Introduction: New to Forex

Hi group -
My name is John and my story is unique, yet not unlike many here.
I am in my mid-40s and I live in Japan. I have lived here for over 20 years, having moved here from my home country at the age of 23. I have been working in IT and had quite a decent career up to 2009, but the past 4 years, I have been laid off from one job after another as IT work continues to move to lower-cost countries, such as China, India and Thailand. At this point, with several short term gigs on my CV, getting a new full time job will be difficult at best.
Fortunately, the powers that be at my present job told me well in advance of impending layoffs. I have until August, and I have some money put away for something like this - aside from immediate savings, so I’m lucky - very lucky.
I’m thinking to go into trading full time. I’ll have about a year’s worth of living runway in addition to the money I’ve set aside to start trading. I’m thinking (hoping) if I start now, in March 2013, by summer 2014, I can get enough of a handle here to pay bills and make ends meet.
I’m not naive; I’m a quick study. I believe it is possible with enough self-discipline and study.

> I know you can’t get rich overnight.
> I know a lot of people fail at this for many different reasons.
> I know there is not “one way” to do forex, therefore there is no “one best system”.
> I know psychological prep is a major part of forex; trading emotionally is dangerous.
> I know the key to forex is as much about managing risk as it is finding good trades.
> I know the so-called robots are, at the very best, a tool to assist and not a replacement for knowledge.
> I know many of those robots are basically crapware. Maybe there are good ones out there, but most are just crap code written to make money for their marketers.
> I know there are tons of scammers out there who only want to separate you from your money and they come in every stripe and color. Most have smiles on their faces.
> I know there’s a very steep learning curve for all the analyses out there (fundamental, technical, sentiment), as well as the tools you need to get a handle on (Fib, trends, indicators, etc.).
> I know the babypips.com school is a great place to start from zero. [Mad props to y’all]

My goal, as I said, will be to pay the bills and keep things afloat on the home front. I don’t want to make millions overnight. While studying and learning, I will also be looking for a job, as well, but I’m hoping I’ll learn enough through consistent practice with forex demos where I will be able to win a bit, manage loss well and keep afloat.

I’m hoping I’m realistic here.

Questions to the group:

  1. Since I’m not looking for the “best” system, can you offer up some hints on what to avoid? What are some of the known scammer resources out there, in terms of signal providers, coaches, software, etc.
  2. Have any of you found it useful to join a group? There’s a traders group here in Tokyo, but have you joined a group in your locale? Does it help?
  3. Do you know of any reliable mentors or coaches out there who are willing to teach, either via web, course material or seminar?

Tons of thanks. See you on the board.

  • John

Well John, Welcome to forex and to Babypips. A GRIX, 23years and with 4 years experience.

In forex the part that requires hard work is learning( taking the classes) and market analysis and managing your trade’s parameters … the rest is up to the market hence.

  1. Invest a great deal of time and effort in training , learn the market moves and lots of tech. analysis tools lots of the educational material is free but a premium training offers more than just theory.

  2. As you take your classes open a demo that you should ONLY trade with the learned tools… do not just get ideas from the net and implement them.

  3. Learn the forex calender and the impact of fundamental news on currencies and the various sentiments that surround the various currencies. E.g. The USD as a reserve currency held its value during the 2008 financial crisis.

  4. Keep on learning more tools and apply them on your demo until you have fully mastered their use.

  5. learn to combine several tools ( IE. Tools that give you the trend of the market and tools that give you the entry points)

  6. Learn to trade the trend…this will assist you avoid much trouble.

  7. Learn yourself: How patient are you? What do you want from the market? In you case to pay your bills in one and a half years time. This may put some pressure on you so get a part time job that will pay your bills instead.

  8. From learning yourself, you should understand you patience level, level of “greed”, risk tolerance and the feeling you get after making a loss… record it please.

  9. Do you tend to be resentiful after a loss? overjoyed after making a profit? or do you revenge after loosing? be very honest here.

  10. From the experience on the demo: select the tools combination that gave you continuous profits from the record of all your trades( You should have a trading journal for your demo in which you record all your trades,- entry, reason, profit , loss and feeling) and include them as you market entry tools.

  11. In making your trading system use the tools that are working for you, analyze your psychological profile from number 8 & 9. and strike a balance that allows you just enough profit and loss to keep your stability.

Trade live ONLY AND ONLY WHEN YOU ARE MAKING CONSISTENT PROFITS ON YOU DEMO AND HAVE LEARNED TO CONTROL YOUR EMOTIONS USING YOUR WRITTEN DOWN SYSTEM.
12 Select a good broker and start small… focus on winning trades rather than becoming rich.
13) You can join a group of traders but you make your own individual decisions in the market.

Overnight success takes about 15 years. Anything that claims to work overnight is a very big scam.

Well John allow me to stop here…am looking forward to your questions.
GRIX