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Newbie introduction

Discussion in 'Beginners Bootcamp' started by Caoimhin, Jan 28, 2010.

  1. Caoimhin

    Caoimhin Recruit

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    Hello FPAers,

    I'm a new member and would like to introduce myself.

    I've been actively trading equities and options on equities for several years. I got tired of trying to keep track of thousands of stocks so I switched to ETFs almost exclusively - and now there are thousands of those (at least it seems like it). I've been looking into Forex - and its small number of tradeable pairs, liquidity, trading hours, and other features appeal to me. I would describe myself as a longer-term (carry, trend, swing) trader.

    HOWEVER... selecting a Forex dealer is scaring the bejeebers out of me. I've read the reviews here and on other sites and it seems the most highly rated dealers have very few reviews (mother, cousins, bookie?) and the ones with many reviews have a lower rating and several horror stories. I've read Pharaoh's post on choosing a dealer and, while very helpful, it didn't quite get me to the warm-fuzzy point. My current broker offers Forex trading, but they use a low-rated dealer as a clearing broker and their Forex platform is uh, er, less than optimal.

    But, since "faint heart never won fair lady", I recently opened a demo account at one of the less objectionable dealers that offers the services I require and joined FPA for some hand-holding.

    Thanks for "listening".
     
  2. Ricex

    Ricex Sergeant

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    Welcome Caoimhin, nice to have you along, lets hope we can get those bejeebers back where they belong.

    Using a demo account is great for checking out the platform and seeing if you feel comfortable with all the bells and whistles. Moving on from there, if your happy with that part, is the next important part of money. If your chosen broker has micro accounts try opening one up and see how things turn out. Play with that for a while and compare execution times and spreads to what you were getting on demo, test their customer support, then ask for a withdrawal and see how that turns out.

    At the point where you can say I like the platform and they (the brokerage) do what I ask when I ask, you can relax for a bit, but my advise is to always approach brokers as you would your trading, evaluate your risk at every level and don't give them all your money.

    Best of luck, let us know how you got on.
     
  3. cowmadagan

    cowmadagan Sergeant

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    Hey Caoimhin,

    Just so that you know, I'd like to say that you're not ten steps ahead of the game, you're far more than that. I say that not just because of your experience in other markets (which I feel are actually the same, as long as you can preorder your stop losses), but more because you're doing your research that everyone should do, but about 1% does.
    Here's the caveat to the 'choose your broker' post. I know you do your homework, so I really hope you'll read all of this rather than take a sentence or two and ignore the rest. If safety is what you want go for the big companies at the possible slight expense of spread, but get used to the platform and then invest about 1% of your investment portfolio, assuming your leverage and lot sizes fit with that kind of rule. Sergeant ernest8fingers and Master Sergeant Pharaoh seem to swear by micro lots, not because they're broke but, because it gives you more ability to modify your position than mini lots (unless you're looking to invest about a half a million US, at which case I'd say that you should take baby steps into your forex investing career and make sure you're profitable and can withdraw cash from your broker without a problem...I honestly would never trust more than a hundred K to a broker, just because I'd just close all open deals once my available margin dropped to about 85% and add more margin before opening new positions [that's stolen from another FPA member, and sorry, I can't remember their name]) after all you can always use a whole whack of smaller lots.
    What I'm really trying to get at is that looking at the number of ratings on FPA, the quality of the negative cases against the brokers, the date of the complaints, and looking up the independent government websites containing your prospective broker's cash holdings should be sufficient to start with baby steps with your broker.
    It's hard to say what your monthly, quarterly, or annual profit target is, but these are some things to consider.
     
  4. Pharaoh

    Pharaoh Colonel

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    Welcome to the forums!

    Bwahahaha!!!! Terror must be maintained! :D

    Brokers are never warm and fuzzy. Even the best of them can turn on you. That's why you have to keep a very, very close eye on them.
     
  5. Forexwatchman

    Forexwatchman Sergeant

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    Well you found the holy grail of making money, at least I think it's the greatest way to make a living next to being a rock star! And since you've got some real experience in the economic industry, your ready to go. I personally have had very good experiences with my broker FXDD, and since they're regulated it leaves you another avenue to pursue in case something did go wrong. Oh, but wait, the powers that would be the regulators here don't want the hassle of doing their job (CFTC). But I digress. It's been a very long and busy week. Good luck to you!
     
  6. Caoimhin

    Caoimhin Recruit

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    Thanks

    Thanks for the words of welcome everyone. I've made a few small trades on the demo account and net so far I'm up 19 pips. My goal for next week is to not give it back.
     
  7. Nathan Rothschilde

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    Just a Welcome Note

    Hello Everyone
    Although I am not a new FX trader - been around for awhile - I just signed up as a member here tonite.
    My son told me about this site some time ago when he was looking at finding out more about the FX industry. It actually scared the hell out of him - when he heard of all the FX scams. Needless to say he shyed away from trading.

    Anyway this place has a good reputation and I think it about time I joined.
    Wishing you all a profitable trading year
    Regards
    Nat:)
     

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