Forex Demo

William F

I downloaded a forex demo account today. How much time should I spend using it before I start playing with money?

A sleazy stockbroker called me to follow up in the account aswel. He sounded like a scumbag.

ironclaw

The issue with Forex is you stand to lose a lot more than you put in, depending on your leverage. Then, its all skill and a good deal of luck in my opinion. You'd want to be averaging a positive return for a significant successive number of weeks / months to suit your trading style e.g. Do you intend to trade daily or monthly? Leave positions open longer term or quick in / out etc? You'd then want to close off a strategy and stick firmly too it e.g. Cash out earnings at predetermined levels and close off / cool off after certain losses.

Once you have a track record you can stand behind, then invest your own money.

At least, that would be my two cents!

William F

ironclaw wrote: »

The issue with Forex is you stand to lose a lot more than you put in, depending on your leverage. Then, its all skill and a good deal of luck in my opinion. You'd want to be averaging a positive return for a significant successive number of weeks / months to suit your trading style e.g. Do you intend to trade daily or monthly? Leave positions open longer term or quick in / out etc? You'd then want to close off a strategy and stick firmly too it e.g. Cash out earnings at predetermined levels and close off / cool off after certain losses.

Once you have a track record you can stand behind, then invest your own money.

At least, that would be my two cents!

I was thinking of betting on currency and holding it open for 2-3 months. I don't think day trading is a good idea for a beginner. I think a long term strategy is best and safer.

I'm considering giving hedging ago with smaller amounts just to see if it works.

ironclaw

William F wrote: »

I was thinking of betting on currency and holding it open for 2-3 months. I don't think day trading is a good idea for a beginner. I think a long term strategy is best and safer.

In that case, I'd see can you get a big data set from somewhere. A lot of places allow you to download them, some upwards of 10 years of data. See what certain positions would have gained you.

Long term hold on Forex seems to be a much debated topic. Given how, on the average, stable the major pairs are, its definitely a game that favors volatility, leverage and quick trading for 'gains' as opposed to long positions (In my extremely limited experience)

Looking at for example, over say a year:

http://www.xe.com/currencycharts/?from=EUR&to=USD&view=1Y

http://www.xe.com/currencycharts/?from=EUR&to=GBP&view=1Y

William F

ironclaw wrote: »

In that case, I'd see can you get a big data set from somewhere. A lot of places allow you to download them, some upwards of 10 years of data. See what certain positions would have gained you.

Long term hold on Forex seems to be a much debated topic. Given how, on the average, stable the major pairs are, its definitely a game that favors volatility, leverage and quick trading for 'gains' as opposed to long positions (In my extremely limited experience)

Looking at for example, over say a year:

http://www.xe.com/currencycharts/?from=EUR&to=USD&view=1Y

http://www.xe.com/currencycharts/?from=EUR&to=GBP&view=1Y

The first one was the wrong way round

http://www.xe.com/currencycharts/?from=USD&to=EUR&view=1Y

arrowloopboy

William F wrote: »

I was thinking of betting on currency and holding it open for 2-3 months. I don't think day trading is a good idea for a beginner. I think a long term strategy is best and safer.

I'm considering giving hedging ago with smaller amounts just to see if it works.

I don't think forex is a good idea for a beginner ,but maybe that's just me ,

Good luck with that ,your going to need it .

William F

arrowloopboy wrote: »

I don't think forex is a good idea for a beginner ,but maybe that's just me ,

Good luck with that ,your going to need it .

I started playing forex on March 20th. My account balance is 323 USD. I started off with 75 USD!

I'm not going to say it's easy because it's not. The brokers online will rob money off you at any chance they get. They are the toughest obstacle when starting off.

But having said, it is by far the easiest way to double your money if you have little money.

I made 125 USD today in 1 trade but was raging on close friday because I lost a massive chunk to a stupid trade when I was well ahead.