Stockmarket Trading, Forex, Commodities.

[MrWorldwide]

Thanks Rimbuman - *if* I do ever get into this market for real, it will be with a very small initial deposit. I know you need more capital - even with leverage - to realise any worthwhile profits but I'm very wary of anything where you can potentially lose several hundred dollars very, very quickly even as a small trader.

Edited January 7, 2014 by MrWorldwide

[SheungWan]

Thanks Rimbuman - *if* I do ever get into this market for real, it will be with a very small initial deposit. I know you need more capital - even with leverage - to realise any worthwhile profits but I'm very wary of anything where you can potentially lose several hundred dollars very, very quickly even as a small trader.

The problem with small share holding accounts is that they suffer from the large overhang of trading costs and so the account must really remain a buy and hold operation. Not bad in itself and putting real money into stocks as opposed to a dummy account is thoroughly different experience.

[MrWorldwide]

Thanks Rimbuman - *if* I do ever get into this market for real, it will be with a very small initial deposit. I know you need more capital - even with leverage - to realise any worthwhile profits but I'm very wary of anything where you can potentially lose several hundred dollars very, very quickly even as a small trader.

The problem with small share holding accounts is that they suffer from the large overhang of trading costs and so the account must really remain a buy and hold operation. Not bad in itself and putting real money into stocks as opposed to a dummy account is thoroughly different experience.

Fair point, but this isnt an equities account - its an FX demo account - I'm just playing around, but without doing silly things like believing the '100k cash' I started with in my demo account bears any relationship to what I would be playing with if I get into this for real (2K USD max initially). Accordingly, I've gone to only staking 500-1000USD on each trade - even at 100:1 leverage the dollar amounts below are tiny, but I'm concentrating on consistent pips.

If I could net ~25 pips a day in a real account, consistently (given that I know little about technical analysis etc) I would be ecstatic. Very different when those numbers represent your own money. All I've done here is look at a graph for this currency pair over the last year/month/day and point-and-click - hardly the basis for an effective trading strategy.

1/7/2014 7:16:09 PM Long USD/CAD 50,000 1.07837 1.07889 1.0795 1.07688 24.10 5.2 User Close

1/7/2014 7:09:20 PM Short USD/CAD 50,000 1.07801 1.07805 -1.86 -0.4 User Close

1/7/2014 6:09:48 PM Long USD/CAD 50,000 1.077 1.07801 46.85 10.1 Take Profit

1/7/2014 6:09:48 PM Long USD/CAD 50,000 1.077 1.07786 39.89 8.6 User Close

1/7/2014 12:08:52 AM Long USD/CAD 500,000 1.0685 1.06883 1.0695 1.06688 154.37 3.3 Take Profit

1/6/2014 11:11:54 PM Long USD/CAD 500,000 1.06758 1.06785 1.06908 126.42 2.7 User Close

[Rimbuman]

Thanks Rimbuman - *if* I do ever get into this market for real, it will be with a very small initial deposit. I know you need more capital - even with leverage - to realise any worthwhile profits but I'm very wary of anything where you can potentially lose several hundred dollars very, very quickly even as a small trader.

Hi MrWorldwide,

I have tried all this stuff myself because the posts of Paulo sparked the idea doing this and it made sense to me. You can trade with an $ 1000,- account just like an $ 10.000,- or $ 100.000,- account and apply the same money management rules. There shouldn't be any reason to lose hundreds of dollars on a $1000,- + account.

Obviously you will have a disadvantage trading with a micro Forex account because you'll pay percent wise higher commission per trade, if you trade larger positions you can open a discount account and enjoy lower commissions.

Now you would be trading in live environment with (your) money making $ 10,- trades .

If you would lose $ 250,- after a month trading you'd have a 25% drawdown, in case you would have done the same trades with the same money management using 1% per trade with a $ 25.000,- account you would have lost about $ 6250,-.

Quite a difference and you don't have to do $ 10,- trades with a micro account, you can do $ 1,- or $ 2,- trades if that feels more comfortable if you just start out.

