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Advice to new comers

Discussion in 'Beginners Bootcamp' started by kamoro, Sep 12, 2008.

  1. kamoro

    kamoro Private, 1st Class

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    About 18 month ago I was also new to the forex market and was dreaming to become rich over night. A dream, which can pop and poof like an overfilled balloon in minutes, to shatter all your dreams.
    I am not an accounted or banker, I am a semi retired Hospitality professional, who is tying to make some bucks to support my golf game….(no luck yet..)

    There is no such thing as the “Holly Grail” in the forex market. :shocked:
    The only way to succeed is to study & study & study & study again & again & again & again the market and its trend.

    I followed the professional expressions and indications of the forex dealers, with Fibonacci lines, Pivot table and other program etc, market news and other daily offered advice from several professional companies. This may work for anyone who has time and patient to follow these trends and news on a daily basis. For a novice like me it became a too confusing, a mumbo and jumbo.:eek:oh:

    I have looked at over hundreds of websites from brokers to signals to auto pilot sites and guaranteed offers of a sure profit scheme, over the past couple of months.
    I signed up for demo account with several brokers to test and check their platform and performance and the speed of accepting orders and changes.

    I tested some auto pilot and others auto signal programs if they offered a free trial.
    With all respect to all these sites, the only persons who are making a “guaranteed profit” are the persons selling these programs. There is not a single site who will guarantee you to make a profit with their program. Yes, some offer a refund if you don’t make a profit.

    During the web browsing of all the sites I found that several sites are using the daily free forecasts and predictions from one particular site. I followed these forecast and most of the time they were correct 85% of the time.
    I found another site also providing also free daily forecast.
    And of course I always get the daily forecast from the forexpeacearmy site.
    I then started to compare the forecasts by making a simple table in a word program.
    Based on these predictions I started to enter the market on the 4 major pairs on one demo account and 85% of the time the predictions came through.

    I then played with “stop loss’, “take profit” and” trailing stops” on the Meta Trader 4, the platform which I found the most convenient to use.
    I tried several different charts and found the “candle stick” to be my favorite to use, until to-day.

    Having played the forex market on several demo accounts for several months, I also found out that you have to have disciplined money policy and strategy in place.
    I often lost out because I was too greedy and thought that I can make a few more pips after closing one deal. Most times it did not work.
    I finally I started to realize that the forex market will not run away from you.
    Different from the stock market. If your stock goes down it may take several month to recover. In the forex market you can recover your losses the next day already.(no guarantee) since market is open 24 hours a day from Monday to Friday.

    One important factor is the amount of money you are willing to put up. Playing on the demo accounts I found that the safest amount to risk is 1-2 % per deal on your total amount in your account. On the demo account I risked and put in more and that’s where the big losses were made if the market started to go against you.
    I finally realized that it is better to make 20 – 30 pips a day then waiting for the large jump and risking your money.
    Some days I made 1 – 5 pips only and on other day’s 20 – 35 pips, my biggest jump was 65 pips on one deal.:embarrassed: (a loss he he he) but made a profit with 52 pips.

    After several months of testing and trials and ups and downs on demo accounts I finally opened a mini live account 3 month ago, applying my hard earned experience.
    On my first month I broke even. No loss no gains. In my second month I lost 109 pips.
    On the third month I made 78 pips and in this month up to date I am up 169 pips. My amount in the account is up by 21% since I started my live account.

    To summaries my experience and advice to any new comer, you have to be patient and determined and make your own research and tests. Don’t jump in and risk your money too early. Play on demo accounts of some different broker until you find the one you will feel most comfortable with. And most important have a strict money policy ready to follow.

    Again I am not a professional broker; I am novice like many of you.
    Just like to give some advice on how you too can be successful in the forex market by being disciplined and patient without rushing in to this dangerous but attractive “money game”:)
     
  2. Pharaoh

    Pharaoh Colonel

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    This should be required reading for every new person who jumps into Forex expecting to double their account every week.

    Yes, you can make money with forex, but it's going to take some work. If there ever was a "Press this for unlimited profits with no effort" button, it would have already been broken from overuse.
     
  3. kamoro

    kamoro Private, 1st Class

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    Well, just to show how the market can go against all good prediction, I lost more than 150 pips over the week end:unhappy::mad:

    All my profits as mentioned above gone.....the baloon popped..pssssssssssss...:hissyfit:
     
    #3 kamoro, Sep 14, 2008
    Last edited: Sep 14, 2008
  4. kamoro

    kamoro Private, 1st Class

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    Thanks Pharaoh, well said. I hope all new comers will read this and take note of it...:)
     

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