Hi everyone! My name is Peter and I have decided to take the plunge and learn FX trading. I currently have a full-time job, so my main aim for the next 6 months to a year is to learn the terminology, open a live account with a small deposit (£100-150) and try and not lose anything overall!
I am currently reading Getting Started in Currency Trading (it’s going OK so far although seems to rely on the reader having some previous knowledge) though would welcome other suggestions on books/blogs etc. I would very much like to understand at what point others felt comfortable enough to start to trade?
This seems a very informative and helpful place and I hope I become an active part of the community, learning and giving help as and when my knowledge increases.
Thanks to all who are currently unknown who may help me in the future and I wish everyone the greatest of success!
Thanks
Peter
Hi Peter,
I’m another newbie and would suggest you work your way through the School section of this site (if you’re not already doing so). Just using the School of Pipology has been a massive help to me at the start of my journey.
Hi Peter. I just signed up here too, and I’m a newbie. I am taking this Forex learning very seriously, because I want to make it a career. This will be my 3rd career, after (1) airline pilot, and (2) nurse. This looks like a great place to start learning!
John
Hello Peter. Let me see if I can provide some insight.
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You can learn everything you need to know about Forex trading online for free. The Babypips school will provide every bit of foundation you need. Nothing wrong with picking up books here and there; but avoid spending massive amounts of money on “training programs” because most of those just teach you crap you could’ve learned in the School with the intention of getting you to buy additional courses. Not all of them are rip offs but quite a few are.
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You will find two trains of thought on this forum about how long to trade demo before going live. Some people think you should practice until you’re consistently profitable and then you’ll be able to transition to live with no problems. Other people think it’s a good idea to spend a couple weeks on a demo account and then start trading with a live micro-account as soon as possible so you can get used to putting your money (as opposed to fake money) into the market and letting it go where it’s going to go. The right approach is going to depend on YOUR mentality and psychology specifically. But you are 100% in the right about using a very small amount to learn with.
Why?
Because contrary to your goal of “try and not to lose anything overall!” you will. We all do. It’s just part of learning how to trade. When you put money in your trading account, you need to have the mentality that you will lose every cent of it in the back of your mind. You do not want to cripple your life because you were “sure this would turn out well”. That’s essentially the same thing as people who gamble in an unhealthy way.
As to when you feel comfortable to trade- that’s purely an individual thing. I think the most applicable way to look at it is as follows.
- Develop your basic skill-set (complete the School).
- Find a strategy. Research all aspects of it so you understand why it succeeds, how it can fail, it’s strengths and weaknesses. I highly recommend jumping down to the “Free Forex Trading Systems” sub-forum and looking at already established systems. You’re not reinventing the wheel here. It’s a better idea to use a system other people do so you can learn from them and bounce things off of people that are using your methodology so you can figure out your successes and failures.
- When you’re comfortable with both - trade on a demo for as long as it takes you to feel like you have the basic hang of it. Then open up your Live account with a micro amount that you can afford to lose- because you probably will.
And since you work full-time, I recommend focusing on the daily signal charts. You’ll be spending a ton of time on learning during the learning process; but once you start trading you can minimize the time you spend staring at charts while still pursuing success and being able to manage your career/family/have some free time. I trade dailies primarily and usually only spend about an hour after the NY close analyzing charts 5 days a week. That one is just a suggestion/opinion though!
Thanks stonecoldmichael for your comprehensive reply. I understand your idea on the mentality aspect. Although I would add my aim would still stay the same, it’s just a case of setting expectations realistically.
I will definitely work my way through the training school as you and toddmeister suggested. Thanks for your tips as well, much appreciated.
Best of luck John and to all!