The Official FOREX Thread

[AngelusPUA]

EUR-USD

1.2698.A corrective rise should ideally test 1.2753 or even higher than 1.2808. Supports are at 1.2641. Stop loss below 1.2626 zone.

USD-CHF
1.2385.It should test higher than 1.2432. Entry point are at 1.2346 and 1.2322. A break of 1.2260 is bearish.

USD-JPY

115.78. It may meet resistance in 115.78 - 115.83 zone for a drift down to 115.62 zone, after which bounce to 116.10 is anticipated.

GBP-USD

1.8572. Should test support at 1.8508 while below 1.8572. If support at 1.8508 holds it can rise up to1.8655, if not it should fall to below 1.8445 zone.

EUR-CHF

1.5727. It looks set to visit further lower territory down to around 1.5699. Its corrective attempts should fail ahead of 1.5744 or 1.5758. Stop loss above 1.5771 zone.

EUR-JPY

147.02. Prefer a fall to 146.95 or 146.6. Then a correction to 147.52 is anticipated. A clear break of 146.17 is again bearish.

EUR-GBP

0.6837. Bullish reaction to above 0.6858 is anticipated from 0.6832 - 0.6837 zone. Stop loss below 0.6805 zone.

AUD-USD

0.7629. Should test support at 0.7601 while below 0.7629. If support at 0.7601 holds it can rise up to0.7658, if not it should fall to below 0.7573 zone.

USD-CAD

1.1353. It should test 1.1382 area after which a sell off down to 1.1299 or extended to 1.1244 area is expected.

This is just some news of what's going on in the FOREX markets now, and some predictions made by analysts. Don't fully rely on news and predictions of others, learn to be certain for yourself before you get into a trade.

There is no book in the world that teaches you how to become a successful FOREX trader! Sure, you may learn more about how FOREX works, but when it comes to the FOREX, one of the only ways you'll learn it well is by experience.

Like he said it is great to have a look at these to get a general idea but don’t bet your life savings on what they say. A lot of the things they say never come to pass. So watch out for that and he is right the only way you learn is from experience. Books can give you ideas, tips and tricks but you need experience to win.

 

[AngelusPUA]

isent the fx supposed to be a 24 hour market ? or am i wrong ?

cuz i was on my platform earlier today and it seemed to be workign fine , but i tried to go on it now and there seems to be no changes in the market .... o.o its liek everythign stopped at 16.03 .... are there spesific times that you cannot trade ?

5 and a half days a week ends on Friday in some countries and early Saturday in others. Opens back up at 5pm Sunday or 6pm (In America) and 8am in Australia.

So 24hrs a day 5.5 days a week but don't trade on Sundays.

 

[Shiftkey]

I'm having trouble understanding "buying on margin." When I first read about margins I thought it was just a way of allowing smaller accounts when the minimum lot is $10,000, but I keep on seeing websites that say buying on margin is more risky. How is buying 100:1 more risky than 1:1 when you can't really spend more money than is in your account? Also, how does buying on a higher margin allow for more profit?

:newb:

 

[Bible_Belt]

Margin is leverage. You will either make or lose money faster. With a 2:1 leverage for stocks on margin, you pay $50K and buy $100K of stock. When the value of your stock drops to $50K, you would be at zero equity, although you would get a margin call before then to make you keep a minimum equity of probably 25%. During the nasdaq crash, I was on the phone telling retail traders to send me money or I was going to sell their stock before they could hit zero equity and cost the firm money. Keep in mind my experience is with 2:1 margin and these forex bucket shops are giving as much as 200:1.

 

[AngelusPUA]

Here are the rules that kept me on track and made me successful when 90% of others failed.

-Trade only one or two currencies, if those currencies don’t move for the day don’t put your money in other currencies. If there is no movement in your two main currencies don’t trade for the day.

-Keep a trader journal so you can learn from your mistakes

-The pas does not equal the future; historical trend information is not solid proof of where a price will go tomorrow

-Stop orders are there to protect my money and once that are set they should NEVER be moved down only up to trail your profits.

