markcrisp
187 posts
msg #43110
- Ignore markcrisp |
4/21/2006 3:51:25 AM
I get many,many people asking me about trading the FOREX market.
Anyone do this with great profits over a few years? Let me know
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TheRumpledOne
6,529 posts
msg #43115
- Ignore TheRumpledOne |
4/21/2006 3:28:12 PM
I have been trading FOREX for about 8 months.
FOREX is very well behaved... just trade the fibs... no technicals needed.
Of course, I have written lots of indicators for FOREX trading.
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luc1grunt
622 posts
msg #43123
- Ignore luc1grunt
modified |
4/21/2006 8:27:24 PM
Any good recommended reading on FOREX trading? I've done some surfing, read some articles.....but could use a good "one source" book to provide the basics.
Avery, your help is always appreciated on the scans, but I have too many questions to begin with. Luc
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traderblues
195 posts
msg #43124
- Ignore traderblues |
4/22/2006 8:54:04 AM
Also, what are the good FOREX brokers? I've read on another website that Oanda is a good one.
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alichambers
48 posts
msg #43260
- Ignore alichambers |
4/28/2006 6:34:14 AM
I agree - Forex is well behaved. I've been making the transition from stocks to Forex for the following reasons:
- It trends well
- Low margin requirements
- Very liquid
- Difficult to be manipulated
- It's highly leveraged
- Stocks are prone to unpredictable movements - up and down. Good if you catch them, not so good if not
I live in the UK and the spread betting margin for forex is low. For example, one point of gain in GBP:USD is 0.0001! Betting £3 per point of movement (conservative; you can bet up to £99) can yield some nice returns.
However, this is the main reason I have gone into Forex:
YOU CAN BACKTEST YOUR STRATEGY
(sorry for shouting there)
The penny dropped recently. Instead of randomly picking stocks that I "thought" may go up or down, I can now run a utility I have written on the Forex to buy and sell according to my strategy and see how much money I make over a period of time. This eliminates a lot of guesswork from the game. If a currency doesn't yield profitable results over 5-10 years, THEN I DITCH IT. Sure - I lose a bit during whipsaws, but I can cut those down with stop losses.
I'm working on a simple moving average entry/exit strategy. Initial tests show a very nice gain. And I'm always 100% in the market - either long or short, depending on the moving average signals.
I'll keep ya'll posted.
Alex
PS- TheRumpledOne: Which fib levels do you use?
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TheRumpledOne
6,529 posts
msg #43288
- Ignore TheRumpledOne |
4/28/2006 10:28:15 PM
* FIB levels... standard 23, 38, 50, 61, 77
* It's not betting!
* The Tunnel Method with an ema(34) filter works great!
www.efxgroup.com has great execution, no spread, low commission. Beats paying the 3, 4, 5 pip spread on www.forex.com
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alichambers
48 posts
msg #43298
- Ignore alichambers |
4/29/2006 6:38:45 AM
TheRumpledOne: Thanks
I use spread betting, and this is betting. I don't buy the underlying Forex, but place a bet as to which direction the currency will move. It's only available in the UK and is 100% TAX FREE (it's classed as gambling)! You can also spread bet on stocks which meet the following criterea:
- UK: Market Cap > £50m
- US: Market Cap > $1b
It's much more leveraged than the currency itself, so I prefer it.
How do you use Fib levels - wait for a retracement to a fib level then buy as the price bounces off?
And do you have any details of the Tunnel Method with an ema(34) filter?
Alex
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traderblues
195 posts
msg #43300
- Ignore traderblues |
4/29/2006 9:38:38 AM
TRO - Thanks for the info.
Alex - I found this explanation on the tunnel method:
http://www.freewebs.com/mswilson/documents/1hrTunnelMethod.htm
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TheRumpledOne
6,529 posts
msg #43305
- Ignore TheRumpledOne |
4/29/2006 12:08:23 PM
I posted the tunnel method on this forum and wrote a filter for stocks.
There more on it in my yahoo forum, too.
As far as the fib levels, If the EURO is close to 100% time to sell, if close to 0%, time to buy. I call this strategy THE BIG PICTURE. You must pick a large enough time frame 3 months - 1 year. I look at both.
Right now on the 1 year, the EURUSD crossed above the 61.8% level. That marks the end of the downtrend. If you look at the most recent 1-2-3 bottom, you'll see a very nice bounce... it's like they're giving pips away!!
Also, I have been studying how the price trades vs. the previous day's middle. Ever since the last time the EURUSD crossed the previous day's middle, it hasn't looked back. I noticed AAPL has had a nice 3 day run since it closed above the previous day's middle.
HTH.
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alichambers
48 posts
msg #43368
- Ignore alichambers |
4/30/2006 5:31:35 PM
Interesting and thanks.
I'm developing an EOD forex system. When it's backtested I'll post it up.
Alex
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