Pips, Trading Software, (noob)

[atclarkson]

First Post!


I have been reading on here for about 3 weeks, in addition to reading other sources and sites since the beginning of September. I began to learn about trading from my very knowledgeable teacher in my finance class (managed a 450M Mutual Fund for 15 years, beating his targets for 13 of those years) and have done some simulated trading in a competition (Welcome to StockStar.Ca)

Anyhow. I've learned alot, and have a million times more to learn! :smart:

I have a few questions.

First, I see alot of reference to 'pips' What exactly does this mean? My research says its 100th of a percent. Ok. I don't know how to take this when I see someone say they want to make 25-50 pips per day. Does that mean they are making a 0.0025% to 0.0050% return on their trading account? or???

Also, I'm looking for a good place to trade from, to invest some money and begin learning the software. My goal is to place my first real money trade in the new year. I've looked at Etrade and Questtrade. Any opinions on either?

Thanks!!
Andrew

 

[gamma]

You have been reading for 3 weeks
and don't know what a pip is?
You cannot do a simple calculation
You have been learning from a very knowledge teacher
Does not sound very knowledge if this is the quality of his teaching
Or you are not a very good student

who beat his target for 13 years
was his target anegative number each year?
I suggest you forget your very knowledgeable teacher go to babypips or read the forums here practice on a demo account then place your real money trade

 

[atclarkson]

Jesus, I don't think I could have received a more negative reply to my first post.
I said: I have been reading, and am confused. It's difficult to do a 'simple calculation' when you don't know what the calculation is.

My teacher: He has taught some basic fundamental and technical analysis, as well as his method of trading. His targets were 15 and 20 percent growth each year. Sound decent? I'll bet there's lots of people on this forum who would kill for 15 to 20% returns annually. (and on 450 Million? YOU do the 'simple calculation')

I asked a simple question, all I wanted was a simple answer, not a blasting from some know it all who has terrible grammar to shoot me down. You're not painting a very good picture the people who frequent this forum.

Andrew

You have been reading for 3 weeks
and don't know what a pip is?
You cannot do a simple calculation
You have been learning from a very knowledge teacher
Does not sound very knowledge if this is the quality of his teaching
Or you are not a very good student

who beat his target for 13 years
was his target anegative number each year?
I suggest you forget your very knowledgeable teacher go to babypips or read the forums here practice on a demo account then place your real money trade

 

[Magos]

some of us are bad... realy bad LoL

First, I see alot of reference to 'pips' What exactly does this mean?

Pip in forex trading is the smallest unit by which a currency may change value

My research says its 100th of a percent. Ok. I don't know how to take this when I see someone say they want to make 25-50 pips per day.

OK 1:100 Leverage: $1000 in USDCHF you can trade 1.0 lot

You have to use higher leverage i.e from 1:100 -> 1:500 (higher profit / also loses)


Does that mean they are making a 0.0025% to 0.0050% return on their trading account? or???

No it doesnt, it depends from currency pairs and leverage


Also, I'm looking for a good place to trade from, to invest some money and begin learning the software. My goal is to place my first real money trade in the new year. I've looked at Etrade and Questtrade. Any opinions on either?

Just use metatrader 4 from ODL, Alpari UK, Interbank FX or similar company... demo is free

 

[atclarkson]

Thank You.
Exactly the kind of response I was looking for.


Do pips have anything to do with stock trading? or is it only currency trading?

Thanks again

 

[neil]

Feed me

Thank You.
Exactly the kind of response I was looking for.


Do pips have anything to do with stock trading? or is it only currency trading?

Thanks again

Clarkson,
Gamma is right.
Make the effort - go to Babypips.com or simply read the forex threads here; you will thus learn an awful lot. So go to it and learn the basics.
Note: Even sites like fxcm.com etc explain what a pip is .
People like to answer necomers questions but do expect you to have made the effort to read around this and other sites first.

 

[Magos]

Thank You.
Exactly the kind of response I was looking for.


Do pips have anything to do with stock trading? or is it only currency trading?

Thanks again

In finance instruments are stocks, bonds and derivatives

Stocks and FOREX both have a bid/offer which is a sell/buy price
bid is the price which you can sell (smaller that what you can buy)
offer is the price which you can buy

The difference between the bid and the offer is the spread.

A pip is the minimum movement i.e of a financial instrument either up or down.


