How profitable is FOREX trading? (some beginner questions...)

Discussion in 'Forex Trading' started by darkasian755, Jun 24, 2010.

  1. Hi,

    This is the first time I'm jumping into the trading business. I have no experience what so ever, but I need to start somewhere right...

    I was interested in FOREX trading because it's 24/7 and seems less risky and less analytical than the stock markets. Also from what I understand its a highly liquid market and based on short term trading, which I want. I'm willing to take some risks and lose a grand or two, but I don't wanna jump in the water without getting my feet wet first.

    I like short term trading that can result in faster profits, so do you think I should look into foreign exchange trading? Or is there something better? What kind of profit margins can you expect from it?

    Also, how would you recommend a beginner to start investing? I was thinking about doing some simulations first so I could understand it more. Any good sites that has good tutorials and information?


    Any help or advice I can get from you guys is much appreciated.


    Thank you.
     
  2. [/QUOTE] Any good sites that has good tutorials and information?
    Here's ONE, http://www.babypips.com/ Elite Trader is another.

    [/QUOTE] I was thinking about doing some simulations first so I could understand it more.
    This is a great idea.

    <*)))><
     
  3. Thanks for the reply and that link, Went Fishing. Looks like a good site.

    Anyone else?
     
  4. "less risky and less analytical than the stock markets" NO and NO
    "I like short term trading that can result in faster profits" + faster more frequent losses
    "how would you recommend a beginner to start investing ?" investing OR trading -
    the 2 are different

    http://www.elitetrader.com/vb/showthread.php?s=&threadid=172655
    http://www.elitetrader.com/vb/showthread.php?s=&threadid=172952

    primarily MetaTrader 4 forums
    http://www.forexfactory.com/ and http://www.forex-tsd.com/

    most fx brokers offer micro accounts - $25 Oanda $1
    "highly liquid market" is limited to the client base of that fx broker - you trade with
    that broker Not the whole fx market
    futures trading Is a whole market - Globex closes for 1 hour 2-3pm pst
    eurusd - 6E Euro FX daily volume averaging about 200,000 a day
    most heavily traded contract - E-Mini S&P 500 - ES average about 3,500,000 per day
    all US pit and Globex futures contracts: http://www.barchart.com/futures/
     
  5. DK_trader

    DK_trader

    The above post is entirely correct.

    Trading is not a "guessing game" where you just roll the dice and see what you get. I've been a professional trader for about a year now and am only 20 years old, but I've seen thousands of people roll through chat rooms online trading pennies or other high risk securities who all REFUSE to learn the game.

    The more technical analysis that can be applied, the more you know about the trade, and the more you know about your potential risks and previous performance of the same scenario. I would highly recommend learning charting and analysis.

    I'm glad to see that you wanted to start on a simulation, most sites recommend a minimum of 6 months simulation, but if you are a quick learner and you learn fast then I'd say that's closer to 2. If you refuse to learn the analytical parts, and exactly WHY a trade is likely to go up or down, then you're doomed.

    Best of luck!
     
  6. Coolio

    Coolio

    The great thing about FX is that you can get sooooo small. Learn the action and dial in the right amount whereas FUTURES is $20,000 to open a fair sized account.
     
  7. I could say what to do, but they would me nothing to you at this point. If you trade, limit yourself to a 10 dollars account. Wait until you blow up many such accounts, then you might be ready to learn. When you are ready the learn, the teacher will be there.
     
  8. cedric

    cedric

    FX trading is hard. It is predominately news driven (in terms of new trend formation) and trading the spot market through the miriad of sharks (MT4 brokers who maintain their own book and take the opposite side of your trades) makes the game that much harder for retail traders.

    The ability to trade small size through these firms is what draws in retail clients with small accounts. Very few are successful.

    If you want to trade FX then better to trade through an ECN or on the futures and options markets. Of course, you'll need the same well capitalized account that you'd need on the futures and equity markets.

    There are no shortcuts in this business.
     

  9. -----------------------------------

    Dying ain't much of a livin, boy. :) (No disrespect intended, Sir)


    You know, this really isn't necessary. You could just ride on out of here. :)

    http://www.youtube.com/watch?v=ZEClGMJ2r3g
     
  10. Any good sites that has good tutorials and information?
    Here's ONE, http://www.babypips.com/ Elite Trader is another.

    [/QUOTE] I was thinking about doing some simulations first so I could understand it more.
    This is a great idea.

    <*)))><
    [/QUOTE]


    >>>> Elite Trader is another. <<<< :D :D :D :D

    re: went fishing

    The other wives wondered how every single time Mary picked the correct side of the lake to fish. After weeks of getting zip while her fish baskets were always full, one asked her, her secret.

    Said Mary, "its easy, really, when I wake up each morning I look at which direction my husband's torpedo is pointing and go fish on that side of the lake"

    Aha, said a smartyass losing bitch, "and what do you do when the torpedo is pointing straight up?"

    Said Mary, "I stay home"
     
    #10     Jul 12, 2010