Which Type of trading is suited to me?

artweek

Newbie
4 0
Hello, I am relativley new to trading. Currently using a demo account trying to get an understanding of the techniques and strategies that are involved.

My question is, I am a 22 year old software engineer. I work full time 9:30 - 5:30 however I am located at a computer all day and have the ability to look back and fourth at charts from time to time.
Which type of trading would suit me best? I don't know if I will be able to hold the concentration to scalp the market while trying to do my day job!
This then gives me the to short term swing trade, however I am not sure were to begin. Currently I am reading Beginners Guide to Short-term Trading by Tony Turner.

Could anyone advise me were to begin, some reading materials etc?

I know its a bit of an open ended question but any help would be great. :smart:

Thanks
 

gerryg

Established member
900 6
I am not sure you can succeed at forex trading "at the meanwhile". There is no money generator you should stay concentrated on open orders or at least when you open them. I would advice to separate your main job and assign a special period of time for trading. that would be great start.
 

peakoil

Well-known member
257 38
Hi artweek, My advice to you (especially if you're overwhelmed by all the advice here) would be to try as hard as you can to find someone (or even a friend who knows someone) who has solid experience, and a little time to meet you. Should you manage to meet with (& learn anything from) someone who runs/works a desk at an IB, then all the better for you. Anyway, the book I was given by a learned friend, at the turn of the millennium was "Reminiscences of A Stock Operator". I hope that you've already read it. Otherwise, I'd be strongly recommending "How to beat the forexdealer" by Augustin Silvani, which is very straightforward, excellently reviewed, and gives some very frank and useful insights. HTH
 
Last edited:

Hate2Lose

Active member
155 3
Hello, I am relativley new to trading. Currently using a demo account trying to get an understanding of the techniques and strategies that are involved.

My question is, I am a 22 year old software engineer. I work full time 9:30 - 5:30 however I am located at a computer all day and have the ability to look back and fourth at charts from time to time.
Which type of trading would suit me best? I don't know if I will be able to hold the concentration to scalp the market while trying to do my day job!
This then gives me the to short term swing trade, however I am not sure were to begin. Currently I am reading Beginners Guide to Short-term Trading by Tony Turner.

Could anyone advise me were to begin, some reading materials etc?

I know its a bit of an open ended question but any help would be great. :smart:

Thanks
Good luck!

A recent read of mine was ‘High Frequency Trading’ by Michael Durbin. Not bad, worth a read.

There is plenty of free material on offer too:

http://www.accendomarkets.com/education/

http://www.cityindex.co.uk/trading-academy/

http://www.cmcmarkets.co.uk/en/education

Worth making the most of them, I think.
 

peter_anders

Newbie
8 0
i think spread trading would work for you. Once you have a good feel for the market you won't need to be watching the market constantly and just leave alerts on at important levels .
 

NVP

Legendary member
37,536 1,988
I find that the type of trading suited to about 95% of Traders......

is NO trading

N
 

neil

Legendary member
5,167 747
My friend, I will encourage you to go through some of the forex websites like, babypips school, dailyfx and school of pipsology. I'm certain you will acquire good knowledge of forex and even learn your own trading strategy and style through there that will suit you. Although, demo trading is also another good way of practicing the market. That will help you a lot too.

Try http://www.forexfactory.com/showthread.php?t=2331

Lots of study required plus lots of demo trading but ultimate success is down to you (governed by the bit between your ears).
 

bigmistake

Well-known member
257 1
You're an IT man so you should try scalping or swing trading style. Since you can easily watch your trades and adjust them.
 

