Why aren't you scalping the forex market?
Are too afraid to make money on a few minutes?
>>1255783
this desu
>have $50,000 in an account
>trade with 1,000,000 lots
>no stop loss
>5 pips per day = $500 per day
easiest money I've ever made, EUR/USD is as predictable as the tide going in and out
>>1255783
What is forex? I don't get this
>>1255803
google some intro tutorial on forex on youtube.
>>1255805
alright, ima look into this
>>1255783
you mean lose money?
>>1256307
>scalping is magic
get gud fag
>>1255785
Do you do this manually or through automated traders?
>predictable as the tide going in and out
Care to elaborate? (which technical indicators?)
Always thought Forex was too volatile to make reliable income off of.
>>1256553
volatile = can make money fast if you're smart
not volatile = slow profits
>>1256556
Fair enough, but that also entails a thinner margin of error.
In any case, how do you go about making consistent income?
I'll bite. Where do I learn more?
>>1256553
Thanks, I figured as much, one last thing:>>1256553
Are automated traders necessary? Given the time span of the trades it feels like they are, do you subscribe to an existing automated trading service or write your own (I'm assuming the latter for obvious reasons, but still just curious)
Thanks again.
>>1256576
*former, not latter kek
ok guys, made this secret jew technique.
enjoy.
>>1255785
How do you not get raped by commission fees?
>>1256594
i don't get this
>>1256594
so is that a minute or 5 minutes or tick or volume or what kind of candles are those master?
Ok anons, I spent the better part of yesterday researching this stuff and I figure I might as well share what I found here for anyone that might be curious. (More experienced anons, do correct me if I make any mistakes)
Ok, first off:
Scalping: This is basically trading in a very small time frame (1 min seems common) for accumulating very small, but consistent gains (2-10 points). The whole idea is to compound these gains month after month. With 2.5k account, trading at 2% you can make 8% gains per month which means you practically double your initial investment every 1 year. Good scalping systems tend to be boring, in the sense that you must stick with the system to see consistent returns
Commission fees - Sadly the stuff I've read/seen so far doesn't really mention this, which probably means its negligible. However I did read about something called the "spread" which seems to be the equivalent of a commission. Every position you start begins at a negative (e.g with a 2 point spread, you start at -2 points and must make 2 points just to break even).
Points/pips = Basically 1/10000 of the exchange rate
Lots - Pretty much determines how much of your money you are putting per point, or how much of the currency you are buying at one time.
Stop/Limit/Market/Buy/Sell/StopLimit - These are all different types of orders. They are common in other markets, but in Forex trading, due to the volatile nature of the market, its essential to use these to limit any potential losses and to manage risk.
Risk - Risk seems to be measured in a potential gain/loss ratio based on when the limit and stop is set. For example, if your ratio is 1:1, that means for every position you take, you set the limit and stop such that your potential gain is equivalent to your potential loss. This means if the market was perfectly random (i.e your predictions were right exactly 1/2 the time) you'd break even. The assumption is, that the market *is* predictable and hence you will not break even.
(2/2)
Ok, now to the actual trading strategy.
From what I've seen most (successful) trading strategies look at several different factors together to come to a decision and a position.
The most common factors are:
Technical Indicators: So things like trend lines, moving averages, fibonacci, etc.
Price patterns: Morningstar, Engulf, Pin, etc. >>1256594 this for example looks like an example of a pin.
Support and Resistance: These can be historically determined (for the previous day, to even the previous year), based on pivot points, or even computer generated. These basically tell you the upper and lower limit/range of the market. Surpassing these limits usually indicates a turn-around or the beginning/end of a trend.
These three are the main ones I've found in pretty much all systems I've seen so far.
How does one go about doing this?
I think it pretty much boils down to the following steps:
1. Start small, open an account for 2.5k and trade 1-2% of account at all times
2. Decide on a time scale (scalping seems to be for small time scales as mentioned above). Profitability seems to be equivalent across time-scales, what matters is personal preference and time available. Scalping at 1 min, is like a full time job almost.
3. Figure out desired gain/loss ratio. This is so your psychology is set from the beginning and you don't get spooked or greedy
4. Decide on a strategy. There are thousands from what I can tell and, they all work in one way or another. Some are better than others.
5. Backtest, manually at first, so you can simulate real world conditions as much as possible, at least 6 months back, preferably 1 year back.
6. If the backtest shows an acceptable return (say .7-.8 right), then put real money on the line and slowly grow your account, compounding it month after month.
I just wanna thank OP for making this thread. Seems like an easy way to make money if you're patient and psychologically sound. I *am* curious about the 90% failure rate though.
>>1257985
Those are price candles. Go watch a video on how to reach candle charts. It should be under some sort of statistics channel.
>>1258091
i know they are price candles. but are they showing price changes within a 1 minute interval, or a 5 minute interval, or a certain amount of ticks, or a certain amount of volume traded?
>>1258093
I would imagine ticks as swing trading based on candle charts using anything more wouldn't really be proactive
every game gets saturated eventually, and then the edge is gone...
drink up while it cold, ladies....
>>1255783
which broker do you use?
>>1255803
>>1256565
>>1256576
Please Bare in mind that 90% loose money on Forex.
http://www.tradeciety.com/24-statistics-why-most-traders-lose-money/
The shills, who want you to get on, know that and benefit from it. Basically : The more newcommers > the more money lost on the market > the more they can take up.
Brokerage companies also want to jew you.
the more traders, the more profits for them.
(notice how the other anon, keen on giving you advice, seems to know a lot about forex but nothing as to a basic thing as brokers fees)
They incite this through aggressive online marketing desguised as "How to" youtube videos.
http://www.financemagnates.com/forex/brokers/forex-brokers-on-youtube/
And the idea that you'd be able somehow to Day trade forex against mostly high frequency trading robots, and beat them with your laptop from your basement, should really be calmly assessed with all info at hand.
Good luck
>>1258409
>http://www.tradeciety.com/24-statistics-why-most-traders-lose-money/
Yes but even the link above says that the reason these figures are so high is because people become emotional and thereby break their own strategies.
I think if you have the discipline and patience you can do quite well. Ultimately from what I've seen, trading forex should actually be "boring" and most of the time spent just watching and waiting for the right entry and exit.
>>1258065
>How does one go about doing this?
babypips.com/school
>>1259051
>babypips.com/school
And this is why I continue to browse /biz/ thanks alot m8
big corps have to hedge and whatnot so this changes currency values in the short term which makes the market makers hold onto negatively selected risk
then these guys have to dump their risk which continues to alter price in the short term
eventually some dumb idiots buys there risk and they've made commission on both the entry and the exit. they can sustain a small loss in the trade itself and still come out ahead.
what you're trying to do is to find out where the wake is from these corp hedges and hot potatoes.
if you're not actively following participants in this market, then you're doomed to fail. you also should be on the sell side of the market to increase your odds.
>>1255783
Because
1) day trading is a meme
2) I pay 33% taxes on profit made by speculation (selling stock within 6 months)
How high are the transaction fees to get your money in and out of your account? Also are programs like iMarketsLive worth it? I was offered that shit and introduced very briefly to Forex but I never saw past that pyramid scheme bullshit.
>Pic related, my ride to my fancy apartment when I get the moneys
