Anyone here a Forex trader?

Question

Hello there im thinking of opening a forex account so i can do something with my savings, i know we all lose but how is the business? is it good or not? what are the benefits or should i say pros and cons? thanks a lot

Answer 1

I started trading forex back in 2004. It has been a roller coaster ride, but no more riskier than trading stocks. I find trading forex easier to trade than stocks, even with the 24 hour trading. With 3 trillion value traded daily, the major pairs tend to trend well.

I suggest you first open a demo trading account. Trade that demo account until you can define your trading rules--when to trade, and when not to trade. When you are able to show profits three months in a row using your trading rules, then you can open a live account with $10 (oanda.com minimum to open an account is $1 with 50:1 maximum leverage).

Trade your $10 account using your trading rules. It is different trading a live account from a demo account. You will find that your ego and emotions tend to be more at the edge. Being able to control them is the key to long term profitable trading.

When you are able to show profits three months in a row, then  add more funds to your account.

Feel free to contact me if you need more help on this matter. http://homeruntrades.blogspot.com

Answer 2

I trade both FX and stocks. In regards to FX, yes it can be a rather challenging market, its open 24/7 and news at any time from anywhere in the world has the potential to destroy your positions while you sleep. It is not impossible or anything like that however, when you trade spot FX you normally work on insane leverage, say minimum 5to1 but can be as high as 50 to 1 in order to make the relatively small price fluctuations between currency pairs (in percent terms) actually pay off.

The high leverage and unpreductability require at least average risk management skills from a trader. Otherwise trading is the same as most other markets.

My recommendations are that if you are a beginner to trading period start with stocks then when you are comfortable you can try FX with MINIMUM capital. Remember to papertrade and backtest your strategies extremely well and try to get at least one profitable month of paper trading before going live.

Now for the benefits, this market is extremely liquid meaning its simple to sell 5million euros without making a dent in the market. Try that with a stock and it will probabaly fall an entire point or more. This enables you to size up your trading once your are profitable with no worries about affecting the market prices and s******g up your hard learned strategy.

The best FX brokers in my opinion are Oanda and Interactive Brokers, I personally use IB.

To sum it up, its challenging (what isnt) but its definitely doable and can be rewarding just invest in your education and plans. I forgot to mention that you should be very skeptical of FX trading programs or robots promising sky high returns. Although profitable ones do exist, most on the market are not.

Answer 3

hello,

I am a financial advisor and forex trader too. It is always wonderful to trade in forex if we choose the right path. there are many forex trading websites where you can open your account and start trading.. these websites have various advantages like they provide you demo trading accounts for learning, provides live account with minimum of $25, provide tips, charts, market updates etc.

If you have a right mentor with you, the task becomes easy and very profitable.

Answer 4

Focus more on fundamentals than technical analysis. Economic news analysis is what moves the markets.

Here is a free site that shows what has happened after economic news releases:

http://www.forexnewspatterns.com