How to further educate myself? (and a few other questions)

[jjb007]

Hello,

I have been interested in forex for a while now and I finally bit the bullet and started educating myself on the subject. Over the past few weeks I have read 3 books:

1. The 10 keys to successful trading (by Jared Martinez of Market Traders Institute)

2. Forex patterns and probabilities (by Wiley Trading)

3. Babypips.com

I have also been trading with a demo account for the past two weeks and definitely do not have enough confidence to start using real money anytime soon. I am looking for ways to educate myself further... any suggestions?

Also, I am still undecided about what sort of trading style I am interested in.
I am able to trade throughout the US/UK session while I am at work although I am more interested in long term trades because they seem less risky, is this true? My basic goal is to earn a much higher interest rate on my savings than I would from a savings account, so any trading style would likely work for my goal... any suggestions on trading style?

Another question I have is: How many lots are generally traded at a time? For instance, if you have a micro account with a balance of $3,000 and you see a really good trade coming up, would you buy/sell a few $10,000 lots or one $100,000 lot?

Thanks!

 

[Pharaoh]

All types of trading are risky. First, find a style that suits you.

Definitely start out with the smallest possible trade size. You can always increase it later.

 

[vans22]

Hello,

I have been interested in forex for a while now and I finally bit the bullet and started educating myself on the subject. Over the past few weeks I have read 3 books:

1. The 10 keys to successful trading (by Jared Martinez of Market Traders Institute)

2. Forex patterns and probabilities (by Wiley Trading)

3. Babypips.com

I have also been trading with a demo account for the past two weeks and definitely do not have enough confidence to start using real money anytime soon. I am looking for ways to educate myself further... any suggestions?

Also, I am still undecided about what sort of trading style I am interested in.
I am able to trade throughout the US/UK session while I am at work although I am more interested in long term trades because they seem less risky, is this true? My basic goal is to earn a much higher interest rate on my savings than I would from a savings account, so any trading style would likely work for my goal... any suggestions on trading style?

Another question I have is: How many lots are generally traded at a time? For instance, if you have a micro account with a balance of $3,000 and you see a really good trade coming up, would you buy/sell a few $10,000 lots or one $100,000 lot?

Thanks!

Hi! i understand that you are still not confident on as to how you are going to be successful at trading.I'm also a beginner but i've been told that we i am to venture into FOREX, the best weapon tactic that I should have is not to be afraid of taking the risk.I also have 3 tips for you:


1 strategize
2 always have a contingency plan
3 always trust your instincts


I hope those three simple tips that I told you would help you become more confident if not successful trader..GOOD LUCK !!!

 

[Lhar_fpa]

Vans22 advises are great, there's only 3 steps to take mental note of, but its worth it and very helfpul. It takes confidence to work things out. A risk-taker at the same time.

 

[Eric Alyea]

I prefered

I prefered:
“The 10 keys to successful trading” (by Jared F. Martinez)
but liked
“Getting Started in Currency Trading” (by Micheal D. Archer) espessialy his table 7.1, Broker-Dealer Due Diligence Checklist.
I started out with Babypips.com but had trouble becuse I’m use to real paper reading. Now that I have vision and reading disability problems (to much fighting and broken faces) I opted for:
The Complete Idiot’s Guide to Foreign Currency Trading” (by Gary Tilkin & Lita Epstein) because is had an audio CD that I could listen to over and over while I did other stuff.
I’m still deciding on a platformand am interested in the “bot” tests to be used as backup indicators.

 

[Ricex]

hello jjb007,

your post was some time ago now so maybe you've moved on but I hope I might still be of help to you or others in your position.

I have also been trading with a demo account for the past two weeks and definitely do not have enough confidence to start using real money anytime soon. I am looking for ways to educate myself further... any suggestions?

Yes. Sounds like your going about things the right way for the moment. Your education is ongoing in this game, as it should be for all of us, and you want to be concentrating on getting some kind of game plan together. Nothing to complicated to start, keep it simple. Your plan of action will become part of your further education.

Your plan will involve elements like, which pairs you want to trade, what time of day you will be trading, your starting capital and max position sizes your willing to trade, how much you are prepared to lose etc., etc. All these factors should be laid out clearly before you think about hitting the buy/sell button, even on demo.

Boring? you betcha! sorry did someone tell you this was going to be exciting?

As you start trading your plan your confidence should grow and your plan should adapt accordingly, you will be learning hands on, this is good.

Also, I am still undecided about what sort of trading style I am interested in.

This will come with experience, and time, don't be rushing into labeling yourself at this stage in the preceedings. Start by being able to consistently identify good potential trades in all types of situations, trending, ranging, 15min, 4 hourly...... your niche will present itself to you when it's time.

I am more interested in long term trades because they seem less risky, is this true?

Risk of course is everywhere in forex, the trick is balancing it against potential profit. I'm not going to tell you how to trade, that's a traders own personal affair, but have a look at the chart and have a think about it.

In the blue corner, king of the hill at the moment the AUSSIE, and in the red corner, everyones favourite punch bag the almighty american DOLLAR.



From the red line at the bottom of the chart you could have entered a long trade off that rather sexy double bottom at the begining of September. Having done nothing for over a month but watch your money increase and occasionally move your stop loss, you'd now today be sitting on top of 800 pips or so. At $10 a pip that's pretty good for a risk of 20 pips and your blood pressure is still normal.

Of course there were plenty more pips to be had than that but to get them you would have had to take more risk, go against the trend, work a lot harder and probably missed having lunch with your delightful wife.

It's a choice, but I wonder sometimes why the new guys dive straight into the scrum and then don't understand why their nose is broken.

Another question I have is: How many lots are generally traded at a time? For instance, if you have a micro account with a balance of $3,000 and you see a really good trade coming up, would you buy/sell a few $10,000 lots or one $100,000 lot?

You need to plunge yourself into finding out about money management in trading. There is no norm, every trade is calculated separately risking no more than 1-5% of your capital. Your capital is your business, without it your history, so don't go chucking it about.

I hope this helps.

 

[elah024]

that one truly helps. keep on adding up knowledge to every trader in this community that need help from good advisers like you.

 

[Ricex]

Thanks, I just want to help people avoid the costly mistakes I made when I started, and sites like this didn't exist. This free resource of knowledge and guidance on the side of the trader is worth it's weight in gold (1086 and rising)

 

[elah024]

Thanks, I just want to help people avoid the costly mistakes I made when I started, and sites like this didn't exist. This free resource of knowledge and guidance on the side of the trader is worth it's weight in gold (1086 and rising)

oh okay..haha! well keep adding up knowledge to everybody. we're glad to hear advices, ideas and thought from traders who've been making trades for a good reason.