[thundertrader]

Hello everyone
I am very new to forex trading (trading in general) and trying to find my way around
I have been trading on a demo account dealbook 360; I have not made any live trades as yet.
I am trying to read material in hope of educating my self

I bought "Trading in the Zone by Mark Douglas" does anybody recommend this book, will it help me to become a great trader?

Which technical indicator goes well with the MACD?

I can trade for 3 hours a day, which time frame is best for me? and remember I have no real trading knowledge so I Know nothing about fundamental trading and next to nothing about technical analysis

I appreciate whatever feedback I get

[torero]

Hi Thunder,

Mark Douglas book is a great education, well worth the money. The book gives you steps to test the profitability of the system tying with your psychological conflict, in addition to understanding and dealing with the mental aspects of trading.

MACD is a trend-following indicators. It's usually recommended to use with an oscillator indicators such as RSI, Stochastics, and Momentum and among others. Test them out thoroughly.

As for timeframes, verify how much risk you're taking each trade (loss in $), then measure that with the range of the size of range from high to low (from pivot high to pivots low). Say if you're trading 60 min, the bar is 1.3300 low to 1.3400 high, your risk is 100 pips. If you can afford to lose that per trade, then that timeframe might be it. But this is an example. I use several bars combine to make the high/low range to measure my risk and timeframe. Remember that the higher the timeframe, the more reliable the signals and less likely for you to overtrade. Good luck. Ask away if you have more questions.

[PYenner]

Hi Thunder

Tried Dealbook360 demo platform and did not like it.
Also did not like the fact that the company won an award for having 100% profit increases for 6 years running, that used to be their customers money.

Much prefer MTB4 platform. Two places with unlimited MTB4 demos are LLC and Alpari. Not recommending either. LLC drops market feed and Alpari recently has frequent requotes.

Oanda used to be a better place to start trading, more flexible "lot" sizes.
Their charts are not good compared to MTB4 though.

Increasingly people seem to be recommending avoiding traditional "bucketshops" and going for Direct Access ECN where there is no dealing desk to play dirty tricks on you and no conflict of interest.
Bucketshops win when you lose, that makes them dangerous.

There are not many ECNs yet, EFx is one.
Do check them out and find one with a demo platform.

I rely on the charts on an MBT4 demo platform regardless of which account I am trading (because I use many charts).

Don't be in a hurry to trade live, there is a lot to learn, make your mistakes with play money first.

London start onwards seems to offer best trading, 0800GMT to 1600, sometimes 2000.

[waveslider]

Find a simulator, practice, practice, practice. Then trade really really small. You are beginning an education that can take longer than becoming a doctor, and not at all guaranteed. You may not make a profit for years. Sure you wouldn't rather be a doctor?

Originally Posted by PYenner »

Hi Thunder

Tried Dealbook360 demo platform and did not like it.
Also did not like the fact that the company won an award for having 100% profit increases for 6 years running, that used to be their customers money.

Much prefer MTB4 platform. Two places with unlimited MTB4 demos are LLC and Alpari. Not recommending either. LLC drops market feed and Alpari recently has frequent requotes.

Oanda used to be a better place to start trading, more flexible "lot" sizes.
Their charts are not good compared to MTB4 though.

Increasingly people seem to be recommending avoiding traditional "bucketshops" and going for Direct Access ECN where there is no dealing desk to play dirty tricks on you and no conflict of interest.
Bucketshops win when you lose, that makes them dangerous.

There are not many ECNs yet, EFx is one.
Do check them out and find one with a demo platform.

I rely on the charts on an MBT4 demo platform regardless of which account I am trading (because I use many charts).

Don't be in a hurry to trade live, there is a lot to learn, make your mistakes with play money first.

London start onwards seems to offer best trading, 0800GMT to 1600, sometimes 2000.

PYenner,
In your posts you keep talking about this MTB4 or MBT4 platform that we've never heard of before. (Sort of like your PY shorthand for GBPJPY).

A Google search yields nothing related to Forex as well.

Just so that we all understand your unique lingo... Are you actually talking about the MetaTrader4 platform for forex/CFD bucketshops?

[Dogpile]

I heard Market Wizard Linda Rashke say recently that for an experienced pit trader, it takes 18 months of full-time trading before most make much money in front of their screens trading electronically. I would tend to agree. Trade small for the first 2 years if you have no experience. After 18 months to 2 years, you will look back and realize how little you really knew after your first 12 months.

[Soultrader]

Originally Posted by Dogpile »

I heard Market Wizard Linda Rashke say recently that for an experienced pit trader, it takes 18 months of full-time trading before most make much money in front of their screens trading electronically. I would tend to agree. Trade small for the first 2 years if you have no experience. After 18 months to 2 years, you will look back and realize how little you really knew after your first 12 months.

I completely agree. 2 years should be the minimum educational period for trading. If you can look back after 2 years and laugh at all your stupid mistakes, youre on the right track. If youre still using same methods from day one... then you may have to think of a new career.

Btw, welcome aboard thundertrader. It says you are from Jamaica. Very nice!

[cowpip]

Great responses guys! There's not much left to add.

Don't rush into going with cash. That's where most new people make their biggest mistakes. They get attracted to the profit potential, make a few dozen trades that work out real well for them on a demo (demo trading is what we call "paper trading"), convince themselves that they can make big bucks, load their account with a good chunk of their savings, then discover that they didn't really know how to trade after all and end up with very little in their account over the next 6 months or less.

This is a BUSINESS just like any other business. It involves risk, expense (losses), and profit (wins). Until you can prove that you can employ sensible strategies that will PRESERVE YOUR CAPITAL, you have no business starting this particular business. It is a heartless and (for most people) difficult journey, but is well worth the effort (and then some) if you succeed.

I was always taught by some very wise people who have been trading for decades, that there are really only two things a good trader needs to master: PATIENCE and DISCIPLINE!!! Patience to take only the highest quality trades (with the lowest risk and best reward ratio) and ignore the rest without grieving that you missed the boat. And Discipline to follow your own individually proven strategy (which requires time and patience to develop) with built-in money-management that will help you to PRESERVE YOUR CAPITAL.

For those starting out, aside from the end-goal of achieving Patience and Discipline, the #1 MOST IMPORTANT thing you can do is to PRESERVE YOUR CAPITAL!!! Do everything in your power to PRESERVE YOUR CAPITAL, or you will very quickly and absolutely (without question) become one of the many in the world who will claim that it is not possible to make a profit trading.

You will probably at first rely on others to help you develop a trading strategy. You will likely discover that many of those strategies don't seem to work for you (and it may frustrate you). In time, you will learn that successful trading is something that can't be shared easily. The best mentors will tell you that you have to find your own groove... your own set of trading criteria that fits your own personality and your own personal risk-profile. What is good for one person is not necessarily good for you (and in this case, most likely is not). But it is important to listen to everyone - and at first, even try other peoples strategies, keeping in mind that the SIMPLEST STRATEGIES ARE OFTEN THE MOST SUCCESSFUL!

Take your time... consider this a longer-term education. As odd as it sounds, you will discover that YOU are your own worst enemy. In the process of learning this business, you will learn a great deal about yourself, and about how your brain works against you. Mark Douglas's book is a great book - but I think it has greater meaning and worth to those who have already established themselves as mediocre or better traders. You may think what he says is a bunch of hogwash - but it isn't. It really isn't. If you don't find the book that good right now, hold onto it and read it again next year once you have had more experience in this business. I think you'll find that gold grows on its pages as you continue to gain more experience.

Best of luck to you!