How Do You Trade the News in Forex Trading?

[How Do You Trade the News in Forex Trading?]

I am actually against trading during important news. The markets get extreme volatile, spreads are getting wide and the momentum is changes several time within few minutes. In fact, from my point of view it is pure gambling and If you don't have clear risk management method you won't survive in the markets. What I do like to do is to wait until the markets choose clear direction after the news and then trade according the momentum.

[What is Your Risk Reward Ratio?]

The bigger the reward the lower the probability of the tp being hit.

The lower the reward the higher the probability of the tp being hit.

do you have a fixed r/r ratio or does it depend on the setup?

 

When I estimate a trade's RR I do it according to the closest significant supports and resistance. My goal is to take trade of RR ratio 1:2, but my minimum is 1:1.5 – I never go lower than that. It is important to understand that the RR is determined by the chart and not randomly. Traders tend to tell themselves something as "oh, I see than the SL is 100 pips down, let's my TP 200 pips above, because I need RR of 1:2"… this is clearly a mistake. Don't force the RR on the chart just because you feel that the trade looks great, let the chart tell you what is the RR.

[Brokerages and Average Cost Per Trade?]

What brokerage is popular with scalp traders? The average cost per trade seems crucial in this method of trading and if the trade is costing is $10-20 round trip I'm guessing the position sizes must be somewhat large to pickup a profit in micro movements in the market.

 

No doubt that if you want to make scalping you need a good strategy first, and a dissent broker that welcomes scalpers. The problem is that many brokers tells you that they don't have problems with scalping but when you try trading with them you see that they put obstacles against you. So what you should do is to check the broker's demo account before you deposit money. Likewise, talk with a representative and make sure that they don't have problem with that. From my experienced in scalping I would recommend on Sunbirdfx or alpari uk low spreads, they welcome any type of traders including scalpers, and the most important thing: very low slippage, which is crucial for scalpers.

[Profit: ECN Vs Market Maker]

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.

 

there is high probability that you would not get the same results with MM account. The reason is that ECN brokers offer much lower spreads and faster executions. Likewise, MM usually send back requotes and you cannot always get the market's real price, unlike an ECN broker that gives you the actual prices. However, some brokers published as ECN but they are not really functioning as ECN so I recommend you test their demo accounts first. From my experience, I can definitely say that etoro and sunbirdfx are examples for ECN brokers that give great trading experience, low spreads and the fastest executions. Good Luck!

[What Are You Watching Today ?]

I would like to get this thread going so we could let each other know what pairs we are watching.

 

We can't watch all the pairs all the time. Sometimes I am following a pair so closely I become myopic and miss opportunities elsewhere.

 

You can be as in depth as you like, post charts ( not mandatory ), or just give a buy or sell bias. We all know how to read charts so we can figure the rest out for ourselves.

 

I have been following the AUD/USD for several weeks now. Scalping up and down within a range, that lately has been edging lower recently.

 

I agree- you cannot monitor more that 2-3 charts at the same time. So what do you do in order to avoid missing good trades? Well, first of all you need to understand that you cannot take all of the trades and you will probably miss the majority of them. I trade on the daily chart only so I analyze all of the pairs on the night before and set the orders on the potential trades, so I won't miss them even if I am not available. It is harder to implement when making intraday trading, and you got to trade with more traders that can monitor the markets. You can do it in facebook groups, forums, chat etc…

[Forex Trading on Smartphone / Iphone]

Has anyone done any trading via smartphone? I'm about to upgrade my phone and if I can I want a phone that I could make some trades from. What broker and phone model are you using?

 

 

I am using the Metatrader platform for my regular trading and therefore I have waited until they released the mobile version and it works great! I have it on my iphone and its very easy to use and user friendly. I also had it on my previous smartphone, Galaxy, and the platform works perfect with android as well. However, you still have to connect it with a broker that has great performance on PC trading, and I recommend only ECN STP brokers that can execute your order immediately after you send them. My trading platform for mobiles is connected to sunbirdfx and it is highly recommended- fast, no re-quotes , great trading experience!

[How to Be Consistently Profitable in Forex Trading.]

No one can constantly win the markets. You have to accept the fact that the losses will come along the way and you have to know how to learn from them. From my point of view, a trader has to have 65% of wining of 1:1.5 RR (Risk-Rewards: ratio between losses and wins). In order to get there, beside a good forex trading strategy, you need to have excellent money management skills, which I believe, is the most important element of successful trading. Good Luck!

[Do You Put Stop Loss Order?]

Do you put stop loss order? I read in some places that it is not a god idea to set the stop loss in the system because the experts know where you set it and can "shake you out" of the positions. So do you use stop-loss?

[Is Trading What You Expected?]

Trading is tremendously different from what I expected.

 

1. Initially, I was fooled by luck and eventually humbled by the same.

 

2. I was unaware of the capital requirements and how they change with changing market conditions.

 

I think that the problem with most of the traders is that they think forex tradin is easy and will be the answer for their financial future. However, this is far from the truth and you got to treat it like any business- invest in it, learn how to get better and hope to the returns after at least one year. Any other expectations will lead to disappointment.

[How Do You Scalp?]

Is scalping all computer generated? Is there a way to do it on mac? What are the pros and cons of scalping?

 

I think that the main problem in scalping is that it pulls you into gambeling instead of real trading. Therefore, I always advice to trade on the daily chart- it might be more boring but at least it will give to ability to make decisions calmly. By the way, not every broker welcomes scalpers so you need to have ECN brokers that do not have problems with such trading.