iheanyiebeneze: Your question is two and i have two answer to it, Question 1. Is it possible to make a living from Forex trading, Question 2. Leaving any other manual work for Forex trading. Answer 1. Yes its possible to making a living from Forex trading. Answer 2. DO NOT leave your manual work, In this technological age, you can combine your manual work with your laptop or phone work. Just make Forex trading your ALTERNATIVE source of income. Reason, if you make Forex trading your only source of income, there is 98% probability that you will trade with EMOTION , GREED, and ATTACHED EXPECTATION. These trio usually leads to losses upon losses. Be wise, visiting your laptop or android phone three times a day, can still fetch you 10% of your equity per day or per week or per month.
Good evening my Bosses in the house, Kindly help me out on a decision I am about to make. I am planning to open a real FX account of $1500 with XM in the next 1 week. I need your experiences in line with choosing a good broker or may be my decision to go for XM as a broker is wrong?
I will also appreciate ur full and candid but bitter and pure truth on money management, trade entry, trade setups and so on.
No one likes to spoil a party like a central banker …
Last week, the Swiss National Bank scrapped the euro cap on the Franc.
It was the biggest move I’ve ever seen on a currency.
So why do they scrap the cap that has run for over three years?
It was just becoming far too expensive to keep on buying Euros against the Swiss Franc. The Swiss balance sheet was becoming far too large in relation to the economy. Also, this week Thursday(tomorrow), the ECB is expected to do what they said they would do and actually start their own version of QE, massive bond buying.
If it does actually happen, the Euro is likely to move much lower and that would have caused the artificial Swiss cap to buckle under. But the markets don't like the unexpected and, as a consequence, at least one retail broker has ceased trading and the fall out will badly impact many funds with exposure to the EURCHF exchange rate.
With markets this jittery, we want to ensure that we’re only risking our money on the very best trade opportunities … the ones with the best chance of making us a good return.
1. Timing
The best timing for your trade will depend on what strategy you’re using. It could be a morning breakout strategy, best used between 6 and 9am … it could be an overnight range-bound strategy, best used between 10pm and 3am …
What matters is that the time you’re trading is matched to the action you’re hoping to take advantage of in the markets.
There’s also timeframe to think about.
If your strategy has been built around trading around a 1-hour charting signal, but you find the same signal flagged up on a 30-minute chart – it’s not automatically transferrable. You’ll need to consider the kind of market movements you can expect within the timeframe – asking for too big a move is a sure way to stop the success of your trade.
2. At least two indicators colliding
If you’re using technical analysis to enter a trade, you’ll want to select these carefully.
While some traders have a dozen indicators on their charts, other will use just one. The happy medium would be to look for two or three well-matched indicators …
… the first triggers a signal, the second and third are used to confirm that signal.
I’m going to take a look over the coming weeks at how best to combine indicators, but we should be aware that some ‘suit’ each other better than others. Many different indicators are built out of what’s essentially the same data – like moving averages, or the size of candlesticks – so we want to use two indicators that are looking at price data from different angles.
While it’s frustrating if your indicators are constantly giving you mixed messages and telling you to sit out when you’re eager to get trading … if they are constantly in agreement, you should probably be more concerned, as they are probably just duplicating each other.
Your second and third level of confirmation is there to filter out signals that aren’t up to scratch – if they’re not filtering, then they’re not doing their job properly.
3. Daily ranges behaving
Markets don’t always behave how we want them to, and, like the most willful of children – one minute they’ll be throwing toys … the next they’ll be angelically asleep …
Understanding the expected movement in the market you’re trading, over the period you’re trading it, is vital.
If your trade is looking for a move of 100 points, on an hourly chart, and the price hasn’t moved more than 50 points a day for the past week … you’re going to struggle to see those returns. Chances are that something will come along to negate your trade before it’s had a chance to come good.
4. Key levels working on your side
In the heady moment of entering a trade, it’s easy to forget to check key levels that might block our trade from winning.
If your profit target involves the price breaching a level of resistance or breaking through a big round number … you’re not helping yourself having a successful trade.
It’s worth remembering that round number are both hard to break through … but also have a magnetic pull on prices – prices are often pulled very close to them, so be wary of this when placing stops too.
Of course, we can always move our profit targets and stop levels to fit around key levels … but this, again, can cause problems, if we’re mucking about with our risk-reward levels.
Is the new profit target is still ‘worth’ the risk you’re taking?
5. No news to spoil it
As last week Thursday 15th January showed perfectly … nothing spoils the best-made plans more than a Central Bank.
Of course, we can’t predict what bankers will announce, or what effect that will have on the market (it’s often the opposite of what we might expect). But we can make ourselves aware of scheduled announcements.
Forexfactory.com lists all the economic announcements happening each week, and the markets they are likely to effect. The main events to watch out for are Non-Farm Payrolls on the first Friday of every month.
6. Your mindset is right
The perfect mindset for trading is unemotional and detached. This allows us to make our decisions objectively.
