Thread: Main guidelines for beginners

Originally Posted by ;

quote Thanks a lot , I agree with you and your post gave me new ideas about trading. I hope others will have a fantastic start due to your briefing.

You are welcome. Best L.

Thank you RasmusFX for you invite,


Trading the markets is a really risky business, and the most crucial factor in trading success/failure is Risk Management.
Risk can be managed by appropriate position sizing and leverage.

Here are few quotes from the big guys on the subject :

Never test the depth of the river with both feet. Warren Buffett

The toughest thing to judge will be exactly what degree of risk is safe. George Soros

Risk no longer than you can afford to drop, and risk enough so that win is meaningful. Ed Seykota.

I have two fundamental rules about winning in gambling, If you do not bet, you can't win. If you loose all of your chips, you can't wager. Larry Hite
In investing, what's comfortable is seldom profitable. Robert Arnott


There isn't any doubt that trading with leverage is a major attraction of the Forex Market.
Although the ability to earn substantial profits by using leverage is substantial, leverage may also work against you.
Simply put, leverage may amplify your gains as well as your own losses.


Safe Trading,

Khalil Abokwaik

Originally Posted by ;

Thank you for you invitation, Trading the markets is a really risky business, and the most important factor in trading success/failure is Risk Management. Risk can be handled by appropriate position sizing and leverage. Here are a few quotes from the big guys on the topic : Never test the depth of the river with both feet. Warren Buffett The toughest thing to judge is exactly what degree of risk is secure. George Soros Risk no more than you can afford to lose, and also risk enough that triumph...

Due Khalil,

From what I understand, Cysec - I'm trading with a broker controlled by these - has new regulations about leverage which it implemented recently. It says that no broker is going to be allowed to give high leverage to it's customers. It will allow certain levels according to the degree of know how of the trader. The reduced the knowledge.

Further to the advice is that this post it's crucial to realise that FX trading is not a get-rich-quick prospect.

The leverage provided by any broker should be considered a marketing ploy. Safety of trade execution is much more significant than a massive margin.

The size of almost any position you take is a function of the quantity of money in your checking account, the total amount of leverage you are given is merely an indiion of the quantity that a broker will charge you to have a position open. For newbies 1:1 is a great starting leverage, meaning trade micro-lots against an account containing $1000. Better yet only trade demonion until you do not need to fool yourself that you are able to earn money; and develop a thick skin to deal with the broker-reps that will begin phoning you to put money into 'a real account'.

If you start winning and do not understand why, it's simply luck. If you do not believe that your account is going to be blown in a few weeks ... or in another SNB announcement.

There is no magic system, so don't be tempted to pay for one. The longer you spend looking for a system the longer it's going to be until you start learning to trade. The only thing worth paying for is eduion.

Originally Posted by ;

....

I wish I could give more than one for this particular post.

The amount of time that's required to become proficient, and the amount of time required to remain that way, is hardly ever mentioned.

Nowadays my time is taken by managing my stock portfolio. It's my income source. Because of this I currently have zero action in the FX market.

Read this

https://www.forexsoutheast.asia/gene...e-meeting.html

then this Informative Article by Stephen Thom

https://www.forexsoutheast.asia/cryp...or-system.html

Originally Posted by ;

Read this https://www.forexsoutheast.asia/fore...py-trades.html then this post by Stephen Thom https://www.forexsoutheast.asia/cryp...rt-indior.html

Thanks,

this was a good read.

Does anybody have some tips for setting fantastic trading rules? I dont imply specific rules you follow along, but just a general guideline on what to include
Should it a be a straightforward when X, Y and Z are fulfilled then enter? Or would you like to create them complied?


Any guie would be appreciated!

Originally Posted by ;

Does anybody have some guidelines for placing good trading rules? I dont mean specific principles you follow, but just a general guideline about what to add Should it just a be a straightforward when X, Y and Z have been met then input? Or do you want to create them a bit more complied? Any advice would be appreciated!

Hi,

I personally don't trade when the events from the calendar have been blended - 3 outcomes in the exact same hour - when they are not all on green or red - then I scalp.
When you believe you see that a good buy/sell order check the calendar ahead (so your commerce won't proceed against you).

Get used to utilize just a small number of indiors - in time you will know them best (I use stochastic, bollinger and rsi).

Also try to trade just a handful of tools - better to understand a lot about 3-5 max compared to just a small bit about 15. Here you may attempt to concentrate on the ones which are correlated (cad moves with the wti, commodities proceed against the usd, indices proceed according to the stocks that they represent and so on)

Watch what suits you best - scalping, day trading, long term trades and so forth. Each have advantages and disadvantages so try them on a demo first, such as in the last twenty years on a yearly basis no asset management or hedge fund conquer the profit of indices.

Cheers.

Originally Posted by ;

quote Thanks, it was a good read.

Thanks, this is a excellent read.