I am Adrian, I live in the UK (South West) and am 58 years old. I have recently turned my attention to FOREX from Shares which I have been spread betting for about five years. Why? Largely due to liquidity and the simple fact that it is difficult to follow the vast number of instruments in the market today. My aim is reduce the number of instruments I follow in order to improve my trading. I am also considering moving from a Spread Bet account to a standard account; this means that I have a lot to learn… I am hoping that my involvement here and in Forex Factory will lead me to becoming a better and more constant trader.
I am currently looking for data on Money Management & Position Sizing in FOREX if anyone can point me towards some good reading I would appreciate it.
Those sound to me like two good reasons to prefer forex to individual shares. (And there’s also the reality that it’s much [U]more[/U] possible to trade forex [I]relatively[/I] free from considerations about “fundamentals” than is the case with shares.)
I offer a suggestion: don’t change account-types at the same time as you switch from shares to forex. There’s nothing wrong with trading forex by spread-betting, as long as you’re using a sensible, well regulated spread-betting company. Their regulation is much better, these days, and the spreads are much smaller than they used to be. (Not to mention that your profits are tax free, of course.)
You may find, in trading forums, quite a bit of prejudice against spread-betting, and in my opinion it does no harm to be aware that many people’s information on this subject is [I][U]very[/U][/I] out of date. I’m “just saying”.
Absolutely. This will be [I]exactly[/I] what you need to read.
No problem … my own list of recommended reading is here, and [U]the first two[/U] books on that list are the ones that will help you with money-management and position-sizing.
Also strongly recommended on this subject: [I]The Mathematics of Money Management: Risk Analysis Techniques for Traders[/I] by Ralph Vince.
Thank you for your reply. Your comments and suggested reading are appreciated, I do agree regarding the SB account. As I am now using am MT platform I have changed my account from CMC (who do not support MT4) to Think Markets.
