what are the essential things to know about forex trading?

by eljuc1
10 replies
Hey Fellow Warriors,

I'm looking to get into this type of business but sadly I know almost nothing about it. Is there any teaching programs that you guys recommend that are newbie free and work in this time of the market. Also, although very skeptical. Do any of the automated self trading bots actually work?

Thanks guys.
#essential #forex #things #trading
  • Profile picture of the author Alexa Smith
    Banned
    Originally Posted by eljuc1 View Post

    Is there any teaching programs that you guys recommend that are newbie free and work in this time of the market.
    Yes - there's one I recommend. It's a little "online tuition course" and it's free and pretty good, as these things go. If you work through it slowly and carefully you'll know all the basics: School of Pipsology

    Originally Posted by eljuc1 View Post

    Do any of the automated self trading bots actually work?
    In my opinion, no. There are plenty that have something like 3 months of recent results showing impressive profits. Unfortunately, though, that doesn't increase the likelihood of their next 3 months showing impressive profits. The people who make those things typically "test out" about 20 - 30 sets of parameters at a time, and then advertise for sale the one that's had the best recent results, throwing the others away. They're all effectively "backfitted", in other words.

    In Forex, automation is the enemy of profit.

    There may be people who'll disagree with that statement, but they'll all turn out to be selling something. I suspect that nobody who's been making a decent, stable, long-term living from trading forex themselves will question it at all.

    This post might help/interest you (it lists other useful resources, books, websites, etc.): http://www.warriorforum.com/main-int...ml#post4738599
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  • Profile picture of the author odohjc
    Hi eljuc1,
    Forex Trading is one business that can make you rich or at the same time make you frustrated. Some people are gurus on it and you will easily get decent training from them.

    To be able to know what to do , go to Google and search for For "forex trading". The search result will bring up many websites that will assist you in having good knowledge of forex trading.

    Just go through the learning curve and you will be the better for it. Your determination will carry you through. Since you know little or nothing on forex trading, I would not advise you at this stage to be thinking of the automated self trading bots until you go through the training. You have to walk before running.

    odohjc
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  • Profile picture of the author sfast1
    What is essential to know about forex trading is that you WILL lose.. I was a professional trader for 15 years. I had a seat on a well known exchange. While making money trading stocks, bonds and options I decided to dabble in FOREX.

    What is important to understand is that FOREX is not an exchange. This is a fundamental difference. It is not well regulated either. The promotion that they offer "no commissions" is a joke. Believe me you pay.

    In a nutshell. Forex trading is setup to make the FOREX house a lot of money. I know hundreds of professional traders and each one will tell you the same thing.

    My advise is to setup a demo account and trade that for six months with strict rules for yourself. Get a few good books on money management in trading.. all trading comes down to this..
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    • Profile picture of the author valuecreator
      you'll lose if you use leverage...

      THERE ARE a few oprators around that let you use no leverage or 2-1, and if you really want to trade forex go with these.

      But then it's generally the beauty of forex, being able to leverage 20-1 even if you're a BAM...

      sounds like it was back in 2004 in Real Estate. And the same thing happen.

      It will kill you financially... unless you let go of leverage.

      ps. don't listen to the forex salesmen, if it's so awesome, why don't they do it themselves instead of spending their time selling it to you?
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      • Profile picture of the author 4EverMaAT
        .........ps. don't listen to the forex salesmen, if it's so awesome, why don't they do it themselves instead of spending their time selling it to you?
        Why are sellers the bad guys? While I agree that the ideal teacher would practice what they preach, and that you would want to watch over their shoulder in some way; would you prefer if people who had "successful" trading experiences kept all of their wisdom to themselves?

        .....My advise is to setup a demo account and trade that for six months with strict rules for yourself. Get a few good books on money management in trading.. all trading comes down to this.....
        I think this is ok advice to get an idea of how price action works. But nothing beats diving into the markets with live money and a sound trading plan. It's much more about action than filling up with useless opinions about how the market 'should' work.
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        • Profile picture of the author Alexa Smith
          Banned
          Originally Posted by 4EverMaAT View Post

          Why are sellers the bad guys?
          Because of their upbringings, I think: they have, on average, a different perception and evaluation of the concept of "honesty" from that of many other marketers.

          Originally Posted by 4EverMaAT View Post

          would you prefer if people who had "successful" trading experiences kept all of their wisdom to themselves?
          No; I'd prefer it if they (rather than the crooks and idiots selling the automated crap that can't possibly work any better than a "roulette system") shared it liberally. For all the reasons given in this post, among others: http://www.warriorforum.com/main-int...ml#post4738599

          Since you ask.
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  • Profile picture of the author fxstay
    you can learn forex trading in forexsq.com , its the source of all forex trading sites i hope it helps you
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  • Profile picture of the author Aswad
    Dont believe in automation..keep your money management strict. That is all for fx
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  • Profile picture of the author AGP
    babypips dot com is a good place to start, gives a good understanding of fx.

    Money managment is key to staying in the game when it comes to fx, only ever risk 1% of your a/c balance per trade, with a decent risk to reward ratio 3:1, 2:1. I describe this as exchanging slaps with the market when i lose i get a slap when i win i slap the market twice.

    You could open an demo a/c on alpari and see how you get on. To learn how to be successful as a trader IMO you can only do this by learning from a trader who is actually trading for a living, as there is a hell of alot of stuff to learn, you could become a techincal trader or a discrecionary trader trade the end of day or intraday, each currency pair has its own personality at it takes time studying the charts to get to know how they behave. You need to find a stratergy that works for you test it back test it and then stick to it.

    Having the correct Mindset is also a big part as there will be times when the going is good and then the market gives you a slap, and its at these times when you can over trade and stray away from your stratergy start to gamble and lose it all. there are lots of stuff on the net that promise the world when it comes to fx my advice would be to educate yourself and only ever trade with money you could afford to lose.

    Feel free to contact me PM me if you have any questions
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  • Profile picture of the author Ryanloop
    The most important thing is learning and research!

    Forex market is changing all the time. Millions of transactions and operations are conducted over the day. Every time anything important happens in the world it influences the costs of the currencies. The whole market is changed in one moment. That is why, it is very important to learn why changes happen and what impact they make on the market. It usually takes hours of research and extensive investigation. Not every trader would like to conduct any type of research, however, it is an inevitable part of the business. You should be ready to read a lot and to learn a lot.

    Regards
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