General Newbie Type Questions | Currency Futures


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General Newbie Type Questions

  #5 (permalink)

London, UK
 
Trading Experience: Advanced
Platform: Tradestation
Favorite Futures: ES
 
Posts: 3 since Aug 2014
Thanks: 0 given, 1 received


pesposit View Post
so i've been getting the markets and day trading for the past 4-5 months. starting to get a pretty good feel for
regular stocks........what causes big changes, how they might move due to headlines/news/earning, what is good volume, what timeframe things happen, etc..

I need to understand the same about forex trading so:

what is measure of good trading volume?

what timeframes do you use for charts and when do big shifts generally occur?


Also - do typical pattern day trader rules apply, such as no more than 3 day trades in a 5 day period? (if you have less than 25K in your account)

Thanks!

Hi Pesposit,
i'll try to answer to your questions:

1) Every trader has got his personal measure of trading volume. The key is your personal confort, however a lot of traders who loss money trade too much, mainly when they loss.

2) About the time frame i use: daily, hourly, 30 minutes, 5 minutes ... i think a daily or an hourly one is a good point to start. The main problem using lower time frames is the average trade, usually too small to cover the costs of the Forex markets;

3) I'm convinced that daily patterns generally work, but time isn't necessary linked to the deep of your account. The subject is a little more complicated. You should consider a lot of other items like the maximum draw down of your system, its maximum daily drawdown, your stop loss and your take profit, .... then to reduce the risk is always possible to decide that a single trade can't last more than a certain numers of bars/days.
Goog luck for your trading!!!

I'm sure i did many mistakes, i'm sorry for my english

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