The big idea is to only increase the amount of $ gradually after a profitable period. (two weeks/one month) Or after a number of trades if you want, after 50 trades you evaluate profit or loss, then increase the amount of $ per trade and in case of loss you'd decrease the amount of $.

After the initial 50 trades you can after 20 trades (you have done 70 trades now) drop the first 20 trades you made and evaluate the results again and repeat this again and again and make sure you don't go over 2% of your account per trade (I think 1% would be better and as a novice even less).

In the mean time keep on trading and educate yourself simultaneously.

Succes with the journey ,

Rimbuman

Edited January 9, 2014 by Rimbuman

[Rimbuman]

Thanks Rimbuman - *if* I do ever get into this market for real, it will be with a very small initial deposit. I know you need more capital - even with leverage - to realise any worthwhile profits but I'm very wary of anything where you can potentially lose several hundred dollars very, very quickly even as a small trader.

The problem with small share holding accounts is that they suffer from the large overhang of trading costs and so the account must really remain a buy and hold operation. Not bad in itself and putting real money into stocks as opposed to a dummy account is thoroughly different experience.

Fair point, but this isnt an equities account - its an FX demo account - I'm just playing around, but without doing silly things like believing the '100k cash' I started with in my demo account bears any relationship to what I would be playing with if I get into this for real (2K USD max initially). Accordingly, I've gone to only staking 500-1000USD on each trade - even at 100:1 leverage the dollar amounts below are tiny, but I'm concentrating on consistent pips.

If I could net ~25 pips a day in a real account, consistently (given that I know little about technical analysis etc) I would be ecstatic. Very different when those numbers represent your own money. All I've done here is look at a graph for this currency pair over the last year/month/day and point-and-click - hardly the basis for an effective trading strategy.

1/7/2014 7:16:09 PM Long USD/CAD 50,000 1.07837 1.07889 1.0795 1.07688 24.10 5.2 User Close

1/7/2014 7:09:20 PM Short USD/CAD 50,000 1.07801 1.07805 -1.86 -0.4 User Close

1/7/2014 6:09:48 PM Long USD/CAD 50,000 1.077 1.07801 46.85 10.1 Take Profit

1/7/2014 6:09:48 PM Long USD/CAD 50,000 1.077 1.07786 39.89 8.6 User Close

1/7/2014 12:08:52 AM Long USD/CAD 500,000 1.0685 1.06883 1.0695 1.06688 154.37 3.3 Take Profit

1/6/2014 11:11:54 PM Long USD/CAD 500,000 1.06758 1.06785 1.06908 126.42 2.7 User Close

The Loony has been in a bear market for about eleven years, looks like a cup and handle or maybe a bowl is forming. Some good chances on the upside for the coming year(s) I believe.

[Alex01]

Forex Trading and Forex Business is a type of business which anybody can start with limited investment, But its need proper education and trading training, New comers in Trading should practice well on demo accounts and after getting some experienced should start online trading and plan successful strategies.

[Paulo1]

Forex Trading and Forex Business is a type of business which anybody can start with limited investment, But its need proper education and trading training, New comers in Trading should practice well on demo accounts and after getting some experienced should start online trading and plan successful strategies.

New comers should only use a demo account to get a understanding of the platform. Once they know this they should move to a micro account asap. Demo platforms do not teach trading psychology and should only be used for a limited time.

[MrWorldwide]

Forex Trading and Forex Business is a type of business which anybody can start with limited investment, But its need proper education and trading training, New comers in Trading should practice well on demo accounts and after getting some experienced should start online trading and plan successful strategies.

New comers should only use a demo account to get a understanding of the platform. Once they know this they should move to a micro account asap. Demo platforms do not teach trading psychology and should only be used for a limited time.

Depends on how seriously you take the numbers on the screen - I work from the assumption that my total capital is no more than 2K USD and ask myself how it would feel to blow even a relatively small amount like that. The answer is that it would feel like crap, but anyone who cant live with the idea of losing 2K shouldnt be going anywhere near FOREX - even at this early stage, I can see that. Every second youtube vid on trading - forex or equity markets - drives home the reality that 90-95% of traders are lucky to break even.

