Currency Trading

Dave Ridge

Newbie
1 0
Good afternoon all. I have recently retired. But within a few years, the savings will be gone! I would like to start trading currencies, but am a complete novice to all this. Could anyone suggest any books or videos to watch, that could help start the ball running please?
Many thanks
Dave Ridge
 
L

Liquid validity

0 0
Good afternoon all. I have recently retired. But within a few years, the savings will be gone! I would like to start trading currencies, but am a complete novice to all this. Could anyone suggest any books or videos to watch, that could help start the ball running please?
Many thanks
Dave Ridge

http://www.amazon.co.uk/gp/product/...rd_t=201&pf_rd_p=103612307&pf_rd_i=1592802788
http://www.amazon.co.uk/New-Market-Wizards-Conversations-Americas/dp/0887306675
http://www.amazon.co.uk/Reminiscenc...-spell&keywords=reminices+of+a+stock+operator

Thats books covered, and I've answered the initial question.
Any more questions ask away.

I will make a suggestion myself though.
Its entirely up to you, but active trading is generally high risk.
Its far from easy, yes you could succeed, but failure is also a very realistic
possibility, arguably more so.

Given your situation, maybe a reputable equity release scheme would be better:
http://www.which.co.uk/money/retirement/guides/equity-release-explained/
http://www.saga.co.uk/money/equity-release.aspx
http://www.telegraph.co.uk/finance/...try-secret-that-could-save-you-thousands.html
Thats for you to decide, and assumes you are in a position to do so.
Either way, research is key as you already know.
 
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timsk

Legendary member
7,348 2,141
Good afternoon all. I have recently retired. But within a few years, the savings will be gone! I would like to start trading currencies, but am a complete novice to all this. Could anyone suggest any books or videos to watch, that could help start the ball running please?
Many thanks
Dave Ridge
Hi Dave,
Welcome to T2W.

Follow the links that are in the welcome e-mail that you should have received following registration; they are written specifically for people like you who are just starting out. As a matter of interest, how did you decide that Forex is the market to trade - as opposed to stocks, commodities or futures?
Tim.
 

pboyles

Legendary member
8,072 1,302
Good afternoon all. I have recently retired. But within a few years, the savings will be gone! I would like to start trading currencies, but am a complete novice to all this. Could anyone suggest any books or videos to watch, that could help start the ball running please?
Many thanks
Dave Ridge

If you start trading currencies your savings will be gone a lot quicker. Do not do this.
 
L

Liquid validity

0 0
If you start trading currencies your savings will be gone a lot quicker. Do not do this.
Statistically, that is completely true.
Most people lose.

Personally, there is no way on earth I would want to
start doing this for income when retired.
In his shoes and assuming its a possibility, I would be
looking at a reputable equity release scheme.
 
L

Liquid validity

0 0
. . . and then use the released equity to trade with. Great plan!
:p

Did you have a particular advertising broker in mind or will any do? :p

Lulz aside, the reason people keep highlighting the risk and chance of success
is because those subjects, although covered in the T2W FAQ, don't have enough emphasis:
http://www.trade2win.com/boards/new-trading/30625-i-m-new-trading-where-do-i-start.html#post1246100

To be fair yes it is covered, but I personally think the overall balance is slanted
towards the assumption that most people will succeed, when the reality
is quite the opposite.

For instance, there is no mention of failure rates.
Statistically the fact remains, most people will not succeed at this.
Yes the failure rate is nothing unique to trading, its common in many
other professions as well.
So why not highlight it a bit more?

http://www.trade2win.com/boards/first-steps/178180-new-query.html#post2176528
Then again I should know better as I know this is a futile exercise...
 
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pboyles

Legendary member
8,072 1,302
http://www.amazon.co.uk/gp/product/...rd_t=201&pf_rd_p=103612307&pf_rd_i=1592802788
http://www.amazon.co.uk/New-Market-Wizards-Conversations-Americas/dp/0887306675
http://www.amazon.co.uk/Reminiscenc...-spell&keywords=reminices+of+a+stock+operator

Thats books covered, and I've answered the initial question.
Any more questions ask away.

I will make a suggestion myself though.
Its entirely up to you, but active trading is generally high risk.
Its far from easy, yes you could succeed, but failure is also a very realistic
possibility, arguably more so.

