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Help for newbies

vontogr (togr)
Feb 15 2016 at 15:29
4862 poster
Interesting articles for newcomers

vontogr (togr)
Feb 15 2016 at 15:29
4862 poster
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

Tradingemperor1
Feb 16 2016 at 07:51
2 poster
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

vontogr (togr)
Feb 16 2016 at 09:42
4862 poster
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.

Tradingemperor1
Feb 16 2016 at 11:20
2 poster
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

vontogr (togr)
Feb 16 2016 at 15:48
4862 poster
rob559
Feb 16 2016 at 16:10
1916 poster
babyschool.com

is what you need

ricki72
Feb 16 2016 at 22:35
238 poster
You mean babypips.com 😉

The differenece between who your are and who you would like to be be is what you do
rob559
Feb 16 2016 at 22:54
1916 poster
ricki72 posted:
You mean babypips.com 😉


thanks my bad

vontogr (togr)
Feb 17 2016 at 08:19
4862 poster
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.

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