Hugh Janus 3

Newbie
8 1
Hi Artweek,

Go study your way through the School of Pipsology at: www.babypips.com
You'll get a good grounding.
Swing Trading off the longer time frames would suit you.
A lot of people who work, do this, you can even do it in haf an hour or an hour of an evening.
If a currency check the chart, look and determine key support resistance (structure) levels, likely point for breakouts, etc then maybe place a few limit orders, "just set them and forget them", review them when you get home. You need to decide on a price level, stop level, and target exit price. Just those three things.
Good Luck
Hugh
 

timsk

Legendary member
7,343 2,135
Go study your way through the School of Pipsology
Whenever a new member posts asking for direction, it's not long before someone posts telling them to go to BabyPips. Why? It is poor advice IMO, not because there is anything wrong with BabyPips per se, but because it is a bespoke forex site dedicated to all things forex. This is putting the cart before the horse and, potentially, is very damaging. Here's why . . .

New traders need to decide which market to trade. Keep in mind two common errors that new traders often make when setting about this task. The first is to go at it like a bull in a china shop and trade indices one day, forex the next and commodities like coffee, pork bellies and oil the day after that. Big mistake: don’t do it! There is enough to learn as it is, without having to get your head around all the characteristics, influences and subtle nuances of lots of different markets. By all means look at different markets and understand how they are correlated and impact one another. That’s highly recommended; just don’t trade them all! Only trade one market or, at a pinch, two at the very most.

The second common error is to jump on the latest band wagon, without first exploring all the alternatives. At the time of writing, that band wagon is forex. Like moths to a flame, newbies flock towards forex. When asked why, they give answers they’ve been fed by the very people who have a vested interest in them trading forex. What follows is not intended to put anyone off trading forex, it’s intended to illustrate that one wo/man’s meat is another wo/man’s poison, and that what may be an advantage in the eyes of one trader is seen as a disadvantage by the next. Highlighted in brown italics are some of the reasons given in favour of trading forex and why it is so popular. The comments that follow are the flip side of the coin: you decide which of the two floats your boat . . .

1. ‘No commissions, clearing fees, exchange fees, government fees or brokerage fees.’
Whilst this is basically true, the implication is that there’s little or no cost to forex traders, or that it’s much cheaper to trade forex than other markets. If your dealer / broker isn’t charging you any commission or other fees, how do they make their money? After all, they are in business and you’re their customer, so common sense should tell you that they’re making money out of you somehow, right? Too right they are, and they do it via the bid / ask spread.

2. ‘No middlemen: spot currency trading eliminates the middlemen and allows you to trade directly with the market responsible for the pricing on a particular currency pair.’
Your dealer / broker is the middleman! The big banks won’t deal directly with small retail traders like you, but they will deal with your broker. Needless to say, the prices your broker receives from the banks are much better than the prices they pass on to you! Every time you buy at offer and sell at bid, they make money - and plenty of it.

3. ‘No fixed lot size: in spot forex, you determine your own lot, or position size.’
This isn’t the draw that it once was, not least because there are trading vehicles available today (e.g. spread betting in the U.K.) that allow you to trade most instruments on most markets via a very small account. Besides, if you’ve only got £100 - what are you going to do? Double it to £200, then £400, then £800 - all the way up to a £million? Now, is it both conceivable and believable that you’ll achieve such a feat? Is it, is it really?

4. ‘Low transaction costs: the retail transaction cost (the bid/ask spread) is typically less than 0.1% under normal market conditions.’

As mentioned above, the transaction costs are in the bid / ask spread, and this varies considerably from one forex pair to the next, and is often wider than other instruments in other markets.

5. ‘A 24-hour market. There is no waiting for the opening bell: the forex market never sleeps.’
This is as good a reason not to trade forex as it is to trade it. Watching forex pairs can be like watching paint dry. There are plenty of forex traders who never sleep because they’re up half the night desperately hoping for some action after a dull day when nothing much has happened! What would you rather do: stare at your screen 24/7, or trade a highly liquid and volatile market for a few hours and then have the rest of the day to yourself?

