Forex trading for a beginner
Discussion
Hoofy said:
Thing is, there are a hell of a lot of retail punters out there paying the likes of Saxo, right?
I am sure there are.The promise of getting rich quick with no training is very tempting.
That and a bunch of hobbyists spending 7 years breaking even (as in the BBC doc).
If you are careful it can take you a while to lose all your money.
TraderGuy said:
Never go live unless you can triple a demo account. So Take £1k to £2k, then £2k to £4k, then £4k to £8k. If you cant do this, then dont trade.
No, you don't need a demo account - in fact it's a waste of time - you should start with real money, with reasonable position size initially.And doubling money three times in a row just to test your skills sounds like a fantasy and with forex would have to be ridiculously leveraged, but then I guess you must be one of the best traders out there
chris7676 said:
TraderGuy said:
Never go live unless you can triple a demo account. So Take £1k to £2k, then £2k to £4k, then £4k to £8k. If you cant do this, then dont trade.
No, you don't need a demo account - in fact it's a waste of time - you should start with real money, with reasonable position size initially.And doubling money three times in a row just to test your skills sounds like a fantasy and with forex would have to be ridiculously leveraged, but then I guess you must be one of the best traders out there
You need to know that there is no point losing money when you are learning, so that is when demoing is best. Another thing is you need to know your stats. So you have a lucky week and place 40trades and you win 80% of the time, you could come unstuck if the environment changes. So you need to know your stats on 100s of trades to approximate your chances going forward.
Edited by TraderGuy on Friday 26th September 10:18
A few years ago, I worked with a guy who had been a successful IT contractor, he put in 80k (i think) and took it up to about £300k + ....
then lost the whole lot.
He had a 'system' but kept dipping in and out and then started doing side trades on gold etc. He said it was draining, tied to his phone, sleeping issues etc.
He showed me a website where people submit trading programs(?) when this indicator (MAC/stoch/mda) hits X and this hits Y then go long/short etc (obviously lots of other indicators involved but you sort of get the idea) and you could see how they perform. I will try and find the link somewhere.
then lost the whole lot.
He had a 'system' but kept dipping in and out and then started doing side trades on gold etc. He said it was draining, tied to his phone, sleeping issues etc.
He showed me a website where people submit trading programs(?) when this indicator (MAC/stoch/mda) hits X and this hits Y then go long/short etc (obviously lots of other indicators involved but you sort of get the idea) and you could see how they perform. I will try and find the link somewhere.
There is no point in the demo account other than to teach you the mechanics of trading.
Demo account VS Your money = a completely different trading style. No point developing a trading style on demo, you approach will change when it goes to real money.
Stick a few hundred in with a view to losing it and develop your style that way.
PS: Everyone wins on their demo account!!
Demo account VS Your money = a completely different trading style. No point developing a trading style on demo, you approach will change when it goes to real money.
Stick a few hundred in with a view to losing it and develop your style that way.
PS: Everyone wins on their demo account!!
I just get bored very quickly and take crazy-arse risks that blow up the account.honest_delboy said:
He showed me a website where people submit trading programs(?) when this indicator (MAC/stoch/mda) hits X and this hits Y then go long/short etc (obviously lots of other indicators involved but you sort of get the idea) and you could see how they perform. I will try and find the link somewhere.
If you can be right 55% of the time you'll be a millionaire. On paper it doesnt take much. 
Shares are hard enough and that's trading in partially quantifiable and tangible stories and/or other people's sentiment.
Let's say 90% of people significantly fail. You say well what about the 10%? What if you can be better than these other idiots with whatever knowledge or pattern or skill it is you have?
I give you a ten sided die and I'll pay you £100 every time you roll a ten. You pay me £100 every time you don't. Now maybe you can find a way to roll dice that defies the odds, or you know something I don't, or maybe luck will smile upon you. But probably not.
Is forex trading random? No, not entirely. But unless you can explain and justify why it isn't, in your particular case, then stay away from it. Being right 55% of the time - without just being inactive - is actually very hard.
Let's say 90% of people significantly fail. You say well what about the 10%? What if you can be better than these other idiots with whatever knowledge or pattern or skill it is you have?
