Hi all, Just wanted to know if anyone here trades forex on their own account here and is able to do alright out of it. I’ve been doing it myself now for a few weeks, just testing out different strategies (very short term ones) having a bit of fun. But it’s hard as you’d expect. So anyone got any tips and what do you do. I have lost nearly 50% of my original capital!!! Don’t worry though its a very small initial amount. And i do expect to lose it all to be honest just trying out different things. Will probably try it once more after that with the initial deposit and see how i go. I expect quite a few snide belittling, poking fun comments as you normally get on here, but hopefully there will be some good amongst the crap. cheers
Trading FX short-term is very difficult even when you have huge shop with small spreads. If you can do it successfully in some auditable way without gamma, etc., I can hook you up with unlimited money. Good luck!
you’re game mate! good luck.
And if you get good, you can have unlimited capital from Joey. You can be the first person to say they have access to one undecillion dollars.
Not from me - from all the people I know who have spent untold dollars looking for short-term trading systems and/or traders. You could get as much money as you could handle.
Im trading with 300 bucks in my account. on a 200:1 margin you can trade 10,000$ for 50 bucks. So as you can see I’m not exactly plowing in a fortune of money, just having a go. Down to 165 already!!! Trading a lot lately iwth technicals, I really don’t believe in taht stuff so don’t know why. But so many investment banks and such release reports to dow ith technicals, because I guess in the short term its a very emotional game, and this plays a part. Anyway all good fun, although I hate losing money like anyone
I heard the fx market is unregulated and there are a lot of bucket shops out there. They are there to take money from you since there is no regulation and can make up any spreads they want.
http://www.forexpeacearmy.com/public/forex_broker_reviews Check the above site for broker reviews. I’ve been trading with a small amount recently. I think the main reasons beginners lose money are - Trading too frequently and getting caught with the spreads - Leveraging too much. FX is too volatile to sustain such leverage. Keep your leverage at 100 max with a clear fundamental strategy and place stops when you unable to monitor market updates.
So it’s not the difficulty in predicting moves in exchange rates then.
Forex trades 24/7. I assume you must day trade, because it doesn’t seem sensible to have open positions that can change while you are sleeping at night. With a small account, I’ve read that the biggest danger is that the transaction costs eat into your profits so much that it tempts you into overdoing your leverage to make up for it.
CFAdummy Wrote: ------------------------------------------------------- > I heard the fx market is unregulated and there are > a lot of bucket shops out there. They are there to > take money from you since there is no regulation > and can make up any spreads they want. There is no regulation of the interbank market (except in some sense the Fed has regulatory authority). Most small traders trade in futures markets which are regulated by the NFA (an industry group) and the CFTC (the equivalent of the SEC). There are still lots of bucket shops however.
yeh lots of dodgy brokers out there. But the one I use has spreads that are competitive and id expect, they are part owned by lehman i think aswell. Also NFA regulated. Either wqay, every trade i make it seems to go in the opposite direction, so just do the opposite to me and you’ll be a millionaire. This has got me thinking, if its so hard to make cash trading FX, and you keep losing, just do the opposite to what you were going to do and you should come out on top!!! By the way the transaction costs are only the spread, there are no other costs involved, for me anyway.
maddane – What is the website of the firm your playing with? 200:1 margin is pretty sweet. I remember reading something on the The Kirt Report about being a trader. Someone once told him that he should open up a paper trading account with the goal of seeing how fast he could lose all of the money in the account. The lesson is that there are two sides to every trade. Maybe you should try the George Louis Costanza Trading Method. “If every instinct you have is wrong, then the opposite would have to be right.”
Which currency brokers are good?