How is Forex market different from the Stock Market in terms of technicals?

kkeskar92 · #21 31st July 2007, 09:24 PM

Hi Glamsham,
Thanks for your comments about the thread. Can u elaborate about your trading straegies and your forex broker? We would like to know nore from you.---KK

Parv · #22 3rd August 2007, 09:57 PM

One more important difference in Stock market and Forex market i think is: most of the players in Forex will be knowledgeable guys, where as in Stock market lot of ignorant people are players.

Am i right?

Regards
Parv

glamsham · #23 4th August 2007, 09:02 PM

Quote:

Originally Posted by kkeskar92

Hi Glamsham,
Thanks for your comments about the thread. Can u elaborate about your trading straegies and your forex broker? We would like to know nore from you.---KK

I am a Fundamental Trader who uses Technical Analysis for timing.

Using FA, i decide that which pairs should trend and in which direction. With TA, if I see that pairs are going in my expected direction of FA, I trade.

I trade directly in the Interbank Market. I know that Indian's cant trade forex legally, if they already dont have money overseas before 12-Apr-07. That's when the RBI legislation banned it.

glamsham · #24 4th August 2007, 09:05 PM

Quote:

Originally Posted by Parv

One more important difference in Stock market and Forex market i think is: most of the players in Forex will be knowledgeable guys, where as in Stock market lot of ignorant people are players.

Am i right?

Regards
Parv

Parv....

Unforunately you are wrong!

There are too many fools globally who trade forex, without any knowledge of Fundamentals of the market.

However, one thing is sure.....Forex Traders are more open minded and are "Global Looking".

Shantanu005 · #25 6th August 2007, 06:24 PM

Quote:

Originally Posted by glamsham

I am a Fundamental Trader who uses Technical Analysis for timing.

Using FA, i decide that which pairs should trend and in which direction. With TA, if I see that pairs are going in my expected direction of FA, I trade.

I trade directly in the Interbank Market. I know that Indian's cant trade forex legally, if they already dont have money overseas before 12-Apr-07. That's when the RBI legislation banned it.

Hello Glamsham,

I'm a newbie into the Fx world and wud like to ask you a few doubts which I don't know where to clear up and I'm looking forward to you for help as you are quiet an 'expert hand' in this market.

#> Well, Plz don't mind, .. to be frank, FA gives me heebie-jeebies, is it compulsory to learn about FA before starting to trade smoothly and survive in the market? I mean I'm comfortable with TA, what do you say?

#> I've heard traders use multiple timeframes - a long term, a medium and lastly the favourite timeframe.
Well, I don't understand why they use that 'medium term' timeframe. Cud you plz explain?

Thank you

amarnath · #26 6th August 2007, 07:33 PM

Quote:

Originally Posted by RSI

I have not traded in forex until now. But from what I have read and understood, it is a totally different ballgame. T. A. can be similar, but what about quotes? What about placing of orders and execution of them etc.? These are also of utmost importantace. Please note, there is no centralised exchange (such as BSE and NSE) for forex. Quotes are supplied by brokers. All T. A. can go wrong if the quotes are not supplied in real time and orders are not placed and executed in real time. Only that much I can answer now. Take care before you jump in to forex trading.
Thanks and regards
R. S. Iyer

yes its OTC market but almost all retail forex brokers even the most smallest and undercapitalised one have own trading platform and real time quotes, chart and news feeds and if you are trading based on web chat based quote system or other cases then i am sure they are not broker but a good bucketshop.

And in general forex refers to OTC markets but if you like bit more secure to trade forex then one can try IMM forex futures or DXGC based forex futures or can trade broker with real interback access to offer min liquidity of 5 million $ per click on their online platform

amarnath · #27 6th August 2007, 07:37 PM

Quote:

Originally Posted by Shantanu005

Hello Glamsham,

I'm a newbie into the Fx world and wud like to ask you a few doubts which I don't know where to clear up and I'm looking forward to you for help as you are quiet an 'expert hand' in this market.

#> Well, Plz don't mind, .. to be frank, FA gives me heebie-jeebies, is it compulsory to learn about FA before starting to trade smoothly and survive in the market? I mean I'm comfortable with TA, what do you say?

#> I've heard traders use multiple timeframes - a long term, a medium and lastly the favourite timeframe.
Well, I don't understand why they use that 'medium term' timeframe. Cud you plz explain?

Thank you

yes but it highly depend on way or style of trader say for eg if one use mech trading system with 100 % coded rules then nothing is really required rather than mech execution and executibility and if trader use any strategy with even discertion involved then ans is yes knowleadge of FA is essential to understand market sentiments which drives mkt rather than just FA Or TA.

