Need to Develop a Strategy

Discussion in 'Forex' started by GoodPunk6, Jan 28, 2008.

  1. Hello guys! Its been a while but I'm finally trading again. I'm looking to develop a strategy for trading FX minis. I would like to scalp anywhere from 5-15 pips a pop and I'm currently using as a broker. I've been watching the EUR/USD pair and I feel like thats the pair to trade.

    So anybody have an idea as to how I should start?
  2. trade futures :cool:
  3. LOL. Seriously though
  4. Yes, and thanks for asking.

  5. I wasn't joking
  6. I just don't understand why you or anyone else would want to trade against the dealer/broker (when they ARE FEEDING YOU THE PRICE) and NOT an exchange?
  7. thanks for the help guys
  8. jim c

    jim c

    hey welcome back! I enjoyed your journal. Good luck woth your new venture. I bet you can do it. jim
  9. Hey!

    Here is a modest guide:

    1) Learn the fundamentals
    2) Choose 2-8 techincal indicators u feel comfortable with or spotted a pattern...
    3) Create ur daily routine (Market scanning, the first step towards discipline)
    4) Eur/Usd is good: very very liquid, in case u have liquidity issues along ur success and it is not usually related or influenced by other market:)

    Scalping can be very dangerous if u don't know the markets, specially in FX (even more technical than commodities, at times).

    Compulsive is right, if u want scalping: American broker for lower commissions and futures is the way.

    Just remember Jesse: most of the time it is your sitting that will work best. Besides scalping can get u into liquidity issues faster and render ur strategy not as effective as when planned, due to slippage or no order entry. Also the spot market is bigger than the futures one.

    Your broker is good: low prices and a significant retail name in the industry. Try their courses, they seem kneat! Though I personaly prefer used amazon books and online screening of news, definitely the cheapest way to develop:p

    Hope it helped, enjoy ur trading. Oh, and the million dollar question is: Will EUR/USD continue to move up, will it break 1.4930-1.4960 barriers and proceed or is the much-talked technical bear approaching us eheeh!

  10. If you really want to make profits:

    A. don't even try to scalp. Just follow trends.

    B. Use 10:1 leverage at most.

    C. Preferably use futures.

    D. Even better: use diluted futures (futures with additional cash to avoid margin calls, reducing overall leverage).

    Be aware that 90% of retail forex investors, and 98% of forex daytraders, lose money.
    #10     Jan 29, 2008