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Everything posted by mohsinqureshii

  1. 5 minute charts are one of the most common time frames used by technical analysts. These charts can vary in appearance, depending on which type of chart is used (such as a bar chart of candlestick chart) but the essential price activity is the same, and this is also true for the highs and lows that are registered during each one five minute period. In some cases, these shorter term charts are used to identify reversal points in longer term time frames, such as hourlies or dailies.
  2. One Hour charts are one of the most common time frames used by technical analysts. These charts can vary in appearance, depending on which type of chart is used (such as a bar chart of candlestick chart) but the essential price activity is the same, and this is also true for the highs and lows that are registered during each one hour period.
  3. I didn't got your question - Could you please elaborate.
  4. Trading is a game of wining and loosing money - Many traders have different activities while they are trading. What are your activities to keep your self up and have a trading break specially when you are loosing money and market tends you to put more positions to re-cover your losses. Obviously profits are enjoyed in different ways but whenever I loose money I used to go on walk and have a trading break and they effects a lot to me.
  5. No doubt Spread on ECN brokers are lot better than any Market Maker but on the other hand they charge commissions and their margin requirements are more than any Market Maker - You would also have maintenance balance to hold your positions and in that case watching all these things there is no different between Market Maker and ECN but obviously speed of execution matters and ECN are faster then market makers.
  6. I know it is a stupid question but no one had answered me this question in couple of sentences yet about this and this question arises in newbie. How much volume come into the forex market when it moves to one tick - e.g. Let's talk about Euro/USD - If the price of euro moves to 1.2910 to 1.2911 - How much volume of buying has came into the market to move it to one tick. Is there any specific mechanism for that ?
  7. Nice Lesson - Things to be taken care while trading
  8. I asked a broker about this and he replied me that my trading account will be blocked if some one will inform about the death of his client , Once the broker will be sent by some official document ( Like Death Certificate ) - The Broker will send the funds back to the authorized bank account of the client and from the bank account "The Next of Kin" written being authorized in the bank account can withdraw the funds. I have seen many broker's application forms , there is no column for "Next of Kin" - there must be one as in Bank Account form.
  9. Trading in CFD's is easy - but how is you experience while trading with a Market Makers - I have couple of bad experience while trading with Market Makers , Firstly they are very good but as soon as you start making money they try to push you back using different tactics. What is your experience in it ?
  10. Does any one know what is the difference between Spread Betting and CFD's ? I heard that CFD's are not allowed to UK clients as well - and the Brokers offer them CFD's as in Spread Betting Account ?
  11. Either Beginner or Experienced trader there shouldn't be any number to be fixed. A Trader should trade when there is a good point according to his studies. Many days there are no trades if market is not doing good so that would be of any worry. Instead of having a number you should concentrate on getting knowledge to trade markets
  12. Do you have grip on all these Technical Indicators ?
  13. I agree with you that technical analysis don't make a person trader but trading on Moving Averages or Candle Stick help in trading activity but a person not watching the external circumstances and only sticking upon Charts and others will obviously loose money. History Repeats it self - That is basic quote to use charts and other technical analysis but you should have a grip on your analysis. You should be master of your feild - I have seen many people using MA , Bollinger Band, Stochastics , Trend Lines , Fibonacci , Pivot and many other tools and in this way they get confused and loose money because if one indicator will show a signal to buy the other will be giving to sell. The successful traders will never do such thing they will stick on one indicator and that help them and off course he should also watch external circumstances ( News or fundamentals ) to be a successful trader.
