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mohsinqureshii
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Posts posted by mohsinqureshii
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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.
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have you ever purchased or sold right at the top or bottom of a move?If so how much volume did you trade there?
There in lies an answer.
I didn't got your question - Could you please elaborate.
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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.
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Hi All,I may be asking dump silly question, i have noticed it just a few days ago:
After opening a demo ecn account, i am having 80% accuracy in trading, which means, most of my positions win.
It may be a case that my beloved broker tweaks the market maker version of platform.
Do you guys use ecn accounts? Did you find any difference besides spread, speed of execution?
In case anybody thinks i must be a genius, i can assure you i am not ;-)
I use standard indicators on MT5, nothing sophisticated. Ah, there is something, few days before i registered for ecn demo, i changed time frame, now i play on M30 hoping to scoop out longest trends - from 40 trades a day, i lowered down to 5 max, but quality ones with pip in range 10+, on all low spread pairs.
By the way, ecn spread rocks!
Hope you are all well.
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.
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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 ?
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I really do love reading articles, and at this moment, I've been reading articles about Money Management. And when I read this article, these caught my eyes. And for me, this lessons really could serve as basis on managing money the right way.
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1. No one is going to manage your money for you
I don’t think that I ever really thought about money management until it was absolutely necessary. While I did pay the bills and learn some practical life skills in college, it wasn’t until I got my first professional job that I was actually in charge of my own finances. No one (read: my parents) was looking over my shoulder telling me what I could and couldn’t afford. I was in control of my financial destiny – for better or for worse.
2. Money doesn’t grow on trees
Obviously, I knew that money didn’t literally grow on trees, but I also didn’t understand the value of a dollar. Growing up, whenever I needed money, I simply asked my parents for it. So I knew how to spend money, but didn’t understand what it took to earn it. I’m now a big proponent of parents teaching their children about money management, even at an early age.
3. Education is essential when it comes to money
It’s unfortunate that financial management is not taught as a course in high school because it could really benefit a lot of young people. Many money mistakes are made early in life, including piling on credit card debt. Then, in your twenties, you have to figure out how to pay off your debt. It’s never too late to educate yourself about money, so look to financial experts such as Suze Orman and Dave Ramsey to learn how to manage what you’ve got.
4. Budgets are key
Though I finally had autonomy over my own finances, I still lacked control. What I needed was a management system in order to know what was coming in and what was going out, as well as a way to make sure that I was not overspending. I created my own budget with the 5S System, and it has worked very well for me. Although there are ways to manage your money without using a budget, this system works well for many people.
5. It is possible to not use credit
Although it is not always convenient or desirable, it’s possible to live without using credit cards. And when you figure out how to do it, a burden will be lifted off your shoulders and you’ll gain financial freedom. You will also develop important life skills such as patience, hard work, and perseverance as you save up for what you need and want.
6. You must make the effort to shop around
I really dislike shopping, whether it is for clothes, groceries, or for gifts. I have a tendency to buy the first thing I see that fits my needs. “Get in, get out” was my shopping philosophy until I learned that shopping around and utilizing discount coupons can really save me money. It takes time and effort, but pays off by helping me stick to my budget and not have to use credit.
7. Expect the unexpected
Life can be full of surprises, and I’m more at peace when I’m prepared for them. Over the years I have built up a good-sized emergency fund for when the unexpected comes. But the unexpected is not always a bad thing. Sometimes the unexpected comes as a bonus check, a raise at work, or even a forgotten $20 bill in a winter coat. In those instances, I either put the surprise to good use or simply enjoy extra money that I did not have budgeted!
8. Money doesn’t solve problems
Every once in a while, I find myself thinking, “If only we had a little more money, then life wouldn’t be so challenging.” But challenges can actually be a good thing. We as humans are designed to work and solve complex problems. We would be unfulfilled if we didn’t have to work hard to earn life’s rewards. I’m not saying that having more money won’t sometimes help a bad situation, but problems never just disappear because of money.
9. It’s better to give
There’s a certain sense of satisfaction that goes along with leading a life of stewardship by giving of our time, talent, and treasure. I find that when I am less selfish, I am more at peace. Giving goes beyond just the monetary level, and you don’t always need to do big things to make a big impact. Mother Teresa once said, “In this life we cannot do great things. We can only do small things with great love.”
