Forex from scratch --a helping hand from pipshower...

[shekharinvest]

Thank you shekhar for being here .
YES i do understand that i need to post step by step and i am and will be doing that as i still remember days when i was just starting out as newbie searching a place to learn from scratch . I will be going step by step keep on reading from start and try to get on demo acct and learn how to use it side by side. Never give up ..You will struck a gold mine sonner or later.!

Regards
Pipshower

Thanks Pipshower

looking forward to your posts. have opened demo account with metaquote as suggested.

please suggest how to intiate trade (what all should be taken into account to take position).

hope not jumping the gun.


thanks

shekhar

 

[mark_sas30]

Dear pip,

not because of any specific reason, its just that technicals are the same , to learn new things, if i get liking for it it may be even better than stocks.
i have heard a lot about forex, especially most of the wealth created by George Soros was through forex, more so i was thinking between commodities and forex.
i didnt find any gd volumes of trading in indian commod much.

 

[shekharinvest]

where is the master ???
hope he resume his teachings soon !!!

shekhar

 

[pipshower]

Thanks Pipshower

looking forward to your posts. have opened demo account with metaquote as suggested.

please suggest how to intiate trade (what all should be taken into account to take position).

hope not jumping the gun.


thanks

shekhar

where is the master ???
hope he resume his teachings soon !!!

shekhar

Hello Shekhar ,
Was busy with some important work . Good that got back to see my trades triggered and hit target as FOMC decision came out and my trades based on weekly triggered locked in profit and let the others run.

OH..PLease dont call me master . I am just a small trader pulling out profits on consistent basis .

Your question : How to initiate a trade?

Answer: What does this mean? Do you mean trading method or do you mean you dont understand how to open a trade?

If you are talking about trading method i would suggest you to use and test the method you have using long with stocks . [EXCEPT VOLUME -VOLUME IS UNRELIABLE IN FOREX SINCE THERE IS NO CENTRAL EXCHANGE TO UNDERSTAND THE BUYERS AND SELLERS VOLUME AT ANY GIVEN POINT OF TIME]

Test the methods you feel suitable are . Keep a diary for the trades you take with reason why you took trade and money management based position size used in addition also keep record of time of trade .Then in follow up outcome of trade . Whether target hit or Stop loss was hit? Why? Kepp this in your diary as a record you will find it useful when you summarise your method for the benefit of yours either weekly or monthly. A very helpful tool to succeed.
Never forget money management!

 

[pipshower]

Thanks Pipshower

looking forward to your posts. have opened demo account with metaquote as suggested.

please suggest how to intiate trade (what all should be taken into account to take position).

hope not jumping the gun.


thanks

shekhar

where is the master ???
hope he resume his teachings soon !!!

shekhar

Now if you mean that you dont understand working of metatrader
I will help you how to get started.
Open your MT4 platform
In the first toolbar at end you have an option "Help" click on it .
Then click on "Help Topics" and read it search for what you want . How to enter trade, how to modify it , how to put trailing stop etc...
Here is it in screenshot for you to get by what i mean..

 

[pipshower]

Trading plan...

Before we proceed forward let me ask you a question , rather very important one .

"Do you have a trading plan?"

If your answer is yes , then give an outline of your plan.

If your answer is no, then give me a reason why you dont have one.


I will proceed with the answer and explaination after i see some replies!

So who gonna be the first one to answer?

 

[shekharinvest]

pipshower

how to initiate trade ? what i wished to know is the trading plan i.e. what buy/sell setup are we looking for and on what time frame. i undestand you have suggested 4hr and above time frame for trading.

presently what i am using for stock trading is as per saint's 60min flow i.e. buying above the high of previous pivot high and placing stop loss at previous pivot low on 60 min time frame and trailing the stop loss to new pivot low as the new higher pivot low is formed and the position is kept open so long as it moves your way no profit target are set and after sl is hit we reverse the postion so we are always in the trade, there is no reliance on indicators.

now the problem is, currency market is 24hrs market and one cannot be expected to be on the terminal round the clock.

what i have requested is the trading plans
i)which does not require continuous monioring if we take a long term veiw ( i.e two three days trade to a weeks time)
ii)if we day trade the forex say for 6 to 8 hrs (as you have suggested maximum volatility is between 8gmt to 22gmt)


i think i will be able to handle MT4 with little practice.

thanks

shekhar

 

[ag_fx]

Re: Trading plan...

Before we proceed forward let me ask you a question , rather very important one .

"Do you have a trading plan?"

If your answer is yes , then give an outline of your plan.

If your answer is no, then give me a reason why you dont have one.


I will proceed with the answer and explaination after i see some replies!

So who gonna be the first one to answer?

