I have an old pdf of pipsology but only until recently i have time to read it. I am new of course so I read from the very first chapter.
But what is confusing me after the first 50 pages, the author excitedly explain the pros of forex trading, one of them is that we can open an account with as low as $25. Of course we can’t really make profit with 25 bucks but the author wrote that forex is different from stock trading that it allows anyone with limited capital like few hundred bucks to make some small profit. This is one point the author had made, the tone was excitement.
however, few pages read, I came across another weird remark made by the author “Don’t expect to start an account with few hundred bucks” and that one should have at least $10,000 capital to lose. I hesitate, shall I continue reading this tutorial. It seems like the author contradicted himself.
My intention is to start as little as $500 and I can’t afford to lose $10,000 so i will avoid leverage before I am more mastered, does that mean I should stay away from forex now?
Firstly you are unlikely to make any profit if; you are new, and 2. you have a small account.
Assuming a monthly return of 10% the capital, your $500 may yield a max of $50- which isn’t worth the effort anyway…
Aside from this, you better focus on learning before you start thinking of trading. You could also get a $500 demo and get a feel of things forehand
I am a fellow (relative) newbie and can offer up my views.
I started with the pipsology guide and then went through babypips online school. I started with a demo account and blew it twice I’m glad I had the opportunity to learn a lot of lessons about risk management and trade selection without risking real capital. The first demo account I was simply gambling. I looked at the news and placed stupid trades. The second time I used decent technical analysis for trade selection but my position sizes were far too high and therefore 4/5 bad trades led to huge drawdown. My inner gambler took over trying to recoup losses and tah dah, I blew it again. A valuable lesson!
So where am I now? I have demo account number three and am 22% up since December 13. I have opened a live account with £3000 and am making approx 5-6% a month trading majors/minors and a few crosses.
I have focused on my psychology and am sticking to an end of day strategy that suits my circumstances and most importantly I have a trading plan. I have a small account, but am aiming for steady growth each month. On top of this I put every spare penny into the trading account at the end of each month to increase the compound growth.
I focus on percentages and not the money. If i can show consistent returns month on month then there are always ways to generate additional capital i.e. borrow it, become a signal provider etc.
So going back to your initial question, should you stay away from forex, then the answer should be to determine if you are a gambler or want to be a trader?
I’ve learned that trading takes time, patience and tenacity and I’m in it for the long haul.
stick with learning the basics in technical together with fundamental analysis and apply them on [B]any[/B] REAL live account; mainly the technicals and combined with fundamentals where possible.
ANYONE can make profit from forex, even a newbie; sometimes newbies can profit more than seniors or experienced traders due to the magic of “beginner’s luck”. If this makes your case…congrats; stop after some wins, consider every detail of what you are doing and just keep doing it over and over again.
$25 can quickly turn to $30, $30 can quickly turn to $40 and so on; this can be exponential if you do what you do the right way.
Bravo, btr999 :60: If you’re smart you will print out btr999’s post and read it every time you wonder about what you have to do if you want a chance at being successful trading in the forex. Most people never learn this and go broke and quit. Some people it takes more than one blown demo or live account :17: It doesn’t matter what trading method you try or starting balance of your account, you need to learn, understand and follow the steps in btr999’s post.
No matter if your starting balance is $25, $25000 or $250,000, percentages are percentages. Just like if you don’t have a tested, written out trade plan that addresses: trading method, money management, patience, discipline and will produce more positive results than negative results based on the balance of probability, you’ll go broke. Good Luck
I need some successful tips to trade on Forex.
Not really sure what the author was trying to tell you, but I can tell you that as a newbie you should start with least amount possible with your broker. This means you should test your strategy on small live account and expect to lose couple accounts because that is part of the learning process.
When you master your strategy than you can start thinking about increasing your trading capital and make some real money.
That’s a reason to ask for them, with specific questions about what you want to know, so that people can advise you accordingly - not a good reason to bump a thread from 2014 on a different subject.