Of course, we’re not robots, and the taking of any kind of financial risk (however carefully planned) has strange effects on our brains.
People place trades for all kinds of reasons …
… because they’re bored … because they’re angry … because they feel they’re owed a winner … because it ‘feels right’ …
Ask yourself …
Am I making this trade because it’s a sensible trade, or because I want to?
So, if this final planet comes into alignment with the other 5, you have your perfect trade set-up.
Of course, even perfect trade setups can lose, so – whatever the outcome – we must be prepared to pick ourselves up, and prepare for the next perfect trade setup. Thanks, Till next time. Hit my SIGNATURE If this helped you.
bukky1: Good morning guys. Are u aware pf this site www.forexpeacearmy.com? Been watching dem for sometime now, seems like a good site for pipers. Lol. Anyone with similar sites should pls post here.
help Yes, FPA shorten for Forex Peace Army is good and I am a member since 2010. The forum was created to help FX guys around the globe.
The site also help settle some rift btw clients and brokers on FX and without any commission charges.
You can also found out whether ur broker is real or scam on the site 2ru the Brokers Alert menu on the site.
Know this; As a retail trader, your job is not to know the why or how price moves. Your job is to observe and exploit a particular pattern on your chart which occurs consistently or occasionally, using very responsible money management techniques. Listening to news is tantamount to predicting/analyzing price. You don't need all that. You'll only get hyped and worked up for nothing. Think about it. You know price regularly bounces at a particular support or resistance point. So, let's say your strategy is to buy or sell at those points, what has news got to do with it? The only way to make money with that hypothetical strategy or any strategy for that matter, is to continue pulling the trigger whenever the strategy's tested parameters are met. CONSISTENTLY. Regardless of news, price will always do what it wants to do. Just follow it. 'nuff said.
God bless u oga 12ema... Every point u mentioned about being a Price action trader was from experience and I can be bold to say that U and other gurus in the aos have blessed me so much.. With your support and open spirit on this thread I now see FX from new dimension... Pls do more to help us up coming retail traders
God bless 12ema, Naija babe, Owliver, stagger and several other bosses on this fx thread
@ 12ema thank you and God PIP bless u... I am alway blessed with ur posts Now I know y i burnt my accounts..Hope the 2015 will bring me back on track as I am planning to go real
I hope the newbies survived the market this week. If you followed the money management rules I laid out in previous posts then you should be fine. I just checked the posts since last weekend and i was amazed at some of the things i read. This over emphasis on strategies is a cancer to the growth of most traders financial success. Don't get me wrong, strategies are important, but it is just a miniscule part of trading. It is same as saying that because you have a bachelors degree you will successful in life. No, there is more to it than that; your ability to relate with other people, your confidence, adaptability, presentability, and sometimes luck will depend whether you will be successful in life. Same with strategies. I can trade any strategy. It doesn't matter what it is, as long as the strategy has a proven statistical winning percentage then it can be traded for profit. In fact, the lower the winning percentage the better. This will keep you humble enough to mitigate your risks. The higher the winning percentage the more cocky you become. The only enemy to trading is time. Everybody want's profit right now that is why i never look at monthly/quarterly returns.
Anyway, I digress. This is the first part of my discussion this weekend, more should follow tomorrow. I intend to talk today, about the importance of trading journals and the effect it has on your trading. Not having one is like going to school and not having a documented parameter for assessing your progress. A visual representation of your trading is as important as money management. In fact it is the bedrock of money management. You need to see how your money is performing. Checking your balance on your MT4 platform is not the same thing. You need to know how your drawdown, up/down percentage, the ramp on your graph, change in percentage of each trade, to let you know where you stand. I presume you have a bank account, and i presume you check it consistently, well it is the same thing with trading. I modified a trading journal i downloaded online and i sent it to a couple of people i was mentoring last year. One of them sent me the attachment below. Although he was very aggressive in his risks, but at least he got everything else right. This is how you should be looking at your total trading concept.
Oga no b hdey fail for exam,say u no pass no mean others no pass too.for the fact that you compared forex to football betting,makes it pretty obvious you never understood it b4 trading.goodluck
I'm sorry, just seeing your post. You must have opened your position on Dow futures which only trades during NY session. Look for US30 Cash, that one is open all the time and won't hang like the futures.
Owliver: ^^^ Moderator puskin, FOD, naijacutee and seun pls sexaddict is derailing the thread. Help us delete his post and give him his deserved ban. If he wants to discuss that he should open a thread for that... Nobody should reply him again
Boss Taiwoakin, in reference to your submission, I lilke to share my technique of[b] BUY LIMIT / SELL LIMIT MARKET ENTRY STRATEGY[/b]
If u are a newbee and new to forex, this thread may need some clarification from experts before u start its application. For the experts, I am not a know all, in fact I av been learning a lot from this forum. Since I av been following this thread on NL, my focus as a trader has improved tremendously having burnt 2 real accounts in the past...