I give you a ten sided die and I'll pay you £100 every time you roll a ten. You pay me £100 every time you don't. Now maybe you can find a way to roll dice that defies the odds, or you know something I don't, or maybe luck will smile upon you. But probably not.
Is forex trading random? No, not entirely. But unless you can explain and justify why it isn't, in your particular case, then stay away from it. Being right 55% of the time - without just being inactive - is actually very hard.
Watching this thread with interest.
I tried spread betting a few years ago and started with £1000 in real money. I found it extremely hard to make any decent return with this and after a few weeks had 10% profit but the last week of trading lost 25% and decided it is very hard to pull out a trade when you are the wrong side and i always let it run a bit more then I should of.
I did try a demo account before starting and did make money but like other have said when you go from trading 20k demo money to 1k real money it is very big differance and a lot harder in my opinion.
I would say go with it as long as you can afford to lose the money, it's worth a try and at least you can say you gave it a go.
Ps i have not attempted spread betting ever since and now only buy shares and i even struggle with that but good luck and let us know how you get on.
I tried spread betting a few years ago and started with £1000 in real money. I found it extremely hard to make any decent return with this and after a few weeks had 10% profit but the last week of trading lost 25% and decided it is very hard to pull out a trade when you are the wrong side and i always let it run a bit more then I should of.
I did try a demo account before starting and did make money but like other have said when you go from trading 20k demo money to 1k real money it is very big differance and a lot harder in my opinion.
I would say go with it as long as you can afford to lose the money, it's worth a try and at least you can say you gave it a go.
Ps i have not attempted spread betting ever since and now only buy shares and i even struggle with that
but good luck and let us know how you get on. I have been in my line of business for many years and my experience and learned knowledge has given me an inside track where I can buy at a substantial discount to "book price" therefore giving me a substantial advantage.
I have considered trading shares etc. but fairly quickly came to the conclusion that to make a consistent profit one has to have the appropriate skill set and knowledge and contacts,this goes for any business.
Yes it is possible to make a few lucky punts but that is not a foundation for a successful venture.
I have considered trading shares etc. but fairly quickly came to the conclusion that to make a consistent profit one has to have the appropriate skill set and knowledge and contacts,this goes for any business.
Yes it is possible to make a few lucky punts but that is not a foundation for a successful venture.
Resurrection time!
I read this on Quora last night and thought of you guys...
The US FX trading platforms release data on profitable vs. loss making accounts apparently.
Over the quarter (Q313) to be honest I am quite surprised at the % of accounts in profit (44% for the best).
Not sure if you need to log in to this but:
http://value_investors.quora.com/Forex-Brutality-W...
Latest published...
(Sort of) source article:
http://forexmagnates.com/exclusive-q3-2013-us-reta...
Now before we go all "I have got a 44% chance of killing it and getting rich quick!!" it should be noted that a. these guys are mostly pretty serious semi-pro money and b. it is very likely NOT the same 44% each Q making money!
I still think the retention data from IG makes more sense since it shows how long people hold out.
Nevertheless, interesting figures I thought.
I read this on Quora last night and thought of you guys...
The US FX trading platforms release data on profitable vs. loss making accounts apparently.
Over the quarter (Q313) to be honest I am quite surprised at the % of accounts in profit (44% for the best).
Not sure if you need to log in to this but:
http://value_investors.quora.com/Forex-Brutality-W...
Latest published...
(Sort of) source article:
http://forexmagnates.com/exclusive-q3-2013-us-reta...
Now before we go all "I have got a 44% chance of killing it and getting rich quick!!" it should be noted that a. these guys are mostly pretty serious semi-pro money and b. it is very likely NOT the same 44% each Q making money!
I still think the retention data from IG makes more sense since it shows how long people hold out.
Nevertheless, interesting figures I thought.
honest_delboy said:
From the figures you have no idea if they are sitting on losing trades either. No Aventador for me! ho hum...
If its anything like what we have then at the end of the day you have to reconcile your trades, so you cant 'sit on losing trades' without it being reflected in your account. Gassing Station | Finance | Top of Page | What's New | My Stuff