Forex from scratch --a helping hand from pipshower...

[SavantGarde]

SavantGarde

 

[pipshower]

Re: Trading plan...

Scalping on daily charts??? Well...that sounded weird to me...That would probably not be scalping then...But anyways....Here's what I think could be a problem with this...

1) I would not know when to enter the trade...Rather, I will have to wait in front of the screen for the whole day when my RSI is looking to show a signal. For example, if RSI is close to 68-70, i will have to wait and monitor the complete days movement to enter the trade.

2)The time of holding the position would go up...It may range from one day to 7 days as we will be using daily charts. With the kind of volatility in the market, I am not too sure whether I can handle this in my account. Also, for holding positions overnight, swaps would be required, which at times cost a lot.

I am thinking of trying scalping with 5 min TF or 15 min TF.....with my TPs n SLs moving closer to 20-30 pips....But i really doubt that my strategy of scalping wud work for Daily chart. And I am equally sure that some wondderful strats do exist for trading dailies....

What about u pipshower? Wats ur strat?

Ankit

Scalping is just a terminology .
Whether to apply it to 1 min or weekly is entirely one's own decision.
Now about your strategy are you wondering on the crossover of RSI?
Here is what i mean by trading daily and higher timeframes : You dont need to stay in front of PC or laptop all day. Just need to check at the end of daily candle . Yes i mean close of daily candle . Then if it is crossed your level . Enter position or exit whatever is your strategy.
Remember you dont need to sit in front of the screen the whole day to do that. Just 15 min to 1 hr for your analysis at the end of the daily candle close and you are done. Enter TP and SL . Go and sleep or enjoy doing whatever you do.
Remember the signal should be held valid only after the candle or bar close.

Try this out .


Regards
Pipshower

 

[pipshower]

Also Ankit,
about your swap and account questions...

You are trading daily scenario where your targets are in few hundred pips then you have swap which is usually less than a pip so why worry for swap?

Account: If you dont have an account which is at least 100 times more than min position required to open a trade . You are risking more than 1% on a single trade then you are no where near getting serious in trading for profits in long term . That is truth.
Serious traders must and they do have an account where they put a position of no more than 1% on a single trade .

This is the most important truth any successful trader want to reveal to you.
Its money management nothing else.
Even if you use coin toss and flip to enter trade
you would be successful if you are using right money managment.

Regards
Pipshower

 

[pipshower]

Also Ankit,
about your swap and account questions...

You are trading daily scenario where your targets are in few hundred pips then you have swap which is usually less than a pip so why worry for swap?

Account: If you dont have an account which is at least 100 times more than min position required to open a trade . You are risking more than 1% on a single trade then you are no where near getting serious in trading for profits in long term . That is truth.
Serious traders must and they do have an account where they put a position of no more than 1% on a single trade .

This is the most important truth any successful trader want to reveal to you.
Its money management nothing else.
Even if you use coin toss and flip to enter trade
you would be successful if you are using right money managment.

Regards
Pipshower

Also i will tell you an example of the account that a person wants me to trade . Its $1 k acct where the min amt required to open a trade is more than $ 150 which is more than 15% . I would never trade it. But since he is asking me to do i am doing it on demo for him to show consequences .See with this if i am wrong 9 times in a row the account is wiped out. So its a gamble trading such account.

But now lets consider i have an acct with $10k where the min size to open a trade is $100 which is just 1% and i am wrong 9 times in a row .I just loose 9% . And then i get on with winning as per my technical analysis and end up taking account higher .
So who loses it? Its the case of money management.

Thats why when have smaller amount to trade chose a broker that provides opening smaller size positions or positions of size we can choose.

Hope this helps.

Regards
Pipshower

 

[TFL]

Also i will tell you an example of the account that a person wants me to trade . Its $1 k acct where the min amt required to open a trade is more than $ 150 which is more than 15% . I would never trade it. But since he is asking me to do i am doing it on demo for him to show consequences .See with this if i am wrong 9 times in a row the account is wiped out. So its a gamble trading such account.

But now lets consider i have an acct with $10k where the min size to open a trade is $100 which is just 1% and i am wrong 9 times in a row .I just loose 9% . And then i get on with winning as per my technical analysis and end up taking account higher .
So who loses it? Its the case of money management.

Thats why when have smaller amount to trade chose a broker that provides opening smaller size positions or positions of size we can choose.

Hope this helps.

Regards
Pipshower

pipshower,

I cannot agree with you on the point you said

But now lets consider i have an acct with $10k where the min size to open a trade is $100 which is just 1% and i am wrong 9 times in a row .I just loose 9% . And then i get on with winning as per my technical analysis and end up taking account higher .
So who loses it? Its the case of money management.

Why you are considering like loosing your full money in trade if its in loss? Don't you put a stop loss? If so then why can't you trade the account you said with $1000 with a position which will only loose 1% of $1000, i.e., $10 per trade i.e., the buy price stop loss difference multiplied by total position is not more than $10?

Please clarify.

 

[ag_fx]

Re: Trading plan...

Scalping is just a terminology .
Whether to apply it to 1 min or weekly is entirely one's own decision.
Now about your strategy are you wondering on the crossover of RSI?
Here is what i mean by trading daily and higher timeframes : You dont need to stay in front of PC or laptop all day. Just need to check at the end of daily candle . Yes i mean close of daily candle . Then if it is crossed your level . Enter position or exit whatever is your strategy.
Remember you dont need to sit in front of the screen the whole day to do that. Just 15 min to 1 hr for your analysis at the end of the daily candle close and you are done. Enter TP and SL . Go and sleep or enjoy doing whatever you do.
Remember the signal should be held valid only after the candle or bar close.

Try this out .


