March 25, 2011
I am looking to start trading in Forex, can you give me advice?
By Planet Wealth
I am looking to start trading in Forex with a friend. What should I know? Where should I look? And most importantly, what should I try to avoid?
Thank You!
Topics: trading tips | 11 Comments »
11 Responses to “I am looking to start trading in Forex, can you give me advice?”
Comments
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March 25th, 2011 at 12:46 pm
Forex is what we call a "zero sum" game. You are making a bet with someone else about whether a currency will rise or fall. For every winner there has to be a loser. If you are smarter than the average player, you may make money. If you are dumber than the average player, you are likely to lose money. Most of the people making the "bets" in Forex are highly trained professionals at banks and other institutions. You are unlikely to beat them at this game.
Really Forex is not quite a zero sum game. It’s a slightly negative sum game as the Forex broker takes a small percentage each time in the spread. It’s a small amount but over a hundred trades, it ends up being a considerable amount of money. So the average player is likely to lose money, and remember the average player is a highly trained professional and probably smarter than you.
There is a lot of luck in Forex, and if you play it, you will have some periods of time where you make money. This is usually because you are having a lucky streak, not because you have suddenly become an expert Forex player. But, most people are unwilling to admit their success is due to luck. They become convinced they have a system that works, and lose a lot of money trying to refine it.
Further complicating the problem is the large number of Forex scams on the internet. Most Forex websites are of questionable honesty. You will find many people on the Internet that claim they made a lot of money using Forex. They are usually liars trying to make money. They will say: "Go to Forexcrap,com/q2347." The "q2347" is a signal to the Forexcrap site that you are being referred to them by "q2347." If they sell something to you, "q2347" gets a kickback. These coded signals can be hidden by different methods in the link. Other people will refer you to their own private website or blog for the purpose of trying to get money off you. Also there are a excellent number of trolls out there that like to pretend they are successful forex traders just for the fun of it.
I would recommend not trying to do Forex at all, unless you are a trained professional. It’s like playing poker with people better than you, with the house constantly taking a small percentage from the pot.
March 25th, 2011 at 12:46 pm
If you have no trading experience, learn to trade with stock. The leverage that gives forex it’s attraction will work against you, too. You really have to know different types of orders and trading terminology. When you start with forex, start trading mini-contracts. You will make mistakes while you learn because everybody does. So keep the losses small. Scale up when you are profitable.
March 25th, 2011 at 12:46 pm
Forex is highly leveraged. This means you can lose a lot of money. Fortunately many forex brokers allow you to learn with a practice account using fake money. This is the way to go. See if you can make money by simulated trading before you commit any real funds. Once you feel you can make money and are ready to commit real cash, start very small. Oanda is a forex brokerage that allows you to trade with any amount you like, so may fit your purposes.
March 25th, 2011 at 12:46 pm
First step my friend is to find a reliable broker and then practice a demo account for atleast 3 months.
You can find a excellent broker offering demo accounts here: http://www.forexnode.com/brokers/
March 25th, 2011 at 12:46 pm
if you choose to trade the forex trade the eur/usd its the most traded and by all means trade a demo account first it only takes a second to get burnt in the forex market
March 25th, 2011 at 12:46 pm
If you are a beginner, first go to google search some useful ebook about forex. After you get familiar with the forex operation, open a demo account then practice. When you can get profit from your demon forex trading account, you can start to trade forex really. You can find a lot of useful information from this forex pub site:www.forexpub.info
March 25th, 2011 at 12:46 pm
If you are a beginner, suggest you to trade in simple-forex. Try this link:
http://ads.simple-forex.com/Gateway.aspx?gid=126041
March 25th, 2011 at 12:46 pm
Forex is a excellent way to majke online money but not always safe. You need to be well trained abouit stocks exchanges and strategies. I have an article in my hubpages about forex scalping wich is another strategy to make simple and quick mone; read about it and search more courses through the web:
http://hubpages.com/hub/Scalping-in-forex
Please leave a comment there
Excellent Luck
March 25th, 2011 at 12:46 pm
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March 25th, 2011 at 12:46 pm
You should take some time to visit some excellent websites, and read everything you can about Forex. You need to take some time to practice in a demo account so that you can get some experience without risking any money.
I’ll let you some resources below:
March 25th, 2011 at 12:46 pm
You should learn about the forex trading. I can suggest you forextradingevo.com is the best website regarding forex education