Given your situation, maybe a reputable equity release scheme would be better:
http://www.which.co.uk/money/retirement/guides/equity-release-explained/
http://www.saga.co.uk/money/equity-release.aspx
http://www.telegraph.co.uk/finance/...try-secret-that-could-save-you-thousands.html
Thats for you to decide, and assumes you are in a position to do so.
Either way, research is key as you already know.

Failure is not a possibility, it's a probability, some would say a certainty.
 

Shakone

Senior member
2,458 665
Did you have a particular advertising broker in mind or will any do? :p

Lulz aside, the reason people keep highlighting the risk and chance of success
is because those subjects, although covered in the T2W FAQ, don't have enough emphasis:
http://www.trade2win.com/boards/new-trading/30625-i-m-new-trading-where-do-i-start.html#post1246100

To be fair yes it is covered, but I personally think the overall balance is slanted
towards the assumption that most people will succeed, when the reality
is quite the opposite.

For instance, there is no mention of failure rates.
Statistically the fact remains, most people will not succeed at this.
Yes the failure rate is nothing unique to trading, its common in many
other professions as well.
So why not highlight it a bit more?

http://www.trade2win.com/boards/first-steps/178180-new-query.html#post2176528

It's interesting.

If you take the average person who comes here thinking they can make money at forex, and instead gave them a different situation: do you think you could make money in competitive chess when you know nothing about your opponent other than he's willing to play for money, or could you beat pro poker players and would you be willing to sit down at a tabe full of them and put your retirement fund on it...most of them would realise they were out of their depth and not put any money on the line, or would at least realise they were unequipped and that it would take years of committed learning to learn how to do it. But with trading they think they can do it by reading a book, watching or video or picking up some secrets.
 
L

Liquid validity

0 0
Failure is not a possibility, it's a probability, some would say a certainty.

Not really, its a probability only if all people are equal, they aren't.
Its also not a certainty as some do buck the trend.
Yes that is a semantic argument, and I do agree with your overall sentiments
regarding typical chance of getting anywhere.

All I'm saying is its not guaranteed success or failure.
Although granted failure is more likely.
There is a realistic balance.
 
L

Liquid validity

0 0
It's interesting.

If you take the average person who comes here thinking they can make money at forex, and instead gave them a different situation: do you think you could make money in competitive chess when you know nothing about your opponent other than he's willing to play for money, or could you beat pro poker players and would you be willing to sit down at a tabe full of them and put your retirement fund on it...most of them would realise they were out of their depth and not put any money on the line, or would at least realise they were unequipped and that it would take years of committed learning to learn how to do it. But with trading they think they can do it by reading a book, watching or video or picking up some secrets.

Exactly, completely agree :)
Extremely hard, most won't succeed, but not impossible.
 

Eurex

Active member
105 5
Good afternoon all. I have recently retired. But within a few years, the savings will be gone! I would like to start trading currencies, but am a complete novice to all this. Could anyone suggest any books or videos to watch, that could help start the ball running please?
Many thanks
Dave Ridge

Ill recommend to start taking trades on SIM account which is free and give you valuable advice.

Ill advice on not to trade Forex instead Trade Forex Futures on CME which will save a lot of money and risk associated with spot forex which is unregulated.

Once you get to understand the spread you are paying in trading Forex instead of Forex Futures then you will go for Forex Futures contracts to look for is 6E EUR USD on CME.

1. For Trading Software i recommend to go for CTS T4 get there DOM
2. Learn a charting software Linnsoft IRT works best for me. They give free trial but you will have to give your card details instead you can learn Market Delta which is IRT + Footprint charts and get a 2 weeks free trial
3. Read this book so that you understand when to trade and when not to trade. Around Economic nos dont trade and understand Economic nos.
http://www.amazon.com/The-Secrets-Economic-Indicators-Opportunities/dp/0132932075

One last book apart from what mentioned earlier is TRADING IN THE ZONE by MARK DOUGLAS

Dont spend any money on any superhero indicator or fast forward 1-2-3 days weeks training. There is no Holy grail if there was then the person wouldn't be selling it. Do read the above TIZ its about forming good habits which is why most of the traders lose.

Form your plan measure your progress in a spread sheet regarding Profit Loss Win % Loss % MAE MFE search for some trading journals. Noting your executions will make you remember your work and make changes to your approach.


