I have recently become interested in Forex. Don’t have any prior knowledge in Stocks or any form of trading. Been reading the stuff at School of Pipsology, which I find quite informative. I’ve read till the High School ! Yay.
Now, I wanted to understand those concepts by applying in demo account. Can someone suggest me some demo accounts - The ones that you use yourself and if there is any particular reason why you use it?
Secondly, I keep reading about “MT4”… Hmm , sorry for my poor understanding, but what exactly is this MT4. Can someone explain it in simple term?
Thirdly, I keep seeing advertisements about Robots and “systems”… Can someone shed a light on them… For example, how do I use them ? Is it legal to use them?
Try a few demo accounts with different brokers. I would do your own research. I use oanda, fxcm, alpari uk … each has its own flaws but all work ok for my needs
MT4 = metatrader 4, a trading platform that allows scripts and programming. I use this but beware it’s not web based, so you have to keep your PC on at all times with a constant internet connection (unless you go with a broker that hosts this for you)
Robots are automated scripts or expert advisors that you let trade for you. It is legal to use them but pretty much all are scams. If you want to blow money, go out and buy one from someone that guarantees $1000 a month. (if that were the case, why would they sell it???)
My advice to you is be realistic, respect forex, read, research, learn, read, research… forex may be for you or may not…and you wont turn $500 into $1million in 2 days!!
Good luck.
For demos, if you are just testing out general buying/selling to understand the “feel” for trading…then any demo will work. I’ve used FXCM’s quite often as it suits my needs. MT4 is essentially an access portal to liquidity (whom you either buy from or sell into). Always do your research. Some brokers only provide “their” pricing (which they may create as a derivative). By this I mean that many may look at the interbank market (markets where banks trade) and simply widen that spread…and relay all trades to that market). Some do this but not all. Other brokers stream bank pricing (or some version of that) into their platform (possibly via mt4).
Trading systems can be good for idea generation. You could, for instance, look at what a system is saying to do…and then look at the trade itself and decide if you think it’s a good idea. As far as relying on a trading system, most are rubbish. But there are those that have performed well enough over a long enough time. If they are available to you for free…it’s rubbish. Common sense will guide you well in this arena. At the end of the day, I suggest making your own trades from your own thoughts/ideas. If you need help getting the ideas, then look at systems or other tools. Personally, I am beta-testing software that incorporates predictive technology. It’s not a system, rather a tool to aid my decision making. It also gives me dozens of trading ideas a day, all day. Stuff like that is great to add to your reportorial.
And yes, keep the expectations realistic. Some go months (even years) before they get comfortable in trading and can profit reliably. Some also never quite get there (and by some…I mean most).
I disagree, there are some excellent strategies/systems traded and discussed on this forum all completely free, with very experienced traders giving some great advice.
I would suggest not to come with your own system, why try and re-invent the wheel, find some of the very best tried and tested methods.
Dozens of trading ideas is not a good thing, you just need 3 or 4 good ones a week to be extremely profitable.
Good luck with the predictive software, but as you can probably guess, I’d be very sceptical.
simple system, trade the pullbacks in the trends. Meaning that in every up or down trend there are points in which price will pull back a small amount before continuing on in the trend, when you learn to spot these pullbacks you can use them to your advantage and be very profitable, it just takes practice and learning to differentiate the various areas in a trend.
combine that with identifying areas of support and resistance levels and good money management principals and you 'll do fine
I broadly agree with you, but that generally means having to monitor a number of currency pairs, as many do not trend cleanly all of the time. Not knocking, just thought it worth adding that!
I almost want to say, ‘stay away from robots’. Scam scam scam. I use FXCM because they offer better charts and their way of placing orders offer more options… I also use OandA because their spreads are reasonable…
Most of Brokers supports Demo accounts for beginner traders to help them get used with the market and its movements, practicing with virtual money helps you alot understanding how the market goes ,how to deal with its movements and expect what is the RIGHT move coming next.
MT4 simple term is Meta Trader 4, and it’s the most popular trading system because of its simpleness and easiness of dealing.
Robots are automated systems which can trade for you and make profits safely, but it’s very slow since makes only safe moves and trades, some brokers offers Demo accounts which allows you to trade with Robots and Automated systems such as Wall Street Brokers, check this link to see more info about it, I personally deal with this broker. WSB Auto Trading
Hope these information helped you and Good Luck.
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