The other thing I've learnt early on is that sometimes the best move is to refrain from trading altogether - I can live with the trend swinging against me, but I loathe the sideways tussle between buyers and sellers that sees prices go absolutely nowhere over the course of an entire day. I know that's the wrong approach - good traders are patient yada yada - but that's the beauty of a demo account : if this isnt for me, I walk away without having spent a single cent.

[Rimbuman]

Forex Trading and Forex Business is a type of business which anybody can start with limited investment, But its need proper education and trading training, New comers in Trading should practice well on demo accounts and after getting some experienced should start online trading and plan successful strategies.

I would have agreed about three months ago but I changed my mind, educate yourself and swim with the sharks at the same time.

[Rimbuman]

Forex Trading and Forex Business is a type of business which anybody can start with limited investment, But its need proper education and trading training, New comers in Trading should practice well on demo accounts and after getting some experienced should start online trading and plan successful strategies.

New comers should only use a demo account to get a understanding of the platform. Once they know this they should move to a micro account asap. Demo platforms do not teach trading psychology and should only be used for a limited time.

Depends on how seriously you take the numbers on the screen - I work from the assumption that my total capital is no more than 2K USD and ask myself how it would feel to blow even a relatively small amount like that. The answer is that it would feel like crap, but anyone who cant live with the idea of losing 2K shouldnt be going anywhere near FOREX - even at this early stage, I can see that. Every second youtube vid on trading - forex or equity markets - drives home the reality that 90-95% of traders are lucky to break even.

The other thing I've learnt early on is that sometimes the best move is to refrain from trading altogether - I can live with the trend swinging against me, but I loathe the sideways tussle between buyers and sellers that sees prices go absolutely nowhere over the course of an entire day. I know that's the wrong approach - good traders are patient yada yada - but that's the beauty of a demo account : if this isnt for me, I walk away without having spent a single cent.

Tuition fee of 2k wouldn't be that bad at all if that would be what it would take to be consistent. If you decide to go live you "will" pay the fee(s) even after many years of (successful )demo trading.

Edited January 17, 2014 by Rimbuman

[Rimbuman]

Forex Trading and Forex Business is a type of business which anybody can start with limited investment, But its need proper education and trading training, New comers in Trading should practice well on demo accounts and after getting some experienced should start online trading and plan successful strategies.

New comers should only use a demo account to get a understanding of the platform. Once they know this they should move to a micro account asap. Demo platforms do not teach trading psychology and should only be used for a limited time.

Beside all that, the way your trades get filled and your results after commissions are of major importance. I wished I could have traded micro accounts like this when I started, my first experience was losing money buying stock options when I was 19 years old.

Edited January 17, 2014 by Rimbuman

[SanukDii]

Only my opinion but I think you would have a better chance spread betting stock than FX. I've done both and personally I was unsuccesful at FX and twice cleared out an account of real cash in less than 24hrs when my stops didn't hold (I've had other problems with stops but would never accuse a broker of stop hunting ). I've managed to stay in small profit on my spread betting, primarily because I use it to hedge my own stock portfolio so I have a good knowledge of the stock and its trading range. I never use more than 50% of my margin and most of the time less than 25%.

As you say, most people will lose money in FX trading. Good luck!

[Alex01]

Great replies regarding to the Forex Trading, I get many useful points and information which can help me in Forex Trading.But new comers should use demo accounts until the become ready to plane successful strategies after analyzing Forex market.

Edited January 21, 2014 by Alex01

[Paulo1]

Daily Charts

AUDCHF Sell Limit @ 8015/8010 stop 8059 target 7837

:Check weekly, if this breaks 7100 looks like a free fall

Have been short since 8045. And also at the sametime went short AUDCAD @ 9788.

[MrWorldwide]

Am I the only TVer who finds it easier - and 'safer' - to take a long position than to try to short a currency pair ? In over a fortnight (!) of demo trading, I believe this is the first time I have successfully shorted a pair to the point where my 'Take Profit' pips limit was triggered - every other time I've been stopped out.