Also lots of good things compiled in one place - http://www.attitudetrader.com/p/knowledgebase.html

Cheers
 

timsk

Legendary member
7,348 2,141
Hi all,
Some interesting points raised, all on a similar theme, each with a different emphasis:

1. pboyles makes the same point here that he makes on other threads started by new members who are also new to trading, namely that "failure is not a possibility, it's a probability, some would say a certainty."

2. Liquid validity makes the point that T2W places too much emphasis on the upside without making new members sufficiently aware of the likelihood of success and the risks associated with trading.

3. Lastly, Shakone makes the point that newbies think that principles of success that apply to any other sphere of human endeavour, be it sport or business, somehow don't apply to trading and that all that stands between them and unlimited wealth is a handful of books, a few vids on YouTube and some threads here on T2W.

All three points have merit. I imagine that anyone with any experience of trading will agree with all of them to a greater or lesser degree. However, valid as they are, there are points which I believe trump all three. They are:

1. Following my introductory post on the fishing forum I joined the year before last, I wasn't greeted by long standing members telling me not to take up fishing on the grounds that I'll be spending every spare penny that I have on new kit, sustaining twisted ankles on hazardous coast paths and dicing with death at the water's edge. Anglers die every year while pursuing their sport, but I've never once heard or read of an experienced angler telling a newbie not to do it.

T2W is a community forum for people to discuss trading, further their own knowledge and help others along the way. That's all it is. The site exists to help those - no matter how stupid and misguided they may be in the eyes of some - to progress down the trading road. It's completely wrong and inappropriate for any T2W member - let alone staff - to play god and tell new members what they should or shouldn't do with their lives. That's not what T2W exists for and we shouldn't do it. Period.

2. The modern malaise, so ubiquitous in the west especially, is to abdicate all personal responsibility and look for someone else to blame. Overweight people blame the fast food restaurants that sold them their supersize burgers and Coke etc. Well, one thing that trading does is to teach all those that try their hand at it personal responsibility. It's a lesson they may learn the hard way - but learn it they will. I think I can confidently say that none of the experienced traders on this thread look to anyone else but themselves to blame for their mistakes and drawdown on their accounts.

Lots of members look at trading purely in terms of profit and loss. Yes, most traders make a loss and may decide it's not for them. But, what is rarely ever mentioned are the other upsides - what they learn about themselves - their attitude towards risk - friends they may make here or on other forums, etc., etc. They may exit the trading arena financially poorer, but they could well be wiser, stronger and accept greater responsibility for their own actions and futures. Losing a few quid on the markets could actually be a positive event in their lives.

3. Nothing in life that's worth achieving is easy. Moreover, everyone has to start at the beginning and it's perfectly natural for newbies to focus on the upside. How many times do we all achieve something significant (to us) and then look back on it and think: 'I'm really pleased to have finished ABC and I'm glad I did it. However, had I known beforehand that it would take that long, cost that much, be that hard etc., then I'm not sure I would have started it.' So, it's natural that newbies have unrealistic expectations and all they can see are dollar signs to start with. The point is that most of us were exactly the same when we first started - and we're all still here! Like most of us, newbies have to work through that - it's part and parcel of the steep learning curve.

The bottom line is that it's right and proper that experienced members give green about the gill newbies a reality check and make them aware of the risks and the difficulties that lie ahead. But that's a very different matter from actively trying to put them off with tales of doom and gloom. Even if they lose some money, they may still profit in other ways; ways that are very significant, meaningful, beneficial to them and well worth the price of a few quid lost on a spread betting account. Sure, some will lose substantial amounts but, if they do, they will have ignored the mountains of advice about risk and money management here and elsewhere. For them, it will be a very expensive and painful lesson in personal responsibility.
Tim.
 
L

Liquid validity

0 0
1. Following my introductory post on the fishing forum I joined the year before last, I wasn't greeted by long standing members telling me not to take up fishing on the grounds that I'll be spending every spare penny that I have on new kit, sustaining twisted ankles on hazardous coast paths and dicing with death at the water's edge. Anglers die every year while pursuing their sport, but I've never once heard or read of an experienced angler telling a newbie not to do it.

