Into the world of Forex

Hey

I have just recently gained an deep interest in world of forex and the possible risks and outcomes involved. Can someone who has sufficient knowlegde on trading Forex give me answers to the following questions in order to help me get started.

  1. Roughly how much can you make at Beginner/Advanced every day trader? Starting with £1000 at beginner level and once your at an expert level how much can you be making?

  2. Whats the best/realistic/free trading software for Forex? I currently use AC-Markets and EToro. I heard MetaTrader4 was pretty good and realistic.

  3. Whats the best online website or book for beginners that could help me most with forex trading? One with not so complex terminology.

  4. Also whats better to trade Forex or Stocks? I heard Forex is trading more commonly than shares due to higher turnover?

  5. Also some people say forex is not for beginners, and that i should start with shares if i dont know what i’m doing.

  6. How can i learn in best way possible reading endless amounts or pratically learning from trading softwares etc.

I would appretiate all advice and help just to get me started.

Thanks :D:D:D

good luck on your first step. learn for 2 years, read everything, start with the school of pipsology. how much money are you going to put to work? how much money are you willing to lose?

rule nr 1: dont lose money
rule nr2: dont forget rule 1

  1. That’s an impossible question to answer as it widely varies from trader to trader. With a $1000 bankroll, respectable returns about be $20-$50 a month.

  2. Not quite sure what you mean by realistic, but my personal favorite has been Metatrader 4. Not the most user friendly to work with initially, but it gets way easy after use.

  3. This website right here is going to provide you all the initially information you’re going to need to kick you off on this journey.

  4. I trade both. Stocks, you have to watch fundamentals a lot more. I like the volatility provides as well as the 24/7 nature of the market. Also, technicals mean a heck of a lot more on the Forex side then they do on the Stocks side.

  5. I disgree. There’s more rules and regulation with stocks as well as a wide variety of different investment vehicles. It’s more cut and dry with spot Forex trading.

  6. Experience is the best learning tool.

1- I think you will find youre first task is going to be to hold your account at breakeven, this may not sound like it should be hard, but if you still have your account balance the same after 50 trades you are doing well, in my opinion that is! Lay off the leverage and just STOP if things start going wrong, take a break and review the situation. Its VERY hard to trade yourself out of a hole!

2-Depends on the trading you intend to do, i personnaly dont like mt4, fxcm marketscope2 is quite nice. but mt4 is probably the one for programmers ect. i no very little about this though…

3- most of the books i read were about stock trading as thats where i started, i dont realy have many forex books. But “Trading in the zone” by Mark douglas should be high on your list. You may not understand it though unless you have experienced real life trading.

4-With a $1000 you will struggle with stocks, unless you use leveraged products. I started trading stocks, it was OK back in early 2009 when some gained 20-50% per day, but the commisions destroy the profit. Im not clued up on stocks so some might say otherwise.

5- forex is fine for begginers, so long as you start of small, and do not go mad with leverage! RISK MANAGEMENT is everything!

6-dont totally understand the question. Dont go mad buying books though, real experience is the most important.

P.S.-So long as you go about this correctly you have a chance of success, there will be times when you feel like- you know what, but when you read about successful traders they will all have the same story, “it took me along time but i never gave up and i finnaly found out how to trade”

the site is called baby pips, what you need to do is take a load of baby steps, dont try and run before you can walk, do your VERY best, dont let yourself down!

best of luck
highland trader

Thanks for all the useful help and information guys. Although i had always wondered that is it possible to double your profit and so on. For example if i decide to open with £200 is it possible i can keep doubling/tripling my profits i.e. 200>400>800>1600>3200>9600…and so on in tens of thousand, hundred thousands etc. I know this may not always be the case while trading, as where there is profit there is also loss involved and with that sort of starting amount i will be looking at returns of 2 or 3 %. As im practicing with a demo account i have recieved quite satisfactory returns. But apparently some professionals can make anything from 200-500% back or more.

Also ive heard many people say that demo trading is noting close to real time trading. Is that true? If so whats the main big difference and what possible slight change is there to it? People here usually all want success through trading, but does that intially mean making millions or just having a decent and effective plan and being diciplined?

Thanks for all the useful help and information guys. Although i had always wondered that is it possible to double your profit and so on. For example if i decide to open with £200 is it possible i can keep doubling/tripling my profits i.e. 200>400>800>1600>3200>9600…and so on in tens of thousand, hundred thousands etc. I know this may not always be the case while trading, as where there is profit there is also loss involved and with that sort of starting amount i will be looking at returns of 2 or 3 %. As im practicing with a demo account i have recieved quite satisfactory returns. But apparently some professionals can make anything from 200-500% back or more.

That depends on your money management model. If you trade a fixed lot size every round-turn, compounding won’t affect you (both good and bad, I guess). For the most part, people tend to have % risks, instead. Thus, the real question becomes: how long does it take for compounding to achieve the goal you’re looking for?

Also ive heard many people say that demo trading is noting close to real time trading. Is that true? If so whats the main big difference and what possible slight change is there to it? People here usually all want success through trading, but does that intially mean making millions or just having a decent and effective plan and being diciplined?

I would say demo trading is a good indication of live trading. The difference is slippage and a bit more lag (since demo accounts don’t route trades through the broker’s servers to get matched). The reason people say that demo trading != live trading is because of the psychological aspects. With demo trading, you’re not losing anything, enticing you to be more risky or just play downright foolishly.

with the lot size I do trade its same thing - no difference.
If you have never tried to trade yet you can make mostly negative balances :slight_smile:
Its true. Once you learn then you can improve your results
it can be from +100 to -100 pips (from my experience)

Someone tell me that if you can make $1000 from $100 you will trade successful

First time I made 600$, after I have learn I made 800$ then last them all both times.

Some people use EA (software) that trade for them. I didnt try.

btw, my experience less then a year

When I was trading demo account before I was studying I have found a pair that made its highest high. I did short entry and forget for a week and a half. When I come back I had nice demo pips.

Since it’s always fun to give opinions here are mine for what they’re worth.

  1. Trading has a serious learning curve. Expect to spend years learning to become consistently profitable. Remember that 95% of people who try this never make it. For a beginner becoming breakeven is a good goal. Expert traders can make 10% a month or more which is roughly 300% a year.

Also, it’s not the trading that makes you rich. It’s the compounding. And to be in this game for a long time excellent money management and risk control are absolutely essential.

  1. I’ve always used metatrader for analysis. Dealer platforms are designed to incite the gambling instinct. Don’t use them for analysis.

  2. I enjoyed Beat the Forex Dealer by Silvani. Exploiting market maker’s trappy habits can be very profitable for the day trader. ICT’s thread on this website has a lot of good information.

  3. Forex is much better for many reasons, more liquid, more volatile, 24 hr trading, trade any size etc etc.

  4. I’ve never traded stocks.

  5. Practice and study are both necessary to learn anything.

PS, you can learn from anybody but don’t completely trust anyone. You are completely responsible for your own results.