| » Main Discussion Forums » Beginners Forum Think you might want to try trading? Want to ask a question but worried about saying something silly on the main boards? This is the place where you can take the first few steps in safety. |
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02-21-05, 06:42 PM
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Forex Newbie Reporting!
I have no experience in FOREX or in trading in general. In fact, I'm only a 20 year old college student with no cash hehe. A friend of mine inspired me to connect to a demo account and play with the interface in hopes I would become more interested. Well, I've learned a lot in the last 24 hours of playing with the demo and now I must admit I'm very surprised.
I've had a pretty good night with an additional 3,500 in cash from trading. My concern now is that it seemed all to easy. I've simply been monitoring the highs and lows as well as the weekly charts for long term investment trends. Other than that, it has been scalping for a few hours here and there. At this rate I'd be a millionaire in a year with little effort. So can I expect huge fluctuations in the market to alter the trends that have been the key to my success? If so, how do I identify them and interact with them in order to stay ahead of it all and maintain my success. I'm looking more towards specific sources of information. Thanks  Chris. 
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02-21-05, 08:43 PM
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Re: Forex Newbie Reporting!
Chris,
Yes, you can make a lot of money in this business. You can also loose a lot. The real secret to making money in Forex, like most trading, is money management. It's not a question of whether you will loose money, just when and how much. The best advice is to control your risk (or exposure). You can do that by determining how far a trade goes bad before you feel you need to exit. A rule of thumb is about 3% of your equity, but that really depends more on the style of trading you are doing. So if you had $10,000, you would exit a trade when it lost $300. As far as indentifying and interacting with trends...well...that's more of a personal thing, like finding a spouse. Everyone has their own opinion about what's the most important thing. The main thing is to find what works for you. Become a student of the market. Find out WHY you made money. And when you loose, what did you do wrong. Read what other's are doing on this site. There is a wealth of information for free right here. But above all CONTROL YOUR RISK. Treat it like a business and you may make a lot of money. Treat it like a gambling casino and you will loose your shirt (pants, shoes, car, scholarship). Demo trade for a while (like till the term's over), save your money and open a mini account ($500-$1000). Take your time and trade the same as you did with your demo. Don't try to make a million in a year...what's wrong with 4-5 yrs? See if you can make enough to pay a school bill? Set reasonable goals. And if you can persist in this business...you WILL make money! Enjoy the journey! Gary
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02-21-05, 09:38 PM
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Re: Forex Newbie Reporting!
Thanks Gary for that bit of motivational information
 I've been reviewing the forum as you've said and have stumbled accross many warnings to new guys rather than much information reinforcing the positive aspects of it all. So thanks again.
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02-24-05, 07:45 PM
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Re: Forex Newbie Reporting!
If it's motivation you're seeking, read Market Wizards and/or The New Market Wizards. Both are compilations of interviews with some of the best traders of our time. Great for inspiration and education.
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02-25-05, 04:05 PM
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Re: Forex Newbie Reporting!
Quote:
"In fact, I'm only a 20 year old college student...." "Well, I've learned a lot in the last 24 hours...." "I've had a pretty good night with an additional $3,500 in cash from trading." "My concern now is...." Ha! Dude, you have CONCERNS??? At the rate you're going you'll be one of the best fx traders in the world! Keep doing what you're doing! Best regards, fx
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