6. ‘No one can corner the market. The foreign exchange market is so huge and has so many participants that no single entity can control the market price for an extended period of time.’
This is true, but it comes at a price. It’s the least transparent market there is because it’s not traded through a central exchange in the way that equities or futures are traded through the NYSE and CME in the U.S., or the LSE and LIFFE in the U.K. This has lots of implications for retail traders - especially day traders and scalpers - as there is no level II data and you can only trade at the bid and offer quoted by your broker.

7. ‘Leverage: in forex trading, a small deposit can control a much larger total contract value. Leverage gives the trader the ability to make nice profits, and at the same time keep risk capital to a minimum.’
Again, this is true, but it’s also true of most other markets. Additionally, leverage is a double edged sword, you can just as easily lose a lot of money very quickly as you can make it. Because the volatility in forex pairs tends to be low, many traders over leverage themselves in order to take advantage of tiny price movements. When there’s a news release (e.g. interest rate announcement), price can gyrate wildly in both directions. When this happens, traders who are over leveraged can easily end up incurring a large loss.

There are other reasons why forex may not be the best market for you to trade. With no central exchange, it’s poorly regulated, making it the wild west of the financial world. Scams are two a penny, so be extra vigilant before handing over any money. The relative lack of volatility, (compared to other markets such as index futures or equities), means that there tend to be fewer opportunities to trade and, if you restrict yourself to the pairs with the tightest spreads, the number of trading opportunities are further reduced.

In spite of the above, forex may well be the best market for you to trade. Just be sure to choose it for the right reasons, having carefully assessed the pros and cons of all the available markets. Remember, there are very few absolutes in trading; one trader’s reason to buy is another trader’s reason to sell. Whatever market you’re considering, look carefully at the reasons for not trading it to see if any of them apply to you. Don’t just follow the herd or accept what others say at face value. Most don’t know what they’re talking about and, certainly, they won’t have your best interests at heart. As always, do your own research and draw your own conclusions. If you’re confused by what’s written here about forex and you’ve no idea where to start, then as good a place as any is with this FAQ: Which Should I Trade - Stocks, Futures or Forex etc.?

If a new trader - artweek in this case - does decide to trade forex, then sites like BabyPips may provide interesting and helpful content that assists their trading. Until then, the new trader will do much better to soak up the numerous resources available right here on T2W, most of which are aimed at all traders - regardless of which market they trade.
Tim.
 
Last edited:
  • Like
Reactions: Jaza71 and mike.

foroom lluzers

Veteren member
3,611 135
Try http://www.forexfactory.com/showthread.php?t=2331

Lots of study required plus lots of demo trading but ultimate success is down to you (governed by the bit between your ears).

I suspect Neil is on rebates from James 16 or he works for them .He surely has an agenda , if one looks at his posting history containing links to James 16 .Rebates stop when the traders don't subscribe to the monthly paid course.

Can't you make money from trading?

Why should visitors not learn from you tube free price action videos or free search on t2w or google?
 

Quantt

Established member
944 59
Hello, I am relativley new to trading. Currently using a demo account trying to get an understanding of the techniques and strategies that are involved.

My question is, I am a 22 year old software engineer. I work full time 9:30 - 5:30 however I am located at a computer all day and have the ability to look back and fourth at charts from time to time.
Which type of trading would suit me best? I don't know if I will be able to hold the concentration to scalp the market while trying to do my day job!
This then gives me the to short term swing trade, however I am not sure were to begin. Currently I am reading Beginners Guide to Short-term Trading by Tony Turner.

Could anyone advise me were to begin, some reading materials etc?

I know its a bit of an open ended question but any help would be great. :smart:

Thanks

Here is my advice since I am in the same field as you, even tough not a developer:

AUTOMATE

For me, to be able to make money in the market you have to have a system, so the next natural step is to automate it - this way you'll not be staring at screens all day and you'll not be trading at all essentially... You'll be spending your time monitoring the system from time to time for bugs, developing and improving...
So spend your time finding your edge, build a system around it and automate it, no rush to start trading right out of the bat, the market will be here tomorrow, next month and next year...
 
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