-If you lose your first 3 trades of the day, turn off your computer and start again tomorrow.

-Never bet more than 2% of your equity or 10-20% if you are just starting with 1-2k.

-Never let emotion take control of your trading, the perfect trader has no emotion when he trades.

-If you do find yourself getting emotional whilst trading turn off your computer and go do something to relax.

-Never go against what your trading plan says (mine says cut losses of at 20-30 pips and only buy when all indicators are saying the same thing.)

-Don’t be greedy if you mange to make anything over 10pips that is already a 10% profit of your investment and it is more than enough.

-Always set stop orders

There are probably a few more but thats all I can recall now

 

[arglebargle]

Here's a simple example to understand how it's possible to buy $100,000 worth of currency when you only give them $1,000 using a 100:1 leverage.

Basically they lend you $99,000 to buy a currency. They protect their $99,000 loan by automatically selling everything you have when you've lost $1,000. So they won't lose any money, only you would.

You can make more money with a 100:1 leverage because you have more money to risk.

You can lose money much easier with the 100:1 leverage because your $1,000 will be wiped out with a 1% drop. A 1% drop with a 1:1 leverage would mean you'd lose $10.

 

[AngelusPUA]

Keep in mind that if you set stop orders every time you trade you wont lose all your money. Unless you do 20 bad deals in a row and all your stops get triggerd.

 

[AngelusPUA]

Never try to trade everything you see. Keep your trading activity limited.

Focus only on the highest probability set-ups.

Concentrate on one trade at a time so you can give it the undivided attention it needs.

A common mistake made by traders is trying to take on too many positions at once. They will have open positions on four different currency pairs simultaneously.

It is extremely dangerous when you have multiple positions at once because your concentration is then splintered between your positions, and if you lose focus at the wrong time, there goes your money!

Inexperienced traders also believe that a higher number of positions will translate into higher profit. “If I open positions in multiple pairs, one of them will win big.” Too bad this type of thinking usually leads them to losing big instead.

Understand that you are only human and can realistically focus only on a small number of opportunities. When trying to decide between several trades, pretend you are picking fruit. Look at all them but only pick the best looking one.

Trade one at a time.

Trading one position at a time won’t guarantee that you’ll consistently earn profits. I will guarantee that you will minimize your losses and will keep you in the forex game longer. Hopefully long enough to where you are able to consistently earn profits.

by drpipslow

 

[AngelusPUA]

In the foreign exchange market, there are times to trade but there are more times to not trade.

In order to achieve success as a trader, you must be alert, selective, and not chase every single pip.

Don’t chase price. Be patient.

When you go to the grocery store, you usually don’t buy the first apple you pick up. Instead you look at several apples, comparing their shape, color, smell, etc. In other words, you’re picky.

You should apply the same approach to trading. Be picky with your trades. Take only the ones with high probability setups.

Only trade when there is a good setup which means it meets all the rules in your trading system.

Stay out of the market when if it doesn’t.

You do have a system right?

If you don’t see any good trade setups or the current market conditions don’t fit with your trading system, stay out!

Trade only when you see something. Don’t trade when you don’t see anything.

Simple.

Never trade just to be in the market.

by drpipslow

 

[AngelusPUA]

When you close a deal it mean you are out of the market.

For example I buy 1 lot of GBP/USD when I sell it I am effectivley closing my position. All it means is when you exit a trade...

Understand?

 

[AngelusPUA]

For those of you intrested in fundamental analysis:

https://www.commerzbank.com/research/devisen_strategie/g7_staaten/index.htmll

http://www.wachovia.com/corp_inst/page/0,,13_54_1066,00.html

http://corporates-public.rabobank.nl/research/daily/FX_daily.pdf

 

[AngelusPUA]

Ok don’t think about it as buying think about it as gambling, you throw $100 (1 lot) in and you gamble that the value of the currency you are buying will rise. If it rises then you sell 1 lot and you make profit from however much it has risen.

Basically what you are doing is saying "I bet GBP/USD will go up so I will put $100 in there" if it goes up you then sell the 1 lot you have in there and you make a profit from it.

