Interested in starting out

[highways]

Hey, I've been reading about forex for a while now but I just had some general questions. I'm really sorry if this information has been covered in other posts. Basically, my goal is to start trading/at least know how to trade forex. I'm not really interested in purchasing a system because I'd just want to learn to do this by myself. My problem is that every time I try to really start I end up feeling very overwhelmed because it seems like there's so much information to cover.

1. I've read briefly about things like fibonnocci lines, trend lines, candle stick charts. But I wanted to know, is there any of these three that tends to work better than the others? Or does it really depend on different factors. Do you guys have any links to information that gives other methods of analyzing trends?

2. Generally how do people make their own automated systems? Do you need extensive programming language? Or are there easier ways of making one?

3. Do you guys have any books or websites I should read to give me more information? Maybe specic places that will teach me more in depth on the methods of analyzing.

Thanks a lot. Once again, I'm sorry if some of this stuff has been covered in other posts.

[Jerseydevil]

Similar request earlier today:

http://www.moneytec.com/forums/showthread.php?t=18215

It was all new to me too back in April and has taken months to digest, even with a working knowledge of the stock market. If you really want it, dedicate the time to create a foundation of knowledge, then hopefully success will follow (I can't say for sure because I'm still in foundation creation mode). I've spent hundreds of hours over that time period reading, watching, lurking, just to approach what I consider novice level. Don't underestimate the effort required. I'm counting on a several month demo experience before I go live. I don't want to waste my capital.

Good luck.

[JJ]

I think a good way to learn is to experiment with a few different indicators, After all, that is what a demo account is for. What works for someone else may not work for you and your style of trading.

[JohnJay]

Hi Highways,

Originally Posted by highways

Hey, I've been reading about forex for a while now but I just had some general questions. I'm really sorry if this information has been covered in other posts. Basically, my goal is to start trading/at least know how to trade forex. I'm not really interested in purchasing a system because I'd just want to learn to do this by myself. My problem is that every time I try to really start I end up feeling very overwhelmed because it seems like there's so much information to cover.

1. I've read briefly about things like fibonnocci lines, trend lines, candle stick charts. But I wanted to know, is there any of these three that tends to work better than the others? Or does it really depend on different factors. Do you guys have any links to information that gives other methods of analyzing trends?

2. Generally how do people make their own automated systems? Do you need extensive programming language? Or are there easier ways of making one?

3. Do you guys have any books or websites I should read to give me more information? Maybe specic places that will teach me more in depth on the methods of analyzing.

Thanks a lot. Once again, I'm sorry if some of this stuff has been covered in other posts.

I'll try and answer your points one by one.

1. Personally, I don't think it matters if you use fibonacci lines, trend lines or candlesticks. All that matters is that at the end of say, a thousand trades, you make a gain. By using position-sizing strategies, you can maximise your profits over time.

2. I have not automated my systems yet. I found it difficult. Mind you my programming experiences are limited to HTML and little PHP. There are some good service providers that make it easier to automate your system but the problem I had was that they did not connect through the broker I wanted to use. So I still trade my system manually.

3. A book to start you off on how to develop your own forex trading methodology would be The Part-Time Currency Trader. It is very thorough, balanced and complete (By complete, I mean you do not need to refer to other books to understand what it is trying to say).


I hope this helps,
JJ

[Pip Rippy]

A very good introduction book for forex is Raghee Horner, Maximize profit. It is about forex and she uses a good basic system. I think if you read her book it will show you that any good technical analysis should work with all systems and timeframes. I tell traders I "turned a corner", profitably, after reading Raghee Horner.

One thing that you will learn with time is that you can make trading really to comlpicated. The basic candlesticks with trendlines, MA's, support/resistance, is all that you need to trade profitably. There is no easy way to tell you this but you have to go through the "hard Knocks" school of indicators. In the end indicators only tell you has happened in the past and you can spend way to much time focusing on them. But on the other hand I do not know any technical trader that does not at least use one.

