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any dangers of trading nfp using pending orders? Replied 6 months ago - Some brokers will not even execute the pending order at all, and there's nothing you can do about it, they will just give you an excuse. Another risk of using pending orders to trade nfp is the "whipsaw effect" where price reverses course quickly thus stopping you out immediately.
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after nfp, how long before spreads return to normal? Replied 6 months ago - If the first 5-minute candle after nfp release is very big, then typically volatility should die down in around 15 minutes and spreads will return to normal conditions. But if the first 5-minute candle is small then volatility may persist another 20 minutes before it subsides. This is just my observation
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do you use take profit or do you exit trades manually? Replied 6 months ago - I always use take profit because i once had a bad experience where i was up 50 pips before i lost my internet connection and by the time it was restored the trade was in a loss.
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why don't brokers stop you from trading after reaching your daily loss limit? Replied 6 months ago - I agree with this but i guess it is not in the brokers interest to do so. They want you to trade as much as possible, so they get their fees. I mean, you even see brokers opening their platforms to traders on some public holidays (like Easter) when they know fully well that liquidity may be insufficient leading to higher spreads.
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Fear & Greed - the 2 deadly sins of forex trading Replied 7 months ago - I'll just say this even though it is not a direct answer, but whenever you are entering any trading don't think of how much you can make, first think of the risk. How will you feel if you lose that amount on the trade, because losing is almost guaranteed. Whenever you are placing a trade you have to be ready to lose. You don't know if you will be right or wrong. When you are in an emotional state, you will try to push back. It is not just fear & greed. You are also sometimes in a mental state where you are not even aware of your risk, and you are just pushing back. So, at all times think about the risk first. Every trade is just you testing your bias in the markets. And you should only risk the amount that will not make you uncomfortable when you lose it. By doing that you will be able to make money in the long term, and keep a level head.
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What’s the ideal leverage to use in forex to maximize profits without risking too much? Replied 7 months ago - I would say 1:500 is ideal for me.
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its not how much profit you make, but how much you keep Replied 7 months ago - I can relate to what youre saying George! Its the cold truth! Its easy to call yourself a trader but how much of the profit do you really keep gicing it back to the market? It is like running around in cirlces only to find yourself back at the begining. When i started trading XAU/USD i was always making money then losing it back to the market until I said to myself "this has to stop". I began trading responsibly and only taking high quality trades with a high probability of success. I also started cutting my losses very early not giving them time to grow. The solution is to manage risk properly and not lose too much money in one day, so you have enough gun powder to try again the next day.
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one impulsive trade can wipe out weeks of profit Replied 7 months ago - The urge to trade at random is one of the biggest undoing of losing forex traders. The urge can be overwhelming if not properly managed. You see, trading drains you mentally so you should not trade several times in a day, if not the tendency to make a mistake becomes higher. One mistake can wipe out all your gains. Some people trade only in the mornings, some only in the afternoon, some only at night. You must have specific trading hours, you cant be looking at charts the whole day. To help manage the urge of randomly trading, use a demo account if you must test strategies and close your system and take a walk or engage in other activity once you feel the need to engage in a random trade.
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Never Risk More Than 2% of your Account Balance On A Trade Replied 7 months ago - I totally agree! Especially if you are a beginner trader this rule is a must follow. Even if you lose a trade, there will always be another trade so the important thing is capital preservation to be able to take advantage of the next trade. You know how its gonna hurt if after you blow your account, you then see a good trade but dont have the money to take it? Trading is about checks & balances without which one cannot be cnsistently profitable.
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what is stop out level & why does it matter in trading Replied 7 months ago - Glad to hear so many perspectives of what stop out level means
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20 pip xauusd loss, how do i recover from it? Replied 7 months ago - Register your loss in your trading journal, take a step back and study why you lost. Come back after some days but reduce your lot size this time (maybe 0.01). Use a 1:1 risk to reward ratio to lock in small profits till you get your confidence back then you can go for bigger lot sizes and higher rr ratio trades.
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how will i know if i'm a profitable trader Replied 7 months ago - You will have consistency, you wont make $10 today then lose $150 tomorrow, your losses will always be around the same figure. Your profits will also be around the same figure but they will ususally be higher than your losses when summed up.
