FOREX anyone?
- Thread starter mcboob
- Start date
Player is it easy to get into,i've bought a book about it and it seems mad complicated.Is it?
thanks in advance.
thanks in advance.
Not really. Once you understand the dynamics of the market you are looking to trade.
Secondly, I must apologize for the terse answer without checkin on how you plan to trade or your capitalization. My bad.
Let's start off with these questions:
1)How much capital are you working with and how much of it are you willing to lose? Understand, YOU WILL LOSE some grip learning how to trade. The trick is minimizing the losses until you can get a good idea of what the hell you are doing and start making money consistently.
2) What style of trader are you looking to become? Scalper? Day? Swing? Position? or Core?
3) What will you use to generate your setups and signals? Technical or Fundamental Analysis?
4) How will you get your information? Quotes, News, Charting, etc.
5)Can/will you commit to 6-12 months of "paper trading" and strict journal keeping?
These are a few things you have to be able to answer before delving into FX, or any other trading for that matter.
While some of the intricacies of FX can get mind boggling, depending on your trading style, a lot of that shit just wont matter.
Props on your initiative to educate yourself before blowing out your account.
Secondly, I must apologize for the terse answer without checkin on how you plan to trade or your capitalization. My bad.
Let's start off with these questions:
1)How much capital are you working with and how much of it are you willing to lose? Understand, YOU WILL LOSE some grip learning how to trade. The trick is minimizing the losses until you can get a good idea of what the hell you are doing and start making money consistently.
2) What style of trader are you looking to become? Scalper? Day? Swing? Position? or Core?
3) What will you use to generate your setups and signals? Technical or Fundamental Analysis?
4) How will you get your information? Quotes, News, Charting, etc.
5)Can/will you commit to 6-12 months of "paper trading" and strict journal keeping?
These are a few things you have to be able to answer before delving into FX, or any other trading for that matter.
While some of the intricacies of FX can get mind boggling, depending on your trading style, a lot of that shit just wont matter.
Props on your initiative to educate yourself before blowing out your account.
Oh okay i just want to start off slow so a day trader sounds like the way i want to go but i understand that i'll need some software to navigate my way around ie checking the stats,i have like £500:00/$1000:00 to play with is this enough or do i have to start off with more?
I'll most probably be using news websites to get my intell although i'm open to any forms of info.But the real question is "can i make serious money trading forex".
You've given me some good pointers so far my brother,thanks in advance.
I'll most probably be using news websites to get my intell although i'm open to any forms of info.But the real question is "can i make serious money trading forex".
You've given me some good pointers so far my brother,thanks in advance.
bump, I'm interested in learning about this too.
If you are going to day trade, you will need a larger capital base ($5-$10K USD). You will also need a source of real-time quotes.
Please ignore those ads you see about forex trading with $500 accounts. Those are bucket shops who counter your trades and they quote thier own spreads/prices. I will say if you want to use them in order to get a feel of how your emotional state will affect your trading, you can look at the 500 bux as tutition in your trading education.
Can you make money trading forex well, lets take a look. On the Euro FX contract (symbol 6EZ7) today, the price range was 45 pips. At $12.5 USD a pip, you had a potential for ~$562.5 per contract today. Today was consisered a tight range day, it's usually about double that. On 6EZ7 contract requires $2025 in margin (less for intraday trades). If you average $500 a day (unlikely for most people starting out), that computes to $120,000 per year. A more realistic goal starting out is ($50-$150) per day. Doesn't sound like much, but the secret to trading to take low risk trades but increase the # of contracts you put on. If you can consistently make 100 bux on one contract, when you put 3 or 4 trax on, you've just given yourself one hell of a pay raise.
To put it in perspective here are few daily income targets:
Average $100 per day = $24,000 per year.
Average $200 per day = $48,000 per year.
Average $300 per day = $72,000 per year.
Average $400 per day = $96,000 per year.
Average $500 per day = $120,000 per year.
This is based on 20 trading days per month.
Conversly, you can LOSE serious money trading FOREX or futures.
I've simplified some things but will happy to expand on anything.
In the meantime get a subscription (they're free) to Currency Trader Magazine (www.currencytradermag.com) and to Futures and Options Trader magazine (www.optionstradermag.com) and start getting familiar. They have a mini-primer in every issue.
Happy learning and trading!
I'm actually scared of them. I'm trying to prevent ulcers by not trading them. LOL
They are making Forex hard. Very easy to make money, go to fxclub.com to open and account. When you trade make sure you put a stop loss on your position, so you want lose all lose your money. Start off with GBP/USD. Go to forexknowledge.com, dailyfx.com, bloomberg.com and fxstreet.com.
Good look on the assist for the websites. I will say however, a lot of the firms advertising there are the very bucket shops I suggested he inspect closer.
It's cool they let you trade with $500 and the like, but also realize the deck is stacked in their favor as most of them use a dealing desk and are the counterparty to your trade and they are the ones who are quoting the prices and are hittng you for a 2-5 pip spread. We haven't even touched on how they treat trading around news releases.
As I said eariler, if thats how he wants to floss, cool, I just want him to know what he's gettin into. It's a good way to get into trading and learning how stops, limits, OCOs and other types of orders work. It's a good way to learn how your emotional state is going to play a role in your trading. It's even an overall good way to get your "feet wet" in trading. Just look at those 5 yards as tutition on your trading education.
It's NOT (imho) a good way to make consistent long-term full-time income.
While i'm from the school of hard knocks and learn best by doing, I don't want to see someone blow out their accounts and not really get anything from it. I'm all for going out there and losing a little money, beacuse that's the only true way you master trading. I lost A LOT of money before I became consistently profitable.
My intent was not to make FX hard for ole dude, but rather give some basic information and pointers. I don't believe giving folks "pie in the sky" tips without spittin some real talk behind it. Hell, I would even tell him not to take my word as gospel on any of this. He needs to check it out for himself. Because as any true trader knows, YOU are solely responsible for what happens to your account, good or bad.
As always, much respect to all and happy to help.
Peace.
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Sheez, cap'n. I got ulcers phuccin around with them damn equities.
Corporate malfeasance, restated earnings, surpirse news and all the other exposure to not having all the info a company cost me a lot of grip.
Thats whay I switched from equities to index futures, energies, metals and currencies. Could'nt be more happy.
Glad to see you got the secret sauce on trading single issues.
Sheez, cap'n. I got ulcers phuccin around with them damn equities.
Corporate malfeasance, restated earnings, surpirse news and all the other exposure to not having all the info a company cost me a lot of grip.
Thats whay I switched from equities to index futures, energies, metals and currencies. Could'nt be more happy.
Glad to see you got the secret sauce on trading single issues.
I wouldn't call it a secret sauce just yet.
