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Thread: New here, Some Questions...

  1. #1
    Hello fellow traders. This is a fairly cool forum, lots of info to find out.

    Anyways.

    I have been trading stocks for two decades now. My track record is not so good but I feel I'm at the threshold of producing consistant returns. (Forex, position trading)

    Because I do not have $25,000 (I have 6000) I opted to look into FOREX due to it's high leverage, and day trading capacities. Also its pretty cool that it's open 24/7.

    Within the past week I have been assessing FX, and making paper trades (I have an account with IB)

    I have designed a system where I loe pairs which are trading in tight trading ranges. I then look for bullish chart signs such as ascending triangles. I always buy in the bottom resistance and place a maximum 7 pip stop loss. I chose to not look at any flashy indiors, I'm comfortable just by investing the chart.
    I have been assessing the EUR/USD and feel comfortable with it.

    Today my questions:

    1. How much leverage do you use? By way of instance I have chosen to start out with roughly 6-1, I have 5600 and I will be trading with $30,000. (very tight stop losses)

    2. ) Does IB bill interest rates for holding leveraged positions? I dont know how this works. If I close all my rankings at the conclusion of the day, am I still charged interest?

    3. It appears there are huge differences between stocks and FX. However It still seems I can apply technicals into the charts and afternoon trade these items very similar to stocks. Does anyone agree? Disagree?

    4. Lets pretend 100 percent of my portfolio is currently within an equity which I am swing trading. Do the leverage rules still apply? Or Can I only be leveraged to the quantity of free money I have?

    5. I have put a hot key that is called Reverse Position (to those of you utilizing IB) Does this imply that my long EUR/USD will soon be sold and purchased long USD/EUR in the bid and ask?? I only need to be sure before I try this.

    6. I intend on making 1 percent yields daily.
    Would you think it's beneficial or harmful to set goals such as this?

    Thank You...

  2. #2
    Quote Originally Posted by ;
    6. I intend on making 1 percent returns daily.
    Do you think it is harmful or beneficial to set goals such as this?
    This is not an excellent idea. It sets you up for chasing, averaging down, not shutting winners, closing great trades early, etc.. All the terrible things you could do trading will come out when you need to earn a target. Take what you can get and leave it at that.

    The sole goals ought to be reduction objectives. As an example, if you shed 3% in a day, quit trading for the day. Reduce 8% in a week, quit trading for a week, etc.,. These goals keep you solvent.

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