Where to Place the $$

Beginner Questions
1

I am at a loss. I have gone to many places now, looking to get involved with the FOREX market. I have been to “PremiereTrade”'s seminar along with FOREX Made Easy… after hearing Pro’s and Con’s to each… i would prefer to stay away. I am on a TIGHT budget… but i have about $2K or so…

Now the question…

I am looking into MTI (Market Traders Institute) package. Their “ENTIRE” package… along with a year of MTI 4.0 (Their data feed program… which is usually $145/month) is rought $6,000. They are very upfront about their price-tag. They seem legit… and they offer LOTS AND LOTS of education and support!

Now… should i wait… and save… and spend all that money on the FOREX education they offer?! Or should i put my $2,000 to work for me!? (I.E. find a cheaper avenue to get the knowledge and put the left over money in the market?!) That is, of course, after i have done more research… learned… and spent time on “DEMO” Mini Account/Standard Accounts.

I hate to seem cheap… I am not! I hear good and bad about a lot of these “schools.” I just want something HONEST!!! I don’t want to be “Sold” on a marketing scheme just to find out… “Ok… go give it a shot! Good luck!”. I need more education/tools to help me but don’t want to spend THOUSANDS on education when i can put that into the market! BUT… if it is the necessary tool… then i will!

If anyone here has ANY ANY ANY ANY ANY ideas… (not just trying to market their own company’s product…) i would GREATLY GREATLY GREATLY appreciate it!

Thank you all for reading… hope to hear back!

2

$2 K is more than enough to get started in Forex useing Oanda.

They allow you to open any size account and trade in $1 increments.

Under no circumstances should you pay $6,000 to anyone for anything concearning Forex. No system is good enough to be worth that, and certainly no trading platform.

The most important thing to remember is money management, no matter the size of your account.

A good rule of thumb is to always limit your losses to 1% of your initial capital.

So for example, if you have $2,000 and you go short 4,000 EUR/CHF each pip will be worth $.33, so you, with a pip spread of 2 on EUR?CHF with Oanda, you set your stop loss 58 pips away. This limits your loss to $20.

You can go higher leverage than 2:1, but the higher you go the lower you have to set your stops and that means you can only trade in short time frames.

Oanda seems very popular on this forum, and I can attest that their platform is both excellent and simple.

I reccomend you go to Oanda.com and sign up for a free demo account. Get used to the platform, the charts, the trading system you plan to use.

Learn to be objective and not sweat the losses, remember they are 1% or less.

Once you prove to yourself that you can trade profitably over 2-3 months open a real account with your $2000 and you will do fine as long as you maintain discipline in money management and your trade system.

Attached is a backtrack history of the Cawabanga system for the month of January in US/JPY. Note that even with only $500 in my account I would have ended up over 3% up, a 173 pip profit. For 1 month 3% is an excellent return.

3

I just read a book called “10 Essentials of Forex Trading” by Jared Martinez, who is the founder of MTI, and it was a really good book. The only problem I saw with the book is that it seemed like he was pushing his indicators & company (MTI) but I still loved the book. I am only posting this because a lot of what is in the book is the type of trading he does. You might want to check his book out before spending any $$ on his course just to see if his style of trading is what your looking for. He also covers how his system works with his software (MTI4).

Topgun

4

I am of the opinion that one need not pay for education.

For example, [U]Forex Made Easy[/U],(which I agree pushes Premiertrade to much) I read for free at Borders bookstore. Any Borders or Barnes and Nobles is likely to have several Forex books you can sit down and read on the weekends.

Then there is online education, the best of which is available in the pips school.

They cover all the basics and even some advanced stuff. Keep in mind that no one system uses all the technical indicators.

Once you understand what things like RSI,DMI,Stochastics, MCAD, EMA, Bollinger bands, are indicating, you can trade succesfully. Throw in Fibronnaci and maybe some Elliot waves, and I don’t know of anything else you need to know.

95% of education seminars are likely to cover the same stuff found in the pips school, and they will push their own systems.

This site has no such bias, is probably easier to understand and is free.

It also comes with a helpfull community of fellow traders.

I reccomend you save your money and educate yourself on this site for free, then put your money to work in Forex via a broker like Oanda that lets you take small initial risks.

5

Exactly. His system just uses long & short term trendlines, a custom indicator (in their software platform :slight_smile: ) called Trend Scalper, some MA’s and heavily on Fibo retracements. Like you said nothing that you can’t read the book and learn by practicing. You won’t have their mentorship but thats what sites like this are for.

Topgun

6

I am new to this Forex thing, and I have heard good things about MTI also, but after learning more from pips school, I am not so sure that it is worth the expensive price tag. It may be a good product, but I think they are charging the top price they might be able to squeeze out of people.

I found a free article on one of their methods, “The King’s Crown” which looks alot like a level elliot wave to me.

7

If you’re new to trading you absolutely, positively shouldn’t spend your money on any high price tag offering. I am not in the camp of never spending any money because frankly spending a little can save you loads of time and while I can’t speak for anyone else, my time is extremely valuable to me (read this: When Free Isnt and Paying Makes Much More Sense).

The mistake a lot of traders make is that they launch themselves into programs and seminars and stuff without knowing where they should be focusing their efforts in the first place. Find a good introductory trading book - not even necessarily one specific to forex, and certainly not one specific to any particular style, system or method - and learn what it’s all about. Get a feel for the different ways you can approach trading and see if you can identify one which clicks with you - your niche. Once you’ve done that, you can get more serious about deeper education and have a much better handle on what’s of value to you and what is a complete waste of time.

8

You would pay for college right? Why not a proper forex education?

The first thing I would advise is to read the ENTIRE babypips school of pipsology. Then don’t just look at one school. Research a few before deciding.

For the amount that you are talking about for MTI you could go with fxbootcamp which hosts LIVE trading sessions every day for the london and new york sessions. That means that the session is real time and you can ask the coaches questions and they always answer.

Check out their youtube videos if you need convincing, there is a new one every day.