I am having a hard time trying to learn how to program a trading system. I think first you need to have your own trading system that you understand all of the little "quirks". Most forex traders say to use Metatrader, I have tried but cannot get a consistent profit. I have tried metastock and VTTRADER. I think tradestation is the best trading platform, but you need about 50,00 to use tradestatition.
I trade forex with cms VTTRADER, visual trader, I love the platform, free demo, but the automatic trading system cannot trade while you are logged off! What good is a trading system it if does not work while your computer is turned off, or logged off! It is always something.

The best advice I can give you is to read alot of posts. First, figure out you trading style. Do you want to make trades that last 5-30 min, 2hr-6hr, 1day to 2day. The timeframe you spend at your computer dictates alot. Download and read the free ebooks: Elder- come into my trading room: Tharp- Financial Freedom..: John Murphy- Technical Analysis.. These books are not a classics for nothing! Then read the new forex books- Raghee Horner, and Kathy Liens new forex book. What you will learn is that the forex books basically apply what is in those 3 classic books(Elder, Tharpe, Murphy). After that you will have a good foundation!

[MickMason]

Originally Posted by Pip Rippy

One thing that you will learn with time is that you can make trading really too comlpicated.

Absolutely!

Trading actually isn't that difficult, after all this is only a 2-horse race, it's the discipline to overcome natural human instincts that's the hard part and that's not on any chart or indicator.

Another good book to read is Mark Douglas - Trading in the Zone. It gets a bit repetitive but the messages are there.

As for automating a system, there are quite a few people experienced in that field over on the Strategy Builder website. Some brokers are also offering facilities for automated systems and offer help and advice on programmïng and/or finding a programmer to write your system, have a look at the Systems Trading Desk section on the FXCM website.

Good luck!


Mick

[patrick_fx]

Originally Posted by MickMason

Absolutely!

Trading actually isn't that difficult, after all this is only a 2-horse race, it's the discipline to overcome natural human instincts that's the hard part and that's not on any chart or indicator.

Mick

MickMason! I like your view "this is only a two horse race". :-) You're right, it has a lot to do with discipline.

I'm still a beginner, but would like to share some advice. Either start with demo account or very small real account. I started with a demo account for a month, then a small real account for another month, then the real account. Some people might say that's too short. Some will suggest you to trade demo account for at least a year. It's all depend on your judgement.

IMO, indicators and charts are important, but the most important part of trading venture is Money Management. Make sure you have it even before start trading a demo account.


Good luck and welcome to Moneytec :-)

[FXGenius]

Hi,

I have read lots and lots of strategies, books, quotes, etc. but one of the best quotes that I read is:


The key to trading success is emotional discipline. If intelligence were the key, there would be a lot more people making money trading... I know this will sound like a cliche, but the single most important reason that people lose money in the financial markets is that they don't cut their losses short.
.................................................. .........Victor Sperandeo




Roadmap to trading forex successfully:
1. Entry/Exit strategy (lots of good strategies can be found at www.strategybuilderfx.com).

2. Money & Risk Mangement:
Most of new traders come in the market with a view of becoming millionares in few months and they indiscriminately use the double edge weapon of leverage, mostly at 1:200, to be come rich overnight. It takes time to learn the importance of MM & RM, but most of the traders go broke and leave the areana before understanding its importance.

A great article on the importance of MM/RM: http://www.moneytec.com/forums/showthread.php?t=19415

3. Emotional Control:
Quality of not being greedy, fearful or impatient. This is the hardest part of trading and like MM/RM it takes time to master this skill, provided the trader lasts long enough.

4. Discipline:
Discipline is sticking to all the above mentioned pre-requisites of success in trading .... WITHOUT FAIL.

The best instructor of forex trading is experience and the most important lesson that can bring you on the path to riches is LEARNING FROM YOUR OWN MISTAKES AND NOT REPEATING THEM.

A good place to read tutorials, info, analysis, etc. is www.forextradersworld.com .