The thing killing me in this market is impatience, excessive patience, greed. It's really tiring

meshpips:
My opinion about the quest for knowledge . . .

1. Learn about the basics (building blocks, elementary stuff)

2. See how you can apply what you learnt in (1) above to the actual markets. Different situations will be put forth before you by the market and you will need to use your understanding of the very basic stuff to deal with them.

3. Regarding risk, the smaller your account size, the larger you will most likely risk so you will need to seek bigger capital IN A CONTROLLED ENVIRONMENT (like Proprietary trading firms offer) so that you can trade a bigger account size, risk very little and still make decent profit at the end of the month.

blackman007:


Nice one boss, as regards to your last point, does it means that one cant grow a small account to a larger amount?? everyone can't just have access to trade for a proprietary trading firm...

blackman007:


Nice one boss, as regards to your last point, does it means that one cant grow a small account to a larger amount?? everyone can't just have access to trade for a proprietary trading firm...

meshpips:


The chance of doing this is very slim without over trading.

@schevygen made this analogy some time ago:

You can trek from Lagos to Abuja but this will take a long time.

You can get on a plane from Lagos to Abuja in a much shorter period of time.

Wanting to grow a small account until it becomes big is like wanting to trek from Lagos to Abuja.

djwalata:

Very possible to turn small account to big one.
I actually started with 500 cents account (5$) which I actually profited to 10,000+ cents(~100$)
after about 5months b4 I internally transferred it to my dollar account.

djwalata:

Very possible to turn small account to big one.
I actually started with 500 cents account (5$) which I actually profited to 10,000+ cents(~100$)
after about 5months b4 I internally transferred it to my dollar account.

Theyoungmaster:



Asides the low risk involved , are there any other perks associated with trading cent account?

djwalata:

Very possible to turn small account to big one.
I actually started with 500 cents account (5$) which I actually profited to 10,000+ cents(~100$)
after about 5months b4 I internally transferred it to my dollar account.

Crixxx:


Jeez. Shock me... You must have had mad skills and never lost a trade

djwalata:

Even d best of d bests traders do ve negative trades but I made an average of 70-120cents almost everyday then.
I started trading since 2010( live) but losses throughout till around 2017 when I started following Justin Bennett, I stay glue with his principles, daily tf almost all d time. He teaches with ease.
I gain a lot from him.

djwalata:

Even d best of d bests traders do ve negative trades but I made an average of 70-120cents almost everyday then.
I started trading since 2010( live) but losses throughout till around 2017 when I started following Justin Bennett, I stay glue with his principles, daily tf almost all d time. He teaches with ease.
I gain a lot from him.

Pipsbasketings:
Just now, I closed my basket - all pairs; no one pair running atm. stat attached (I blurred all $ values, not necessary).

This basket gave me very good $$$, I called most of the trades here, so don't let the $$$ bother you - reason they are blurred, what matters most is the trade accuracies and what you are able to learn from the analysis/outlooks.

As always, I will be off-market for another few days; thus, will not be making calls during these periods. If anything changes, I will come here and neglect my stand. If you like me to have a second look at your outlook, tag me, I will check for you and state my own outlook (I may be wrong).

Bye for now.

djwalata:

Even d best of d bests traders do ve negative trades but I made an average of 70-120cents almost everyday then.
I started trading since 2010( live) but losses throughout till around 2017 when I started following Justin Bennett, I stay glue with his principles, daily tf almost all d time. He teaches with ease.
I gain a lot from him.

highcurrent:
Justin Bennett, the guy is a maestro and always keep it simple.

IMAliyu:

Does he have a free YouTube channel or a paid course?