I have questions!

[jyi2]

Hi I am about to start trading in forex. I have some knowledge about technical analysis and tried the demo account for a couple of months. I can earn a few hundred dollars a week with the virtual money given. and I have a few questions here:

1. Will I be disadvantaged in any way if I am to start with only 500 bucks? Is it possible to earn 1000 bucks for the first month?
2. Any advice on minimizing losses other than setting stop-loss points?
3. How long do you guys usually spend observing and analyzing before entering into a trade?
4. Is technical analysis working most of the time as claimed by forex books?

 

[Enivid]

1. Depends on your broker's minimum allowed position size. With micro-lots (or less) you will be OK. It is possible to turn $500 to $1,000 in one month, but you will have to risk a lot, so the probability of that is perhaps only slightly better than betting $500 on red/black in a roulette to double it. While the latter is definitely faster than 1 month.

2. Yes, calculate your position size according to your stop-loss for not to risk more than 1-1.5% per trade.

3. Depends on a strategy. 10-15 minutes is usually enough for my entries.

4. Technical indicators seem to not be working for me at all. That's why I am all into basic chart patterns.

 

[Easy Trader]

http://youtu.be/MUfdEO1muiw

 

[Fxpipper]

Depends on the lot size, leverage opted for, strategy and your win ratio..way too many variables to even post a decent reply. But let me give it a shot, more money to trade with need not necessarily translate to more profits unless you know how to trade well.

Do note, demo accounts and live accounts are slightly different with faster executions on the live account but even that, depends on the broker.

On stop loss, second enivid's suggestion

On Analysis, anything from 5 mins to an hr. But usually get a good idea within the first 5 mins, so yes, the 5 min window should do it for me.

Yes, no, call me back by 2114 and maybe, maybe by then would be able to provide you with a definite yes or no..LOL

 

[jyi2]

Depends on the lot size, leverage opted for, strategy and your win ratio..way too many variables to even post a decent reply. But let me give it a shot, more money to trade with need not necessarily translate to more profits unless you know how to trade well.

Do note, demo accounts and live accounts are slightly different with faster executions on the live account but even that, depends on the broker.

On stop loss, second enivid's suggestion

On Analysis, anything from 5 mins to an hr. But usually get a good idea within the first 5 mins, so yes, the 5 min window should do it for me.

Yes, no, call me back by 2114 and maybe, maybe by then would be able to provide you with a definite yes or no..LOL

Thanks a lot! Could you recommend any book or web resource to me to learn this?

 

[Fxpipper]

You're welcome and here's one free resource info that's just great..
It has been designed to provide newbies with that extra bit of edge they need..
Babypips school of pipsology, good luck!

 

[Peter Brandley]

Hi I am about to start trading in forex. I have some knowledge about technical analysis and tried the demo account for a couple of months. I can earn a few hundred dollars a week with the virtual money given. and I have a few questions here:

1. Will I be disadvantaged in any way if I am to start with only 500 bucks? Is it possible to earn 1000 bucks for the first month?
2. Any advice on minimizing losses other than setting stop-loss points?
3. How long do you guys usually spend observing and analyzing before entering into a trade?
4. Is technical analysis working most of the time as claimed by forex books?

You can use trailing stop instead of stop. Its very easy friend.
At first take a nice suitable position, then right click at this position. and then you will see the trailing stop. then you can set trailing stop at 15 point or 25,35,45 etc if it EURUSD. other pairs point is different. also you can set any point by custom.

 

[sfx]

Hi I am about to start trading in forex. I have some knowledge about technical analysis and tried the demo account for a couple of months. I can earn a few hundred dollars a week with the virtual money given. and I have a few questions here:

1. Will I be disadvantaged in any way if I am to start with only 500 bucks? Is it possible to earn 1000 bucks for the first month?
2. Any advice on minimizing losses other than setting stop-loss points?
3. How long do you guys usually spend observing and analyzing before entering into a trade?
4. Is technical analysis working most of the time as claimed by forex books?

Let me try to weigh in here:

1) You will be at a disadvantage. With so little at stake, it's only human to push the boundaries of profits in an attempt to double or triple your money in a small amount of time. This is how FX traders get burned. You will not earn 1,000 for the first month. You should open an account with 10,000 and aim to make 2% of that in a month's time while exposing yourself to the minimal amount of risk possible.

2) Don't forget trailing stops. And as a rule of thumb, set risk-to-reward ratios. Before a trade, say I am willing to risk 1X money in order to make 3X money, and stick to that ratio. Never divert from it, no matter how tempted you become.

3) Personal preference. I would suggest following analysts' blogs to see how they plot charts. For example, there are analysts at forexlive.com, dailyfx.com, and fx360.com who plot lines all day. You can look at these charts for 10 minutes, or you can plot your own and study them for 20 mins to an hour.

4) Does technical analysis work: yes, because it's based on the idea that history repeats itself; an idea that is proved every single day. Does it work how it does in the books? No, because the trader must understand the inherent limitations of technical analysis, which is basically this: no one knows the future. The indicators cannot reach forward in time. It takes a very skilled traders to make sense of price action and predict how price and indicators will react in the future.

Hope this helps you.

 

[Fxpipper]

Please review all the educational info online and work your way with a demo..
And as regards trailing stop vs stop, yes a trailing stop makes more sense.

 

[PaladinFX]

There is no way to double (or triple, I'm not sure what you meant by 'earn 1000 bucks the first month') your money without completely disregarding Money Management rules.

You might manage it for a month or two, but you will blow your account (and your 500 bucks starting capital) within a very short time, aiming for returns like that.

Anybody telling you differently is either plain wrong or trying to make you invest your hard-earned money with him.

An experienced forex trader can generate a 10% average monthly profit (or maybe a bit more, if Lady Luck favours him/her).
But even experienced traders have months in which they merely break even or have to take losses.
This is why Money Management is the most important thing to learn; it makes the difference between a successful trader and a gambler.

In addition, there is no need to generate fairytale profits in order to make a living from forex.
If you figure in compounding (which Albert Einstein reputedly once called 'The most powerful force in the universe'), even a small account will grow rather quickly.
Open your spreadsheets and check it out, you might be surprised at the growth rate at 5-10% per month.

Lastly, I would not advise starting a live account with anything less that 10k.
If you feel you have to trade live with less than that, go for a micro account (penny trading) and trade nano lots.
Otherwise there is an overwhelming probability to lose all your money very quickly ...

... and then blame it on the broker.


Cheers,
P.

 

[Fxpipper]

Tripling the money overnight..where have I heard this before? Oye, it is the EA Sales pitch.
And yes, with $500 or just $100, go in for micro account and nano lots otherwise, you'll wipe out your account in less than an hr.
On risk management, do not risk more than the 2%, and any updates? Have you checked out babypips school yet?

 

[PaladinFX]

... Have you checked out babypips school yet?

Yes, the 'School of Pipsology' on Babypips is probably the best and most comprehensive free forex course on the net.
The new 'Quiz' feature allows one to gauge and double check progress very nicely after each set of lessons.

If you're new to forex (and even if you already have some knowledge) it's the place to go and learn.


Cheers,
P.

 

[krecex]

Beside that, youtube have provide many training video for newbies. Even there is free e-books for you to read. Demo account can help you to prepare yourself before you are heading into a real account.

 

[Fxpipper]

Btw, newbies should aim for micro accounts (after demo) and FYI, do not count the $ or cents every day. Just aim to gain a few pips per day and after a while and lots of successive trades, move on to mini or standard..
Look at it this way, even if you end up wiping out your first live account, it will be a small one..good luck!