20k given to me as business start up: need help

[darius2381]

I was just given 20000 dollars to start up a business. I've always wanted to be a day trader, but i don't want to trade stocks. I also don't have time to sit in front of the computer all day watching the screen. I am going to form a "LLC" for my trading business, thats the easy part. The hard part, i need to learn how to swing trade the forex market. any advise would be of assistance. I have pretty good knowlege of tech ana(candlesticks ma's ema's). maybe someone can tell me about a swing trading system for the forex that already exist or give me advice on construction my own. thanks all.

[mahras]

Let me give you one piece of advise: Put that 20K in the bank and forget about it.

Yes it may seem harsh but you are in no position to trade yet. Trading is not easy. If it was easy all traders would be rich. 95% of traders blow up. I suggest learning and observing the markets for a period of months, getting youself a small demo account (some places let you open for 500 bucks), learning about trading psychology, trading in a successful method. And then after 2-3 months of consistency is a variety of market conditions (chops, ranges, trends) you MAY be profitable if you trade that 20K.

Of course dont take my advice if you are willing to give up that 20K. Just some advice.

[TommyT32]

I would say trade a demo account at least six months then open a mini account with 1000.00 it is not as easy as it looks.

TommyT

[foamgod]

I recognise that rebellious streak in him. He won't believe you guys. I was like him too. Let him blow his money like I did, then he may learn.

[fairwind]

Hi darius,

Welcome to MoneyTec forums. You have recieved good advise so far, believe it !!

My advise is to focus on study of the market, look at Fundamental as well as Technical Analysis. There is a huge lot of detail to get through. Give yourself the time, as long as it takes !! Then start to look for a strategy that makes sense to you. If you do your homework well, you will try out dozens if not hundreds of idea's for a strategy.

Where do you start? Right here in these pages. Ask any question that occurs to you at any time. No question is "too silly" or "too ignorant" etc. All questions will get good replies. Search and read all these threads, you will soon find the answers you are looking for.

Decisions to be made are:
Will you trade intraday, intermediate over a few days, or longer term trades?
Will you trade demo standard or mini?
Will you focus on FA and TA or just one of these?
Will you use a small live account to practice with or jump straight in with 20k?
Which broker will you use?

These are only some of the many, many questions that you will have to find answers for. Be aware that some of us have taken many years to get to a successful trading style ( 3+ yrs for me ). Others take to FX trading like a duck to water, but they are rare. Take the 'cautious horse' approach rather than the 'bull at a gate' approach and you get there in the end.

Finally, the idea of "Trade only that money that you can afford to lose", is a good attitude to have.

Hope this helps a bit............

[Milton]

Trading is not a rocket science, you can learn in but have to give what it takes to be a successful trader. As told by others, trade a demo using some entry exit strateties, you will find lots of them on moneytec. Even on demo keep strict money management and risk control.

Overcoming human emotional barrier can not be practiced on demo, you have to trade a real account to feel and fight them. These are fear, anger, greed and impatience. But you have to overcome them to have a glorious success.

Have a great luck!

[foamgod]

One good way to jump start the crippling of your account is as follows.

1st month: Play NFP (double your account. WOW, I AM A GENIUS NOW!!)

2nd month: Play NFP again (40% gain.. well, I AM still a genius just that.. hey, how many even get close to 40%?)

3rd month: Play NFP again (I am GOD. Say... long-short-long-short-long.... ok, I will go long. Price goes up up up up up then suddenly down down DOWN. BUSTED. OMG, I lost everything I made the last 2 months in 1 night. If not for the margin call, I might even need to give them my pants.)

---

Ok, someone lend me 20k. I know I am good, I just need to go short next time.

[trader47]

hi and welcome,

Belive me all the advise you have gotten is sound asince coming to this forum andtrading a mini demo account. I have decided to get some education and traning from an independent source. it would be well advised to put a little of that money into education.
happy trading