How, What?, Where?

traderjuk

Junior member
47 0
Sorry if this question is very general but Im new to trading and I would like to know about some of the best and easiest methods of trading currencies, do they trade like equities? Can I apply the same sort of indicators to charts Etc?

Would an MACD indicator work and what are the best timescales to use?

Thanks

J
 

Racer

Senior member
2,666 30
Sorry I didn't mean that to sound the way it did..

Just when you think you have a method worked out, it turns round and does the opposite.. so I don't think any method works in particular, all indicators work to some extent in some circumstances, but then they don't in others... nothing is foolproof.
 

TheBramble

Legendary member
8,394 1,170
traderjuk said:
Sorry if this question is very general but Im new to trading and I would like to know about some of the best and easiest methods of trading currencies, do they trade like equities? Can I apply the same sort of indicators to charts Etc?

No. There's no volume for a start.

Second, there's no real end-of-day.

Third, they are massively more volatile than equities. You can get some rather nasty spikes - quite often.

Take a look in the FX forum. Apart from the useful background info that will answer your questions there are are also a handful of systems developed by other t2w members you could have a look at to give you ideas.
 

Newtron Bomb

Experienced member
1,602 87
Hi Traderuk

Ive only just seen your questions.

traderjuk said:
Sorry if this question is very general but Im new to trading and I would like to know about some of the best and easiest methods of trading currencies,

There is no simple single method that can be applied to any market imo as there are a lot of considerations even for a simple moving average cross over strategy.
All strategies and indicators work some of the time. What is important is that you find something that you have faith in and can ride the bad times as well as the good times. One thing that i do is to use multiple time frames and multiple strategies.

traderjuk said:
do they trade like equities?

No, it is a different market. currencies move like currencies.

traderjuk said:
Can I apply the same sort of indicators to charts Etc?

Yes you can apply the same indicators to fx and in some cases they appear to work more efficiently. As i mentioned above they all work some of the time

traderjuk said:
Would an MACD indicator work and what are the best timescales to use?

MACD should work just remember it is a lagging indicator and will show you what has already happened.

As to the best time scale to use try thinking of trading from a different perspective. Everything works some of the time so all time frames work.

What do you want to do? do you wan to be in front of the screen and not move for 8 hours a day or do you want to be able to put your trades on and go out and check them later in the day?

Your circumstances and personality will dictate what type of trader you want to be. If you are not into screen watching then you may not want to day trade. If you are looking for a more leisurely approach then you will want to look a more longer time frame to trade with.

There is no right or wrong way only what is best for you and your circumstances.

Happy Trading
Newtron Bomb
 
 
AdBlock Detected

We get it, advertisements are annoying!

But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.

I've Disabled AdBlock