Well for me,i'd rather the bird in hand than 2 in the bush. So hit the TP first before the SL. Of course also looking at resistances and supports. We all have various strategies.

well,will try and apply that the probabilities. We all learn from each other.

Speaking of learning from each other: @StephenAlala,Xnjambi,Ngaatu,and others:

What technical indicators do you use?

My favourite indicators are EMA (14),Slow Stochs (5,3,3) and RSI (14). Stopped using MACD as I found it giving belated signals. Though momentum indicators can work against you in a trending market. Does anyone use fibbo's?

I think taking an equity risk at 8% toni is not only risky but somehow suicidal in the market.Given your figures that you take 8% risks with about 3-4 trades then go out for a long commercial break is somehow out of road Mr. Take for instance with capital of about $1000 having risk capital of 8% with about 3-4 trades is about 24% to 32% of your equity.This means you are ready to loose USD 240 to 320 with 1000!!!! In my opinion that is absolutely crazy no matter the strategy a person is using.

One thing remember is adhering and being disciplined to money management,which unfortunately most traders read it but dont practise it thus making the bulk of 90% of all losers.Most of novice/newbies traders imagine of hitting the big one as fast as they can which is always negative in the market.Its a feat which less that 1% have made it.

This is where greed and fear determines a lot in the money/risk management. My consideration is that i only see that risking 2% is the most sustainable for a novice/newbie and even proffesionals traders,though only proffesional traders with superior skills and systems may tempt to reach at least 5%! Recouping profits with 2% risk is easy than with 8%,if i go 3 trades with 2% that will only be 6% but with 8% it will be 24%!!! What are the chances of recouping back your profits with 8%,believe me it will be herculian task and maybe with that it will only need few trades to hit a dead end which will mean you will be managing losses but not trading profits!Mind you trading also depends on the volumes,so dont look things done by big volume guys they have enough to cushion themselves

. Equity This is the simple yet difficult to cope up with due to greed and expectations of making a kill fast. The trader risks only a predetermined amount of his or her account on a single trade. A common metric is to risk 2% of the account on any given trade. On a hypothetical $1,000 trading account,a trader could risk $20,or about 20 points,on one mini lot (10,000 units) of EUR/USD,or only 2 points on a standard 100,000-unit lot. Aggressive traders may consider using 5% equity stops,but note that this amount is generally considered to be the upper limit of prudent money management because 10 consecutive wrong trades would draw down the account by 50%.What about if it was 8%??

About stop loss and take profit i even think TP should always be larger that SL.Your risk reward ratio should be TP:SL at least 3:1 or 2:1 depending on your trading strategies and experience of the person in reading the market.Mind you toni you are here to make profits not loss managing,with TP of 30 and SL of 50 means that you may end up trading on how to regain losses rather than the opposite.Can you take a situation if your 3 or 4 trades go opposite,dont you see it will be only draining your capital(risk management) as Njambi said for a novice to go 9:1 may be also ultra conservative but factual as he wont have fear of losses if it goes against him.

On technicals i do like very few and simple to analyse and those give good directions,you know others misdirect!! Anyway i do like MACD(Favourite),Stoch R.S.I,R.S.I,Parabolic Sar.And others few but strong technicals which are at my custody.

I dont think online forex is properly regulated,its not regulated at all,thats a pity for all of us!!! And lets not be afraid to mention and expose the fraudsters who continue to put advert on our dailies of getting 20% per month or xxxx guaranteed returns.Lets not be afraid to safeguard this noble investment.

@NGAATU

@Ngaatu

Thanks for the insights. The 8% risk I take on the higher side. Otherwise on average i do 6%,and an average of 30pips TP and 30 pips SL,though dont necessarily stick to this.

@PrimeCorp

Unfortunately USDKES rate is only on Reuters. There was a cheaper internet version (not sure whether its been discontinued),which most forex bureaus use,or were using. Though it has a 2 mins delay. You can check with Reuters offices - Dvpt Bank Hse.

Afew of the big banks do give plain vanilla options on KES,though the mkt is not deep,so its usually back-to-back. Am not sure of the premiums.

stephen..my lord i guess im breakin the law becoz i speculate on kes all day for a livin

primetime....u cud get synthetic prices here..even offshore,however the premiums would kill you,ama ur talkin about say a zero cost structure?..wat notional amnt would u be willin to buy..anytg less than usd 1 mio would probably not be worth ur banks time...as far as accessin kes pxs..the fact that ours is a market maker market means that prices tend to lack transparency..the closest thing to gettin a transparent price however is a broker px..if u hav a rtrs dealing 3000 screen type MABEAFX...price quoted therein is live and best indicativ of the tru mkt level

as for tech signals...well im old school..trendlines primarily..i use fibos next..then ADX,+DI and -DI....then RSI..which i use to check for signs of divergence

@tonicasert
Dont advice what you are doing to newbies/novices,its a extremely risk exposure approach.

@primecorp
Kenya shilling is a soft currency or exotic currency in the global market.The volume of the transactions made by kenyan shilling is a drop in the ocean due to the nature of our economy,so like most african countries and developing economies currency using exotic currency is hard.In case of kenay shilling against the USD i think you can only make speculation on domestic level within,but not through other platforms in the global currency market.


Guys do you a firm called KUINET COMPANY based in hurlingham! I dont like to discredit anyone but we need to put sanity in the market,guys are complaining as they are not told realities and loose their funds.

Lets help forex investment from vultures

@NGAATU

Yeah!@Ngaatu you dropped the name,what's up with them???Is there anyone who has a managed account with these guyz?would really appreciate your honest testimony.are they good? are you happy?

living off the interest on your interest capital,till you forget your capital,that is being rich

Does anybody have the contact details for KUINET?

Ngaatu,

We are FXCM's top Referring Broker in Kenya. For such a deal where we pay you for every trade,you need to sign up under our RB-ship and you have to convince me that you do serious volumes (more than 10 standard lots per day). To open an accouunt go to our forexkenya.com website,open and account and on step 4 make sure you indicate Genius Forex as your Referring Broker.

As top RB we also act as FXCM's local support centre. So if you have any complaint,you only need to come to us. Because of this status,we are not permitted to manage accounts but can refer you to third party money managers whose three-year performance can be openly examined.

The fellows at 8th Floor Posta Sacco seem OK to me. At least,I have not heard any complaints. I met the gentleman who is the director yesterday to discuss the very same FXCM issue and he came across like a very honest chap albeit busy. However,I have to admit I do not know much about them.

But just like I earlier said,such vague allegations of impropriety in this thread against Kuinet and the 8th Floor Posta and others are unfair unless all the specific details are spelt out.

Let us not be too quick to judge. For me all are innocent until proven guilty. Please give specifics and let's stop rumour-mongering. These guys have wives,children and mortgages. Be fair.

Ngaatia,i agree with you on certain issues that you have enumerated in here but we need to understand that it is entirely possible to average 200$ per day on a 1000$ account. Money management aside,lot sizes do greatly impact on the amount of money one can make or lose per day.

To say that anyone promising you 100$ returns per day on a 1000$ account is mere hype,is purely misplaced. Let's imagine i get long on a EUR/USD pair with a lot size of 40,000. Imagine it goes up(or down) by 50 pips. How much money is that on a spread of 2 pips? Do the maths. A stop loss of 30 pips may only mean losing 120$ ...Imagine trading the Tokyo,London and New york sessions and see how much you can average per day.

The trick about forex trading is choosing your strategy and staying with it...




Anyone who lives within their means suffers from a lack of imagination