Dont understand Currency Trading?
I understand stocks and i want to learn currency trading. i read a lot articles. i used the forex demo trading system. For some reason i do very well. I started out with 50k and in 20 days had 100k. and i have never had a negative trade. Every trade i did had positive return out of it. I dont know if im ready. i made over 1200 pip gain over 20 days and i only did this part-time. Like 2 hours a day. Somebody told me (trading is an art) i guess my purpose in life is to trading currency but i dont understand. Im a hvac tech. Do you think i should start to use real money?
Please don’t.
Long ago, there was a book someone loaned me, The Richest Man in Babylon. The concept was to save money (10% was their figure) and invest it. Well, the student character in the story passed his lessons on to someone else and together they pooled their cash and bought some pearls or gems (I forget which). It turns out that they were worthless. The advice then given was "stick to what you know".
Your purpose in life is not trading currency and playing a simulator is not the same. Unlike stocks, where you really don’t lose more than you put in, futures can be extremely vicious. It can bite you. If the price suddenly goes against you, limit up (or down) for several days in a row, you could get a margin call for you to put up still more money. You could actually owe far more than you may have been prepared to put in. This is something that happened to me several years ago. My broker teased me with that old line, "There are bold traders, there are old traders, but there are no old, bold traders."
October 31st, 2009 at 10:48 pm
No, I suggest that you keep trading in your Demo account until you loose a few times substantial amounts of your play money.
You need to experience the real risks of trading as well as the benefits. Or else you’ll end up being overconfident, take excessive risks, and loose a lot of money when you start trading with real money.
References :
October 31st, 2009 at 10:59 pm
Please don’t.
Long ago, there was a book someone loaned me, The Richest Man in Babylon. The concept was to save money (10% was their figure) and invest it. Well, the student character in the story passed his lessons on to someone else and together they pooled their cash and bought some pearls or gems (I forget which). It turns out that they were worthless. The advice then given was "stick to what you know".
Your purpose in life is not trading currency and playing a simulator is not the same. Unlike stocks, where you really don’t lose more than you put in, futures can be extremely vicious. It can bite you. If the price suddenly goes against you, limit up (or down) for several days in a row, you could get a margin call for you to put up still more money. You could actually owe far more than you may have been prepared to put in. This is something that happened to me several years ago. My broker teased me with that old line, "There are bold traders, there are old traders, but there are no old, bold traders."
References :
October 31st, 2009 at 11:42 pm
Forex traders are placed through a broker or a market maker either directly or through an online platform. Trades are based upon currency pairs, with a trader generating profit or gains when the currencies move in a positive direction. One of the attractions for traders seeking to learn how to trade Forex is that traders can be placed in small dollar amounts. And, many trading firms offer the ability to trade on margin, giving the typically trader even more leverage to create personal wealth.
How to Trade Forex- The Next Steps
Once you are ready to trade Forex, you need to take the next steps:
1. Choose a Forex Broker- With so many Forex brokers available to select from, it is important to review the features and benefits that each firm offers to its traders. Select a firm that you feel offers you the most advantages alongside affordable trading schedules.
2. Set up a Demo Account- A demo account allows traders to practice trades while learning how to use the systems while not risking their own personal capital.
3. Learn how to Read Charts- Take time to learn how to read currency charts as well as the information provided by your chosen broker. If you have questions as you learn how to trader Forex, ask your broker.
4. Execute your First Trade- Once you have mastered the basics by practicing within your demo account, you are ready to execute your first trade.
Learning a new market is not as challenging or as intimidating as it may initially appear to be. Take the time to learn the basics and to work through the steps to that you can properly learn how to trade Forex.
References :
Broker I recommend: http://www.finexo.com/
My Blogs: http://forextradingguru.blogspot.com/
http://forexmoneymaker.blog.com/