Cyber ink is cheap. So is getting published on the Internet - especially here on Elite Trader. I figured why not get published and teach currency trading to beginners at the same time. Hence, I present to you... eh, this guide? tutorial? lesson book? I present to you, er rather, herein that is, in this section of the Internet... you will read sKaLpZ Currency Trading For Beginners. I'm sKaLpZ. I've already gotten over 13,000,000 inquiries asking what my name means. Actually, wait... not quite that many... 1000s of inquiries... hm... well, 100s more likely. Wait, now that I actually count the number of inquiries it's probably less than 100. Uh, no, no, let's see, it IS less a 100, yes. Yes, yes, well, make that less than 10. Really I haven't gotten any inquiries YET but I am sure someone has at least thought about it. Okey-Dokey... moving right along... Why write a book, or whatever this is, on currency trading for beginners? Because I think there are lots of people interested in trading money but don't have the first clue where to turn or how to start. In the entries following you will learn exactly how to trade money online. Even if you never have heard of a "currency pair" or can conceive of buying and selling money. This will be an easy, step by step, manual(?) on getting you right up and running, short order. When you're done taking this free course you'll be trading currencies in the open forex market right along with bankers, institutional fund managers and super-wealthy private traders. I'll be updating this section often inbetween my own trading activities. If you have any questions about how to trade currencies please post them. Note: This is not for those already trading currencies who want to advance or question my particular, specific trading methods or systems. This section is for those beginning forex only. No advanced trading tactics will be discussed. Questions of that nature will not be addressed. This will just be a place to go for people who are interested in forex but who lack perspective. I welcome all comments/questions/emails and inquiries asking what my name means. [Note from moderator: to send email click sKaLpZ's name in the upper left, then "Click here to email sKaLpZ"] Kindest regards, sKaLpZ
EXCELLENT! This will be both interesting and positive. I hope to learn two things from this journal and your efforts. 1. How to begin my own journal for beginners and non beginners for the markets in general and 2. understand currency pairs and how it behaves as a market entity. I appreciate your willingness to begin this journal and your efforts will no doubt be appreciated by many. Kindest Regards, G33M4k (non-BEginner)
o.k. here is a very simple question. How can I consistently make money in forex without too much risk or drawdown?
Jem, that question is outside the scope of this series on how to correctly set up a forex trading platform and begin making trades in currencies. Minor info about forex in general may be addressed but that is a ways down the road. It's a good question, though, one you may want to post in the Forex forum. sKaLpZ
1:32AM PST (I'm actually awake now?? Oh, God....) FOREX? WFT?? WHERE DO I START??? Right here. There are a couple things you need to realize about trading forex before you start. I'll go into them briefly. You, and most people, when you've ever done anything with money besides want it or look at how little of it you have, there is something in between your money and what you exchange it for. $500 can buy a couch. $50 can buy a cool knife. $3,000 can buy rent for another month. $750 can make your monthly car payment on that flunky Ford. You're exchanging money just like it gets exchanged in the forex, only, your exchanging it for something. In some places $50 can be exchanged for a really good massage. *ahem* I won't go further into that. $5 can get you a meal. That's what you're used to dealing with. Even if you exchange $1,000,000 you can get a house. If you were a real estate agent you'd draw a commission on that transaction. Still there was something tangible that was involved for you to make money. Your paycheck is money you earn by exchanging your hours of hard labor. Let's enter in the markets of the world where stocks and other things get traded. You may have heard of Microsoft. Well, Microsoft has stock you can buy or sell. Guess what - there is someone buying every share of MSFT stock you're selling and visa-versa. Something is in between you and the other traders, in this case Microsoft stock. Now let's take a quick foray into the global currency market where all the money of the world gets exchanged back and forth. There's nothing in between. If you are buying one currency and I am on the other side selling it to you (or visa-versa) there is no tangible material, item or service being exchanged. We are directly exchanging money. To be successful trading currencies, this is a concept you need to drill into your head. Guys who come from trading just about every instrument under the sun enter the forex and get bagged in short order. Why? For one thing they fail to recognize that there is nothing in between traders who open and close trades in currencies. In forex it's just money. Only money. In forex you must trade money to make money. Can you do it? Absolutely. That brings us to the next entry titled, "What Do I Do Now?" What you're going to do is, you're going to think about one thing you may not have considered yet that will be covered in my next series post. Till then. Peace out, sKaLpZ
Everything's going pretty good, actually. I earned over 2000 pips profit last week with no drawdown and no losses. I've already booked over 675 points profit within the first 15 hours of trading since the market opened this week. No drawdown. No losses. And you know what, Illiquid? I'm not going to tell you how I did it. I'm just waiting for Baron's server ban. *YAWN* Thought I would teach a little currency trading until he gets around to me. You like my new ID, sKaLpZ ? I thought of it myself. How long do you think it will be before he bans me from writing here? *busts up laughing* Sam
Earning all those pips, and still trying to post in a forum from which you were banned months ago just to tell the whole world about it? You truly have a big heart. Laters.
EXCELLENT. I luv this boiling down to fundamentals concepts/illustrations. It's what enables one to really think for themselves and seek their own answers... So basically, a single forex transactions boils down to 2 people. On one side, someone is agreeing to directly exchange x amount of a currency in return for one who is willing to provide y amount of a different currency. Hitting T completes the transacation. Correct? There's no concept of having to "buy to cover" in any sense in forex trading. Thus, every single tick is an agreement to change or acquire additional currency. Please correct me if I am wrong.... Kindest Regards, G33M4K (non-BEginner) PS... I don't understand this PIPs stuff nor do I have any understanding of if there's a concept of contracts, but I'm assuming that you will get to these details at some point/pip later... Thx again. I am already appreciating this journal
I just see the forex as an ocean of money with prices always fluctuating. You can open and close trades in this ocean anytime since there is plenty of liquidity. All the money of the world is out there, eventually some of it is going to be traded. In the case of the forex, $1.5 to $2 trillion of it gets trades daily and all of it is up for grabs while in transition is my understanding. Even so, Soros says it is a zero sum game, one person's win is another person's loss. As far as "pips" they are the same as "points." Typically on EUR/USD the pip/point value breaks down like this: 100,000 units = $10 per pip/point. 10,000 units = $1 per pip/point. 1000 units = .10 cents per pip/point. 100 units = .01 cent per pip/point. So if you opened a buy trade in EUR/USD for 100,000 units at 1.2921 and the price flucuates up to 1.2931 where you close it your profit would be $100 less the spread that the broker takes, usually 1 to 2 points - no commission. s