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

[ag_fx]

The point 2 is absolutely valauable.

Is the liquidity that much a problem with INR-USD pair?

Haribird.

It is not about it being a problem...The liquidity in USDINR is very high,but when you compare it with the international pairs, it hardly stands ground.

Here is some fact for you:

India forms only 0.9% of total Forex turnovers around the world.

 

[pipshower]

Thank you pipshower,

Can you post the advantage of trading 'forex (non INRs)' than INR-USD here in india?

haribird.

I may be able to answer that...At least some of the advantages...

1) INR is only tradeable against USD..As a result, not all market participants would trade in it and thus, the liquidity is much less than oder pairs.

2)Many other major currencies are interlinked...For example, many a times EUR,GBP & CHF behave in same expected fashion, while JPY behave in opposite direction.

That is, sometimes, it becomes a little easier to trade one currency based on some other currency's behaviour.

3) highest order of leverage offered.This is actually a double edged sword. It can make u big profits in small time and at the same time can wipe u out within a few trades. If a proper strategy is traded, the profit percentages are high in forex.


I am sure there must be oder advs too.

Happy Trading,
Ankit

Hello Haribird ,
What Ankit has said is absolutely right
I have never traded USD/INR pair because of wider spreads on my broker i.e. Oanda which at a time are more than 100 pips or so .
Besides that previous to Indian govt introducing usd/inr futures the RBI site posts that individuals from India cant influence INR by trading forex without their permission. So basically i never traded it .

Other advantages are :
You have more than 20 + pairs at any moment to choose to trade from..
Also you can screen these pairs everyday on various timeframes so you have various opportunities to trade with set ups forming on at least 2 to 3 of them.
Say you are trading Usd/inr in India then you have only one option trade at right moment and wait till your target is hit ..You cant diversify your money on other best set ups that occur on other currency pairs .

Regards
Pipshower

 

[pipshower]

dats a very broad answer....frankly, cudnt gain much from it.....can u give any example?

and wat kinda pivots dou use? classical or some other form?

Thnks

I would explain you with an ongoing trade.
See usd/jpy daily chart
My pivots are price action based which i draw after i see the price action history at that level in history.
Now according to this , i am long at 98 level because there is pinbar which has closed above the level of price action pivot which lies at 97.50 region .so my stop loss is at 97 .
My target would be next level of price pivot which is at 100 to 101 region .
But i will lock in half profit at 99.50 to 100 region because it is psychological and historical price pivot with strenghened action due to round number power. This the level where big traders look for adding or closing positions.

And remember price pivot zones are not just a single number but they are a range of pips forming price pivot zone. So in this example 99.40 to 101.50 region is price pivot zone comprising of nearly 210 pips. So for next trade to enter i will look for a price pattern developing around this zone and then trade upon confirmed rejection of that level or clear break of it.

And about current trade i will move my stop loss to breakeven as soon as the trade is in +30 pips removing any risk in this trade. At 99 level i will close half position and let other half run till my target.

Hope this explaination is good enough .
Regards
Pipshower

 

[TFL]

Hello Haribird ,
What Ankit has said is absolutely right
I have never traded USD/INR pair because of wider spreads on my broker i.e. Oanda which at a time are more than 100 pips or so .
Besides that previous to Indian govt introducing usd/inr futures the RBI site posts that individuals from India cant influence INR by trading forex without their permission. So basically i never traded it .

Other advantages are :
You have more than 20 + pairs at any moment to choose to trade from..
Also you can screen these pairs everyday on various timeframes so you have various opportunities to trade with set ups forming on at least 2 to 3 of them.
Say you are trading Usd/inr in India then you have only one option trade at right moment and wait till your target is hit ..You cant diversify your money on other best set ups that occur on other currency pairs .

Regards
Pipshower

Pipshower,

I think if I/others ask questions like this here it will affect the flow of your lessons we are waiting to see. So please continue educate us from the very beginning of Forex. Though the questions can be based on the teaching itself.

haribird

 

[natjay]

@pipshower

Since you've got an account with Oanda, can you confirm if they accept PAN card as ID proof. How easy is it to open a live a/c with them?

