Forex Trading Signal 08/25/08

[kenoseiasare]

Pharaoh, Please is there no way I can chat with you or please do me a favour by directing me to where I can get URGENT help? My situation is really critical and my life depend on this trade. I'm from a poor background and the money I'm using to trade is not even mine... Which I have to pay back by month end. I realise my mistakes now, but I'm on my knees Pharaoh. Please help with some mentoring. Sorry to borther you, but I'm going insane here. What can I do???

 

[Marvellus Lucas]

Dear friends, this is a call for help on my trade (GBP/USD) since Friday last week. I went long based on previous retracements, but since then its been trending down drastically, leaving me with a loss of close to 5,000 USD and my free margin is barely 1,000 USD. I am so divastated and do not know what to do. Can anyone give an advice on the above currency pair? Is there any posibility it will retrace back up soon? Please any useful information will be highly appreciated. I can be reached via e-mail: kenoseiasare@yahoo.com
PLEASE HELP...

you sould only put No MORE than 5% on any trade. You need a trading plan which has a money managment in it.

 

[kenoseiasare]

Sir Pipsalot, I feel like roling on the floor to have gotten you to respond to my cry.. Thanks to all of you. Just as you recomended, I've set my take profit on my long positions and I can see the pair trending up. But my problem now is that I had to hedge so I dont have a margin call and I went short below your recommended stop loss at 1.84140
My fear now is after my take profit, my short position will continue in loses. If I had gotten this wonderful clue earlier that it would trend upwards, I would have closed my short position. Any further advise will be highly appreciated. Please note, once I can get myself out of this mess, I'll subscribe to your forexdiamond room for mentoring. I wanted to transfer my subscribtion from SNW to forexdiamonds since its the same amount, but I got a response from SNW support that they are two seperate service.
Thanks for your anticipated response.
Kind regards,
Kenneth

 

[Pharaoh]

That's the issue with a hedge. At some point, you have to close one side or the other. If you are right, a hedged position can help you survive a temporary bad point (I've really got to think about doing that before big news releases instead of bringing in my stoplosses on open positions). If you are wrong, then you get to crash and burn anyway.

If you feel confident in the uptrend, then close some or all of the short positions. If not, you can either close some or all of the long positions or stay hedged.

In the end, only you can make the final decision about which half to close and when - unless you wait long enough for the difference between the positive and negative swap to erode too much of your available balance - then your broker will do it for you.

I would definitely recommend more paper trading and studying before engaging in any more live trades after you exit your current trades.

 

[Aziz]

GBP/USD about to go below 1.7800

Dear friends, this is a call for help on my trade (GBP/USD) since Friday last week. I went long based on previous retracements, but since then its been trending down drastically, leaving me with a loss of close to 5,000 USD and my free margin is barely 1,000 USD. I am so divastated and do not know what to do. Can anyone give an advice on the above currency pair? Is there any posibility it will retrace back up soon? Please any useful information will be highly appreciated. I can be reached via e-mail: kenoseiasare@yahoo.com
PLEASE HELP...

Hi Kenneth,

You did not mention what price did you go long.
I read GBP/USD going below 1.7800 very soon.
Its not because USA is having a Great Economic Boom
Its because Britain is having a hard time.

Aziz
Fes, Morocco

 

[kenoseiasare]

Thanks Aziz,
I appreciate every useful information that will help me take a better position. I totally agree with Pharaoh to do more studies before engaging in further trades, so I would need every link I can get to learn more on Forex trading systems. I must confess, I do not have a working system at the moment and back here in Africa, traders are limited to useful information that could help us improve our trading skills.
Aziz, as regards your question, I have two open long positions at prices 1.86507 & 1.86055. I have set my TP on my long positions, while I left the short open cos I can see the trend going bearish at this point but cant predict the next move. I am been paid a certain amount by my broker as SWAP on my long position, while some amount is deducted on my short position.
If the price drops below my short position which I used as a hedger at price 1.84140, is there any posibility that the pair would retrace back within the week to hit my long position? Bearing in mind some believe the pair is still going bearish.
I am tempted to close my short position if it drops further to stop paying SWAP on it from my little margin left, but am not sure how soon it would go bulish. Because, once my short position is closed and it continues in a downward trend, I stand the risk of having a margin call based on my long position still open.
GOOD PEOPLE, WHAT ARE YOUR ADVICE???

Best regards,

Kenneth

 

[RedRobin06]

NEVER EVER EVER EVER EVERRRR TRADE WITHOUT A STOP-LOSS!!!!!

That's all I gotta say.

RedRobin

 

[Crazy Cat]

Pharaoh, God bless you for your interest. What I've done is; when I realised I'm loosing too much on my long position which I entered the market on two trades at volume 1.0 each, I had to balance it by going short with volume 2.0 on one trade to avoid a margin call even if it trends up or down. But if I have an idea on where the market will trend towards, I will be able to close either my long position or short and watch the other till i take profit. I have a balance of USD6,800 in my trade account and now my free margin is at USD990. I do not have money to add right now as I used my last Dollars to subscribe with Secret News Weapon. Moreover, it takes days to make wire transfers from Africa to my broker's account. I just need help to save this trade and from now I'll have to seek more knowledge before I continue. PLEASE HELP ME PHARAOH... I need a good trader to chat with right now. I intended registering with FOREXDIAMONDS when I make my first withdrawal, cos I cant understand how to use the SNW up till now. Please HELP...

Regards,

Kenneth

For Christ sake (if I can say that way), why did you use the software you don't know how to use? First what you need to do is read manual, second: test it on a demo account to uunderstand how it works!!!

I made tons of money on the SNW but I had to learn how to use first, and believe me, I was trading on demo account and then 1 or 2 per pip on real account before I jumped with more money!

Thanks,
Crazy Cat

 

[Crazy Cat]

OK, if I understand that correctly, you've hedged. That's a very reasonable option for buying some time, but eventually, you'll have to close one side or the other since the swap will slowly nibble away at your available balance.

Hedging, IMHO, is the worst (!) option you may do. It goes nowhere, and you pay additional spread for that. I never hedge myself. I am either taking a profit or a loss, but never hedge. Taking loss fast saved my account many times before even bigger losses.

Thanks,
Crazy Cat

 

[Pharaoh]

In general, I agree with you CC, but can believe that it has uses in a panic situation like this (not that anyone should allow themselves to get into a situation this bad), since it gives the trader a little bit of extra time to reassess the situation before making a decision. Still, it is only a very temporary way to hold off a much bigger problem.

I still may consider it for shielding longer term trades against big news spikes instead of my usual method of bringing my stoplosses in tighter (only for pairs where the spread isn't excessive), but that's not relevant to our friend's problem.