DATE/TIME TYPE CURRENCY PAIR QUANTITY ENTRY EXIT PROFIT STOP LOSS T. STOP PROFIT ($) PROFIT (PIPS) REASON
1/20/2014 10:10:36 PM Short AUD/USD 2,500 0.88169 0.88016 3.82 15.3 Take Profit

If we ignore the dollar amount - I mentioned earlier that I treat this purely as a learning experience and look for pips - I would be more than happy at this point to be able to make 15 pips on a trade. Timing is everything, and mine seems to suck when it comes to trying a short.

MrWW

[Paulo1]

Forex Trading and Forex Business is a type of business which anybody can start with limited investment, But its need proper education and trading training, New comers in Trading should practice well on demo accounts and after getting some experienced should start online trading and plan successful strategies.

New comers should only use a demo account to get a understanding of the platform. Once they know this they should move to a micro account asap. Demo platforms do not teach trading psychology and should only be used for a limited time.

Depends on how seriously you take the numbers on the screen - I work from the assumption that my total capital is no more than 2K USD and ask myself how it would feel to blow even a relatively small amount like that. The answer is that it would feel like crap, but anyone who cant live with the idea of losing 2K shouldnt be going anywhere near FOREX - even at this early stage, I can see that. Every second youtube vid on trading - forex or equity markets - drives home the reality that 90-95% of traders are lucky to break even.

The other thing I've learnt early on is that sometimes the best move is to refrain from trading altogether - I can live with the trend swinging against me, but I loathe the sideways tussle between buyers and sellers that sees prices go absolutely nowhere over the course of an entire day. I know that's the wrong approach - good traders are patient yada yada - but that's the beauty of a demo account : if this isnt for me, I walk away without having spent a single cent.

Trading psychology is the key to trading, if you can master that you will succeed . Problem is people are too impatient these days, and some even think they know it all. You need 10,000 hours of live screen time, that's common and knowing as the standard time to become a profitable trader. Watching YouTube does not count. When I began trading we used to have the chart paper mailed to us and draw the candles from daily, weekly and monthly data. How times have changed.

My $ amounts are all calculated. I don't post them as everyone's account sizes are different as well as risk %.

AUDUSD is a good short , been short for 12 weeks now.

Here's some very small live scalp account attached. Over the Xmas period. lol. Also attached some analysis on the CAD , Old now , but am looking at weekly and like monthly charts.

Edited January 22, 2014 by Paulo1

[Paulo1]

Daily Charts

AUDCHF Sell Limit @ 8015/8010 stop 8059 target 7837

:Check weekly, if this breaks 7100 looks like a free fall

Have been short since 8045. And also at the sametime went short AUDCAD @ 9788.

Stopped on CPI data . 60 pip spike.

[MrWorldwide]

Thanks paulo1 - I admit I'm impatient, and 10K hours sounds reasonable. How long did it take me to learn to cut code for a living ? At least that long, and I still had days where it just didnt come together for me. Nothing worth mastering ever comes easy

[Paulo1]

Thanks paulo1 - I admit I'm impatient, and 10K hours sounds reasonable. How long did it take me to learn to cut code for a living ? At least that long, and I still had days where it just didnt come together for me. Nothing worth mastering ever comes easy

When I began trading I was told two things. The 1st was, it takes the same amount of time as to become a surgeon, and the 2nd was , its all about psychology . The surgeon part was easy. Understanding fear, greed and oneself was the difficult part and is one area most traders neglect at there peril. . Just remember . There is no rush, The Way of the Turtle, No point building a house on sand ( unless its a sandcastle). You need a solid foundation and most of that comes from within. I can not stress enough on trading a micro apposed to a demo account.

Am still still bearish AUDCHF, just needs some time to present the setup. 8278/30 zone.

[OnMyWay2]

I feel like I've mastered trading psychology as I easily have 10k hours

tracking individual stocks on a daily basis.

With stocks at least the psychology comes from learning who the players are in the game. The

news releases, who is credible and who's just trying to rattle the market.

I haven't traded Forex and My 10k hours really only applies to a few stocks so

going to Forex would probably be about like starting from square one with a new stock.

Edited January 22, 2014 by OnMyWay2

[Paulo1]

I feel like I've mastered trading psychology as I easily have 10k hours

tracking individual stocks on a daily basis.