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whats the implication of increasing my leverage in forex? Replied 7 months ago - Whenever you enter a trade, you have a fixed point that you have already decided that if the price goes past that level, then you are out. That is your SL. But when you are in a trade, most often, you will know within 15-20 minutes if the trade is working or not. It is up to you at that point to take the loss & kill the trade early. So, in that case rather than let's say your initial 10 pips SL, you will be out early with a smaller loss. To give you an example, yesterday, I was pre-emptively short on Franky after the first opposite bar, even though it did not break the last bar's low. I thought that it would fall back into the Asian range, give a false break of the 1252 level. My stop was at 62, entry was at 54. But for the next 30 minutes, the price was not breaking the low, and still holding above 52. And my entry was always hovering around BE or a minor loss. And the London was opening. In such cases, you know that the initial reason for your entry is invalidated. Because if it was a fake, you want a quick reversal. But it was just holding above, not able to break the lows. In this case, you would not wait for it to hit your 8 pips SL, you get out as soon as you know that the trade is not working out as anticipated. In this case my loss was around 5 pips. There is always a possibility that by cutting it early you are intervening too much. But it comes from experience. For a new trader, my suggestion is to place your SL at a point where you know definitely that reason for your trade is invalidated, and then let it hit.
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How much should I start with to trade forex in South Africa without overexposing myself? Replied 7 months ago - R50 is okay to start trading with but keep your lot sizes at 0.01 for each trade so you dont blow your account quickly. Also set a tight stop loss for each trade and avoid the temptation to adjust the stop loss to accomodate more losses. if you make a loss, do not try to recover it that day, wait till the next day.
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what do the 1% successful traders do differently from the 99% unsuccessful ones? Replied 7 months ago - They also cut their losses early, they don't allow losses to grow while hoping the situation will turn around. This is why its important to use a low spread forex broker so that even if you close a trade seconds after opening it, the spread that will be deducted will not be too much.
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when should i exit a losing position to cut my losses early? Replied 7 months ago - You should not hold a position if the original reason based on which you had entered has been invalidated. Meaning, you should only keep a position if it is going as you had expected it to go. If it is not, you should try to cut your loss quickly, or just take a small loss. Never ever take any loss or drawdown that you cannot recover from. Small losses never hurt, it is turning small loss into big ones that hurt, either by pushing back (not accepting the loss), or giving a bad position more leeway to eat into your equity (not accepting the loss). You have to learn to take small losses. But I'll also add that a lot depends on how you trade, for someone few minutes may be too late, for some few hours or days. But the point remains, never take a big loss. You can very easily recover from a single losing trade or a small drawdown. But once it starts to get bigger, it can take months to get back to the point, if at all.
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is a margin call an actual phone call or just a push notification from your broker? Replied 8 months ago - In the old days, margin call was an actual telephone call because they were no push notifications or modern electronic gadgets with SMS. Today a margin call no longer comes as a telephone call (except you are a VIP customer trading millions💵 ); for regular traders, it can come as a text message or a push notification from your brokers mobile trading app. This is why you need to download your brokers mobile app so you dont miss margin call notifications.
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i want to trade forex but i'm scared of losing my money, any advice? Replied 8 months ago - Dont be afraid, the best loser wins ! How you handle losses will determine how successful you will become as a trader, you dont have to be a sore loser instead cut your losses early then learn from your mistakes. Theres no shame in losing.
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I lost a trade due to internet downtime, would a forex vps have prevented this? Replied 8 months ago - sorry about your loss, I think take profit targets should be realistic and not based on greed 🤣but i feel you though. As for forex vps i have not used one before but i understand its for hosting trading robots and not for manual trading. I may be wrong and stand to be corrected.
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whats the most important part of forex trading? Replied 9 months ago - I think it is sub-consciously related to the fear of missing out. If you miss out on a trade that you then see you would have been right had you taken it, this creates even more bad behavior. You need to develop a state, where you are able to trade without fear or hesitation (I think Mark Douglas said it). And I've overtime found it to be very true. Fear of being wrong, fear of missing out, fear of your winner turning into a loser & so on. You want to be able to trade without any of these fears. So, every trade is just a trade, and you are not expecting anything out of it, other than an outcome, which will be a win or a loss. You don't know what it will be for any particular trade. Your job as a trader is to execute based on your set of rules without expecting anything from a trade. In order to do develop the right habits a. start by creating very rigid set of entry & exit rules, follow them exactly as they are. Even if you believe sub-consciously that this trade might be a loser, but your rules say to enter, you must do it. b. Take the next 20 trades exactly as per those set of rules. If you find yourself just wandering & breaking the rules, start again. For most traders, 20 trades will re-enforce the discipline to do that same thing over & over.
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