  14. Besides all of the fundamental and technical factors a trader must keep track of in order to be successful, there is another area which is often overlooked – themselves. No matter how good your strategy is, the other factor which will always influence your outcomes are your own emotions. After all, it is emotions that move the markets. Emotions are what most of our indicators are designed to give us a measurement of. And in order to be able to profit on market movements created by the emotions of others, you must first learn how to read the mood behind the move, and also how recognize and control your own. Greed As prices rise, they naturally attract more attention. As more and more people jump onboard the rally, its climb accelerates. But in all the excitement, there is a tendency to confuse account balance (the amount actually on your account) with account equity (the total value including the sum of your open positions). People begin to treat their potential profits as if they were already realized. This expectation can sometimes cause basic reversal signals to be overlooked. Additionally, those who missed out on the opportunity early on, when the trend was still young, are becoming hypnotized by the length and size of the rally. Jumping onboard late is a risky game, however, as those who got in early will eventually need to take their profits. There is also a bit of the “greater fool” factor, as anyone who is still buying is now buying at a higher price, and from a seller who has reason to believe the move may soon be over. The idea then is that hopefully someone will keep on buying after you, at an even higher price, when you eventually decide to become a seller yourself. Fear When prices start falling, they awaken fear and panic. Fear is one of our most primal emotions, which explains why prices often fall faster than they rise. People holding longs run for the door trying to sell as quickly as possible, and short sellers motivated by the falling prices add their own orders to the mix as well. When those short orders are eventually covered in order to realize profit, there are temporary rallies which can give false hopes. This crowd mentality frequently creates moments of market imbalance which can be capitalized upon, once one can learn to recognize the signs and interpret them correctly. Above all else, the key to developing this skill is practice. How Emotions Manifest on Charts One of the key measurements of market sentiment is support and resistance. If resistance breaks, there are more bulls in the market at that time than bears. If it bounces, we know the bears have overpowered the bulls. Likewise, if a support level holds, we know that any drops in price were most likely caused by routine profit-taking. If it breaks, on the other hand, we know we have short sellers entering the market along with longs starting to close their positions. Another indicator that mood and sentiment in the market may be beginning to change is momentum. Declines in follow-through on moves can often signal a drop in enthusiasm and increased likelihood of a pending reversal. Both trend following and oscillating indicators can give us some clues and insights in this regard, especially as divergences begin to appear on the chart. Lastly, there is volume. Often overlooked on forex charts due to the lack of a centralized exchange (though still worth paying attention to even if it is only the volume from your own broker), volume should typically increase as trends accelerate in either direction. If volume suddenly starts to drop off, it can signal an impending end to the trend in question, or at least some turbulent times ahead.
  15. The 3 M’s are: MIND METHOD MONEY MIND This part of Trading is most important. It deals with Psychology. When one enters Trading business, he/she has some beliefs about the environment, about markets. They have to understand the importance of Discipline, How people think, how greed and fear affects investors. There are sub-parts to this Individual psychology of traders: You have to understand how to control Fear and Greed. How you should take rational decisions and not fall pray to your emotions while trading. Mass psychology of the markets: You also have to understand how mass psychology works. Why most of the people do what they do. The rules for maintaining personal discipline: You also have to understand the importance of Self Discipline, why you must be always consistent with your trading. You must never violate your rules. Because in long run your discipline in one thing which will make you most money, not your knowledge or your skills. METHOD This is the part which deals with your knowledge about market, technical analysis, and other tools which you can use to make Entry and Exit from any trade. This part is perceived to be the most important aspect and most of the people run after these a lot, but these are the least important part of your trading. Let us see part of this. Technical indicators : These deals with the tools available for making decisions , for example , MACD , RSI , Stochastics , OBV and other 200 weird words . The best chart patterns: Then you must know different types of patterns, which gives some idea about future action and how masses are thinking, some examples can be double top, Head and shoulder pattern etc . Developing a trading system: Then finally after you are done with knowledge part, you should build up your trading system .What is trading system? It’s your rules for buying, selling, booking profits and cutting losses. MONEY Now this part is an amazing one and my favorite. What this determines is how will you manage your money, it decides how much money will put in market at any given time, and how much loss will you take