I’m Planning To Get Into Forex(foreign Money Exchange) ,i’m Learning Some Tips Can Anyone Guide Me?
someone please say the + and – of forex, and compare it with share markets(nse & bse)(will forex be the better option if i learn abt it?)
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Tags: Anyone, Exchange, Forexforeign, Guide, Into, Learning, Money, Planning, Some, Tips
January 5th, 2010 at 12:00 pm
Forex can be very profitable, even more so than stocks, because of the liquidity of the market. The thing is, you can always make a profit in forex, even when the stock market is tanking as it is now.
In forex, you also have a fair deal, because there’s not inside trading in the same way as in the stock market. The forex market is so big, it’s almost impossible to manipulate (Soros did it though).
You asked for + and -, here they are:
+’s
1) Liquidity
The forex market is many times larger than any other market, you can trade anytime and there’s always something happening.
2) Low commissions
The commissions on currency trades are much lower than those of stocks.
3) Level playing field
There’s no inherent disadvantage for a small trader, like there is in the stock market.
4) Leverage
You can trade for many times your deposit in Forex by using leverage.
-’s
1) Risk
It’s easy to lose your money by using leverage.
2) Shady Brokers
There are bad brokers in the forex market and you have to stay clear of them
January 5th, 2010 at 12:11 pm
I would like to point you to this article that I followed when I first started out learning forex trading
Eight Things a Forex newbie must know
1. Forex stands for foreign exchange and refers to the trading of foreign currencies. Unlike other markets, the foreign exchange does not have a physical, centralized location for activity; instead trading is done directly between banks, foreign currency dealers and foreign investors. Because of this foreign exchange trades are considered over the counter. Trading takes place through the use of phones and the Internet.
2. The foreign exchange market is the largest and most liquid in the world and the trading totals $2 trillion every day. However, up until recently, the transaction sizes and financial requirements kept this market out of the hand of small individual speculators. Currently the market requires a minimal amount of capital, making the foreign exchange market available to just about all investors
3.The forex market is one of the only markets that require no real qualifications, making it ideal for beginning investors. In addition, it is free from almost all forms of manipulation and external control. Despite these advantages, newcomers to the forex market may feel overwhelmed or confused but these five trading tips may help pave the way to success on the forex market.
4.The first tip to becoming a successful forex trader is to develop your own trading strategy. There is no one perfect strategy; therefore, it is important that newcomers to the foreign exchange market adapt one that meets their specific needs. It is important to avoid forex strategies that you do not understand. You should do your research ahead of time and draw on the information from useful forex guides and tutorials. It is important to be cautious of forex scams. There are numerous scams popping up where companies offer to do your trading for you, these are the ones you should avoid. You should develop your forex methods with an expert and only make trades on your own or through a licensed broker. The bottom line is making sure that you are fully aware of all aspects of your strategy and are comfortable with the risks and benefits.
5.Another tip for beginners is to understand that prices move by trends. In the foreign exchange market there are several movements that have been identified as a pattern. Trading with a trend is less risky than trading in different directions, especially for smaller accounts. Trading in the same direction as a trend is a great tip for newbies.
6.The third tip for newcomers to the foreign exchange market is to pay attention to the top five currencies and their pairs. The most common currencies are the United States dollar, USD, the Japanese yen, JPY, the European Euro, EUR, the United Kingdom pound, GBP, the Australian dollar, AUD, the Swiss franc, CHF, and the Canadian dollar, CAD. The most common pairs of currency are referred to as majors and are GBP/USD, EUR/USD, AUD/USD, USD/JPY, USD/CHF, and USD/CAD. So, before you take a position in the market or change your current position, you should take a look at these most popular currencies to see if you are missing any thing.
7.Experts also recommend that newcomers to the forex have access to two accounts. One real account so that you can make trades and realize real losses or profits, and one demo account that you can use for practice. Use the fake account to test alternative moves, or moves that you were considering making with your real account, to view the outcome without any financial repercussions.
8.The final tip to foreign exchange market beginners is to check currency charts in one hour, four hour and daily increments. Even though you can trade in 15-minute increments, making those trades and checking the chars that often becomes time consuming and overly complicated.
January 5th, 2010 at 12:45 pm
Learn From EXPERTS! I use ZuluTrade and make pretty good money. The main thing is Money Management, test out ZuluTrade with their demo mode until you find out what is profitable AND comfortable for you. With ZuluTrade you don’t have to study or monitor the market to make a good pick, because hundreds of industry well-known expert traders from all over the world are doing it for you. All you have to do is pick the experts you like, and ZuluTrade will quickly convert their advice into live trades in your trading account directly with the broker. And the best of all, it’s completely free. For more info go to their sign up page at their website http://www.setupaccount.zulutrade.com also check out http://www.etoroforexgames.com
January 5th, 2010 at 1:17 pm
continue to educate yourself. there’s no better way to tackle the odds than continuous and dedicated education. find a mentor. you can better expedite your learning process by having someone coach you the various tricks of the trade. here is one site that can provide you free mentorship. you need to open at least a mini account to avail of the free service. they have regional offices in major parts of the world ie. usa, canada, europe, uk, australia, middle east and asia. discussions can be done live via phone, email, chat or even personal meeting if available in your area. all the best.
January 5th, 2010 at 1:41 pm
Forex can be very profitable with the correct Risk and Money management. There are many reading materials and free sites around that gives advice on Forex trading. Be it Technical or Fundamental (News) wise. Its a skill that is recession proof. Earning be it good or bad economy. Work from home etc. These are the + points.
Whereas for the – part, any investment is risky. But like i said earlier, with proper risk and money management, risks can be minimised. Its a skill that need to be honed and practiced. Good news is, you can start with a small amount of capital say 1000USD or even a demo account from various FX platform before you start the real thing.
http://blackbottleforex.blogspot.com/
Above is the link to 2 new trader. They’ve got various link for new traders and some books recommended that is worth reading. Get some inspirations from them.
Rule #1 for Fx Trading – Patience and dont get too hasty.
Hope it helps
January 5th, 2010 at 2:22 pm
My honest opinion is that if you are asking basic questions you should not be risking any amount of money you wouldn’t like to lose (no bigger than “pocket change”)
I wish I had time for a better answer but please be very careful. You can learn everything you need to know with the tutorials on investopedia.com
January 5th, 2010 at 2:56 pm
Don’t get greedy! You have to have discipline. Oanda is a good broker for me. They have excellent reviews and low spreads. Babypips.com is a great site for starters. Also this strategy is relatively good if you were looking for trading ideas.http://softwareforexreviews.blogspot.com… I’ve learned that if you have sound discipline and don’t get too greedy, you should do fine.
January 5th, 2010 at 3:41 pm
You can join forex forums. I think their members will help you. I am member of forexfactory.com, you may join them too. You may visit: http://www.imyatrader.com/ to get some good tips to be a successful trader.
January 5th, 2010 at 4:06 pm
Well! My tip is that go with an accrediated broker.
You can find such a table containing information about brokers at http://www.forexnode.com/brokers/
I highly recommend you check it out.
January 5th, 2010 at 4:17 pm
hey,
i don`t know about share markets but in forex you can have much better control when you know how to trade.And it doesn`t require big capital to start.if you want me to show you a few tricks on trading email me at pehtis68@ymail.com
c u.
January 5th, 2010 at 4:38 pm
My tip is to stay clear unless you have millions you can afford to lose.
the transaction charges are so high they eliminate most gains and add to most losses.
January 5th, 2010 at 5:13 pm
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I am working for them since August and earned more than Rs 100000 with this time.
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