Help for newbies

Interesting articles for newcomers

Majority of trades are successful and yet traders are losing
Why do major currency moves bring increased trader losses?
For example, the Euro saw an impressive 61% of all trades closed out at a gain
If traders were right more than half of the time, why did most lose money?
We can now clearly see why traders lose money despite being right more than half the time. They lose more money on their losing trades than they make on their winning trades.

It is about the golden rule - cut the losses soon and keep profitable trades to grow.
Simply said tight stop losses and usage of medium TP or Traling SL

Hello sir,

Since this articles is for newbies and I am one of them. I have a question regarding Drawdown. What is a drawdown? What is relative and maximal drawdown mean? I still didnt understand what is a drawdown. Since you are an experienced trader, I would love to learn lots of thing from you 😄

Below I attach a detail report of my demo account.

Love and respect,
Trading Emperor

Tradingemperor1 posted:
Hello sir,

Since this articles is for newbies and I am one of them. I have a question regarding Drawdown. What is a drawdown? What is relative and maximal drawdown mean? I still didnt understand what is a drawdown. Since you are an experienced trader, I would love to learn lots of thing from you 😄

Below I attach a detail report of my demo account.

Love and respect,
Trading Emperor

Well thats quite easy.
Every time you open a trade your equity decreases. DD is simply sum of all your open positions.
DD is usually calculated as relative so DD of 10% does mean that your equity drops by 10%.
Maximum DD is simply max value ever achieved on the account. If it gets close to 100% your account gets wiped.

togr posted:

Tradingemperor1 posted:
Hello sir,

Since this articles is for newbies and I am one of them. I have a question regarding Drawdown. What is a drawdown? What is relative and maximal drawdown mean? I still didnt understand what is a drawdown. Since you are an experienced trader, I would love to learn lots of thing from you 😄

Below I attach a detail report of my demo account.

Love and respect,
Trading Emperor

Well thats quite easy.
Every time you open a trade your equity decreases. DD is simply sum of all your open positions.
DD is usually calculated as relative so DD of 10% does mean that your equity drops by 10%.
Maximum DD is simply max value ever achieved on the account. If it gets close to 100% your account gets wiped.

Wow that is scary. I will keep that in mind. Thank you for information. I learn new thing today.

Love and respect,
Trading Emperor

You are welcome

babyschool.com

is what you need

You mean babypips.com 😉

ricki72 posted:
You mean babypips.com 😉

thanks my bad

What currency pairs to trade in Forex?

Although there is lots of currency pairs offered to Forex traders, if you are a beginner it is easier to start with major currency pairs:

EUR/USD
GBP/USD
USD/JPY

There are several good reasons for that:

1. These currency crosses are widely traded, thus providing liquidity which is needed in order to benefit from price changes.
2. They have tight spreads, except may be for GBP/USD, which most of the time receives higher spread quotation from Forex brokers as it is more volatile (e.g. has wider price ranges than other pairs).
3. They all are traded against US dollar, which automatically suggest that the most active trading hours would be during New York trading session – the session with the highest volume of trades.
4. And finally, there are many Forex trading systems that are developed for trading those pairs and can be found online.

What currency pairs to avoid?

Exotic and uncommon currency pairs should be avoided by novice Forex traders as some further knowledge is needed to trade such pairs successfully.

Here is the list of major currencies beginner traders should focus on:

Euro (EUR)
US Dollar (USD)
British Pound (GBP)
Swiss Franc (CHF)
Japanese Yen (JPY)
Australian Dollar (AUD)
Canadian Dollar (CAD)

Also novice Forex traders should try to avoid currency pairs which have high spreads. Spreads vary from broker to broker. The information about spreads can be found at brokers’ websites, or at the special column called “Spread” on the trading platform itself, or from the Ask/Bid table (found also on the trading platform) by subtracting Bid price from the Ask.

Good Morning from London.

I'm new to MyFxBook but not new to FX. I have a question about adding my account to MFB for analytics but I'm hitting against a 'check log in credentials' barrier when trying to use the MT4 'auto update' option.

Any help with this appreciated.

M

Good morning,

it would be easier to download and use MFB EA to update your account.

The described error could be wrong credentials.

IMHO The worst error

1. Trading Without a Plan or Journaling

Even noobs fresh out of the School and in their first week of trading know that the market is as unpredictable as the next American Idol sensation. More often than not, in the attempt to make the most out of the opportunities the market presents, you get so lost in the emotions that you forget what you’re supposed to do.

Think of Frodo in the Lord of the Rings. He was tasked to destroy the ring but in his journey towards Mt. Doom in Mordor, he lost focus on his mission.

With your own money on the line, you wouldn’t want to be like Frodo when you’re trading, would you? I don’t think so. To help you achieve your goal, which is to become a consistently profitable trader, you need a trading plan and trading journal.

It can be a simple outline of your entry and exit conditions and risk management rules, and it needs to be written down any place that you can refer to, record and review your progress Your trading plan and trading journal will be your best bud, like your very own Samwise Gamgee, and your journal will be like a pseudo self-coach who will keep you focused on your mission when market forces drive you crazy.



Read more: https://www.babypips.com/blogs/pipsychology/the_5_most_common_mistakes_new.html#ixzz41Y2vP0SJ

togr posted:
Good morning,

it would be easier to download and use MFB EA to update your account.

The described error could be wrong credentials.

Thanks for your reply - as it turns out I was attempting to log in to a demo server rather than a real account server!!

MarcoKanto posted:

togr posted:
Good morning,

it would be easier to download and use MFB EA to update your account.

The described error could be wrong credentials.

Thanks for your reply - as it turns out I was attempting to log in to a demo server rather than a real account server!!

Thats mistake we almost no consequences ;)

Another important rule for today


Never risk more than 2% per trade. This is the most common - and yet also the most violated - rule in trading and goes a long way toward explaining why most traders lose money. Trading books are littered with stories of traders losing one, two, even five years' worth of profits in a single trade gone terribly wrong. This is the primary reason why the 2% stop-loss rule can never be violated. No matter how certain the trader may be about a particular outcome, the market, as the well known economist John Maynard Keynes, said, 'can stay irrational far longer that you can remain solvent.'

To be successful at trading you must take full responsibility for your decisions and actions.😉

The forex is one of the most profitable investment models that exists, but to make money in it you have to familiarize yourself, learn new concepts and have patience, and above all, a great control of the emotions.
It is necessary to plan taking into account the objectives that have and the limits that can be reached.

togr posted:
Another important rule for today


Never risk more than 2% per trade. This is the most common - and yet also the most violated - rule in trading and goes a long way toward explaining why most traders lose money. Trading books are littered with stories of traders losing one, two, even five years' worth of profits in a single trade gone terribly wrong. This is the primary reason why the 2% stop-loss rule can never be violated. No matter how certain the trader may be about a particular outcome, the market, as the well known economist John Maynard Keynes, said, 'can stay irrational far longer that you can remain solvent.'

 You're right..! A point of great importance is Patience. Since it is necessary to remain calm, to have patience, to let time pass and not to despair. To make the right decision.