Regards
Pipshower

I agree to all that...What I meant here was that my strategy isnt too good for trading a daily chart. For a daily chart, something like Saint Sir's flow method is more suitable. I dont know what TF do you trade, but personally i would rather keep my TFs a little smaller with this strategy.

And all your comments regarding your money management is true and completely agreed.

Vaise, whats next in your lessons? Are you gonna throw some light on your trading strat?

Ankit

 

[ag_fx]

Also Ankit,
about your swap and account questions...

You are trading daily scenario where your targets are in few hundred pips then you have swap which is usually less than a pip so why worry for swap?

Account: If you dont have an account which is at least 100 times more than min position required to open a trade . You are risking more than 1% on a single trade then you are no where near getting serious in trading for profits in long term . That is truth.
Serious traders must and they do have an account where they put a position of no more than 1% on a single trade .

This is the most important truth any successful trader want to reveal to you.
Its money management nothing else.
Even if you use coin toss and flip to enter trade
you would be successful if you are using right money managment.

Regards
Pipshower

Now this is something I didnt get it....Minm margin required to take a trade and the loss attributed to it are two different things.
Your loss depends on how much money does 1 pip cost you and where's my stop loss.
For example, i take a position with $1000 using a 1:100 leverage. In this case, 1 pip movement against me would mean a loss of $10 to me. Now, if my account has total $10K, then this movement would mean only 0.1% risk on
EACH PIP.. now if I want to risk at the max 1% of my capital in a single trade, I would put a SL at 10 pips & thats it. In case, I want my SL to be farther(say 20 pip), I would take a smaller lot size say with $500 or something.
Please note that minimum amount required me to take a position in this account could be as low as $100 only.
As Haribird already pointed, its the SL which makes you manage your risk and not the margin required to trade it.
Money management is more about managing SLs and Position Sizing.
All inputs are welcome

Happy Trading

 

[pipshower]

pipshower,

I cannot agree with you on the point you said


Why you are considering like loosing your full money in trade if its in loss? Don't you put a stop loss? If so then why can't you trade the account you said with $1000 with a position which will only loose 1% of $1000, i.e., $10 per trade i.e., the buy price stop loss difference multiplied by total position is not more than $10?

Please clarify.

Dear Hari,
You got yourself confused.
Let me solve the confusion :
The $1k account where min to open position is $150 would have a pip = $ 1 or so . So if you trade using SL :TP =1:1 or even 1:5 it would in case of SL being triggered which lets say is at 100 pips would end up hitting -100 . This way if you get 9 straight loosers [which is possible at any time in forex market even if you take best set ups ] you loose 900 of 1k and you cant open a position.

Now let me move on to your question abt trading $10 out of $1k .
Here you got yourself confused . I am talking about broker where min to open size is $150 then how can you open position with $10?
For that i said in earlier post which I guess you didnt read it.

Thats why when have smaller amount to trade chose a broker that provides opening smaller size positions or positions of size we can choose.

I dont mean you cant trade with $100 . You can with a broker like oanda where i can use any min size to open a trade.

Hope you understand.

Regards
Pipshower

 

[TFL]

Dear Hari,
You got yourself confused.
Let me solve the confusion :
The $1k account where min to open position is $150 would have a pip = $ 1 or so . So if you trade using SL :TP =1:1 or even 1:5 it would in case of SL being triggered which lets say is at 100 pips would end up hitting -100 . This way if you get 9 straight loosers [which is possible at any time in forex market even if you take best set ups ] you loose 900 of 1k and you cant open a position.

Now let me move on to your question abt trading $10 out of $1k .
Here you got yourself confused . I am talking about broker where min to open size is $150 then how can you open position with $10?
For that i said in earlier post which I guess you didnt read it.


I dont mean you cant trade with $100 . You can with a broker like oanda where i can use any min size to open a trade.

Hope you understand.

Regards
Pipshower

Dear pipshower,

I read all you posts in this thread. I understand what you meant by this but said why you are doing like this alternatively...why could you do like... 1% risk per trade rather than trading with 1% of the account?

In the above example you said you need to open a trade of $150 and for that trade your pip value is $1. Why could you trade with $1000 and take only 1% risk?

I can explain more...

 

[pipshower]

Now this is something I didnt get it....Minm margin required to take a trade and the loss attributed to it are two different things.
Your loss depends on how much money does 1 pip cost you and where's my stop loss.
For example, i take a position with $1000 using a 1:100 leverage. In this case, 1 pip movement against me would mean a loss of $10 to me. Now, if my account has total $10K, then this movement would mean only 0.1% risk on
EACH PIP.. now if I want to risk at the max 1% of my capital in a single trade, I would put a SL at 10 pips & thats it. In case, I want my SL to be farther(say 20 pip), I would take a smaller lot size say with $500 or something.
Please note that minimum amount required me to take a position in this account could be as low as $100 only.
As Haribird already pointed, its the SL which makes you manage your risk and not the margin required to trade it.
Money management is more about managing SLs and Position Sizing.
All inputs are welcome

Happy Trading

I agree on valid points raised by you.

Now this is something I didnt get it....Minm margin required to take a trade and the loss attributed to it are two different things.
Your loss depends on how much money does 1 pip cost you and where's my stop loss.

You are right . With most brokers 1 pip equals $1 to $100. The broker with whom the point i was talking on has $ 1.5 a pip or say $1 .There now comes issue of SL . My stop losses vary from 50 to 300 .Trading on daily and weekly timeframes . So basically its matter of one's own trading style.
Since i trade to enjoy my freedom and not stay glued to screen and have mental psychological ups and downs with each movt of few pips. So daily and weekly are suitable for me .
I hope you now understand the reason of why i said that way in the post.