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currency trading

Discussion in 'Other Asset Classes' started by karmark, 4th Apr, 2016.

  1. karmark

    karmark Member

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    Guys,

    I am currently looking into forex trading.

    Has anyone make money on forex trading?

    What platform do you use? tips and tricks suggestions for a beginner
     
  2. Hodor

    Hodor Well-Known Member

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    It's a hard game.

    I used IG markets and had a practice account with oanda.

    I broke even and got out, didn't have the experience or knowledge, I tried to ride the falling AUD from when it started falling from above parity. My stops were too close so I had 3 entries and got stopped 3 times for slight wins and losses but wasn't willing to risk capital to get serious. There are other ways to make money that I find easier and less volatile.

    Practice first and be profitable for a year before playing with cash.
     
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  3. willair

    willair Well-Known Member Premium Member

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    It's not a easy game to play,unless you have very deep pockets and understand how quick lightning strikes,i know a few that work that business model,and it becomes intense and obsessive,or look up the french word,":coup-de-foudre:.but the internet is full of people who make money .imho..
     
  4. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    It's hard. I committed 3 years of my life to learning it and here's that in a nutshell -
    • Don't trade anything shorter the a 1H timeframe unless you're willing to turn into a zombie.
    • Don't do it for entertainment.
    • Create a replicable method or system
    • Use stop losses
    • Don't forget to factor in the spread when calculating your P/L
    • Don't trade illiquid pairs
    • Get a demo account and don't trade cash until you've created a profitable method.
    • Once you've got a method, trade just one tiny contract until you've got your emotions under control - real money is a different ball game than demo trading.
    If you can be bothered with all that, go for it! If you can't, you're better of going to the casino.
     
  5. Nick Valsamis

    Nick Valsamis Well-Known Member

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    Patience and discipline. If you have that or believe you can adopt this then keep reading.

    Everyone has different opinions, but if you want to learn the most and do it by yourself to create a consistent income then you will need to do something like this to equip yourself.
    Ideally you should find a mentor for this game if you can.

    1. Learn as much as you can from the school section at www.babypips.com
    2. Open a demo account to see and practice implementing what you have learnt.
    3. Learn more about trade analysis at www.tradeciety.com
    4. When you are comfortable and consistent with what you can do, open a live account.

    There is no one way to trade but once you know the technical aspect of it, you have the tools to make money.

    The hard part of trading is actually mastering your emotions. Once you have full self control to maintain logical decision making, then you can become a successful trader.

    Alternatively you can use a copy trading service if you just want a passive income.
     
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  6. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Well said.

    The only thing I would add is that with the copy services you want ot be very sure of the strategy before committing - find out the historical max drawdowns, length of drawdown etc, so you're aware of what to expect and can hang on during the negative periods. You don't want to copy a system that returns 10% on average but sustains 60% drawdowns to get it.
     
  7. Excalibur1

    Excalibur1 Well-Known Member

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    Last point Jess made is probably the most important....

    1. Discipline is the key... Then money management.
    2. FX or fast money as it's known, is not for everyone. Easy come, easy go.
    3. Never risk more than 1-2% per trade.

    If you want something slower than currencies i would recommend trading indices. Go through www.babypips.com school... then repeat it all twice! (its free)

    Don't forget every time you loose money, there is someone on the other end taking your money. So you can do the same. Try and be at least 50% accurate, but always make sure your wins are at least twice as big as your loses.

    I'm not a fan of Demo accounts, as that takes emotion out and gives you false sense of success. Once you try trading real money, the results are going to be far worse than what you achieved in Demo. Instead of using Demo, deposit $1000 into account and trade that for a year, if you consistently win, increase it to 10k, do that for a year then go up to 50k.

    You should aim for at least 1-2% return a month using 1-2% of your account per trade.
    Don't forget initially you are not aiming to make money, you are aiming to LEARN. (that $1000 is the best lesson you will get). Also don't forget that over time 90% of FX beginner traders loose money, 5% break even and other 5% make a lot! :)

    Don't reply on "holy grail" systems. The only holy grail is in your head. Use it, and learn about PRICE ACTION. anything else looks at historical figures. Not to say they don't work in some environments, but Price Action will at least give you a bit of edge.

    Learn how Casinos make money, once you understand that, you can make money trading FX, all you need is slight edge in your favour, great money management and time those 3 will bring you success :)

    Good luck! don't get discouraged, FX is exciting market if you want to loose money, but very boring if you want to make money.
     
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  8. Excalibur1

    Excalibur1 Well-Known Member

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    hahahaha you beat me to it!!
     
  9. Excalibur1

    Excalibur1 Well-Known Member

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    I also forgot to mention.... stick to 2-4 pairs and learn how they behave. Anything more than that will stretch you out too much.
     
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  10. karmark

    karmark Member

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    thanks Guys...
     
  11. karmark

    karmark Member

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    excellent post ....
     
  12. barnes

    barnes Well-Known Member

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    If you have 10 years of spare time and nothing else to do - go for it, you might end up knowing the subject better then others. It also makes your life more interesting.
     
  13. BKRinvesting

    BKRinvesting Well-Known Member

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    Also have a read of bird watching in lion country for a different way of looking at it to babypips, etc.
    It's a hard game - and the market can stay irrational longer than you can stay liquid.
    Good fun and quite a challenge though. Prepare to become obsessive for the first 2-3 months though - there is a rampant learning curve.
     
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  14. karmark

    karmark Member

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    i guess first few months will always be challenging and tough as you dig in to read,learn and trying to find a method how it works ...different ball to than property or share investing
     
  15. Excalibur1

    Excalibur1 Well-Known Member

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    It can be very rewarding, but as others mentioned, be ready to absorb a lot of information that you will need to filter to find what works for you.

    As @Jess Peletier mentioned, dont look at less than 1 hour charts and look at longer trends. Read as much as you can about Money Management and Price Action.

    I would recommend that you avoid news events trading. That is just gamble as the Big Guys get some news before anyone else, plus they have computers that can execute 100s of orders per second. this is why looking at longer periods is better :)

    Good luck - let us know how you go
     
  16. barnes

    barnes Well-Known Member

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    It's not a different ball to property investing. I very much employ my skills in property investing in my trading. And also stretch the first few months into the first few YEARS.
     
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  17. barnes

    barnes Well-Known Member

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    Big guys have one but significant disadvantage to us - retail traders. Their positions are so large that it's hard for them to move them. If the start to take out stops it might be a LONG time.
     
  18. BKRinvesting

    BKRinvesting Well-Known Member

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    Yep. This ^^
    Be prepared for a long game.
     
  19. karmark

    karmark Member

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    @Excalibur1 @barnes and @BKRinvesting thanks for the tips and suggestions

    Can you please suggest me which trading platform is good?what are the things i should look for?
     
  20. BKRinvesting

    BKRinvesting Well-Known Member

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    I happily used metatrader for a number of years. The Mql4 language is pretty easy to pick up if you are interested in customised indicators or automated trading.
    I am also happy to recommend GlobalPrime - they are based in Sydney and seem to be run by a bunch of decent people.
     
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