I'm thinking about trading forex - any advice?

rathcoole_exile said:

read Mastering The Trade by John Carter, then trade the US cash session of the YM (mini Dow) futures - if your irregular hours should suit US timings ?

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shadowninja said:

I noticed in the attached file that it recommended trading news rather than not trading news. For people who trade off support/resistance or swing traders, is this wise advice?
(15) Not Trading Around News Time – Most of the big moves occur around news time. The volume is high and the moves are real; there is no better time to trade fundamentally or technically than when news is released; this is when the real money adjusts their positions and as a result the price changes reflect serious currency flow (compared to quiet times when Bank traders rule the market with their customer order flow).")

I am also a bit confused by the following: 33) Over-Relying on Risk Reward – There is zero advantage in risk reward. If you put a 20 point stop and a 60 point profit your chances are probably 3-1 that you will lose. Actually with the spread its more like 4 to 1 (from entry point if it goes down 17 points you lose, or up 63 - you win; 17/63 is close to 4-1). Does it mean just relying on R/R without having a decent system in place?

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shadowninja said:

Ah, I see what you mean.

WRT news, why do some people say don't trade just before and after news, then?

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FXSCALPER2 said:

I would guess because they don't really know what they are talking about. It is one of these things people say about trading.

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badoshi said:

Hi,

I'm new to these forums, and slightly overwhelmed with the amount of information/forums on offer here. I Hope someone can help.

I'm thinking about trading forex mainly because my work involves irregular hours, and like the idea of a market that's open most times I am available. I've also started working for the FX&MM dept in an investment bank albeit in an IT role, but work alongside developers who can teach me the basics of how trades work & the fundamental concepts. Is this a stupid reason to choose forex? Should I be considering any other markets?

If someone could also give me a good forex book recommendation for beginners, there are hundreds available on amazon. I've only read 2 investment type books so far, Naked Trader, & The Spreadbetting handbook. Both books were excellent, & inspiring but I felt held back because of my irregular hours.

Any advice is much appreciated.

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BBPI_FXTrader said:

read read read as much as you can, at least 4 hours a day for one year -two years.
open a demo-account and if you are profitable open a mini-account.
blow your mini-account
study again for 1 year, do an analysis on yourself, where did you go wrong, what did you do etc ? make a trading plan, swear to abide by your money and risk management rules, and then open another mini-account.
at least that's how i made it, and i'm profitable now

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FXSCALPER2 said:

You should always trade the news provided you have a live news feed and you know what you are doing. Unless you have a special reason for not doing so, avoiding high volatility times indicates that the trader is missing the point and should probably not be trading at all.

With the R:R thing, Jimmy (whom I know a bit) is talking about r:r on a trade by trade basis. There are people who say nonesensical things like 'never take a trade unless you can have a 3:1 r:r'.

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