Nice Lesson - Things to be taken care while trading
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We're all young and healthy. The world is our oyster. So quite naturally none of us like to think about the inevitable. I for one plan to outlive y'all but -- just for the sake of argument -- let's suppose you drive off a cliff in that new Maserati you bought with last week's proceeds. :helloooo:What happens to your trading account? Your open positions won't close themselves magically, how do you handle this? My broker doesn't permit physical delivery so I guess my positions will get auto-closed once the contracts start expiring. But how do stock people manage this eventuality?
How do you make sure your spouse and/or kids have access to your funds after you start pushing up daisies? Will your trading account be handled like any other bank account?
I guess I should talk to my broker about these things. But I thought it couldn't hurt to throw the question at you guys first. So, any thoughts?
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.
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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 ?
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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 ?
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How many trades does a new trader need to take in order to learn the mechanics of the markets? Is there a specific amount of trades that one should aim in order to gain real "experience?"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
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Indicator Forex Strategies are such trading strategies that are based on the standard Forex chart indicators and can be used by anyone who has an access to some charting software (e.g. MetaTrader platform). These Forex strategies are recommended to traders that prefer technical analysis indicators over everything else:Moving Average Cross Strategy
Parabolic SAR Strategy
Stochastic Oscillator Strategy
MACD Divergence Forex Strategy
Combined Stochastic Oscillator/MA Strategy
Do you have grip on all these Technical Indicators ?
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The bulk of people who trade use technical analysis and they lose money. Trading tools do not make a person a trader. The bulk of people who trade do not know how to trade and will therefore lose whether they use technical analysis or not.On the other hand, a "newbie" could have decided to start trading the S&P in the spring of 2009 and observed price crossing over the long term moving average. Experts would have advised him that the indicator is lagging or doesn't work and that he probably would have missed most of the move already. If he was dumb enough to stay in long enough, at this point he could have had enough money to retire on if he was also dumb enough to add to the position instead of scaling out like the experts advise. The "newbie" was likely a trader to begin with.
If someone knows how to trade, then he can pick the tools he needs to apply to his craft.
I hope this makes sense to you.
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.
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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.
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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
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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.
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Mass psychology of the markets: You also have to understand how mass psychology works. Why most of the people do what they do.
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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.
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Technical indicators : These deals with the tools available for making decisions , for example , MACD , RSI , Stochastics , OBV and other 200 weird words .
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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 .
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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.
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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.
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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
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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 .
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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 .
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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
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Mind: 60%
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Money: 30%
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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.
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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.
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Hello... Do someone know how to read candlestick and brief me about it. ThanksSamuel Find attached copy for you - It is a detailed guide including the formations and it will help you a lot.
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You might have it backwards. 90% of technical traders lose money.Hi
I am surprised to hear some one saying technical traders loose. Can you please explain how ?
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I use RSI , Pivot Point and SMA.
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Short term trade for euro/usd
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I started trading in 2007 when I just finished my Graduation.
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I think most of fore traders have a common cycle in the market. First you are charmed by the idea that you can make money while sitting in front of your computer. You start with a demo account, buy when price goes up, sell when price goes down. Probably everything seems perfect in first couple of weeks. You decide to open a real account....Meanwhile you discover that there are many indicators to tell you what to do. Your charts become full of indicators, you can barely see because there is no space left on the chart. You open a position with real money and things start to get harder. Sometimes you close trades with little profits while you could have closed it earlier and gained 150+ pips. Since you don’t have certain rules and strategy, your account starts to melt due to different market conditions. Some people realize that there are other factors such as "money management" and "trading psychology"...
At this point you start to search forums, web sites to tell you what to do. Finally you blow another account and blame others for their bad calls. Next you search for profitable expert advisors to run on your computer. Of course, you get the same result.
Now you have 2 choices:
Either you are going to accept that trading is a serious business and technical analysis is a science (and spend months-years to learn)
Or you are going to quit and move on...
Anyone can trade does not mean they should...We can't be good at anything we want. This is not something to be ashamed of...
100 % agreed.
We must learn more and start following rules - and that will make us happy.
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Hey guys, i have been trading as a newcomer ofcourse and i started with EUR/USD. There are some point where i made a good profit but now i am losing much. Can someone advise whether i should trade with different stock?? thanksWelcome 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
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Are you successful now? How did you overcome yourself as your weakness? There must have been a turning point when you said, "Aha! I've got it now. This is what I need to do!"Please elaborate what weaknesses do you have in order to get rid of it?
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
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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.
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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.
5-Minute Chart Definition
in Trading Dictionary
Posted
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.