New to Forex

Discussion in 'Forex' started by hype, Feb 23, 2007.

  1. hype


    Thanks in advance; After a 2 year hiatus from stock trading, where I had a major lack of discipline problem, I am thinking checking out the Forex trade. I would be starting with a very small account, trading after 5pm eastern time. Any ideas? advice? recomendations?....Im looking to start of slow and make a couple extra bucks a day!

  2. hi there, i came from an equity trading background (9 years) and started trading FX a little over 4 years ago.

    my biggest advice would be demo trade at first to get used to how FX moves. if you use technical analysis primarily then get used to tweaking your approach so that it fits this market. my biggest challenge was tweaking my equity approach so that it worked in FX.

    don't try to perfect your approach via demo trading though since demo accounts aren't able to simulate thin liquidity particularly around volatile moments in the market (atleast i haven't found one that does) and will give you a false impression of the market under those conditions. the only way to know how the market feels under those conditions is to have money on the line...just like it would be if you were learning to trade equities for the first time.

    once you're roughly comfortable with how the market moves and how trading on margin works in FX then i'd say start with a mini account with the smallest balance you can open with. this is just so that you don't blow yourself up and yet you can take ridiculously small trades just to get your feet wet. eventually, once you get bored of trading small size and are holding your own then only at that point would i say step up the balance and take it from there.

    let me know if you need anything else.