OK....so I will answer this....I would not say I have a trading plan, as I am still in the process of formulating one for myself. I do have some trading methodology.
I m basically a scalper on my demo account. I wouldnt say I have been real successful in doing it, but I am still trying my best.
I use a set up of Bollinger Bands & RSI(14) to enter my trades. I use primarily EURUSD & USDJPY pairs and trade on 1 minute time frame. I use a high leverage of 1:400 and my TPs are generally 3-4 pips & SLs generally in tune of 10 pips.(Yes thats a reverse risk:reward ratio, but thats how it works with scalping because you pay the spread too). Like any other scalper, you need to spend a lot of time in front of the screen & undertake a lot of trades to make this work.

I am looking for a better method than scalping in which you dont have to spend the whole day in front of the screen to trade.

Looking forward to your methods pipshower

Ankit

 

[pipshower]

Re: Trading plan...

pipshower

how to initiate trade ? what i wished to know is the trading plan i.e. what buy/sell setup are we looking for and on what time frame. i undestand you have suggested 4hr and above time frame for trading.

presently what i am using for stock trading is as per saint's 60min flow i.e. buying above the high of previous pivot high and placing stop loss at previous pivot low on 60 min time frame and trailing the stop loss to new pivot low as the new higher pivot low is formed and the position is kept open so long as it moves your way no profit target are set and after sl is hit we reverse the postion so we are always in the trade, there is no reliance on indicators.

now the problem is, currency market is 24hrs market and one cannot be expected to be on the terminal round the clock.

what i have requested is the trading plans
i)which does not require continuous monioring if we take a long term veiw ( i.e two three days trade to a weeks time)
ii)if we day trade the forex say for 6 to 8 hrs (as you have suggested maximum volatility is between 8gmt to 22gmt)


i think i will be able to handle MT4 with little practice.

thanks

shekhar

OK....so I will answer this....I would not say I have a trading plan, as I am still in the process of formulating one for myself. I do have some trading methodology.
I m basically a scalper on my demo account. I wouldnt say I have been real successful in doing it, but I am still trying my best.
I use a set up of Bollinger Bands & RSI(14) to enter my trades. I use primarily EURUSD & USDJPY pairs and trade on 1 minute time frame. I use a high leverage of 1:400 and my TPs are generally 3-4 pips & SLs generally in tune of 10 pips.(Yes thats a reverse risk:reward ratio, but thats how it works with scalping because you pay the spread too). Like any other scalper, you need to spend a lot of time in front of the screen & undertake a lot of trades to make this work.

I am looking for a better method than scalping in which you dont have to spend the whole day in front of the screen to trade.

Looking forward to your methods pipshower

Ankit

This post is for both of you and many more having similar question in mind.
But let me be remind you as i have mentioned before you trade any established method you will succeed only when you learn to choose the best setups with your method.
Yes choose the best ones .
With the trading method you have you will get multiple setups in a day or say a week , but have you studied them in detail why certain setups are the best and they fare always than some other setups?

To Ankit,
you have a scalping method as you say you choose 1 min timeframe which will take hell out of you since there would be very quick movements on such a small timeframe. Now i would advice you to scalp the higher timeframes go to weekly and daily and use your set up there it will change your TP and SL in few multiples say TP 100 to 300 pips and SL 100 TO 300 PIPS.
JUST ITS MATTER OF CHANGING TIMEFRAME. TRY this out!
And then come back and post your experience here.
Consider this as a task fro this week!

Regards
Pipshower

 

[ag_fx]

Re: Trading plan...

To Ankit,
you have a scalping method as you say you choose 1 min timeframe which will take hell out of you since there would be very quick movements on such a small timeframe. Now i would advice you to scalp the higher timeframes go to weekly and daily and use your set up there it will change your TP and SL in few multiples say TP 100 to 300 pips and SL 100 TO 300 PIPS.
JUST ITS MATTER OF CHANGING TIMEFRAME. TRY this out!
And then come back and post your experience here.
Consider this as a task fro this week!

Regards
Pipshower

Scalping on daily charts??? Well...that sounded weird to me...That would probably not be scalping then...But anyways....Here's what I think could be a problem with this...

1) I would not know when to enter the trade...Rather, I will have to wait in front of the screen for the whole day when my RSI is looking to show a signal. For example, if RSI is close to 68-70, i will have to wait and monitor the complete days movement to enter the trade.

2)The time of holding the position would go up...It may range from one day to 7 days as we will be using daily charts. With the kind of volatility in the market, I am not too sure whether I can handle this in my account. Also, for holding positions overnight, swaps would be required, which at times cost a lot.

I am thinking of trying scalping with 5 min TF or 15 min TF.....with my TPs n SLs moving closer to 20-30 pips....But i really doubt that my strategy of scalping wud work for Daily chart. And I am equally sure that some wondderful strats do exist for trading dailies....

What about u pipshower? Wats ur strat?

Ankit