thread: anyone need help?

quote Thanks roland, your answer is very helpful . I wished to state money management not risk .As I know money management is among the most essential problems of new and innovative traders.

I firmly suggest the trading match by Ryan Jones, this is among the greatest books for practical program in trading - and much better than a 'system' or 'egy'!

This Is Just about Money Management!

quote Hi Richard, There are hundreds and hundreds of egies on the market - which range from the simple, to the complied. Personally, if I were you, I would consider Mr Pip's thread (do a search at the search box - he just has one thread!) , and Youtube videos (begin from c. page 700 or so, I believe on the first page they tell you where to begin from) which will give you a really good base of where the anticipation of the market is very likely to move. Do not think however that that will be easy to exchange, but the explanations will give you an awful lot of...

Thanks roland, your reply is very helpful . I wished to say money management not risk .As I know money management is among the most important problems of new and traders.

quote Thanks Phylo I have already read babypips and now I want to go 1 step further.I want to learn more about egies and risk management.

Hi Richard, There are hundreds and hundreds of egies out there - ranging from the simple, to the complex.

Personally, if I were you, I would consider Mr Pip's thread (do a search in the search box - he just has one thread!) , and Youtube movies (start from c. page 700 or so, I think on the first page they tell you the place to start from) and that will provide you a great base of where the anticipation of the market is very likely to move. Don't think however that that will be easy to exchange, but the explanations will provide you an awful lot of base that is brilliant.

Then you can consider creating your own egies relating to this notion, using indiors if you wish, or not... it is sort of up for you!

Risk management is a small misnomer... Risk is not the matter, as it is really easy to say 'I will risk 2 percent, or 10%, or 0.001% of my account - that is the easy bit, and totally irrelevant to trading profitably. For instance, you may have a egy that wins 10% of the time, but with a risk reward of 1:100.... That will be a winner, but it will have a different risk profile to a egy that has a 1:1 ratio and wins 51% of the time - they are both winners, but outcomes.

There are probably 3 areas you need to look in:

1) The egy - it might be as simple as a MA cross, or an overbought stoch... whatever it is!

2) The Trade managament - the entrances, the exits along with the direction when you're in a commerce

3) Money Management (in my novel THE most important thing). This is not about risk per trade - that is commerce direction, but the overall plan of how you are going to decide where to put your money and how much, when do you increase lot size - at what stage do you do so... etc..

The reason number 3 is indeed significant, is that so long as you have at least a 1:1 risk reward profile that can only be determined after 100 transactions as a marker and you have a 51% win ratio, you will be on to a profitable egy...

quote Hello Partner, without a doubt, trading in the zone, by Mark Douglas. Fantastic book, I have been talking and reading to this book for ages.

Thank you for the advice.You have read and his first book,the disciplined trader?

quote If you're a complete newbie in order to familiarize yourself with basic terminology, concepts and also the scope of forex a trip to BabyPips School of Pipsology prior book reads will probably save much wasted time, fruions and confusions. - http://www.babypips.com/school

Due Phylo,
I have read babypips and today I would like to go 1 step further.I want to learn more about egies and risk management.

quote In that case EUR/USD would rise (go long).

#8203;maybe not if the euro drops more in comparison. Then it's short.

Notes on Margin And Risk.

There seems a fundamental flaw in calculating risk percent against a set funding when that funding includes margin.

Example: Trader A trader B both trade-Same Broker same account kind same currency pair - lot size each deposit 10,000 GBP as trading capital to be exchanged in Pound Stirling. The norm is to compute risk at 2% of 10,000 GBP funding = 200 GBP.

Trader A has capital of 10,000 GBP and margin of 1:200 = 500 GBP.
Trader B includes capital of 10,000 GBP and margin of 1:50 = 2,000 GBP.

Every one of the trader's respective margins are not avaiable as trading equity therefor 2% risk should be calculated repectively against Capital - Margin not Capital with margin included.The result of any amount divided by 50 is just 2% of the split amount. Then #8594; 9,500/ /50 = 190 GBP = 2% of 9500 GBP (proof: 190/9500 x 100 = 2%) Any amount is 2 % of the product. Then #8594; 190 x 50 = 9,500 and 190 GBP = 2% of 9500 GBP (proof: 190/9500 x 100 = 2%) Trader A:
Trader A has 10,000 - 500 = 9,500 GBP trading equity.
Then #8594; 9,500/ /50 = 190 GBP = 2% of 9,500 GBP.

