what is the most important thing(s) to know before going to trade real in Forex?

[scarface]

Dear All,

 

Good day,

 

From now on, I will try my best to spend some time here with you all at II to share my knowledge with you especially with beginners so we can guide you all to the right way in this big market,

 

as you can see from the title, the question is " what is the most important thing(s) to know before going to trade real in Forex??"

 

I want to hear out all of you posting your opinions and reasons of thinking this or that way,

 

I will do my best to point out on the main points and edges in forex so you avoid a lot of none useful stuff.

 

Waiting to hear from you all, ;);)

 

P.S: please vote on what you think is most important factor for you in trading forex as indicated above :)

 

Best wishes,

 

Scarface

Edited December 7, 2010 by scarface

[conglo]

Hey, scarface,

 

You are sounding as if you are some kind of authority, yes?

 

And what exactly are your credentials?

Edited December 7, 2010 by conglo

[chetachukwu]

Two of the things you need to know is 1 You need to have good knowledge about the market.

2 Not every thing that glitters is gold.

[conglo]

Wow. Dude.. that is DEEP, man.

 

Two of the things you need to know is 1 You need to have good knowledge about the market.

2 Not every thing that glitters is gold.

[scarface]

Hey, scarface,

 

You are sounding as if you are some kind of authority, yes?

 

And what exactly are your credentials?

 

Hi conglo,

 

Good day,

 

I'm a mod here at II, but because of too much load of work, I couldn't be in touch frequently....

 

However, here I'm back to kick some butts off... :)

 

I just want to traders in general what they think about the essential factor to be succesful in this market, and in turn, I would share what I think as well.

 

Best wishes,

 

Scarface..

[scarface]

Two of the things you need to know is 1 You need to have good knowledge about the market.

2 Not every thing that glitters is gold.

 

Hi chetachukwu,

 

Good day,

 

good point of view... how about the poll?? can you vote also on one of the choices above if you don't mind, please... :)

 

By the way, did you get my PM for your request??

 

Please let me know,

 

Best wishes,

 

SF

[conglo]

I don't think the opinion of traders in general is of any importance, as at least 90% of traders are losing money, meaning, they don't know what they are doing.

 

No disrespect intended, please be clear on that point; but - being a moderator does not mean that you are a successful trader.

 

If you are, then instead of asking the opinion of losing traders, please don't waste everyone's time, just share what you know to be important.

 

The opinions of those who are incapable are worthless.

 

Again- no disrespect intended, I just have no tolerance for BS.

 

 

Hi conglo,

 

Good day,

 

I'm a mod here at II, but because of too much load of work, I couldn't be in touch frequently....

 

However, here I'm back to kick some butts off... :)

 

I just want to traders in general what they think about the essential factor to be succesful in this market, and in turn, I would share what I think as well.

 

Best wishes,

 

Scarface..

Edited December 7, 2010 by conglo

[PhiSquared2618]

The points are all important, no weakness permitted, everything matters.

 

About 80% successful:

There are systems with a 10% success ratio but due to a very good profit:loss ratio they are profitable ....

Another option not above: risk management. Good risk management is what allows you to make money with a system which has a win:lose ratio of less than 55% .

[conglo]

What are you saying? Are you saying that the opinions of rookie traders with no experience carry equal weight to those who may trade for a living?

Would you say the opinion of a tradesman's apprentice is as valuable as that of a journeyman with thirty years experience?

 

"Everything matters"? What does that mean? I respond with, "Nothing matters". It is just as meaningless.

 

 

 

The points are all important, no weakness permitted, everything matters.

 

About 80% successful:

There are systems with a 10% success ratio but due to a very good profit:loss ratio they are profitable ....

Another option not above: risk management. Good risk management is what allows you to make money with a system which has a win:lose ratio of less than 55% .

Edited December 7, 2010 by conglo

[PhiSquared2618]

What are you saying? Are you saying that the opinions of rookie traders with no experience carry equal weight to those who may trade for a living?

Would you say the opinion of a tradesman's apprentice is as valuable as that of a journeyman with thirty years experience?.

No I did not say anything like that. I did not make a comment on anybody else's experience or lack of it. That was you.

 

"Everything matters"? What does that mean? I respond with, "Nothing matters". It is just as meaningless.

