Some more newbie questions?

Hello all, I really like this sight. Ive been reading some of the threads on here and feel I have come to the right place. Ive recently developed an interest in forex trading and would like to learn more about it. I have done a bit of day trading in the stock market with some success. I see some similarites (candlestick charts and trendlines etc.) with forex and some of the terms are the same but there is some differences also. Before I get into it I want to take some online courses like the school of pipsology mentioned here and maybe others. What online brokerage firms to people tend to choose the most. I see some have some practice accounts which look helpfull. Looks like theres also alot of scammers selling garbage out there to which I would like to avoid. I dont really plan on trying one of these auto pilot programs anytime soon, something about not being fully in control of my money turns me off. Any suggestions would be appreciated! Thanks a bunch

Welcome ejj237, hope you find what your looking for here. First if you already trade stocks… see if how you trade can work here, you a fundy or chartest type trader?

I would pick any broker for your demo account, I have both IBFX and FXPro MT4 for my charts ( I just like to have 2 sets of feeds) and play around with it and find how it works… remember it is free. Once you get the feel with the charts practice your trading style till you get some good winning trades.

Though you may be a ways out from going live… I would use Oanda. The only ‘bad’ thing about them as their charts suck, just find your trade off the above feeds and enter your trades in Oanda’s desk (but get there demo first till you fully understand it before real money) The nice thing with Oanda they have a low deposit and you can literally trade with half a cent per pip. Oh… your saying, “how will I ever get rich with that?”

Consider the next few weeks/months/years your tuition trading :slight_smile: and you can trade ALOT and not feel toooo bad if you loose a few cents.

Take care and best of luck

it’s good to see that you have some background knowledge and enough know-how to see through the EA robots.

As for brokers, I would also suggest Oanda. I’ve been with them for a while and I really like them. And as Trader_X said, their charts do suck.

I use a Metatrader 4 demo account from FXDD to do my chart work and then place my trades with Oanda. Their feeds are similar and are only off by a couple of pips…not a huge deal.

By far the best resource for beginning to learn to trade is BabyPips…seeing as how its free and here.

Good luck with your forex venture. There’s a wealth of information at your disposal here.

Thanks a bunch guys. I will look into Oanda. By no means am I looking to get rich. It would be nice to make a few bucks a month but we all know in reality anything can happen, but id like to try to minimize that aspect. In stocks im more of a chart person. I was trading and still do trade alternative energy stocks like ENER and FSLR, more short selling than anything. They seem to have pretty definitive resistance and support points. The thing im liking about currencies is that we know for the most part they will always be around. I was doing some mock up trades with the US/Japan Yen by candlestick charting and it seems to work similar to stocks, almost a little more predictable. I would imagine it has it days. Im sure I will be asking alot more questions. This is a whole new world to me and I was still pretty wet behind the ears with the stocks. Looking forward to it though.

Welcome ej.

I am a stock/option convert as well.
I have been trading forex live now for about 6mth and found that as far as charting goes forex is as you say very similar to stocks. If anything it is a little more consistant probably because of the larger market.

Definatley go through the school of pipsology. Then dive into the forum.

You can learn enough here without spending a fortune on courses which you will probably find just give you the same info you can get here for free.

Good luck

Well I opened up an Oanda account today to practice some trades. I managed to bump my account up $2600 with a couple of short sells against the Yen. Do the real trading accounts trigger your orders as fast as the play ones? My stock brokerage account usually takes a little time for your order to trigger at your target price and sometimes doesnt trigger at all. Is there a limit to how many trades you can make in one day like the rule t and day trader regulations?

Hi ejj237

Compared to other trading and investments, FX is pretty lightly regulated, there are no rules (to the best of my knowledge) on the amount of trades you can make or carry. However, some brokers monitor client trading patterns closely, and may advise them against say ‘scalping’ or trading the ‘news’. So when you choose to set up a real account, do your research into finding a good reputable broker that offers the service you need.

Also, when I started demo, someone advised on changing the demo amount to the amount I would actually open an account with. I don’t know why, but psychologically it made a big difference. I took the demo even more seriously after that, and planned and undertook more due dilligence. I actually traded less after that, but I think better trades.

