I was new to forex trading a year ago and still consider myself a newbie, since I only signed up for a live account this last day’s and will go live at the beginning of June.
During the last year I check out many brokers and websites offering “best tools” and “sure” forecast’s.
I checked different brokers, managed accounts sites, auto trading systems, forex news and many more.
With all respect to these sites, I finally came to the conclusion that the only way to trade is to make your own research and try-outs with several different brokers, as they all offer free demo accounts. Some using M4 trader platform and some with their own trading platform.
I found that the easiest platform for a newbie like me is the M4 platform. It is easy and simple if you read the instructions as these are very informative.
The next important factor I found is the news and how to enter into trades. Well there are many ways and many different systems: fibonacci, bollinger bands, dinapoili,trendlines, ocilliators, momentum, layers,charts, lines etc. I found that these are all too complicated to understand (at least for me) and are good for the professional traders.
What I did was watching only 3 pairs. EURUSD – USDCHF – USDJPY
Through my research I found a broker who send the news and trend for most pairs every night from Sunday to Thursday at 23.30 (Middle Europe time) on their site. And what is interesting about this, is that many other brokers are using this information on their own sites. The news and predictions from this site are 80% correct.
Here is how, I as a newbie, use this information. I learned that the EURO and CHF always move in the opposite directions. So I followed and wrote down every day the news and prediction from this site. If the prediction for the 2 currencies was in the opposite directions I placed a trade and made 20 – 30 pips each time. If the predictions of the 2 currencies were in the same directions, I did not place a trade since the market was not stable. (according to my research and assumption) Following the moves of the currencies it was correct 80 – 85% of the time.
One more thing I learned by trading on several different demo accounts (with different brokers) do not gamble and risk too much money you can not afford to lose. It may be great on a demo account, but, hey, I am practicing to go live. KEEP THIS YOUR MIND AT ALL TIME!!!!!
So my conclusion is to open a mini account with US$ 500. Using maximum 1-2 % of the deposit to enter any trade at any time. Once I am confident, (the hope of any trader) I may then move up one step to an account of US$ 2’500.
Advice to newbies -
05-23-2008, 01:35 AM
Broker for USD/CHF, EUR/USD & USD/JPY -
05-23-2008, 06:15 AM
05-25-2008, 01:57 PM
Linear Mode