It is an answer to the thread from the OP. It is in context and very clear.

I said everything listed in the poll matters, and I said risk management is not listed, but it should be.

 

It is not meaningless. My statement "Everything matters" is crystal clear. Any weak part of the trading process will compromise the other parts sooner rather than later.

Edited December 7, 2010 by PhiSquared2618

[chetachukwu]

Eyow Scar

 

I voted for all of the above, all the options you gave are very important, there is no substitute there, you should have added more options, like six more.

 

I like this thread

[scarface]

The points are all important, no weakness permitted, everything matters.

 

About 80% successful:

There are systems with a 10% success ratio but due to a very good profit:loss ratio they are profitable ....

Another option not above: risk management. Good risk management is what allows you to make money with a system which has a win:lose ratio of less than 55% .

 

excellent point... I've never thought about this point...

 

I will note it down and then dicuss it with you guys...

 

Thanks again.

 

Best wishes,

 

SF

[scarface]

Eyow Scar

 

I voted for all of the above, all the options you gave are very important, there is no substitute there, you should have added more options, like six more.

 

I like this thread

 

Thanks mate for the vote...

 

ok, you wanted me to add 6 more.....like what for example....:)

 

don't forget that the main thing in forex is the broker that comes first where you money never get wasted by fake broker that manupilate prices or positions...

 

waiting to here more from you, mate...

 

Best wishes,

 

SF

[chrisbenjy]

I would say being able to devote enough time for trading is the most important thing. Obviously swing trading on daily+ tf will require less time (probably once a day), but scalping or intra day will probably require a lot more. You need to make sure that your trading suits your lifestyle, work and family commitments.

[scarface]

I would say being able to devote enough time for trading is the most important thing. Obviously swing trading on daily+ tf will require less time (probably once a day), but scalping or intra day will probably require a lot more. You need to make sure that your trading suits your lifestyle, work and family commitments.

 

Hi,

 

Good day,

 

It is true as well having enough time to trade, but that would be based on the trading style as you "chrisbenjy" metioned...:)

 

It is a good point, too...

 

waiting for more comments so I can start what I have...

 

Best wishes,

 

SF

[expat1967]

Hi All,

 

Well looking at the basics Broker, Money and Money Management, Strategy... all important, but main driver for me is the psychology and market understanding and then combine all the factors.

 

Basics can be get together quite quickly. Broker, source some details, backgrounds, reviews then select... Money Management, limit and fix your risk to get started. Strategy and time, well that might be tricky and very individual...

 

What I mean by psychology is, do you have the nerves to trade... Do you follow a strategy consequent or interupting when critical or at a certain profit... Can you handle a loss? Can you surpress greed to avoid running out of limits variing your strategy/MM? Just recall when you might get started learning on demo and then switching to a live account...Nervous? Still?

 

Market Understanding, what is driving the Market? E.g. News, Politics... When to trade and when not to trade? Market Patterns, times... Sentiments, Save Heavening/Risk, Correlations...

 

Please dont trade if you dont have the nerves and market understanding together, either for manual or automatic trading...

 

Just my 50 Cents ;)

 

Cheers

[shabz]

The most valuable lesson to anyone going Live is Don't Lose Money.

 

Capital Preservation should be "drilled" into your psyche.

 

Like a poker player, know when to fold 'em & know when to hold 'em.

 

Learn to cut your Losses fast, but stay in the Game when you're in profit.

[scarface]

well said, mate

 

Hi All,

 

Well looking at the basics Broker, Money and Money Management, Strategy... all important, but main driver for me is the psychology and market understanding and then combine all the factors.

 

Basics can be get together quite quickly. Broker, source some details, backgrounds, reviews then select... Money Management, limit and fix your risk to get started. Strategy and time, well that might be tricky and very individual...

 

What I mean by psychology is, do you have the nerves to trade... Do you follow a strategy consequent or interupting when critical or at a certain profit... Can you handle a loss? Can you surpress greed to avoid running out of limits variing your strategy/MM? Just recall when you might get started learning on demo and then switching to a live account...Nervous? Still?

 

Market Understanding, what is driving the Market? E.g. News, Politics... When to trade and when not to trade? Market Patterns, times... Sentiments, Save Heavening/Risk, Correlations...

