I am a newbie to forex. I started by using the VT trader from cms forex. I have read through there online course and part of pipschool. I have a few questioned to ask I noted down along the way. If anyone can answer them for me it would be greatly appreciated!
Q. If I am at a lose can I just leave the position open until I break even or hit profit? CMS use a rollover system after 2 days so I assume the position just stays open all the time?
Q. If I have $250 in my account and use a 400:1 levergae this entitles me to a mini lot of $1,000. However how can I possibly be trading with money that I do not actually have in my account. CMS states that if I lost 75 pips ($750) the margin call would stop me from losing anymore. How can I lose $750 if I only have $250 in the first place?
Q. Can I just put stop orders on all my positions to prevent any loss completely? (im thinking that the spread will be a loss however?).
Q. Blue candle = Buy, Red candle = Sale. Is this a fair statement?
Q. Do CMS offer a good spread? Do they have a good reputation?
Q.“Price will come back to the level at which I opened the position”. Why do CMS say this is a dangerous mentality?
Q. How do I determine how much a pip is worth?
Q. What are bears and bulls?
Q. What happens to my positions when I log off? To they continue to reflect the market changes and when I log on they are still moving?
Q. Does it matter (profit wise) if I trade in dollars or GBP?
Hope these questions are clear and make sense.
Im eager to learn as much as I can before I get stuck into the system.
Eagerness - one of my faults too - go to babypips school - it’ll answer a few of your questions.
read a few threads here - most any of them will help to answer a couple other questions.
Study, Study, actually some of your questions are to vague to solicit a response.
Sure, if you want to go broke in a flash. There is a chance that a losing position would reverse and may even gain profit, but forex trading is about strategy and implementation, much like many other businesses or even war if you like. Leaving to chances…
1 mini lot calculated @ $100, with $1 per pip value. So if you loose 75 pips with 1 mini lot, you only loose $75, not $750.
Huh?
There’s no “Sale” in forex trading, only SELL. And, for some platform, you can change the color of candles to anything you like (silver for Buy and gold for Sell, for example).
Sorry, can’t help you on this one. You just have to work it out yourself.
Let’s open up an imaginary losing Buy position on 5 minutes GBPUSD chart today, complete with a belief that Price is nearly reach bottom before reversing and come back to the level at which you opened the position. Then open daily chart and check your imaginary losing position. Then open monthly chart and re-check your position. Are you still sure that price will reverse and come back to your opening position before you run out of money?
General guideline, very general I might add: 1 standard lot = $10/pip, 1 mini lot = $1/pip, 1 micro lot = $0.1/pip.
Bears are animal with frightening claws which sometime stood up with their hind legs and like honey. Bulls are those which mostly have horns on their heads.:D. Bear market in forex are condition when price movement going down, and Bull market is the opposite.
Since I posted that earlier I have done more research and some of the questions are quite funny lol!
Im being put off by the fact this site reckons you need a very substantial amount of capital to start out. I am not going to have that much in a million years so i do not see the point in getting in to deep. After all I am only prepared to risk $500 tops! From what I have read this will be lost, and quickly.
Wow, wow, wow… Who said anything about growing those cents? That cents are for your study phase, so you stretch your $500 into several sessions instead of wipe out in one swipe.
When you can grow those cents at steady pace, not jumping up and down, for some time, then you can add more fund so you start growing dollar on dollar instead of dollar on cents.