Selection of timeframe highly depends on profit objectives and position managment

amarnath · #28 6th August 2007, 07:41 PM

Quote:

Originally Posted by glamsham

Parv....

Unforunately you are wrong!

There are too many fools globally who trade forex, without any knowledge of Fundamentals of the market.

However, one thing is sure.....Forex Traders are more open minded and are "Global Looking".

In one aspects its true and in another aspects its not say to a system trader FA doesnt mean any thing at all and one cant invest in forex like investors does in stock ( This applies to retails trader not institutional and CBs were they have deep pocket even to intervene mkt when required )

amarnath · #29 6th August 2007, 07:54 PM

Quote:

Originally Posted by kkeskar92

I have been trading forex mini-accounts since last 1 year and it is entirely different from stock market.
1. 95% traders lose money in forex and I am among them

Not 95 % in forex in general almost in any speculative instruments this is same

2.if you take long/ short position in one currency, you have to take opposite position in another currency

yes same like stock if your buying one thing and selling others say in stock buying stocks and selling your rupees

3. it is affected greatly by fundamentals of two countries of the pair and also by other countries economies

yes

4.market is sleeping or not moving most of the times and is extremely volatile during major news events

yes liquidity and volume is at peak during any 1st tier economic data release or events

5. brokers trigger the stop-losses and do not allow to trade during news time

Small and retails broker behaves so if you trade directly at interbank you dont have to face this kinda problem but you might need min of 100$ acct to trade with interbank access

And its not brokers trigger the stp loss but you bad position aganist the mkt direction is likely and u can trade during news hrs if ready to face risk of slippage

6. technicals do not work in forex

Depends on how and who use it

if my 2 yr old kid use my system and ta tools sure he cant win

7.pivot points work since it trades range of the day, but not reliable during news times

Pivot point is just one of techincal tools, pls try to learn more before you proceed further ( Knowleadge without expression is waste of time but expression without knowleadge is dangerous )

8.most of the volume is not speculative

onee cant know true volume information on forex

The book that gives realistic picture of forex marke is ' bird watching in lion country' by Dirk Dutoit.

Its not realistic but its just that book authors preception about this markets

This is the link that gives some idea about how forex market works.

http://www.forexbastards.com/public/...trading_system

[/color]

If you have further questions feel free to ask

amarnath · #30 6th August 2007, 07:56 PM

Quote:

Originally Posted by glamsham

I guess, no one here has ever traded Forex.

I have been trading in Forex throught my life based on Fundamental Analysis and Technical Analysis in Forex. I have even traded USD-DEM (USD/German Mark) before the launch of the EURO. Even traded the USD-JPY in the carry meltdown in 1998.

First of all...The differences in terms of Technicals....

1) Forex are a 24 Hour Market, therefore you dont have gaps or any thing like that.

2) 90% of the forex market is OTC (Over the counter) and hence there are NO Volumes reading or anything to rely on.

3) Differently to the common perception, Forex are the least volatile market globally. The currencies hardly move more than 1% in any session while for stocks or commodities, these would be boring moves.

4) Different pairs move at different times, like the Australian Dollar would move in Morning Sydney sessions and the US Sessions. While, the GBP would move in London timings and US Timings.

5) For Intraday Traders, Forex Markets are brutal, as stops are taken out heartlessly.

6) In Intraday sessions, you would NOT have sustained buying or selling. Instead, you would have sharp upmoves and downmoves based on Economic data releases.

If markets are near one extreme of one range and the common perception is that market would be going for stops, above the market, then prepare to be shocked. Markets would be doing the opposite.

7) Trend lines are very very often broken, stops eaten and then back again above that.

I would NOT like to discuss the Fundamental Aspects here.

Sorry i am here trading same last 7.5 yrs

Similar Threads for: How is Forex market different from the Stock Market in terms of technicals?
Thread	Thread Starter	Forum	Replies	Last Post
An anatomy of the Stock Market! - Bull & Bear Market Cycles	Traderji	Trading Psychology	57	6th July 2008 02:32 PM
Market Matrix: Current events affecting Indian Stock Market	birdinfo	General Trading & Investing Chat	2	23rd August 2007 09:58 AM
The Forex Market - What, When and Why?	TATrader	Forex	8	13th December 2006 04:35 PM
Stock market terms	siva73	Beginners Guide	1	16th November 2006 06:11 PM
Stock Market terms	vivekshankar	Introductions	0	7th May 2006 02:36 AM