Comparison of error:
At risk 190 GBP trader A can sustain 50 successive 190 GBP loses before 100 % margin (500 GBP) call.
At risk 200 GBP trader A can sustain 47.5 (9500/200) successive 200 GBP loses before 100 % margin (500 GBP) call.

Trader B:
Trader B includes 10,000 - 2,000 = 8,000 GBP trading equity.
Then #8594; 8,000/ /50 = 160 GBP = 2% of 8,000 GBP.

Comparison of error:
At risk 160 GBP trader B can sustain 50 successive 160 GBP loses before 100 % margin (2,000 GBP) call.
At risk 200 GBP trader B can sustain 40 (8,000/200) successive 200 GBP loses before 100 % margin (2,000 GBP) call.

Margin Calculations

1 micro lot = 0.01 = 1,000 currency components.
1 mini lot = 0.10 = 10 micro lots = 10,000 currency units.
1 lot = 1.0 = 10 mini lots = 100 micro lots = 100,000 currency components.

The initial currency of a forex pair is that the base currency and the second is that the quote currency.
Easy rememberance: Alphabetically b is before q #8594; (b) foundation / (q) quote second.
Example: GBP/USD = base/quote

The below provides a sense of the scope of available margin ratios and also the differences between deposit curency and base currency at parity and deposit currency and base currency subject to exchange rates.

##

margin = margin rate x exchange rate x position size in currency components. *

* exchange rate = account deposit currency/base currency

If the account deposit currency is the same as the base currency that the exchange rate will probably be parity (1).

Account Deposit Currency: GBP
Currency Pair: GBP/USD
Position Size: 1 lot (100,000 currency units)
Margin Rate: deposit currency / base Currency = 1 GBP / 1 GBP = 11:100 margin = 1/100 x 1 x 100,000 = 1,000 GBP. 1:200 margin = 1/200 x 1 x 100,000 = 500 GBP. 1:300 margin = 1/300 x 1 x 100,000 = 333 GBP. 1:30 margin = 1/30 x 1 x 100,000 = 3,333 GBP. 1:60 margin = 1/60 x 1 x 100,000 = 1,667 GBP. 1:90 margin = 1/90 x 1 x 100,000 = 1,111 GBP. Account Deposit Currency: USD
Currency Pair: GBP/USD
Position Size = 1 lot (100,000 currency units)
Exchange Rate: deposit currency / base currency = 1.499 USD / 1 GBP1:100 margin = 1/100 x 1.459/1 x 100,000 = 1,449 USD 1:30 margin = 1/30 x 1.459/1 x 100,000 = 4,863 USD. Account Deposit Currency: GBP
Currency Pair: EUR/JPY
Position Size: 1 lot (100,000 currency units)
Exchange Rate: deposit currency / base Currency = 1 GBP / 1.29 EUR1:100 margin = 1/100 x 1/1.29 x 100,000 = 775 GBP 1:30 margim = 1/30 x 1/1.29 x 100,000 = 2,583 GBP Account Deposit Currency: USD
Currency Pair: EUR/JPY
Position Size: 1 lot (100,000 currency units)
Exchange Rate: deposit currency / base currency = 1.13 USD / 1 EUR1:100 margin = 1/100 x 1.131/1 x 100,000 = 1,131 USD 1:30 margim = 1/30 x 1.131/1 x 100,000 = 3,770 USD Note: Many brokers have margins and pairs where the deposit currency and the base currency aren't at parity and could be subject to exchange variation are given an currency cushioning as well as the margin locked at a fixed value.

# # Weekday and Weekend Margins Dukascopy Bank: https://www.dukascopy.com/europe/eng...counts/margin/

Note: When the Dukascopy connection is accessed it'll be noted that while Dukascopy designates FX components like for like (1,000 components as 1,000 units) lots are designated as follows: 0.01 lot as 0.001 million, 0.1 lot as 0.01 million and 1.0 lot as 0.1 million (100,000/1,000,000 = 0.1).

Hello im posting here since im a new member and I cant currently make a new thread so I thought why not. Bassically, I was wondering if somebody might be so kind as to tell me why an increase in interest rates raises volatility as measured by the VIX index. To me it seems counter intuitive and I was hoping someone might help clean this up. Thanks, John

Requires a lengthy response. . This is quicker -
http://budgeting.thenest.com/volatil...isk-32174.html or
http://www.forextraders.com/forex-an...olatility.html

Hi im posting here since im a new member and I cant currently make a new thread so I thought why not.

Bassically, I was wondering whether someone could be so kind as to inform me why an increase in interest rates increases volatility as measured by the VIX index. It sounds counter intuitive and I hoped someone could help clear this up.
Thank you,
John