maximum on any given trade. How much will be your maximum loss on any one trade, things like that. Basically this part decides how long can you in the game of trading if things would go wrong. This part is extremely important. Without proper money management no can survive for long in Trading. Let’s see some basic and widely accepted views. - The 2% Rule for individual traders: These rule days that on any given trade your loss should not exceed 2% of total capital. So if you have Rs 1, 00,000, first time your loss should not be more than 2,000. This rule makes sure that even if you make long series of loosing trades, still you are in the game. Even if you make 10 consecutive losing trades, your overall loss will be 18.3%, though this will be rare, still you take care of this situation. The 6% Rules for every trading account: This rule says that your monthly loss should not cross more than 6% in a month. Sometimes when you trade it may happen that there is some problem with your analysis or some issue between you and market which cannot be explained, you keep trying to win, but don’t succeed, that time you have a great urge to revenge trade and get your money back. The best thing at that time is to stop and get some rest, go for vacation and come back with fresh mind. This rule will make sure that if your chemistry with market doesn’t fit, you stop after losing 6% of your capital. You can choose your own percentage amount. I would like to choose 12% for me. it all depends on your risk appetite and stubbornness You might be interested in money management example Essential record keeping for success: This part says that you should always keep all the information regarding each trade. Buy price , sell price , date of purchase , how many days you carried , Reason for buy , reason of sell , what you learned from the trade , chart at the time of buying , charts at the time of selling etc . Why do you do this? Record keeping makes sure that any day you can go back to your records and see what kind of mistakes you have done, why some trades failed, why you succeeded in some trades? You can get lots of information from your records, you need to analyze your performance over days/months/years . It’s extremely important , after a series of trades when you look back to your records , you may be able to find out some pattern , some particular aspect or mistake which you do with each loosing trade and hence can take corrective measures . So, finally we are done with 3 M’s of successful trading. If we talk about how much percentage a trader should give to these 3 M’s should be Mind: 60% Money: 30% Method: 10% It’s totally opposite of what people perceive it to be, general people think that having all market knowledge and technical analysis is most important. Nothing is far from truth, it won’t be too ambitious to say that you can make money in market by simple coin toss if you have sound money management Techniques and Great control over yourself; you need to cut your losers short without any emotion and let your profits run till they can by sitting tight and doing nothing.
  16. Samuel Find attached copy for you - It is a detailed guide including the formations and it will help you a lot. Chapter 4 - Candle Stick.pdf
  17. Hi I am surprised to hear some one saying technical traders loose. Can you please explain how ?
  18. Short term trade for euro/usd
  19. I started trading in 2007 when I just finished my Graduation.
  20. 100 % agreed. We must learn more and start following rules - and that will make us happy.
  21. Welcome to FOREX WORLD Many people have different opinions some of them prefer Gold some currencies - but I will recommend you to trade Currencies they are bit easy to handle but commodities are not easy. Few suggestions for you. Never trade without a STOPLOSS. Think trading as a normal business - As many people take forex industry as the most profitable business in the world , It is no doubt but it is on the same time very Risky as well. Risk pay you a lot. Take a trading break. Check the news. Trade with the money which you can afford to loose. Try to learn Technical Analysis as 90 % successful traders are technical traders - there are a lot of technical indicators , learn few of them like candle stick etc and trade with your own strategy. Need Help - Always Ask Happy Trading
  22. Nice Question: I have been trading from last 5 years and my biggest weakness was that I usually get very much emotional and was unable to cut my losses - Every trader has this problem and if he is able to cut the losses that is a turning point. When I started trading with strict stop losses and was able to cut positions in losses that was the turning point and It started to pay me - I paid a lot of price for that in thousand of dollars and wish no one pay such. Cut your losses when they are small and float your profits. Happy Trading
  23. Zombie currencies are in the market but people rarely use them as they have gone into devaluation and people, rather using their own countries currency, start using foreign currencies for trade, e.g. Afghani (Official Currency of Afghanistan) it is technically out of the market and instead Afghani people use the US Dollar for trade. This name became popular when Zimbabwe dollar was suffering hyperinflation.
  24. Like other market funds, Yen ETF are not used to pursue share price stability. Investors look derive current income from fund’s interests bearing as well as by performance of yen versus United States Dollar. Japanese yen is one of the most traded currencies in the world and Yen ETFs are available for many investment strategies calculated by an investor on the relationship between YEN to US Dollar.
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