 

Please dont trade if you dont have the nerves and market understanding together, either for manual or automatic trading...

 

Just my 50 Cents ;)

 

Cheers

 

Hi mate,

 

Good day,

 

There is nothing I can add, but well said... ;)

 

Best wishes,

 

SF

[scarface]

The most valuable lesson to anyone going Live is Don't Lose Money.

 

Capital Preservation should be "drilled" into your psyche.

 

Like a poker player, know when to fold 'em & know when to hold 'em.

 

Learn to cut your Losses fast, but stay in the Game when you're in profit.

 

Hi shabz,

 

Good day,

 

your comment is good, but not thorough.... Although it is important to protect the capital...

 

Thanks,

 

Best wishes,

 

SF

[scarface]

Now, let's begin...

 

Dear All,

 

Good day,

 

Now, I will start something before we go deep deep down....

 

For me, the most important thing (factor) in Forex market is the "BROKER"....

 

why??

 

simply, most brokers and I would say more than 90% if not 99% of them are there to cheat traders in one way or another... and that's actually what's happening to almost 90% of newbies and 70% of professional traders.... surprisingly, even big percent of pro traders are fallen in the same ended road...

 

It is obvious that traders are here and there looking for Mr. Right Broker..., which is by many definitions doesn't exist....,sadly

 

This is one of the main reasons why I opened this topic...This is actually the key to be successful in the market....

 

you guys know for sure that there are many brokers out there and recently many have showed up, and I'm frankly surprised with cropping number that I see day by day...

 

 

now let's ask ourselves, what is the right broker?? and what makes a broker trustworthy??

 

The answer is easy and it is based on the following criteria:

 

1- Regulation

2- Registration

3- Customer services

4- Types of trade stations.

5- Spreads

6- Reputation

7- Deposit and Withdraw

 

As you can see, finding a broker will depend primarily the first 3 factors, and if you found such broker means you are almost there...

 

The rest would depend on the trader him/herself no matter what he/she prefers after that...

 

Now let's us think a little about the best brokers that we can deal with so this way we save a lot of effor and a lot of money finding the best broker..

 

I'm going to open a new topic and for two days or three want you all to vote the for best broker you think...

 

Be Back to you soon,

 

Best wishes,

 

Scarface

[⭐ megashop]

the most important is money management, the market is completely random, and thats why there is NO sistem can predict the market, every trade can go bad or good result! so better play with money management so u can always trade later without TOP UP :D

[chrisbenjy]

the most important is money management, the market is completely random, and thats why there is NO sistem can predict the market, every trade can go bad or good result! so better play with money management so u can always trade later without TOP UP :D

 

It's not completely random. It more often than not gives signs of what the market is going to do. These signs are not always accurate, which is why some trades fail. But the market is definitely not completely random or spontaneous, everything happens for a reason. Finding out that reason is the job of your trading system.

[⭐ megashop]

you will gain a trading pain if you think you can predict the market :)

[chrisbenjy]

you will gain a trading pain if you think you can predict the market :)

 

I didn't say that. I said the market is not completely spontaneous. If it was then indicators would be of no use. If there is a large move on a currency then it usually happens for a reason, such as a news release or another fundamental factor.

 

If it was completely random then there would be less traders and banks would not trade. You don't get banks betting on horse-racing, so why would they trade a spontaneous market?

 

And in answer to your statement. Yes I do think I can predict the market, but not very well at the moment. I still have a lot to learn. I have been quite successful recently with a few trend following systems, but I also need to find/create a ranging system. Previously I used to trade a reversal system, but that was too risky and not very successful so I will attempt to improve that method.

 

Ps. Do me a favour. In my previous post emphasize these words/phrases: 'More often than not' , 'Not always', 'Some'. Then you will realise what I am saying.

Edited December 27, 2010 by chrisbenjy

[tommy0921]

Forex Trading

 

Hi all,

Warrent Buffett, one of the greatest men in stock market, won so many times 'cause he knew exactly what he was doing.*

I think we've better to know deeply before we invest to keep low risk. That is the most important thing. Any way, I'm a newbie, playing demo at fxdialogue.com, so please forgive me if i say something wrong.

Best regards,