With stocks at least the psychology comes from learning who the players are in the game. The

news releases, who is credible and who's just trying to rattle the market.

I haven't traded Forex and My 10k hours really only applies to a few stocks so

going to Forex would probably be about like starting from square one with a new stock.

Forex is different than any other market in regards there is no central exchange. The knowledge you have in stocks will be helpful on the technical side. Trading stocks its much easier than FX. I agree with you in you remarks about " who is credible and who's just trying to rattle the market", so true in stocks. Just give FX ago on demo until you understand the platform, then get a micro account.

Have a look at the pic of the USDCAD posted yesterday and you will see some of the rules and our we apply then in FX.

Be also appreciated if you get a good stock signal to post it.

Cheers.

Edited January 22, 2014 by Paulo1

[MrWorldwide]

CAD still sliding against the USD - not far off parity with the Aussie now. Everytime I go long on the USD/CAD, I have to ask myself 'how much longer can this trend continue ?', and each time the chart surprises me. Bank of Canada is definitely playing an interesting game, but I assume Canadian exporters are over the moon.

[Paulo1]

CAD still sliding against the USD - not far off parity with the Aussie now. Everytime I go long on the USD/CAD, I have to ask myself 'how much longer can this trend continue ?', and each time the chart surprises me. Bank of Canada is definitely playing an interesting game, but I assume Canadian exporters are over the moon.

Went long USDCAD again this morning at 1.1112 Plus holding several positions . Look at the monthly chart could be something special . Monthly Targets 1.1783. and 1.2630.

Also short the EURGPB target 8070

[Rimbuman]

EURUSD. At this moment it isn't certain that support 1 will hold, since the price action is contained in a bull wedge a final outbreak to the upside to test the 2008 resistance is most likely. An exhaustion bear run to support 2 (parallel of March 2013 bull trendline) before the final outbreak when support 1 don't hold. When support 2 don't hold, previous low and support 3 become focus points. Many scalps and swings on the way up and down.

Edited January 23, 2014 by Rimbuman

[Paulo1]

EURUSD. At this moment it isn't certain that support 1 will hold, since the price action is contained in a bull wedge a final outbreak to the upside to test the 2008 resistance is most likely. An exhaustion bear run to support 2 (parallel of March 2013 bull trendline) before the final outbreak when support 1 don't hold. When support 2 don't hold, previous low and support 3 become focus points. Many scalps and swings on the way up and down.

Screen shot 2014-01-23 at 12.36.39 PM.png

Nice Chart. \Good info

EURUSD

On the monthly chart take note of the Shooting Star horizontal resistance and TL resistance from July 2008 high 1.6055 then may 2011 now being hit at dec 2013. This area is huge, as the monthly candles are now showing a double top Shooting Star with a Engulfing Pattern , ( 7 trading days to months end , \so not confirmed yet.) If this happens I think we see about 1000 pip downside. Pretty simple plan. My entry on the daily or 4hr chart will be.

Sell Limit @ 50% retrace of monthly candle near 1.3630/50 Stop above monthly high, and target monthly bottom TL @ 1.2765 and then with a break of that 50% fib @1.2100

[Paulo1]

EURUSD. At this moment it isn't certain that support 1 will hold, since the price action is contained in a bull wedge a final outbreak to the upside to test the 2008 resistance is most likely. An exhaustion bear run to support 2 (parallel of March 2013 bull trendline) before the final outbreak when support 1 don't hold. When support 2 don't hold, previous low and support 3 become focus points. Many scalps and swings on the way up and down.

Screen shot 2014-01-23 at 12.36.39 PM.png

USDCHF and EURUSD mirror each other, but inverted.. Last night I got 2 nice trades from both short USDCHF and Long EURUSD. Entries were made on 5min using my scalp method and adding more weight was the break of the upper TL line on the bull wedge you mentioned. I had the same daily TL on my charts.. Have a look at it on the 5 min charts around the TL perfect signal even if that all you use.

