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

[pipshower]

Re: HOW DID I DEPOSIT TO BROKER IN LEGAL WAY?

Pipshower

There are many ways to send money abroad and open a forex account which does not require too much skill or expertise. You have earned your money abroad and spending as you wish is outside the ambit of Indian jurisdiction. Main question is resident Indian cannot use INR earned in India and send it abroad for Forex trading which makes it a speculative spending which is not allowed by RBI regulations, I think.

We have to discuss ways of doing trading on this public forum keeping in mind the laws of the land.

Bee

Absolutely with you on this point!
I have never went out of the jurisdiction on govt of India in dealing with this issue and recommend no one break to break any law in India .

This thread is dedicated to answering and helping on forex trading in A LEGAL way and so be it!
Thanks Bee

Regards Pipshower

 

[pipshower]

FOREX --What is it?

FOREX --What is it?


FOREX= foreign exchange

Synonyms: Retail forex , FX, spot fx

Forex market is biggest financial market in world.
Trading volume daily on average is 3 to 4 trillion $ which is far more than all the other world markets put together.

Forex basically is trading currencies as pairs where you buy one currency while you sell the other .

Forex is well known to those who fly abroad as i guess if anyone of you have done a tour abroad you would know that you exchange currency to obtain other .

I guess this as a start is enough ..

Regards
Pipshower

 

[pipshower]

Forex trading differs from stock trading in various aspects

1. Forex market is 24 hrs market
2. Forex market involves buying of currency while selling other since it is traded in pairs
3.Forex brokers provide quite higher leverage like 1:200 to 1:500
4.Forex is much volatile than stocks

 

[robin000]

Hello Pipshower, I really appreciate your effort to educate us all. I have a couple questions such as:
1. whats the best time frame in gmt hours if i wnna open and close a trade same day. I was thinking 1300 to 2200 gmt
2. should we prefer the news or chart indicators to enter or exit?
I'll be thankful if you can help.
Regards
Robin..

 

[hbkhrushikesh]

not sure if what I say i relevant or not to this thread, but here goes....

I was in the UK for most of 08.... when i went to UK was trading at abt Rs 80 ( selling price) and kept goin up till Rs 85 in sept 08.... I use to transfer abt 500 every month .... and then the started dropping..... till it went to abt Rs 68 in late feb 09!!! i stopped exchanging for Rs when the fell below Rs 80. and since nov 08 I actually started converting my Rs in . according to my primary estimate for every 100 that i transferred before sept 08, when transfered back i got 125 ( considering an avg sell of 80 and avg buy of 70)....... honestly a 25% return over 5-6 month period....to me was a steller return

Not sure if this really is forex trading........or somethin i stumbled upon as pure luck.....

I am now waiting for the rate to be favourable so that i can convart the to Rs . the current rate is abt Rs 73 and climbing

 

[pipshower]

Hello Pipshower, I really appreciate your effort to educate us all. I have a couple questions such as:
1. whats the best time frame in gmt hours if i wnna open and close a trade same day. I was thinking 1300 to 2200 gmt
2. should we prefer the news or chart indicators to enter or exit?
I'll be thankful if you can help.
Regards
Robin..

Hello Robin ,
1. When you are trading intraday and want to decide the right timeframe
i would advice you to start trading at European open at 8 GMT through to the American close at 22 GMT . Since this is usually the time of the highest volatility as bigger forex traders trade at this time.

2. I wont advice you to use any indicators . Indicators show us past and price action shows us future. So enter and exit based on price action .
Remember one thing that whenever you trade forex or for that matter enter and exit based on same timeframe chart . Say you saw the price action showing entry on 4Hr timeframe and you entered based on that with right stop loss and target then after you are plus say 30- 50 pips or so move your stop loss to break even or take partial profits and let the remaining trade run till your target point is hit or you hit stop loss which you have shifted to breakeven . THis way you always close in plus and letting the other half run till the target point helps you add more profits!


Hope this helps

Regards
Pipshower

 

[pipshower]

not sure if what I say i relevant or not to this thread, but here goes....

I was in the UK for most of 08.... when i went to UK was trading at abt Rs 80 ( selling price) and kept goin up till Rs 85 in sept 08.... I use to transfer abt 500 every month .... and then the started dropping..... till it went to abt Rs 68 in late feb 09!!! i stopped exchanging for Rs when the fell below Rs 80. and since nov 08 I actually started converting my Rs in . according to my primary estimate for every 100 that i transferred before sept 08, when transfered back i got 125 ( considering an avg sell of 80 and avg buy of 70)....... honestly a 25% return over 5-6 month period....to me was a steller return

Not sure if this really is forex trading........or somethin i stumbled upon as pure luck.....

I am now waiting for the rate to be favourable so that i can convart the to Rs . the current rate is abt Rs 73 and climbing

Hello Hrishikesh,
What you are doing is exactly what the big traders in forex do . You are trading forex that way to get the profits is what we do using brokers . What you are doing is exactly the origin of forex for profit was and you use your bank as broker since you use that to send the money to and from the GBP to INR .
You are on right path but try to understand and grab right opportunity to exchange studying charts to add on to your profits!

Regards
Pipshower

 

[TFL]

Re: FOREX --What is it?

FOREX --What is it?


FOREX= foreign exchange

Synonyms: Retail forex , FX, spot fx

Forex market is biggest financial market in world.
Trading volume daily on average is 3 to 4 trillion $ which is far more than all the other world markets put together.

Forex basically is trading currencies as pairs where you buy one currency while you sell the other .

Forex is well known to those who fly abroad as i guess if anyone of you have done a tour abroad you would know that you exchange currency to obtain other .

I guess this as a start is enough ..

Regards
Pipshower

What is the difference between Retail forex , FX and spot fx ?

haribird.

 

[pipshower]

Re: FOREX --What is it?

What is the difference between Retail forex , FX and spot fx ?

haribird.

Retail forex is what we do as individual small traders . That means we trade using brokers that provide retail investors like us to trade forex.
Remember that retail investing is plagued by scam bucketshop brokers .
Spot Fx is trades which are not closed out are settled in 2-working days. Futures tend to have a maturity of 3-months and so are settled quarterly, normally in March, June, September and December. This is why futures prices often look different from spot.

Basically they are same . And we must not worry about this difference unless we trading spot or futures for settlement of contract. In spot usually most brokers adjust roll over swap on certain decided days of week since we have weekend trading closed on the brokers . But forex market counts weekends too..

Regards
Pipshower

 

[ag_fx]

2. I wont advice you to use any indicators . Indicators show us past and price action shows us future. So enter and exit based on price action .
Remember one thing that whenever you trade forex or for that matter enter and exit based on same timeframe chart . Say you saw the price action showing entry on 4Hr timeframe and you entered based on that with right stop loss and target then after you are plus say 30- 50 pips or so move your stop loss to break even or take partial profits and let the remaining trade run till your target point is hit or you hit stop loss which you have shifted to breakeven . THis way you always close in plus and letting the other half run till the target point helps you add more profits!

How do you decide upon the price action? How exactly do you place your entry and exit orders? They say right side of the chart is always unpredictable. How do u use price action to make profitable trades?