I am an Economics student (thinking about transferring to Econometrics, any thoughts? ) and I just got interested in trading. Basically I would like to learn more about trading and trade with some spare money I have (I am a student so it will not be much 500 euro max). So first of all, is it even feasible to start trading with 100 euros and make a profit at all, I mean not get killed by the spreads. Secondly what would you suggest as a broker? I downloaded the Oanda FX program with fake money and I hate it. Third question...hmm no third question....yet -Powerpritt
Totally false. I can understand if you are trying to prevent the cat from getting out of the bag, but otherwise you are dead wrong. And it's not just a class -- it's a field.
I am in China. I want to download a software to do the day-trade, Shall I? And how and where shall I download it?
I remember starting trading with penny stocks during year 1980. The penny stocks only cost about USA $ 0.20 / share. I might buy 100 shares and the total position size was USA $ 20. I recall losing all my money but learning a lot about trading and placing orders. I think paper trading is useful for learning trading methods, and very small scale trading is useful for experiencing real money trades. I suspect trading currencies might be OK for learning if the position size is very small and the risk kept low. You might begin with longer term trades, say generally of 6 months duration or longer. Your money might last longer if you trade longer term.
Thanks for the advice. Trading on a longer term might be an option. Fundamental Analysis would become more useful then too. What about technical analysis on timespans like that?
Go to hedge world or any major hedge fund index provider; look at the sub categories of funds. Do you see any technical analysis driven funds, other than momentum strategies (which, in the way it's usually applied, has very little in common with technically analysis) ?
You'll lose your cash quickly. Trading, especially Forex, is a tough game that will take you years to master. You'll be MUCH better off by initially investing that cash in good backtesting system software and build some systems and confidence before putting a penny into the market. Look into Investor RT at www.linnsoft.com. It's the easiest software to master, and has every function you'll need. But it can be very addictive, and you'll need to watch that you don't take too much time away from your most important goal of getting your studies completed. Any young trader, even a good one, should always have a career backup.
You might be right there. About backtesting system software do you mean programs like Tradestation? I am not too familiar with it yet.