Best of Luck

After exploring with it a bit I did just what you mentioned Pride and reduced the amount in my account down to what I will be trading with. Im trying to get a grasp on the way they have the margin setup on these accounts. I dont really like trading on margin and usually only use it to short.

Out standing point Pride… by doing so this will create ‘more’ real life trading habits when going live. Don’t worry about how many trades you do, just don’t over trading, creating a undesireable habit.

Sounds like you have your head in the right place…:wink:

Sorry Griffin, a personal question, I notice that you are in Aust. Which brokerage firm to you give business to?

It was MP6140 who advised on the demo trading with a realistic amount, so BIG thanks goes out to MP6140 - whose posts are a huge source of invaluable information for newbies like myself. I’ve read as much as I can on this site, and demo-ed for 6 months now and have now just opened a small real account - so I’m also a greenhorn and looking forward to hearing the perspectives of an equities trader.

Don’t be automatically put off by margin trading in forex, (I have no experience or insight, but I think it has a slightly different connotation than margin trading in equities - because trading without margin in FX makes little economic sense without huge capital). But the heart of it is I believe is the perceived increased level of risk. You can optimise your risk reward ratio from a number of different variables, including the trading system itself, Lot size TP and SL targets and a lot more. For Risk Management in forex look for any reference to Money Management - Babypips school has a good section on it. Apologies if this is stuff you already know or is plain obvious.

forex has much different regulations (if it really has any) as its an OTC market and not subject to SEC regs in any way. No 25K for shorting, no 3 day rules — just pure and simple trading which is why i no longer go near stocks myself.

forex is one of, if not THE, most trending trading vehicles there is, and we know the trend is your friend, so once you learn the reversal times, that a 24 hour day will contain at least one MAJOR reversal of direction, if not trend, you will adopt easily.

its pretty simple, but there are some methodologies specific to forex that do not exist with equities, especially because of the 24 hour day, so watch and learn, find the time period (ie: WHAT market do you wish to trade ?) and go to it.

you may well find that REAL money trading doesnt always work as nicely as demo trading, but its not usually a really big problem.

BUT – with the margin you have to work with, you had best be VERY careful of margin calls, because you cant just simply wire more money — get a margin call and WHAM, they close out as many of your trades as needed to bring you back into positive equity, and THAT can be a real drag !

a trader can trade almost anything, once they learn some simple ropes, and forex aint no different or harder (probably simpler, actually) than stocks.

enjoy and trade well


[I][B]Within the great hall at Elfinore stands a wondrous coffer, precisely four cubits square and securely latched against the outside world. Inside that repository, shut away from impertinent eyes, abides many an intriquing trading secret garnered from around the world and over the ages !

As a child, i used to watch from the darkness as the secrets were debated and annotated by the elders. No one there held a single thought of my presence – BUT I KNOW WHERE THEY HID THE KEY !![/B][/I]

Sorry for the late reply.
I use Kinetic Securities. That’s how I can across Forex actually. I have a CFD account with them and it included forex. Seemed easier to use then I found this site. That was about 12mths ago.

I have had no problems with them so far. I have been using them for 2 years now as I used to trade stocks and options.


I also use Kinetic which utilises a GFT platform following a recommendation from Tymen. Also have had no problems at all with them

Thanks again guys. Ive also opened up a FXCM practice account just to see different types and charts and layouts availible. I find Oanda to be the easiest to navigate through but I like the charts on the other. Ive been doing some practice trades with USD/YEN. Seems the reversals are a bit more predictable some times than stocks. My trade method of buy a whole bunch and then set a stop after a small movement in the right direction seems to work with this. Im going through the school here before I do anything real. I have lots of questions but im sure I will find answers here.

interestingly enough, you can use the charts from one to trade on another ---- there will usually be a small difference of a pip or two between “brokers”, but once you figure out the difference, it holds true always.

EVERYTHING in forex is MORE predictable than stocks, which ill bet is one of the key reasons for you being here


enjoy and trade well