AbleForex answers:

Like everyone else has said you need to take your time when deciding to trade the Forex market. That being said, if you are willing to learn how to trade it properly and are patient you can make money even with a small ($5000) account.

You will need to set strict money management rules, that is how much to place on each trade, how much you are willing to lose on each trade and how much profit you are happy to take on each trade.

Greed can do funny things and a winning trade can end up a loosing trade.

Follow these 10 steps

1. Get access to and read as much free information as possible

2. Download free Forex Charts

3. Take some Forex courses

4. Test and trial a couple of different forex strategies to determine which is best for your personality. Don’t rush this stage as you will really get to know yourself, how you react to loss, greed, fear and you will come to an understanding of how much time you really want to commit to your trading.

5. Open a demo account with an online forex broker, and start with a conservative amount in your account between $5000 and $10,000.

6. Simulator trade for between about 3 months

7. Open a Mini-Forex Account and fund with a conservative amount of money, between $300 – $2000.

8. Build your confidence by taking small amounts from the market consistently.

9. Throughout this whole process develop a trading plan that will consist of
a. What size your real trading account will be
b. How much you will trade each time
c. What timeframes you will trade
d. How much you will risk each trade

10. Trading for Real – Start trading a real account and continue to monitor and track your progress, recognising that you are a continual learner.

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AbleForex answers:

The people who are “pocketing the spread” are not pocketing the whole spread. They have to pay for the computers, their offices, their staffs, etc. They only pocket what’s left over after that. Certainly if you are making big trades, they should charge you a lower spread, but they still have to charge you some spread.

AbleForex answers:

There are several different trading strategies. Here are a few examples: discipline approach, trading on fundamentals, trading on technical analysis, buying/selling on market pressures and trend trading. All trading strategies do take discipline and learning each one does take time.

The discipline approach is having a trading strategy, an entry point, scaling, and exit point. Scaling is an advance technique using additional open positions and then closing the positions to take advantage of immediate small profit taking. With this style of approach, scaling can be used on all trading strategies but implementing this technique does take intense discipline.

AbleForex answers:

Your best way to proceed into the Forex market is to be somewhat cautious and get a little knowledge on the mechanics, the risks and the idiosyncracies of the marketplace.

The biggest problem withthe Forex market is that the advent of electronic trading and the potential for attractive profits has made in way to easy for uneducated people to rush into the Forex market and lose their hard earned money before they even knew what happened to them.

The Forex market does involve risk, and one should never invest money that they cannot afford to lose. Fortunately we have the abvility to trade in practice accounts without risking any money until we have properly honed our trading skills.

The Forex currencies move quite quickly and frequently. There are successful traders that have the time, the discipline and the knowledge to be constantly monitoring their positions and make frequent trades throughout the day to capture profits and/or to prevent losses.

There are other Forex traders that inplement strategies that will lessen the risks associated with constant market movements with a hedged position.

These investors take a longer term view on their positions and are comfortable receiving an interest payment everyday, making small additional purchases and sales as the market does it’s dance and generating a comfortable monthly return on their positions.

I recommend to all my Forex colleagues to begin with a conservative approach and then if they want to move into more high frequency trading thay can do that later once they gain a bit more experience. What I find is that once I teach them a couple of conservative strategies they are quite comfortable continuing with this approach.

Good luck to you and I would be happy to send you some additional information.

Paul
pupp50@yahoo.com

AbleForex answers:

If you want a quick return on your money then trading in cfd,s is the way to go.
You dont actually buy shares as such but buy a contract on the assets.
You then earn or lose money on the opening and closing price of the asset.
Many people have got rich very quick from cfd’s but there is also the risk of losing money quickly.
Finding a broker will help as they can advice you on stops that sell when the
asset falls below a certain amount you can afford to lose.
You can find more information at

http://www.cfd-to-cfd-trading.co.uk

and

http://www.bmfn.com.au

AbleForex answers:

Plenty. If you are using iphone or smart phones.
Oanda.com , fxpro.com , fxcm.com etc.
There are several out there that provides live forex rates, even live charts.
Oanda.com has currency converters.

Ezekiel

AbleForex answers:

Hi,

Currency trading is similar to stock trading and all technical and fundamental analysis is approcimately the same. You just have to know that curreny pairs always go up and down.

Usually forex brokers don’t charge comission fees. They gain from spread. You should find brokerage company with smallest spread.

AbleForex answers:

Well from my own personal beginning experience with forex, I started out finding Babypips.com like everyone else eventually does. Its excellent school just to get an idea but the key is from what I’ve learned and have been told from others is too just try things out using your demo and ASK QUESTIONS like crazy on forex forums.

Also, sample others forex trading systems that you find to just get the feel for the markets and how they react. I believe this to speed up your learning curve dramatically without having to read 1,000′s of ebooks.

Also, and I’m just suggesting this because this is what I did is to find a mentor, maybe on the forums, locally, whoever, and chat with them as much as you can and listen to their ideas. Yes, some will want to charge you but there are also a lot out there that enjoy teaching you and will not ask for a fee.

All that said, forex is very lucrative if you are smart about it. Others will tell you its dangerous investment because mostly there not making money and they won’t take the time to actually learn its aspects to be successful.But once you start reading and finding out more information on it, you will see what I am talking about.

Heres a little information about Forex Trading.

Http://www.forextrading101.info

AbleForex answers:

Im guessing you haven’t read the part about Margin and leverage. What makes Forex trading so popular these days is because of the available leverage you can get by using minimum amount of money.

Leverage means the amount of equity you are able to buy with a set amount money. Most Forex brokers today offers 100:1 leverage (US based brokers offers up to 50:1). What this means is you are able to buy EUR100 with only using EUR1 capital. If you buy 100 euros, it gives you the power to trade 10,000 euros.

Back to your calculation, you stated that you initially planning to buy 300 Euros……this effectively gives you the power to trade 30,000 Euros (Im assuming you agreed with your broker to use 100:1 leverage when you first signed up). The direct way to calculate the value per pip is:

1 pip = Lot Size x Tick Size, Whereby
tick size is the smallest increment of the currency for example, Eur/Usd = 0.0001, Gbp/Usd = 0.0001, Usd/Jpy = 0.01 ect. Ect.

Hence,
1 pip = 30,000 x 0.0001 = USD3.00

this means if you made 86 pips, you just made USD3 x 86pips = USD258.00.

But please note that the calculation i showed you above only for “direct currency” pair conversion where USD is the base currency. For example, EUR/USD, GBP/USD, AUD/USD, NZD/USD. For cross pair calculation formulas please check: http://www.fxtrademaker.com/fx_calculation.htm

To make a return doesnt take very long, but to make a consistent income out of trading is a long process of learning. Most people takes years of practice before they could make trading as a full time job. I personally took almost 4 years…..and I am still learning alot of new stuff.

Most brokers doesnt have any expiry on bid limits, but some brokers gives you the choice of whether to make your limit orders to be either GTD (Good till Day End) or Till Cancel (your order stays until you manually cancels it).

There are many ways to makes thousands and thousands of pips, but since you are new I recommend that you concerntrate on making consistent profits 1st before focusing on making millions of dollars. Your main priority is to make positive pips per month. Try doing that. Trading is not easy, so you WILL have losses but the main thing is keeping your overall profits bigger than your losses every month.