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[3dB]

Hi All, just getting started with FX. So be prepared for loads of questions

I have ~10 years experience of trading with stocks, options, futures and such, should I just forget all that when getting into this or is anything one have learned there applicable on FX trading? TA seems to be quite useful...

[TommyT32]

Originally Posted by 3dB

Hi All, just getting started with FX. So be prepared for loads of questions

I have ~10 years experience of trading with stocks, options, futures and such, should I just forget all that when getting into this or is anything one have learned there applicable on FX trading? TA seems to be quite useful...

I does help but the Forex is a whole different market and moves alot faster. It is not like stocks where you can walk away for 10 min. in the Forex you could come back and be stopped out.
TommyT

[TraderABC]

Originally Posted by TommyT32

I does help but the Forex is a whole different market and moves alot faster. It is not like stocks where you can walk away for 10 min. in the Forex you could come back and be stopped out.
TommyT

IMHO if you are stopped out within 10 minutes then it is your fault (or your brokers), not Forex's fault.

[TommyT32]

Originally Posted by TraderABC

IMHO if you are stopped out within 10 minutes then it is your fault (or your brokers), not Forex's fault.

I didn't say it was the Forex's fault its your own. Please don't read any bible you could be dangrous.
TommyT

[4X4X]

Originally Posted by TommyT32

I does help but the Forex is a whole different market and moves alot faster. It is not like stocks where you can walk away for 10 min. in the Forex you could come back and be stopped out.
TommyT

You must be talking about scalping style of trading where you enter the market for few minutes for few pips, but there are longer term trading styles like day trading where you hold your position for hours to whole day long, mid term trades last for few days whereas position trading hold position for weeks and even months.

Currencies have the tendencies to trend for considerable period of time, if you see longer term charts like weekly charts you can observe the trends last for months and even years. There is a trader here on Moneytec who does one trade per pair per year and makes respectable income which can be enjoyed year long.

Coming back to 3dB's question, TA that you learned in stocks, options and futures works just as good in forex trading. TA is the most common decision making tool used by majority of the traders.

Most of the traders here who trade fundamentals only try to capture the spikes and very short term moves resulting from news announcements. I think true fundamentals' based trading is the one where a trader is extensively qualified in Macro Economics and knows well the major macro economic indicators of the countries whose currencies he wishes to trade and goes into very long term trades with a far sighted view of economies of countries.

Based on my observation all technical indicators are lagging and they tell you what the price already did, it would be a magic if any indicator would tell you the turning points in advance. Only Fibonacci Retracements does have something like that and there is no logical reason as to why price retraces, bounces back and/or breaks one to get the another one, it is said that the ratios of fibonacci are the ratios found in nature.

Classic old TA tools work best for decision making and do not have lagging, these are support/resistance, trendlines, fibos, etc.

[TommyT32]

Originally Posted by 4X4X

You must be talking about scalping style of trading where you enter the market for few minutes for few pips, but there are longer term trading styles like day trading where you hold your position for hours to whole day long, mid term trades last for few days whereas position trading hold position for weeks and even months.

Currencies have the tendencies to trend for considerable period of time, if you see longer term charts like weekly charts you can observe the trends last for months and even years. There is a trader here on Moneytec who does one trade per pair per year and makes respectable income which can be enjoyed year long.

Coming back to 3dB's question, TA that you learned in stocks, options and futures works just as good in forex trading. TA is the most common decision making tool used by majority of the traders.

Most of the traders here who trade fundamentals only try to capture the spikes and very short term moves resulting from news announcements. I think true fundamentals' based trading is the one where a trader is extensively qualified in Macro Economics and knows well the major macro economic indicators of the countries whose currencies he wishes to trade and goes into very long term trades with a far sighted view of economies of countries.

Based on my observation all technical indicators are lagging and they tell you what the price already did, it would be a magic if any indicator would tell you the turning points in advance. Only Fibonacci Retracements does have something like that and there is no logical reason as to why price retraces, bounces back and/or breaks one to get the another one, it is said that the ratios of fibonacci are the ratios found in nature.

Classic old TA tools work best for decision making and do not have lagging, these are support/resistance, trendlines, fibos, etc.

Yes you are correct I stay in a trade for at most 2HR.
TommyT