T2W is a community forum for people to discuss trading, further their own knowledge and help others along the way. That's all it is. The site exists to help those - no matter how stupid and misguided they may be in the eyes of some - to progress down the trading road. It's completely wrong and inappropriate for any T2W member - let alone staff - to play god and tell new members what they should or shouldn't do with their lives. That's not what T2W exists for and we shouldn't do it. Period.

Is the financial risk with fishing and trading comparable - no.
Nobody is telling anyone what to do, just making suggestions.

Time and time again suggestions are asked for regarding the FAQ,
seen it before, you get them and then completely disregard them.

Simple fact is T2W has taken it upon itself to write a trading guide.
By doing so you are playing god, like it or not.
If you offer incomplete information its misleading at best.

Risk risk risk - the most important foundation of trading.
Its glossed over in the FAQ:
http://www.trade2win.com/boards/new-trading/89078-essentials-new-trading.html#post1085538
3. Risk & Money Management
Risk management focuses on the steps required to minimise losses, while money management focuses on the steps required to maximise gains. Central to both these objectives are two simple ratios which, between them, enable traders to create a positive expectancy. They are:
A) The Success Ratio. Out of any given sample, what is the total number of winning trades relative to the total number of losing trades? This is called the success ratio or win:loss ratio.
B) The Profit Ratio. This is the average £’s won on the winning trades, relative to the average £’s lost on the losing trades. This is called the profit ratio and is sometimes referred to as the ‘Sharpe Ratio’, although this is technically incorrect.
The important thing to note about the success ratio is that it is not necessary to have more than 50% winning trades to have a profitable trading strategy. Indeed, some of the biggest names in the industry utilise strategies that are profitable only 30% - 40% of the time. Let’s revisit the fair coin toss mentioned earlier, in which heads wins £10.00 and tails loses £5.00. You can see from this example that you would only need to have 33% of the coin tosses coming up heads to break even (Three coin tosses: 1 x heads = +£10.00 and 2 x tails @ -£5.00 each = -£10.00). In a fair coin toss, the success ratio is known to be 50/50 or 1:1. In this example, the profit ratio is 2:1. Over time, every coin toss has a positive expectancy of a +£2.50 gain. This is covered in detail in the Article linked below entitled: ‘How to Win at the Futures Trading Game’. At this point, you may be starting to get excited and thinking to yourself that none of this sounds very difficult. Indeed, the principles are fairly simple. However, as you will soon discover, it’s deceptively tricky to put into practice in order to generate consistent returns. To help you achieve a positive expectancy, you’ll need the forth precept . . .

That is exactly why I direct people to BSD's thread:
http://www.trade2win.com/boards/psy...on-sizing-compounding-keys-magic-kingdom.html

^^^ That should be in the FAQ or a sticky, its much more comprehensive for
an introduction to risk.


2. The modern malaise, so ubiquitous in the west especially, is to abdicate all personal responsibility and look for someone else to blame. Overweight people blame the fast food restaurants that sold them their supersize burgers and Coke etc. Well, one thing that trading does is to teach all those that try their hand at it personal responsibility. It's a lesson they may learn the hard way - but learn it they will. I think I can confidently say that none of the experienced traders on this thread look to anyone else but themselves to blame for their mistakes and drawdown on their accounts.

Lots of members look at trading purely in terms of profit and loss. Yes, most traders make a loss and may decide it's not for them. But, what is rarely ever mentioned are the other upsides - what they learn about themselves - their attitude towards risk - friends they may make here or on other forums, etc., etc. They may exit the trading arena financially poorer, but they could well be wiser, stronger and accept greater responsibility for their own actions and futures. Losing a few quid on the markets could actually be a positive event in their lives.

So its OK to only give people half the picture by not telling them about risk and failure?
Thats why they are brought up time and time again.
T2W don't cover it, yet when constructive criticism is offered on that front,
we get the response of - "its their look out".

So why aren't all the other issues covered in the FAQ left to noobs to discover for themselves as well.
Its only risk and failure that are omitted...

Yes its not down to T2W or anyone else to hold someones hand or tell them what to do.
Offering half the information is a bit of a paradox though.
A guide covering all the basics or nothing would be better.

The main reason I posted this is simple.
Several people point out risk and failure, you then say we shouldn't play god
and dismiss the suggestions made as if they are unfounded...
So why don't you say yes - valid point, I'll add them to the FAQ and stickies?
 
 
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