Tuesday, October 18, 2011

FOREX with GK Goh

Welcome to Wall Street.
in my humble little home in Singapore.

Okay, that's kind of an exaggeration. Traders properly see much more complex screens than this, which will make any layman go bonkers. This is why GK Goh's FOREX trading Platform - GOFX - has simplified it to just this screen where you can clearly see:
  • The 4 major currency pairs
  • Charts
  • News
  • Current Position
The screen does appear daunting at first. When I first accessed it a few days back (which explains my very low account balance, since I only started on it 3 weeks after everyone!), I was simply stunned by the jumping numbers and was unsure on what to do.

But then my exploratory nature kicked in. I like to explore with such systems and figure out how to get it working. Well, basically I just clicked on everything and checked what each link does.

There are possibly two most important screens:

1) The Charts

2) The News

However, being super unexperienced, I can't seemt o do both at the same time. The news just keep coming in! I guess a seasoned trader will probably greatly appreciate this timely update of news. Because, well, duh that these news will affect the foreign exchange right!

The first thing that I tried to explore was to find out how to get the Simple Moving Average (SMA) lines onto the chart. After some clicking here and there...

To format the lines,

And you get this:

See my SMA 21 and SMA 55 line? The system is actually quite instinctive to use, though you do need some patience and abit of an exploratory nature. I say this if you are using this system without guidance. However, if you go through GK Goh and Terraseed's full FOREX training course, I believe they teach you how to navigate the system, so no worries there.

Subsequently, I was desperately trying to find my candlesticks, doiji, golden crosses and dead crosses which we learnt during our 2 hour basic course with Terraseeds. But...aiyah, quite difficult! However, I did make some money (peanuts only, because I did not use a big amount. Did not use up my entire margin).

Other than just buying/selling, you can also protect your order through a limit (on your earnings) or a stop loss (on your losses). This can be done upon making the order. However, I feel that it's quite difficult to do so because the numbers are jumping so fast and I just want to lock in at a particular number. You can also protect your order subsequently, but that is on a GTC (Good Till Cancel) basis, if I am not wrong. If you had altered this during your order, you would be able to select what type of basis - whether it is GTC/GTD/DAY.

Well anyway, this is how I did it:

Yes, and I regretted twice for setting a limit - and now, I stopped setting a limit anymore. I would have earned much more if not for the limit. The limit, as the name suggests, is where your position will be closed automatically once the ceiling is hit.

There are also other things that can be explored in the system:

1) Economic Calendar

Like for example, I clicked on the Economic Calendar to better understand the current state of each country and where they stand in terms of Exports, PPI, Trade Balance, etc.

2) Alert Manager

If you are afraid that you may miss the price while browsing other screens, you can click on the Price Alert Editor. This will let you know when, for example, AUD/USD Sell price hits a certain number. Then from there, you can decide whether to buy or sell. This is an alternative to setting the limit or stop loss.

Previously, I encountered two other "finance-ish" system too. One common platform used in school would be Philips Capital's POEMS Stock system, where there is an annual competition. I joined twice if I am not wrong. Didn't really maintain it though. But anyway, the POEMs interface appears less daunting and is easier to understand. However, because it is too simple, it lacks a one-stop page for information. Like for technical analysis and other details, there is a need to switch to another page. Switching here and there...a hassle! The buying-selling transaction was slightly troublesome too, where I have to key in the numbers instead of just getting it at that amount. Well, then again, it could be due to the different nature of stocks vs foreign exchange.

I also went for the Citi Foreign Exchange Challenge in 2008 where we tried the E-Bourse Game. It is slightly different from GOFX because in that game, you are the bank. This means that you can buy-sell from the market, and you are the one setting the price. As it was just a very short challenge, it was merely just acting based on Market News which would pop out everytime something occurs. There wasn't much of a technical analysis and it was kind of "fastest brain with fastest finger wins" concept. We were basically hunting for arbitrage in currencies, and if I remember correctly, I accidentally set a few arbitrage too -.- 

I actually quite like the idea of having the News popping out (which GOFX does not have). Because sometimes, I am so fixated on just looking at the centre chart, that I do not look at the news panel on the right. That could be annoying to some people, but there could be an option to toggle this off too, based on one's preference.

That's about all for the system.

To really get serious about FOREX trading, I believe it takes quite a bit of time and learning.

To give us a simple background on FOREX trading, we had gone through a short 2 hours session with Terraseeds under the guidance of Binni Ong. I would say that the session was probably difficult to absorb if you have absolutely no background in Finance. That is not to say that I learnt FOREX in school. I didn't specialise in Finance nor take the FOREX specific modules. But at least I went through a module on Financial Markets.

FOREX is not something that you can learn quickly. There is just so much to read about, so much information to absorb. Aside from what was taught in the 2 hour session, there are also other methods for technical analysis. Terraseeds have come up with a Tflow analysis which they teach during their regular courses, where participants learn how to earn while sleeping and other skills necessary to trade wisely in the FOREX market.

Other than the learning, it takes time too. I didn't have much time to log on to the system because...I was just too busy. Every day after work, I am just too tired to read up and monitor the system. I basically just slack around. I guess handling a FOREX trading account takes lots of commitment and perseverance too.

Trading is something that I am quite interested in. I believe that investing wisely is the way to go to get rich. I can save all my salary and yet, still not earn. In fact, I will be losing money because of inflation. And what's with the banks pathetic deposit rates these days!

I need to read up more on forex trading once I start getting used to work and have the time to spare! 


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