I’d recommend extreme caution. How much do you actually know about buying and selling foreign currencies? Do you have the infrastructure to be able to watch follow the different currencies. Did you know that most interbank and inter broker currency trades are for amounts in excess of US$10million. Also how many brokers/banks are you able to deal with – they will quote different prices so don’t just trade with one company. Will your brokers and banks allow you to offset? And also note that the rates that you see on Reuters can actually be several minutes behind where the banks and brokers are actually trading. Are you going to trade spot, are you going to trade forward. Don’t forget that forward rates are not a guess, they are a function of the spot rate and the respective currencies interest rates (there is a formula for working out forwards rates) You will be able to see on a reuters or Bloomberg terminal what the forward points are, but do you know whether to add or subtract them from the spot rate?
Unless you are really geared up to fx trading the only people that will make money will be the banks and brokers that you deal with.
I’d also recommend you stay away from Robotic and/or Artificial Intelligent trading sytems/machines – you’ll loose your shirt eventually. References :
joshi on Thu, 31st Dec 2009 8:21 pm
To name just a few:
1. Discipline – you have follow your own plan
2. Get cheap and reliable broker – you don’t want to waste all your money on broker fees.
3. Learn technical analysis – it’s the key when it comes to trading currencies.
4. Follow the news – know that’s happening in the financial world References : 1. http://www.Bloomberg.com – Financial and stock market news
2. http://www.IndependentInvestor.co.uk – Financial Spread Betting and CFDs guide and broker comparison.
3. http://uk.finance.yahoo.com – Latest share prices and stock market analysis.
ADAMSMITH on Thu, 31st Dec 2009 8:42 pm
There is no key big key is leverage and margin. References :
Pen J May on Thu, 31st Dec 2009 9:22 pm
Hi, FX trading- you should start up with very low risk, no more than 5% on any trade is essential. 1:100 leverage max.
Keep demo account for 1-2 months on a strategy, signal system or expert advisor before going live.
Do not lose your head if things go well and increase risk too soon – you could lose the lot – that is why so many people fail – they literally get carried away with a bit of success.
Hope this helps References : http://www.forextradingsuccess.org/fx-trading/fx-online-trading/
David W on Thu, 31st Dec 2009 7:52 pm
I’d recommend extreme caution. How much do you actually know about buying and selling foreign currencies? Do you have the infrastructure to be able to watch follow the different currencies. Did you know that most interbank and inter broker currency trades are for amounts in excess of US$10million. Also how many brokers/banks are you able to deal with – they will quote different prices so don’t just trade with one company. Will your brokers and banks allow you to offset? And also note that the rates that you see on Reuters can actually be several minutes behind where the banks and brokers are actually trading. Are you going to trade spot, are you going to trade forward. Don’t forget that forward rates are not a guess, they are a function of the spot rate and the respective currencies interest rates (there is a formula for working out forwards rates) You will be able to see on a reuters or Bloomberg terminal what the forward points are, but do you know whether to add or subtract them from the spot rate?
Unless you are really geared up to fx trading the only people that will make money will be the banks and brokers that you deal with.
I’d also recommend you stay away from Robotic and/or Artificial Intelligent trading sytems/machines – you’ll loose your shirt eventually.
References :
joshi on Thu, 31st Dec 2009 8:21 pm
To name just a few:
1. Discipline – you have follow your own plan
2. Get cheap and reliable broker – you don’t want to waste all your money on broker fees.
3. Learn technical analysis – it’s the key when it comes to trading currencies.
4. Follow the news – know that’s happening in the financial world
References :
1. http://www.Bloomberg.com – Financial and stock market news
2. http://www.IndependentInvestor.co.uk – Financial Spread Betting and CFDs guide and broker comparison.
3. http://uk.finance.yahoo.com – Latest share prices and stock market analysis.
ADAMSMITH on Thu, 31st Dec 2009 8:42 pm
There is no key big key is leverage and margin.
References :
Pen J May on Thu, 31st Dec 2009 9:22 pm
Hi, FX trading- you should start up with very low risk, no more than 5% on any trade is essential. 1:100 leverage max.
Keep demo account for 1-2 months on a strategy, signal system or expert advisor before going live.
Do not lose your head if things go well and increase risk too soon – you could lose the lot – that is why so many people fail – they literally get carried away with a bit of success.
Hope this helps
References :
http://www.forextradingsuccess.org/fx-trading/fx-online-trading/
Danfx on Thu, 31st Dec 2009 10:10 pm
Train with this demo platform:
http://www.plus500.com/StartTrading.aspx?id=690&tags=yen&pl=1
When you’re ready you can use real money (€ 20.00 Free gift for real trading )
References :