I've been trading stocks for a few months now (mostly paper) and I'm starting to get enticed by FOREX. My question is how similar are these two systems? What I mean by this is can I use the same techniques on FOREX as I use with stocks, or are the two completely different? Also, is it possible to swing trade FOREX like stocks or a trades usually long term trends.
jimrockford is the only resident forex expert on Elite Trader because he never trade it and he never had demo acount. Do not listen to any one but him and he will show you the way.
Good thing about forex brokers is that almost each one of them offers demo account (Oanda's demo accounts do not expire) so one can try out his strategy for a while before trading live.
I use to trade stocks and then switched to forex as it just looked like it had so many advantages. 24hr market, nice trends, very few gaps, low entry costs, leverage etc etc etc. All looks pretty good on paper and I even traded forex fulltime for a year. Well now I am back in the work force and back trading stocks. It didn't work out for me, mainly due to lack of consistency and a few other reasons. I also found that I was screen watching a lot more. Back in my comfort zone now where the stress levels are down and I'm not glued to the screen. I'm not saying that forex is a bad thing to trade, just warning you that it is not as easy as it looks, well not for me anyway. I'm sure there are plenty of successful forex traders out there but I don't know of too many, but I do know of plenty of successful stock traders. Good luck with it all. Cheers.
I like Forex, if your talking about technicals its very similar to stocks and futures. And it is easier to swing trade than scalp a few pips here and there if you want to be in for the long run,
I am making a switch to forex futures. I have a full time job, and trading stock during the day just don't work out. Forex futures seem be the solution. Very similar to forex itself, I think the spread is tighter, and it's trading around the clock.
One of the most important things new traders learn is how to deal with the many emotions of trading, and how they will perform in the heat of battle. In addition, creating and testing your very own trading method or system is a process that can take a long time. Only trading a live money account will do the trick. For that reason I believe some of the best training you can get for trading stocks, futures, or forex is to open an account with a small amount of money (small enough so it won't hurt to lose it all, but large enough to keep you interested) with a reputable broker who has no minimum account size and allows minimum size trades down to 1 unit, and that charges no commission. One such broker is Oanda. Jimrockford is correct that as a newbie you probably won't be sophisticated enough to detect if you are getting ripped off. But a beginning trader shouldn't be trying to make money in the first place. Learning the ins and outs of trading is a very valuable piece of education that has a price associated with it. By using a very small account with low leverage that "education" account should last a long time. The point of this exercise is to learn live trading skills without spending too much on this tuition, and Oanda has a fairly good track record. Look at the money on deposit as a sunk cost (like buying a golf club or fishing gear) and don't expect to see that money ever again. In this way you can learn the basics of trading with training wheels still attached, and determine if trading is for you.
I used to trade stocks (a little) then was introduced to the Forex and have not looked back. Not knowing much I made some mistakes along the way by buying training and support from a couple different companies. I have found one that has really helped me elevate my trading to a whole new level. Their support is un matched from any others that I have tried. If you want to find out more feel free to email me and I will respond to you. My experiance is that the technicals work on both stock and Forex. I also agree with TriPack. Start with a demo account but then move to a mini or even a super mini to practice and work your trading. You don't risk much but because it is real money, you learn how to control your emotions.
I also used to trade stocks for a while but since i started trading forex, i find more profitable an reactive market.