2006-08-27 12:02:53 · 8 answers · asked by Jordan V 1 in Business & Finance ➔ Investing
Just like trading any market, be very cautious when first learning how to trade currencies. 90% of new traders lose all their money within 3 months.
If you still want to take the plunge, you should check out
BabyPips.com, http://www.babypips.com
It's a good site for people starting at ground zero.
2006-08-27 14:00:43 · answer #1 · answered by ooogleemooglee 1 · 0⤊ 0⤋
I'm surprised so many people go out of their way to discourage you. People are generally afraid of things they know nothing about.
The huge risk in forex is there because of the huge leverage. I'm currently trading a mini account that allows 200:1 leverage. Yikes! How much trouble can we get into now?
Just because you "can" doesn't mean you "should" use leverage.
With $1,000 (buys one standard contract) I can control $200,000 worth of currency. But I could also put $200,000 into my account and trade one contract with no leverage. Or I could put $20,000 in my account and trade one mini contract with no leverage. Or I could put $2,000 in my accont and trade one micro contract with no leverage. Or put half a million in my account and reverse the leverage. You see? The risk goes way down when you reduce the leverage.
Without leverage, it is not any more risky than any other investment. Why don't more people realize this? They aren't looking. They're only looking at how they can get rich quick, the pot at the end of the rainbow, "The Answer."
You should be one of the few people that approach forex from the risk standpoint (correctly). Most people are just thinking about how much money they can make, and lose it all very quickly.
I generally trade one standard contract for each $10,000 in my account. But with more experience, knowing the situations to leverage up, and when things line up with multiple reasons for taking the trade, I'll trade two and sometimes three contracts per each $10,000 in the account. Bottom line; you control the risk. My account was up 40% last month, and is already up 43% this month. It can be consistent, if you work out a plan and stick with it. My potential doubled or tripled and the losses are about the same as when I traded stock index futures for about 15 yrs.
A good trading platform, good executions, always using a Protective Stop, low spreads, are all ways to reduce risk.
Check out the references below.
Good luck to you.
2006-08-27 15:56:26 · answer #2 · answered by dredude52 6 · 0⤊ 0⤋
If you are just starting out i suggest you start with Dr Alexander Elder's "Trading for a Living". In it it shows the psychology of trading which is more important to a trader in the long run. Like Golf its a mental game. It keeps you going when the trade is live. Picking a entry is easy. Most people spent 80% of their time on it, becasue that is probably the only thing you can control in Forex Trading. Exiting should be in our control, but most traders get killed becasue they let the market decide. Especially when the trade is not going their way or the profit is not enough, they wait it out only to see it hit resistance and prices plunged. Get the workbook as well. Good Luck. !http://www.geocities.com/lcming/ForexForex or http://www.geocities.com/Forexbooks
2006-08-27 13:42:51 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Before you start, make sure you research the market that you are in, the strategies that your going to undertake, the type of risk management your going to use, the usage of charts/indicators and so on.
You also must be willing to lose a set amount! learning this requires a lot of practise and usually trial and error to learn what type of style your going to use and the discipline needed when you trade. Underneath are some good links that i use to find more about the forex market.
2006-08-27 13:32:55 · answer #4 · answered by Dreamer 3 · 0⤊ 0⤋
Hope you have money to lose..............Forex is risky and some make money and a very small few make big bucks.
USE money you can afford to LOSE without taking food off the table or you might be sorry later.
2006-08-27 12:07:36 · answer #5 · answered by Anonymous · 0⤊ 0⤋
man gotta learn your lesson, DO NOT fall for those late night infomercials on how to make a million dollars, they are all B.s. I know people who have paid the thousand or more dollars up fron tot make no money, Get out of it if you still can, there is no fast buck
2006-08-27 12:10:05 · answer #6 · answered by the d 6 · 0⤊ 0⤋
check www.fxcm.com
you better learn first or demo for about 6 months.
2006-08-27 12:07:43 · answer #7 · answered by curious_e 4 · 0⤊ 0⤋
CNN.
2006-08-27 17:39:18 · answer #8 · answered by Anonymous · 0⤊ 0⤋