One of those lessons I av learnt is GREED KILLS: The last account that got burn was as a result of GREED.
I was doing wll on the market that day and i told myself since uv set ur TP and SL dont close the profit now may be u can make more PIPS. So I left instead of taken d 75 pips and walk away no i didnt. I went away deceiving myself of more equity whenever I returned...
Alas! When I returned, the market had already gone again me and d platform did not obey the SL so my account got burnt: GREED wanted to get rich quick can kill ur dream as a trader learn ds...I av learnt my lesson
NOW THE STRATEGY 1. spot a long trending candle in the market 2. place a pending order at around 75% lower than the current price 3. set ur TP and SL 4. Wait or walk away from ur screen
This is the strategy used by some of the big pros in FX revealed by Nial Fulia
I wish to learn more from my Ogas in the house as I said....I am learning from you guys
More PIPs to ur account
taiwoakin: lets all try to make this thread worth it by making only educative and enlightening posts posts such as "am selling gold" does not add any value because this thread is not a trade journal, rather you should tell us why and at what price posts such as FX is sweet does not add any value, because trading is a serious business and portraying it as an easy means of income would only serve to encourage reckless risk taking. Posts should be more directed towards market analysis and trading systems rather than posting trade entries and exits because you cant possibly follow all of a persons trades by just waiting for their nairaland posts, but you can learn a whole lot by learning about their strategy and how they currently view the movement of a particular pair of currency
At the end of the day, a new trader who comes in can read several pages of insightful forex knowledge rather than pages of "I love forex" , i made 100 pips today, etc.
@ Oga 12ema, thanks for sharing and the opportunity for someone like me to tap into your experience and pool of knowledg..God bless u real PIP come 2015. Please upload the excel sheet nah...
Sir, All I know in fx are as listed below 1. Fundamental trading 2. Technical trading 3. Got 2 real accounts burnt in 2 years each of 600 USD deposit 4. Now demo trading with profitable account 5. All I need is your money management skill and trade placing experience 6. Planning to go live again come 2015 with the main aim to setting fx as main source 7. Thank your boss
Some basic questions to ask yourself before u start trading everyday is this(that's if ur an intra day trader like me).
1. What is my daily risk allocation(DRA) for today? : This refers to how many pips loss you are ready to take for that day. Like poker game you must bring something to the table daily and if you exhaust it you close trading for the day.
2. What % exposure do i want my account to have based on the DRA and what is the dollar value. If for example you want 10% exposure and ur DRA is 100 pips on a $1000 equity then the dollar value is $100.
3.What will be my average stoploss per trade? This is self explanatory.
4. Using a Pip to a dollar as a basis of calculation and based on my stoploss how many trades will my DRA allow me to hold at once? To get this divide ur DRA by ur stoploss. If ur average stoploss per trade is 25 pips per trade that means u can hold 4 different positions on different pairs at once and still trade within ur DRA or risk ceiling. If ur average stoploss is 50 pips per trade that means you can only hold two trades.
5.Will my profits(pips) in the course of today's trading be acceded to today's DRA? Your prerogative. I personally suggest it not be. Sick to ur plan until the end of the trading day. (my trading say starts by 6am and ends by 4pm, urs may differ.
So in summary a good day is when you come out to trade and close the day greater than ur starting DRA. It could be double, triple of ur initial DRA.
I hope this is comprehensive enough? My 2 cents. All these calculations shouldn't take 5 minutes.
Omo, that is why many are stuck in the same mentality that will never make them succeed in this business. I did not grow my account in months, it took three years to get to where it is today. It was not easy nor was it fun. But i did away with the old ways where emphasis is on strategies and not managing money. Where risk elimination is a strange word. That is why i said get another source of income to compensate. When you depend on 10k account for subsistence, you put unnecessary pressure on yourself and the account. You don't have to start with a large account. You can start with as little as 2k and in 4 years have over 100k. This takes patience, compounding and money management. 3 to 4 years is not long. Before you know it, it's already here. Well, all i can do is show the new trader's what worked for me and how to reach true financial liberation. Not monthly 300 dollar withdrawals. That is not true financial liberation.
Quick question; you believe in compounding your profits right? That is what all great traders do and say. And you must agree it takes a long time to feel the effects of compounding. So, how do you effectively compound profits when you keep withdrawing from it?
Mr. Sojmann, I appreciate ur openess and free mindset that reflect in all ur posts I av followed with interest. Please how can i meet u in person..I.am a newbee in FX mart. My email add is
Hello House, I appreciate the good work going on in ds forum. Please I need ur support on my FX career. I used Lite forex and have burnt my account 2ce so I am being careful to go in again. Yet, I understand several Nigerians are living on fx. Please help me with ur winning strategies. Please help me out.
Business / Re: Forex Trading - Season 15 by adeniyia33(m): 6:33pm On Mar 07, 2015 