1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

New to Forex, can you help please?

Discussion in 'Beginners Bootcamp' started by tezmay, Dec 13, 2011.

  1. tezmay

    tezmay Recruit

    Joined:
    Dec 13, 2011
    Messages:
    1
    Likes Received:
    0
    Hi I've recently decided to start trading forex and was wondering if anyone could give me any tips on trading and what the best strategies to use are in order to make more money than you lose. Also could you advise on what broker is good to use for beginners? Many thanks
     
  2. Pharaoh

    Pharaoh Colonel

    Joined:
    Oct 3, 2007
    Messages:
    19,658
    Likes Received:
    2,205
    Everything you asked for and more is all listed here:

    http://www.forexpeacearmy.com/forex...3950-guide-fpas-free-education-materials.html

    Be very wary of asking for broker recommendations. All sorts of brand new "1 post wonder" accounts can pop up to tell you how great some bucketshop is. There is no perfect broker. Read the article on how to select a forex broker (listed in the above link) for my best advice on how to find a broker that suits your needs, not someone else's profit.
     
  3. flogger

    flogger Recruit

    Joined:
    Dec 25, 2011
    Messages:
    4
    Likes Received:
    0
    How much do you usually bet if you are new to trading forex? I just want a rough estimate please. [​IMG]
     
  4. Pharaoh

    Pharaoh Colonel

    Joined:
    Oct 3, 2007
    Messages:
    19,658
    Likes Received:
    2,205
    The proper amount under those circumstances would be $0.00. That's why there are demo accounts to practice on.

    When you go live, consider the fact that you could potentially lose every cent you are depositing. When you place a trade, consider that a surprise announcement by a central bank could send your trade into it's stoploss 5 seconds later. Use this information to decide how much money to place into your account and how much to risk per trade.

    You also might want to read my article on Risk Management:

    http://www.forexpeacearmy.com/forex...2272-how-manage-risk-while-forex-trading.html
     
  5. WaveRider

    WaveRider Sergeant

    Joined:
    Mar 7, 2011
    Messages:
    304
    Likes Received:
    15
    To Tezmay:
    1. Don't take any advice from a broker about trading. None. They make money when you lose.
    2. Stop looking for the next amazing indicator. They already exist. You'll use about 5 or 6 ever and they assist, they don't decide for you. Indicator-only traders lose in the long run.
    3. Small positions are boring but they will keep you consistently profitable.
    4. Read the FPA trading school front to back. Just this will put you ahead of most traders. Remember, bankers are funneling your and my money into their accounts. It's a rare thing to have a banker coach you on how to trade better. Even rarer that it's free.

    About brokers: get a non-dealing desk or ECN or STP. It's not a perfect solution but it helps with the conflict of interest.

    Yessir. Betting is cool as long as you call it betting and know it's betting. But gamblers lose everything. The house always win. Bankers love more gamblers because they can take their money.

    Please read up on position sizing. The pip school here on FPA is seriously amazing. The rule of thumb is not to be in a position to lose more than 2-4% of your total account size on any one trade. If you really want to win at this game, you should take the time to do the math and figure what this is depending on your account size, your broker's margin requirements, and the value of your stop loss. Get an excel spread sheet or even a calculator and a piece of paper and make a table showing proper position sizes using the math in the FPA article. As a rough guide for smaller trades (like 20 pips), when you open a position in MT4, it should tell you you have 300-1000% margin depending on the margin requirements of your broker.

    Pharaoh says no more than 1/2% of account value in his article. Good advise. I trade at the 1-2% level on most trades.
     
    #5 WaveRider, Dec 28, 2011
    Last edited: Dec 28, 2011
  6. Dre Hospidales

    Dre Hospidales Recruit

    Joined:
    Apr 2, 2011
    Messages:
    1
    Likes Received:
    0
    You can learn the fundamentals of forex trading for free at Free Forex Education and Training | Free Forex Trading Systems. The site provides fully comprehensive, step-by-step tutorials on the basics as well as advanced concepts, and you can learn everything you need to know about Forex trading.
    After you finish the course, you can download highly rated forex trading systems and strategies free of charge. These tools can help you become a profitable forex trader very quickly. You can then practice everything you've learned by opening a forex practice account with a reputable broker. Once you are comfortably making money on the practice account, you can then open a live account for as little as $100. You can earn over $1000 per week within 3 weeks quite easily. Experienced traders earn ten times that amount on a regular basis. The site earns its revenues from ads, so you don't pay anything.
     
  7. Pharaoh

    Pharaoh Colonel

    Joined:
    Oct 3, 2007
    Messages:
    19,658
    Likes Received:
    2,205
    Although I applaud any site that is ad supported instead of taking money, I suggest approaching Dre Hospidales' claims VERY carefully. There is no system that will let you reliably and safely take a $100 account to making you over $1000 per week within 3 weeks, much less one that is easy. This sounds suspiciously like an attempt to upsell something later and/or to have people sign up via "preferred broker" special links.

    Of course, if Dre will be so kind as to start a $100 live account and share the investor password so that we can all watch for 2 months, I may find that I owe him a heartfelt apology.
     
  8. fxcharlie7

    fxcharlie7 Recruit

    Joined:
    Dec 8, 2011
    Messages:
    4
    Likes Received:
    0
    When i started trading, i was overly focused on the profits that forex market could provide me and wanted to find any strategy that could me money right away. That backfired and lost quite a bit of money. From that i learnt proper forex education is what i need to 'set' the right frame for trading and not rush to trade right away like all new traders will do.

    I might suggest that you look for forex educational materials that this forum provides or sites like babypips.com which i find is a good starting place.

    Books i recommend for a start are:
    -Adventures Of A currency Trader by Rob Booker
    -Come Into My Trading Room by Alexander Elder

    These greatly shapes my thinking about trading and have provided me lessons on where my thoughts of trading have gone wrong.

    Hope it helps!
     

Share This Page