I am still new to FOREX, but i was wondering what is the best pair to learn on? SHould i just watch one currency like E/U? THanks
Here a thought, lately I have been doing some research into the Hong Kong Dollar. Since the Hong Kong monetary authority keeps the value between 7.75 and 7.85 per US Dollar it could be a good place to start trading because of the limited risk.
Go to oanda.com , look for "FXGame". Sign up for a demo account (this will take u like 5 mins). Start trading with the $100k paper dollars. Try to make $1 a day. After 1-2 years if you're still doing this u'll probably be profitable.
i just read this. woah really? 7.75 - 7.85? possible to fade the edge of the range? (sell at 7.85, buy at 7.75)
How about this; what if the ET trader brigade got together and decide to reduce the spread on the Hong Kong dollar to one pip on IDEAL PRO for a week. What would the folks at the Hong Kong monetary authority or UBS think? If we can get ten traders to sign up by next Thursday we will go live the following Sunday. When you sign up let me know when you trade so we can come up with a schedule. It is a low risk thing to do because of the peg and could be a lot of fun as well as a good way to learn about scalping.
Had a look at the HKD but the IMHO movement is so small you would have to put in big money to make it worth trading it.
I'm living in HK and I can tell you chaps that the honkie dollar can stay in a very tight range for very very extensive period of time.
id forget fx altogether. if i was to start again, knowing what i know now, i would look at trading fixed income futures. bonds, bunds, eurodollars etc. why? because they move a lot slower than fx markets so you can get used to the emotions of being in a postilion without it going against you very much. it would be like daytrading in slow motion. you will get to learn a lot more about how markets move and why. once you have clued this up you could then go to more volatile stuff like es. then when you have done that profitably for a while you could trade fx. also, you wont get shafted by your bucketshop as you are trading on a REGULATED exchange. dont try to run before you can walk - especially into a rip off market like fx. do you want to get rich slow, or get poor quick? its up to you.
I agree ... IMHO stocks are also a good starting point: there are many different types of market behaviours that can be traded if you have the right teacher - usually obtained by working as a clerk or trading assistant for a short time. Somewhere you need to get familiar with the mechanics of markets by actually trading them and learning how their movement correlates (or does not correlate) to technical indicators under various conditions.