I'm planning to go with Oanda in the next few months and looking at forex for part-time trading at least. I'm just a little concerned about the documentation they accept as I don't have a passport yet -- just a PAN card + bank statements.

Will this do? Appreciate your help on this.

 

[pipshower]

Pipshower,

I think if I/others ask questions like this here it will affect the flow of your lessons we are waiting to see. So please continue educate us from the very beginning of Forex. Though the questions can be based on the teaching itself.

haribird

No problem Haribird..
I will be adding lessons everyday dont worry about it .
All the questions will be answered which are in the limit of my knowledge and those which are out of my limit of knowledge i will make sure i get more knowledge about them .
And asking valid questions shows your true interest and makes me believe that you have that successful traders psychology in you to make it big !


NOTE: The trade i posted in previous post abt usd/jpy is at +30 so i am moving my stop loss to breakeven removing any risk out of trade .This is how i trade.
Also the trades if i post here are in no way my responsibility if you take them as they are my views and i am not responsible for the losses if any incurred on them .
Regards
Pipshower

 

[pipshower]

@pipshower

Since you've got an account with Oanda, can you confirm if they accept PAN card as ID proof. How easy is it to open a live a/c with them?

I'm planning to go with Oanda in the next few months and looking at forex for part-time trading at least. I'm just a little concerned about the documentation they accept as I don't have a passport yet -- just a PAN card + bank statements.

Will this do? Appreciate your help on this.

Hello Natjay,
first of warm welcome to the world of forex and to this thread.
Oanda is a great broker though their charting is not recommended .Oanda accepts those documents .You must scan them in original and attach those to verify . I would recommend using PAN card , Driving licence , bank statements or credit card statements in scanned images with clarity to be used to verify . While sending these also mention in mail that these documents are provided by the govt authority and are valid for ...years and you can check the validity of them on Indian Govt site and i am sure with this written in mail your account will be confirmed without a slightest doubt considering your documents are not forged and valid.

Note: I am not in anyway affiliated with oanda or any broker that i mention in this forum in any posts . I dont have any personal benefit out of it.

Regards
Pipshower

 

[ag_fx]

I would explain you with an ongoing trade.
See usd/jpy daily chart
My pivots are price action based which i draw after i see the price action history at that level in history.
Now according to this , i am long at 98 level because there is pinbar which has closed above the level of price action pivot which lies at 97.50 region .so my stop loss is at 97 .
My target would be next level of price pivot which is at 100 to 101 region .
But i will lock in half profit at 99.50 to 100 region because it is psychological and historical price pivot with strenghened action due to round number power. This the level where big traders look for adding or closing positions.

And remember price pivot zones are not just a single number but they are a range of pips forming price pivot zone. So in this example 99.40 to 101.50 region is price pivot zone comprising of nearly 210 pips. So for next trade to enter i will look for a price pattern developing around this zone and then trade upon confirmed rejection of that level or clear break of it.

And about current trade i will move my stop loss to breakeven as soon as the trade is in +30 pips removing any risk in this trade. At 99 level i will close half position and let other half run till my target.

Hope this explaination is good enough .
Regards
Pipshower

Thanks for the reply....I can understand what you are trying to say and as usual have more questions to be fired....But, I guess they are not basic questions and might defeat the purpose of this thread, which is for a beginner.
The qwuestions are more to do with the trading strat...so I guess I would wait untill you reach to that point in the thread, where in we can start discussin our trade ideas and strats.

Ankit

 

[beethoven]

Hello Pipshower,

Great job!!!

Can you please explain how brokers charge their commission in forex trading?

Bee

 

[pipshower]

Thanks for the reply....I can understand what you are trying to say and as usual have more questions to be fired....But, I guess they are not basic questions and might defeat the purpose of this thread, which is for a beginner.
The qwuestions are more to do with the trading strat...so I guess I would wait untill you reach to that point in the thread, where in we can start discussin our trade ideas and strats.

Ankit

Hello Ankit ,
dont worry i will be reaching that point sooner and soon will posting with charts to explain..

But we must go step by step for the benefit of the newbiews in forex.

On personal question ,
are you the same guy as forexgrandmaster or the site that is owned by you? I dont know but one of the students whom i teach said so so was just asking you?

Regards
Pipshower