What demo program are you using?

 

[Bible_Belt]

When you buy 1 lot of GBP for example, don't you become the owner of it?

You own the futures contract, not the underlying commodity. Futures are a derivative. They are easier to trade than the physical commodity itself.

http://en.wikipedia.org/wiki/Futures_exchange

 

[AngelusPUA]

I am just making it simple for him to understand..........

 

[Bible_Belt]

http://www.mbtrading.com/ and http://www.interactivebrokers.com/ are my two choices of brokers. They are well-known, established companies who have been in business for several years. I don't trust the bucket shops.

http://www.mbtrading.com/futures.asp
http://www.interactivebrokers.com/en/site_map.php?ib_entity=llc


My pc is old. I only have 800mhz and 376 MB of ram. I may have to get a new computer before I start trading.

 

[AngelusPUA]

mbtrading is good but I hear hotspot is the best, I am happy with GFT. I have read a couple of independent reviews of all major trading companies and every single one recommended http://www.hotspotfx.com/.

Check it out people but mbtraing is great also.

 

[arglebargle]

I've been looking into Hotspot FX,

Heres a negative review

Hotspot FX Cons

• Cannot amend or cancel orders within 10 pips of the market price
• US$7,500 opening balance required
• Commission of US$6 round turn per 100k contract
• No mini accounts
• Highest leverage set at 50:1

Also, you must sign a contract that agrees to this:

4.3 Margin Calls. In the event that, in the opinion of Hotspot FXr and in accordance with Hotspot FXr’s reasonable estimate of the then prevailing and obtainable market spot dealing rates, a Customer’s Account Balance should fall below the Margin Requirement for an individual Open Position or for a group of Open Positions or for the Customer’s Account in the aggregate, Hotspot FXr shall, at its discretion, have the right, but not the obligation, to liquidate any or all Open Positions in the Customer’s Account, and the Customer shall remain liable for any resulting deficit balances;

Is this common in FX trading? It would really suck if you had a huge leverage and made a small mistake, then were liable for thousands of $ you don't have.

 

[AngelusPUA]

Hahahaha nah that’s not how it works you can never lose more than what you have in your account. All I heard was good things about HOTSPOT but it sounds like I was wrong.

Don’t worry about being in debt it can’t happen and use stop orders so that small mistakes don’t cost you big money.

 

[Bible_Belt]

4.3 Margin Calls. In the event that, in the opinion of Hotspot FXr and in accordance with Hotspot FXr’s reasonable estimate of the then prevailing and obtainable market spot dealing rates, a Customer’s Account Balance should fall below the Margin Requirement for an individual Open Position or for a group of Open Positions or for the Customer’s Account in the aggregate, Hotspot FXr shall, at its discretion, have the right, but not the obligation, to liquidate any or all Open Positions in the Customer’s Account, and the Customer shall remain liable for any resulting deficit balances;


This is how it works with any margin account. If you are paying attention, sticking to stops, and only trading intraday, then you won't end up owing money. Even if you keep a losing trade and lose most of your equity, they just close out your position. The scenario where you could end up owing money is most likely with large overnight gaps in price - pure day trading eliminates this risk.

Sometimes with stocks and with commodity futures, they will halt trading when there is big news, good or bad. Then when they re-open it, there is an intraday gap in price that can be very big. With stocks, if you get stuck in a position when trading is halted, you're screwed. These situations are very rare, but they do happen, at least with stocks and cme futures.

Do they ever halt trading in Forex? What if there is giant news, like a terrorist event, nuke, or political assasination?

 

[Bible_Belt]

It looks like the cme will halt Globex occassionally.

http://64.233.161.104/search?q=cach...lobex+"trading+halt"&hl=en&gl=us&ct=clnk&cd=2

The CME Globex Control Center is the market operation and customer service desk for electronic trading.

The GCC provides assistance with the following:
4. Trading Halt Management

More about Globex - trading forex via the CME:
http://transcripts.fxstreet.com/2006/04/trading_cme_glo.html