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

[natjay]

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

Thanks a lot for your reply

I'm looking at Oanda because they use a Java platform and accept PayPal payments. They are MMs, but have been around for a while.

Brokers like Alpari, though reputable, need check / bank transfers, which can create problems in the Indian scenario.

ECNs like Dukascopy are out of question for now as their startup capital requirements are very high. I'm looking to start with $150-300 and Oanda seems good for that.

BTW -- PAN Cards don't have an issue / expiry date on them (as Oanda requires), so can I mention that these cards are government issued and valid for a lifetime?

 

[pipshower]

Hello Pipshower,

Great job!!!

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

Bee

Thank you Beethoven,
and good question.

Now let me cover your query from all aspects .

First of all there two types of brokers in forex market.

One -- ECN where your trade is directly put on interbank exchange and more you trade with them for profits they have higher chances of getting commissions . As they charge commissions based on base currency traded for example they charge $10 for 1 million currency traded .So whenever you put an order they charge certain commission.
Remember the commission varies with each ECN broker.
I recommend trading ECN for the vary benefit that they wont scam you for money as more you trade and profit they gain commission. More you gain more you trade so more commmision for them and cycle goes on.only thing is there position sizes are larger and you need higher equity to trade there. Say $10k or higher.

Now moving to second type of brokers : Market makers
Most of the time they trade against us. Say they have automated system that puts trades exactly opposite to what we trade. This helps them make large profits since 95% traders lose.
But they charge spread which varies with each pair traded and with each broker.
We cant gurantee that they will pay us if we make say $1 million in profits they will run away . Even you are consistent trader with profits more than what the earn from others they wont pay you or put wrong trades on your acct etc.But thats not case with all.

I have cleared my views based on what i and other persons i know have experienced.
For safety make sure you read the agreement while opening an acct with broker.

Regards
Pipshower

 

[pipshower]

Thanks a lot for your reply

I'm looking at Oanda because they use a Java platform and accept PayPal payments. They are MMs, but have been around for a while.

Brokers like Alpari, though reputable, need check / bank transfers, which can create problems in the Indian scenario.

ECNs like Dukascopy are out of question for now as their startup capital requirements are very high. I'm looking to start with $150-300 and Oanda seems good for that.

BTW -- PAN Cards don't have an issue / expiry date on them (as Oanda requires), so can I mention that these cards are government issued and valid for a lifetime?

Yes i agree with you on OANDA and i myself use them for their great easy deposit and withdrawal facility as well as their total equity meets NFA requirements . Also flexiblity to use any amount of equity to trade beats all brokers .
And about pan cards you can mention that these are valid for long time without problem.
Regards
Pipshower

 

[pipshower]

Glossery of terms used in forex

I am putting glossary of terms that are commonly used or are the basic terms in forex here.

Ask The quoted price at which a customer can buy a currency pair. Also referred to as the offer, ask price, or ask rate.



Base Currency For foreign exchange trading, currencies are quoted in terms of a currency pair. The first currency in the pair is the base currency. For example, in a USD/JPY currency pair, the US dollar is the base currency. Also may be referred to as the primary currency.



Bid The quoted price where a customer can sell a currency pair. Also known as the 'bid price' or 'bid rate.'



Bid/Ask Spread The point difference between the bid and ask (offer) price.



Currency pair The two currencies that make up a foreign exchange rate. For example, USD/YEN is a currency pair.



Dealer A firm in the business of acting as a counterparty to foreign currency transactions.





Interbank market A loose network of currency transactions negotiated between financial institutions and other large companies.



Leverage The ability to control large dollar amount of a commodity with a comparatively small amount of capital. Also known as gearing.



Margin See Security Deposit.



Offer See Ask.



Open position Any transaction that has not been closed out by a corresponding opposite transaction.



Quote currency The second currency in a currency pair is referred to as the quote currency. For example, in a USD/JPY currency pair, the Japanese yen is the quote currency. Also referred to as the secondary currency or the counter currency.



Rollover The process of extending the settlement date on an open position by rolling it over to the next settlement date.



Security deposit The amount of money needed to open or maintain a position. Also known as margin.




Spread The point difference between the ask and bid price of a currency pair.



Trader An individual who is on the other side of the trade with the dealer and whose objective is to profit from price movements.

 

[ag_fx]

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

I agreee...SLow and Steady wins the race....

And NO...I dont have any site or any other source where I post...I am here only on Traderji

 

[pipshower]

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

Hello all,
On the trade posted above on Usd/jpy i locked in half position for profit of 100 pips. Rest half has stop loss moved to +30 .
So this one is winner with rest half position is let to run free at trailing stop of 100 pips . So nothing to worry now!

Regards
Pipshower

 

[TFL]

pipshower,

Very excited in learning from you the FOREX.
If you don't mind, requesting you to do some formatting(Bold/Underline/highlighting/text colouring) in your lessons. Which will really help to go through the thread.

Haribird.

 

[pipshower]

pipshower,

Very excited in learning from you the FOREX.
If you don't mind, requesting you to do some formatting(Bold/Underline/highlighting/text colouring) in your lessons. Which will really help to go through the thread.

Haribird.

Thank you Haribird ,
and i will be doing that today . Actually i would request everyone to read all posts by me in this thread as i will be putting posts i feel would be important from every aspect of the newbie putting myself in the shoe of newbie.
But as you said i will also use BOLD/HIGHLIGHTING /TEXT COLOURING as mentioned by you!


Regards
Pipshower

 

[TFL]

I am opening a demo account now with OANDA...but confused...about which OANDA.
oanda.SG or oanda.com for Indians? Which will be more better in the perspective of Indian trader, I mean fund transfer and so...

haribird.

 

[pipshower]

I am opening a demo account now with OANDA...but confused...about which OANDA.
oanda.SG or oanda.com for Indians? Which will be more better in the perspective of Indian trader, I mean fund transfer and so...

haribird.

How are you going to send funds to oanda?
I have account with oanda.com as when i opened there was only oanda.com .
Now they have started oanda.sg.
It doesnt matter where you open account .
I have only used paypal as funding option so i cant comment about wire transfer .

Regards
Pipshower