Forex advice and help please

[andrewes]

Hello all at FPA.

First let me introduce myself, my name is andrewes im from the uk and want to be a successfull trader in the Forex market.

Im currently self employed in a trade that has been bitten hard by the credit crunch.

Ive looked into Forex a number of times over the last few years but came to the conclusion that a hell of alot of time and effort was needed to 1. learn how to trade and 2 be successfull.

im now going to pack my job in and concentrate 100 percent on being a trader.

I need advice on what the best methods of learning to trade are, im a hands on person and reading loads of articles etc dont really work with me. if anyone has any advice or is willing mentor me id be really gratefull.

Thanks for taking your time to read my post

Andrewes

 

[Johnny16]

If you don't have a lot of money to start with like $25,000 US to start, its going to be tough trying to make a living solely on trading. The main problem with small capital startup is that you need to expose all or most of your capital in order to double it. Its easy to double something once, but doubling the doubles and their doubles is very hard. Sooner or late, you will hit a brick wall and lose because your risk exposure was too great.

From searching online and reading a couple of books for answers on how I can make a living from daytrade in Forex, everyone keeps saying, " you should not risk more than 2% on any given position ". That makes sound sense but if you only have $1000, that 2% won't make much.

My suggestion for you is to research not only in methods of trading but also includes systems of successful casino gambler. I treat all kinds of investing as gambling and Forex is no exception.

I am a newbie at Forex ( just herd of it 6 days ago), but I have a lot of skills that relates to it. Here's how I look at it. In a casino game like blackjack, you have less than 49% chance to win on every hand. In Forex, you have much more than 50% chance of picking which direction it will go in the short run. With proper money management, you can lose 65% of the time and still come up ahead.

I believe the real key to success is Hedging. Research all there is to know about Hedging and that will get you in the right track. Every financial center, successful investors, banks, and other institutions hedge against loss so we should do what they do too.

If I have lots of money like $100,000 US. Here is what I'll do. If any of you pros out there find flaws in this plan, you are more than welcome to coment.

Most people will agree that gaining a grand total of 1-3 pips for a position in a day should be very easy. It is as easy as going to a casino and winning 1 chip above what you brought in. Now if that one chip happens to be a $500 chip, thats more money than most people make in one day. Now lets apply that to the 1-3 pips.

So, if I have $100,000, I'd expose $10,000 into a Brokerage account with maximium 500:1 leverage. (note: $90,000 is still in my bank). With this $10,000, I can buy up to 5,000,000 or (50) 100K units. Just buy (20) 100K lots (leaving 60% margin free). This will give you headroom. If I can just get 1-3 pips of profits on each of the (20) 100K lots, that is around 20 to 60 pips gain. Thats equivalent to $200 to $600 gain. One method to reduce risk of lost is to Hedge your positions and adjust your Stop Lost to allow for 1-3 gains. When hedging, you are not increasing your leverage limit. You can also invest in many other quick scalping techniques too.

If you don't have a lot of money, you can remove a few zeros from the above sample and still be able to do ok. I hope these suggestions will open up your mind to different possibilities.

Enough rambling....see what others think