Thread: New to Forex: Need Advice

Hello fellow traders,

I have been trading Currency Market for about 5 weeks now. I started off with 1000 and wiped out my account within a month. Than I thought to myself maybe its not that simple. So I got a Couple of books ie, Trading in the Zone and Technical Analysis of the Futures Markets (1/3 finished) and examine them. They seemed to help alot especially Trading in the Zone. The next time that I opened a second account with $300 capital and that I managed to always put together winning trades and push my capital upto 5000. Regrettably, I had a few brief positions on the euro/usd and the recent hike in euro nearly wiped me out again. So basically what I am asking of experienced traders is to give me some advice on where I could get more knowledge with respect to money management and etc. and systems. I continually read all of the forum posts, but I do not know majority of the phrases like MACD, EMA, FIBO and etc.. I know these are systems, but how can a novice trader like me go about getting the basic information about building and analyzing systems? I'm dedied to becoming a consistent profitable trader and believed I'd achieved it through putting together over a couple of winning trades a day (mini lots). I had no particular system, I basically trade using the news and between resistance and service levels. If anyone can think of any books which will place the foundation for me please allow me to know. I love any sort of reaction and hopefully one day I will be making contributions to those forums to help gain other Currency Market traders!!!

Bravo, .

I concur, experience is a few one teacher in trading (really in whatever you do). This man here's a good fundamentalist, and he likes to make fundamental 'address' and also help people within this forum lol.
I'm very technical, so I don't like to talk alot.
Just remember, utilize whatever method/system that's suited for you to increase and stabilize your own profits. Method isn't important, making pips IS important.

PS I'm still a newbie in Currency Market too. Many good traders here inforexforum.co.zaare willing to help. Use this opportunity!

Never exchange a position size that will make your account, or make. Why, since if it can make it, then it can break it too. In case your wins are controlled, then your losses are also controlled. You should trade small earn the right to exchange bigger lots. But scale SLOWLY up , or emotions will kill you. It's 1 thing to become always profitable on a few bucks that you feel aren't any big deal, but quite another to stick to that exact same profitable plan when you abruptly jump your place size by 4 days or 10 times. It will kill your objectivity you're very likely to throw your profitable plan out the window, then end up losing. I believe this doctrine is covered in Trading In The Zone - from the way I loved that book also. Emotion Free Trading is also recommended by me. He is a Futures trader, but the exact same applies he overly subscribes to many of Mark Douglas's philosophies. He urges P Cybernetics. This is not a trading book, but a novel about how your mind works how to operate your mind. Be open to changing your mind to new ways of thinking. If you did not have to change your mind then you'd already be in Market. Another book, by the way I recommend.

Here's what I will advice you, whatever it is worth (I am roughly at Cesarnc's point, getting profitable after a year's work).
1) Listen to what Cesarnc told me, I subscribe to every word. Notably the micro account thing. Trading minis with $300 will divert you account with 100% certainty. Look for micro at FF, you'll know, why.
2) There are lots of stuff on technical analysis available here and on the internet in general. Get acquainted at least with these terms that are observed most frequently (such as Support/Resistence, Moving Averages, Fibonacci, MACD, etc.). You will not utilize them, but great to know.
3) Read the James16 thread in the Trading systems section here, you can discover a lot.
4) Google money direction or search for it here at FF. This is the most essential part.
5) Browse through a few popular trading platform threads in the Trading systems forum here (such as Sidus, bagovino, Vegas, Fozzy). Select one that you know and have a hot gut feeling towards. Read all the posts, make certain you know, how it works and why.
6) Go to historic charts, start, say, in September 2006, and paper trade the system until now - look, where could you open a position, exactly what SL would you use, exactly what TP, just how big would a position be, would you win or lose. Try not to cheat yourself, however, only mechanically implement exactly what the machine tells you. Document every transaction in an Excel spreadsheet, and view, how are you doing in the most important thing.
7) If the most important thing is positive - start putting 0.01 (micro) orders and take action for one-two months. If your account grows - create the trades slightly larger, until completely convinced. Then start implementing what you have learnt regarding money management (MM) if you determine concerning the position dimensions.
8) DON'T PLACE A SINGLE TRADE THAT YOU CANNOT SAY EXACTLY, HOW MUCH DO YOU RISK AND WHY, HOW MUCH DO YOU WANT TO GAIN AND WHY, AND WHAT ARE THE PROBABILITIES OF LOSING AND OF GAINING.
9) Keep smiling.
10) I know from my own (past and current) experience these advices are significantly easier to give than to execute, but it's worth trying.

GOOD LUCK!!

First off I want to thank everybody for being so helpful. Unfortunately, nowadays it's a challenge to find people that actually want to help others. Hopefully one day I can return the favor for all of you. I have taken all of your information into account and have been studying pretty much anything that comes my way in the forums. I'm starting to learn a bit. However, on the technical side of trading I still need more help. Is there a book I can get to read up on all of the vocabulary and etc.? I understand the simple resistance and service and etc.. .but when fibo, ema, and trading methods come into play. . .im pretty much clueless...I really like the feedback and if it isn't asking much KEEP THEM COMING! Not only will I gain from it. . .newbies like me may read this thread and also have most of their questions answered as well...I wish to see this thread hit 200 pages lol!!!

THANKS AGAIN EVERYONE!!