FOREX
EURUSD Bid/Offer (if spread is fixed) / spread can be dynamic also
1.2850/1.2853 ( 3 ticks spread)
if it goes 1pip up the next quote will be 1.2851/1.2853


Stocks (tend not to have fixed spreads, CFD's may do though)

Stock spreads might be more wide (supply/demand)+ stamp duty

bid/offer
Google 358.78-359.50

then it will move up or down depended on the buyers and the sellers

 

[atclarkson]

Clarkson,
Gamma is right.
Make the effort - go to Babypips.com or simply read the forex threads here; you will thus learn an awful lot. So go to it and learn the basics.
Note: Even sites like fxcm.com etc explain what a pip is .
People like to answer necomers questions but do expect you to have made the effort to read around this and other sites first.

I have read alot (maybe 20 hours/week+) but I see little proper explanation of what someone says when they say I made 50 pips today'. I am happy to read more, and I will read those sites you recommend. I wanted to get a clear explanation, so hopefully now I will have it. Gamma is still wrong in the tone and words of his reply, especially seeing as how you and Magos were able to reply in a respectful and helpful way.


I understand all that, But I still don't really have my answer. If you say 'I made 50 pips today', are you referring to the amount of money or a percentage made? Or is it completely dependent upon the investment, and not really mean anything outside that investment?

Going to read some more.

 

[gamma]

Jesus, I don't think I could have received a more negative reply to my first post.
I said: I have been reading, and am confused. It's difficult to do a 'simple calculation' when you don't know what the calculation is.

My teacher: He has taught some basic fundamental and technical analysis, as well as his method of trading. His targets were 15 and 20 percent growth each year. Sound decent? I'll bet there's lots of people on this forum who would kill for 15 to 20% returns annually. (and on 450 Million? YOU do the 'simple calculation')

I asked a simple question, all I wanted was a simple answer, not a blasting from some know it all who has terrible grammar to shoot me down. You're not painting a very good picture the people who frequent this forum.

Andrew

Lol!

Sorry If I paint a terrible picture of the posters on this site, I don't think I represent all the forum members, as you see you have had some decent replies.
I am just blunt and straightforward.
I know my grammar is terrible thanks for pointing it out again to me.
Quite simply I think you are confusing the subject too much, Learn the basics at baby pips then trade a demo account and everything should fall into place.
Good luck!

 

[neil]

starters

I have read alot (maybe 20 hours/week+) but I see little proper explanation of what someone says when they say I made 50 pips today'. I am happy to read more, and I will read those sites you recommend. I wanted to get a clear explanation, so hopefully now I will have it. Gamma is still wrong in the tone and words of his reply, especially seeing as how you and Magos were able to reply in a respectful and helpful way.



I understand all that, But I still don't really have my answer. If you say 'I made 50 pips today', are you referring to the amount of money or a percentage made? Or is it completely dependent upon the investment, and not really mean anything outside that investment?

Going to read some more.

Go look at a spreadbet site - pip can be what you want(size of bet) ie. £1 a pip upwards.
Oanda.com and others - 1 contract can be $10 per pip (1 point/pip movement).
Mini Contracts can be $1 per pip movement.

So - look at the likes of IG Index and Oanda.com (two different animals)
Then there are currency Futures !

Opinions differ on market providers.:smart:

 

[gamma]

Ok Andrew,
Lets put it this way,
If I had a 1000 pounds in my account and I aim to make 50 pips at 1 pound a point then I make 50 pounds for the day.
If I up my account to 10,000 and trade at 10 pounds a point and make 50 points a day that 500 pounds a day.
Basically I am making 5% of my account a day it is not dependent on any other issue.
I think if you open a demo account and play with it you will understand it better

 

[atclarkson]

THIS is what I wanted. Thank you.

Ok Andrew,
Lets put it this way,
If I had a 1000 pounds in my account and I aim to make 50 pips at 1 pound a point then I make 50 pounds for the day.
If I up my account to 10,000 and trade at 10 pounds a point and make 50 points a day that 500 pounds a day.
Basically I am making 5% of my account a day it is not dependent on any other issue.
I think if you open a demo account and play with it you will understand it better

Magos-
All the platforms you suggested to trade on deal with forex, CFD's. Futures, etc. I'm starting out in stocks, and I'd like to learn about the rest of it later. Any suggestions? (Preferably North American)

 

[Magos]

THIS is what I wanted. Thank you.





Magos-
All the platforms you suggested to trade on deal with forex, CFD's. Futures, etc. I'm starting out in stocks, and I'd like to learn about the rest of it later. Any suggestions? (Preferably North American)

I am based in London, I don’t know a lot about North America

try the following though/ they should do it : Man Financial, E*Trade, TD Ameritrade...

Are you going to create a portfolio of shares or trade indices?!

 

[atclarkson]

Cool, I'll look into them.
Shares for now, learning indices later