The monthly setup I posted will be cancelled if the highs are taken out.with a daily close. Monthly candle needs to close near 1.3525 zone . This trades can take a while. Dollar index is trading at intraday support around 80.43 and major support at 80.00 ,

[Paulo1]

"Am still still bearish AUDCHF, just needs some time to present the setup. 8278/30 zone." Was supposed to be 8178 just realized the error as I entered short 8164 .

[MrWorldwide]

Also short the EURGPB target 8070

Not your finest work, paulo, unless you are talking a very different timeframe to mine. In any case, I was stopped out at .8199 (-21 pips - about all I'd be prepared to lose in a real trade) and it's still over .820 - I guess know timing is everything

About the only thing that seems to be getting into my thick head is that you have to know when to get out of a trade, even if it means you 'miss the boat' on a later bounce. I'll be watching that pair with interest over the next week or so - I normally focus on pairs that are impacted by a rush to the relative safety of the greenback when there is news out of China.

Edited January 23, 2014 by MrWorldwide

[Paulo1]

Also short the EURGPB target 8070

Not your finest work, paulo, unless you are talking a very different timeframe to mine. In any case, I was stopped out at .8199 (-21 pips - about all I'd be prepared to lose in a real trade) and it's still over .820 - I guess know timing is everything

About the only thing that seems to be getting into my thick head is that you have to know when to get out of a trade, even if it means you 'miss the boat' on a later bounce. I'll be watching that pair with interest over the next week or so - I normally focus on pairs that are impacted by a rush to the relative safety of the greenback when there is news out of China.

lol, 'not my finest work' Skype. This is the entry I sent to another trader who works for a big broker in Japan

[1/9/2014 11:02:06 AM] pauloxxx: hedged it with a 3lot short on the EURGBP from 8303,

[1/9/2014 11:02:18 AM] Waxxxng: that's nice

[1/9/2014 11:03:38 AM] *** paulxxx sent eurgbp.xph4 alex.png eurgbp.xph4 alex.png ***

[1/9/2014 11:03:45 AM] paulxxx: thats the entry

[1/9/2014 11:04:15 AM] Waxxxng: nice .

You are all upset because you lost 23 pips??

Have also attached a pic of the entry referred in the above conversation.

Pretty happy with that trade.. closing 2 lots for almost 3 k profit and hold one at entry...Awesome trade. Plus the trend is still down. You can see my entry was on the 9th. Not the 23rd. That was just an updaye on my position.

[Rimbuman]

EURUSD. At this moment it isn't certain that support 1 will hold, since the price action is contained in a bull wedge a final outbreak to the upside to test the 2008 resistance is most likely. An exhaustion bear run to support 2 (parallel of March 2013 bull trendline) before the final outbreak when support 1 don't hold. When support 2 don't hold, previous low and support 3 become focus points. Many scalps and swings on the way up and down.

Screen shot 2014-01-23 at 12.36.39 PM.png

USDCHF and EURUSD mirror each other, but inverted.. Last night I got 2 nice trades from both short USDCHF and Long EURUSD. Entries were made on 5min using my scalp method and adding more weight was the break of the upper TL line on the bull wedge you mentioned. I had the same daily TL on my charts.. Have a look at it on the 5 min charts around the TL perfect signal even if that all you use.

The monthly setup I posted will be cancelled if the highs are taken out.with a daily close. Monthly candle needs to close near 1.3525 zone . This trades can take a while. Dollar index is trading at intraday support around 80.43 and major support at 80.00 ,

Hi Paulo,

For now I only scalp and swing fibre, sometimes I have days of 20+ trades. So I was in for a +/-5 pip profit and at the point where I was going to take my profit I noticed some activity that could lead to higher profit so I decided to stay in. The probability was on my side, I checked the hourly and saw I was in very early (unintended) in the beginning of a bullisch spike with high potential for followup bullish price action, it was D-day for the wedge and went all the way up.

Because initially I was in for only a small profit my risk was tiny, this has been my most profitable trade ever, besides this I have been in a winning streak for 25 trades now. I quit trading for a while and have a short vacation to clear my mind.

Good trading,

Rimbuman

Edited January 24, 2014 by Rimbuman