Things change dramatically when u switch to real money: the whole path to success is based on controlling your emotions and when real cash is on the line u'll act as if u were possessed. It takes years to learn how to get hold of yourself.
If you had any savvy you would be in a position to deflect any assets you have away from the clutches of any creditor.
That's what I was wondering myself. What would happen if you had an acc on forex? Would your broker come after your property in such a case?
I live in London and I had a cfds futures account and this was written on the agreement I signed with the broker: 'we can reserve the right to set off, retain any funds, investments (including any interest or other payment payable thereon) or assets due to u, and sell them without notice to you at such price and in such manner as we, acting reasonably(LOL), decide, applying the proceed of sales and discharging the costs of sale'. This is as bad as it gets here but maybe under USA regulations things are different.
Forex doesn't close. You won't experience a gap except from Saturday to Sunday. You don't have to worry about the maket gapping and causing your account to be in the red. The broker will close your trade when you are below margin before you account goes to zero. There is a possibility that a meteor might hit us while we are trading and then we will all be dead. What does that have to do with us trading? Nothing, because the probability is so small. Likewise, the probability of a forex broker coming after your property is not worth wasting thought. Your immediate concern needs to be finding more capital. If you have a $700 grub stake and take it slow and easy, you are still likely to lose it. You need to be able to lose it at least twice and then start again a third time having learned from your mistakes. The third time after much reading, analysis and experience, you may begin to march forward into consistent profitability.
Yo dude... hope you know, testing your trading system is not really just about the success of your entry and exit signal... it also require a sufficient amount of starting capital to avoid the RISK OF RUIN. I don't even know if you have researched the RISK OF RUIN.. if you say you are starting with 700 on a FXCM 300 minimum account!..how many trades are you going to trade before you get wipe out?.. do you really expect you will win on the first couple of trades before getting wipe out.. if that's the case, PLEASE research and reread more on trading in general. My question is ..which is more important.. using FXCM platform.. OR starting with 700 bucks. If you choose FXCM platform and scalp with that 700 bucks with their 300 required minimum.. good luck... But if starting with 700 bucks is more important, than go with oanda because you can just deposit 1 dollar and open an account there..and you WON'T get wipe out SO easily... not to mention you can adjust your position sizing.. If i have to bet on which brokerage you will last longer in with just starting 700 bucks capital.. I'll place my bet on oanda.. since they are smaller spread, and varying units.. providing that you KNOW how to position size.. From what you say.... I'm over 70 percent sure that you might NOTA have taking REAL risk management in account OR done MUCH risk management into account of your system...it should account for over 50 percent of system. But do whatever you want.. getting "knock down" is the best trading education ever... provide that you recall your mistakes and learned from it.
I took money management into account. Still, I know I have a great chance of getting wiped out. If I do, I'll announce it on the forum, so anybody can learn from it, but like I said in my other tread, my system works verry well on a demo, so I'll have to hope that fxcm's demo behaves exactly like the real account.
If you are only using $700 as a pot then you are being very naive if you have to worry about losing all you have should the market turn badly agin you. If, say, you had a net worth of $1m and you opened a trading account with $500k then your remaining assets would be at risk if the market went against you and the broker gave you a margin call which you couldnt meet . But to use 700 bucks as a starting point and fret over 'losing all' your question smacks of naivete.
I heard the word forex two weeks ago for the first time. I've done research ever since. I know I'm asking beginner questions, but I have a good reson for it: I'm a beginner.