21 replies to this topic

[Dennis]

Forex trading is all about making big money. Some investors have found it quite easy to make a large amount of money as the forex market changes daily. Forex, is the foreign exchange market. Online and offline you will find references to the forex market as FX as well. Forex trading takes place through a broker or a financial institution often where you are able to purchase other types of stocks, bonds and investments.

When you are thinking about getting involved in the forex markets you should know you are sending money to be invested with other countries. This is done to prop up the investments of people involved in certain types of hedge funds, and in the markets overseas. The forex market could have your money invested in one market one day, and the next day your money is invested in another country. The daily changes are determined by your broker or financial institution. When reading your statements and learning more about your account, you will find that every type of currency has three letters that will represent that currency.

For example, the United States dollars is USD, the Japanese yen is JPY, and the British pound sterling will read as GBP. You will also find that for every transaction on your account listing you will see information that looks like this: JPYzzz/GBPzzz. This means that you took your Japanese yen money and invested it into something in the British pound market. You will find many transactions from one currency to another if you have money that is scattered through out the forex markets.

Forex markets trading by investment management firms are the companies you can trust with your money. You want to find a company that has been dealing with forex trading since the early seventies, and not someone just new on the block so you get the most for your hard earned money. It is important that you beware of companies that are popping up online, and often times from foreign countries that are stating they can get you involved in the forex markets and trading. Read the fine print, and know whom you are dealing with for the best possible protection.

If you are interested in trading on the forex market, you will find limits for investing are different from company to company. Often times you will learn that you need a minimum of $250 or $500 while other companies will need $1000 or $10,000. The company you are dealing with will set limits in how much you need to open an account with their company. The scams that are online will tell you, that you only need a $1 or $5 to open an account, but you need to learn more about that company and where they are doing business before investing any money, this is for your own protection while dealing in forex trading and markets online.

[skylady]

That's wonderful information for those of us that are quite unfamiliar with Forex investments...

Thank you Dennis    you're posting valuable info., muchly appreciated...

[Aleksandar Oden]

To be successful in forex trading, the most important thing that you should realize is your capability to survive in this dog-eat-dog-world industry. This means that knowing what you really want and being ready to face all the challenges and difficulties that come along with the industry.Statistics show that a large percent of people who get into forex are successful because they were able to learn the things that they needed to learn at the earliest possible time. Since they have learned all the basics, they know how to move forward and create their own windows of opportunities.

[amcfx]

Very well said about forex. But newbies don't get it quickly and this is normal. I had to experience a lot and learned the hard way using a live account to correct my thinking and setting my goals. Forex is a double edge sword and never try very HIGH leverage when you don't know how that will affect you.

[Andry]

@amcfx
I don't think that using high leverages will be dangerous for your account because if you had good money management, it's not big problems to use high or low leverage because what determine the risk is how much lot size that you used in each transaction.

[phoenix88]

I don't what yours but my method is always start open a position with the lowest size. This will make me available and safer to do averaging method(if it is needed).

[Andry]

@phoenix
I think that was good strategy to open position with the lowest lot size. It is lower risk than usual if we used the lowest lot size but we can use it to take consistent profit. If we could take profit consistently, we can improve it slowly but sure.

[amcfx]

Andry, on 29 December 2010 - 04:56 AM, said:

@phoenix
I think that was good strategy to open position with the lowest lot size. It is lower risk than usual if we used the lowest lot size but we can use it to take consistent profit. If we could take profit consistently, we can improve it slowly but sure.

What phoenix is doing is one of the good strategies. He is "feeling" the market. If trade lost with lowest lot size he can open another one with double the lot size with higher probability of success. We need to make ourselves comfortable when we are trading.

[Andry]

@amcfx
Yes, if we lost when we used low lot size we didn't lose too much. But we must use Stop Losses in our trading because if we used low lot size but we lost many pips, it will make our losses high too.

[amcfx]

Yes Andry, SL is very important. I lost $50 before in 1 week. I was using 0.01. A big lesson and eye opener for me. "Small cents can pile up and hurt your risk capital".

[phoenix88]

Andry, on 29 December 2010 - 04:56 AM, said:

@phoenix
I think that was good strategy to open position with the lowest lot size. It is lower risk than usual if we used the lowest lot size but we can use it to take consistent profit. If we could take profit consistently, we can improve it slowly but sure.

That's why the TP use for, isn't it?

Quote

Yes Andry, SL is very important. I lost $50 before in 1 week. I was using 0.01. A big lesson and eye opener for me. "Small cents can pile up and hurt your risk capital".

It is happened to all traders sometimes.

[amcfx]

phoenix88, on 29 December 2010 - 09:49 AM, said:

That's why the TP use for, isn't it?


It is happened to all traders sometimes.

Yes considering there are millions of traders online. We experience almost the same things when we start out.

[Andry]

@phoenix
I think not only using TP friend but we can close it manually too. The most important in trading to take more experiences.

[cnbc]

Andry, on 29 December 2010 - 01:30 PM, said:

@phoenix
I think not only using TP friend but we can close it manually too. The most important in trading to take more experiences.

i think the most important in trading is to take regular profit, not only experience.  at the end, profit or earning is all about. we don't need to know about how much experience you gain, but we need to know how much money you make in your trading. people only see the ending result by physical look, not by experience but with not so good result.

[pjbabia]

cnbc, on 21 February 2011 - 05:52 PM, said:

i think the most important in trading is to take regular profit, not only experience.  at the end, profit or earning is all about. we don't need to know about how much experience you gain, but we need to know how much money you make in your trading. people only see the ending result by physical look, not by experience but with not so good result.

i think experience is necessary.. how can you earn more or profit more when you are not experienced enough to know the do's and dont's of forex trading.. it would just lead you to a big loss...

[ChipMaster]

Well .. Joining this forum .. i wasn't expecting any forex thread .. lol ..

But yet .. i found one .. Nice start up you got there Dennis ..
Been trading for 5 years now .. and i trade the forex market for a living ..
It doesn't matter if we are small or big players ..

Will kept this Sub Forum watched for more updates .. Maybe someday i'd share something from
my baggage .. ^^

[AltonDelmote]

Trading penny stocks can be helpful if you have brokers and advisers. To support your investment, the investor should have a healthy knowledge of the penny stock market. It is important to keep track of the trend and observe the shares before you trade.

Penny Stocks

[WilliamHarry]

Hi Dennis,

that was a nice post about forex trading, very helpful for newbie like me.

which pair works good in forex trading?

[PrimoLED]

Great information, thanks

[itmtrader]

Nice article i think exprience is necessary...