Originally Posted by ;

Never trade a position size that can make your account, or make your day. Why, since if it can make that, then it can break it too. In case your wins are commanded, then your losses will also be controlled. You should trade little earn the right to trade larger lots. But scale up SLOWLY, or emotions will destroy you. It's one thing to be consistently profitable on a few bucks that you feel are no big deal, but quite another to adhere with the same profitable plan when you abruptly jump your place size by 4 times or 10 times. It'll kill your objectivity you're very likely to throw your profitable plan out the window, then wind up losing. I think this doctrine is covered in Trading In The Zone - by the way, I loved this book also. I also Suggest Emotion Free Trading, by Larry Levin. He's a Futures trader, but the same applies he too subscribes to a lot of Mark Douglas's philosophies. He also urges P Cybernetics. This is not a trading book, but a book about how your brain works how to work your mind. Be open to changing your mind to new ways of thinking. If you didn't have to change your mind then you would be in Market. Incidentally, another book I recommend.

Thank you so much for your input. . .pretty much everything you said I have ended up doing...I started with a 700 dollar account with no comprehension of forex which resulted in my downfall. . .however, I rebounded by reading and building in my knowledge which than directed to over 5g's in profit and then I set aside my trading doctrine as you mentioned which again contributed to another downfall. . .im not stressed though...I just see this as a learning experience and will hopefully come back with vengeance lol. . .any other publiions you can recommend with regards to technical analysis? I am currently reading Technical Analysis of the Futures Markets by John J. Murphy. . .so far it has covered several trends and trend reversals and etc.. .but nothing about the conditions I see in the forums on a daily basis such as ema, macd, fiboand waves. . .and so on....once again thanks to the input and look forward to hearing from you shortly!

Originally Posted by ;

Bravo, .

I concur, experience is a number one instructor in trading (actually in whatever you do). This man here is a fantastic fundamentalist, and he likes to create fundamental 'speech' and also help people in this forum lol.
I'm very specialized, so I really don't like to speak alot.
Only remember, use whatever method/system that's appropriate for you to maximise and stabilize your profits. Method isn't significant, which makes pips IS vital.

PS I'm still a newbie in FX too. Many good traders here inforexforum.co.zaare willing to help. Use this opportunity!

I just love helping people in this forum for one reason: 80% of what I have learned came from men sharing understanding making $ 0,00 from it here. No scam.

And also because posting my opinion and view compels people to do likewise. 60-70% of the time, these damn smart fellows convince me I'm mistaken. And acknowledging that your perspective is incorrect BEFORE putting a trade is just PRICELESS!

Be patient in your learning and be patient in your trading, except when it is time to escape a trade, do it.

Quite simply1 principle allow winners run, cut winners brief. Do not believe the individuals who say you can never go broke taking a profit or the other hand, it always comes back.

5-10 pips and there and then a 50 pip loss. Pretty soon another account bites the dust.

Hi Adelb1985...

I don't consider myself an expert, but I'm a full-time trader who has profited hugely from my association here at FF, therefore I really do have a few suggestions and observations:

Most of what you want to learn is here at Forex Factor. The challenge is having the ability to spend the time reading and absorbing all the things you want to know to get started correctly. (Contemplate joinig the James16 PF). Besides that, a few of the things that you want to learn can be found with the help of Google. The terms you mention could be found with this research, pointing you to sites that specify and clarify the things you want to understand. After that, it's basicly a matter of trial and error on a tiny scale. Employing a demo account is fine, but it really doesn't teach you how to trade with real money. Using a broker that allows trading with micro lots is essential. I studied Forex full-time for six months before I went live with actual money (micro lots). Then another six months of practice and study before becoming a full-time trader. This has been a lot of time dedied to the Forex. But that's exactly what I needed to get a proper start. Each person is different (something you should have learned from reading Trading in the Zone). There simply is not any substitute for practice and eduion. And finally when you decide on a startegy for trading that's both comfortable and profitable for you; stick with it like your life depended upon it (possibly your financial life will!) . I have seen TOO many people here atforexforum.co.zaand other areas who jump around from 1 trading method to another in search of the proverbial sacred grail; something that will be quick, easy and profitable. There are many technical approaches to make a decent living in the Forex. The big challenge to this lies in the ears. Get a grip on it and you will succeed. All of the best....

Originally Posted by ;

Hello fellow traders,

I have been trading forex for about 5 months now. I started off with 1000 and wiped out my account within a month. Than I thought to myself perhaps its not that easy. So I got a few books ie, Trading in the Zone and Technical Analysis of the Futures Markets (1/3 finished) and read them. They seemed to help alot especially Trading in the Zone. The next time I opened another account with $300 capital and I managed to always put together winning transactions and push my capital upto 5000. Unfortunately, I had a few brief positions about the euro/usd along with the current hike in euro nearly wiped me out again. So basically what I am asking of experienced traders is to give me some guie on where I will find more knowledge with regards to money management and etc. and systems. I always read all of the forum posts, however, I do not know majority of the conditions like MACD, EMA, FIBO and etc.. I know these are egies, but how can a beginner trader like me go about obtaining the basic information about building and assessing systems? I'm dedied to becoming a consistent successful trader and believed I had attained it through placing together over a few winning trades a day (miniature lots). I had no specific system, I basically trade with all the news and between resistance and service levels. If anyone can think of some publiions which will set the base for me please allow me to know. I love any type of response and hopefully 1 day I'll be making contributions to these forums to help benefit other forex traders!!!

Originally Posted by ;

it always comes right back.

I fall for that one. DAMN!

-50 pips after I look back and go what was I thinking?