How to start?

[nahiyar]

To start forex first make your concepts clear all about trading . You should know how to watch market and find trend. Then select appropriate lot and leverage . Start from low risk to gain experience .

 

[JesseM]

Your start should be developping your strategy or way how you're going to trade.
for example are you going to use scalping methods, are you going to trade multiple pairs, using indicators, etc etc.
this should be the main focus efore looking for a suitable broker.

 

[arigoldman]

Focus on one market. If it's currency pairs, focus on one currency pair. If it's commodities, focus on Gold, for example. Study one thing and get really good at it. Then add more.

 

[downtrend]

Focus on one market. If it's currency pairs, focus on one currency pair. If it's commodities, focus on Gold, for example. Study one thing and get really good at it. Then add more.

It is easier said then done, most of the newbies fail to do so. They tend to trade on as many pairs as possible thinking that only trading one pair can reduce their trade chances.

 

[arigoldman]

It is easier said then done, most of the newbies fail to do so. They tend to trade on as many pairs as possible thinking that only trading one pair can reduce their trade chances.

True, it's hard to control your emotions and the desire to make a quick buck, but it pays off really well in the long-term. Also, if you trade multiple instruments at the same time you have to have a sufficient equity to cover the losses as they shouldn't exceed 3-5% of your initial capital. So if the OP is trading with small equity, then he should better focus on 1 or 2 instruments. My 2 cents.

 

[qitiandasheng]

Before I practised in demo account for 6 months, but now it seems that too short when I go to live account. Soild fundation is very necessary for live account.

 

[arigoldman]

Before I practised in demo account for 6 months, but now it seems that too short when I go to live account. Soild fundation is very necessary for live account.

You can never compare Demo with Real. The less you stay on the Demo, the better. A real account requires a different mindset.

 

[downtrend]

You can never compare Demo with Real. The less you stay on the Demo, the better. A real account requires a different mindset.

But you still need demo account to practice. You cannot risk real money for practice purpose. I'm also not a big fan of demo account but a trader should spent at least 3 to 6 months purely on demo account.

 

[WatanFX-Rep]

Read up as much as you can. Use all sorts of mediums. Forums, books, stare at the screen for hours.

Trading has a time stamp on it. Usually around 3 to 4 years before you understand what you are doing. After that many traders have a few career options

1. Trade their own money, if they have around $250k set aside spare (rarity on the retail side).
2. Trade other people's money. Set up a hedge fund. If one is good enough, perhaps a regulated hedge fund can hire you.
3. Enter market making (brokerage).
4. Setup signal service, promotional websites.

If you are planning to do it professionally for $5k to $10k deposit, I would recommend you stop now, and look for a different career option. It has never happened in real life. At least there is no documented proof of one.

As for the carry trade, a quite popular one now days is the USDJPY on the buy side. Japan is going crazy with printing money. Virtually zero cost to borrow the yen, and buy USD or any high interest rate paying currency. Many hedge funds have this trade running, since the printing presses in Japan were installed with nitrous oxide.

Carry trades work only if your direction also works in tandem with the interest rate earnings. If you are losing money on the direction, then interest rate earning won't matter.

In any case, you look like a very newbie person, to be even talking about entering the trades for real. Demo your skills, and then wet your feet later on.

 

[qitiandasheng]

I don't think less stay on the Demo, the better. Demo account practise is very necessary for newbies, but firstly you need to know the difference between demo and real account. The practise time should depend on individuals.