Fresh in Forex

[mikewong]

Dear all,

It's my first time posting here. Just want to take this opportunity to introduce myself. My name is Mike and i've just been in forex for 2 weeks.

I like to know from all the experienced and successful traders here what would be the initial stage of learning and doing in forex investing.

I've got a demo account for about 2 weeks and have been trading actively. The last 2 weeks i've got 2 margin calls, some large gains , some big losses but the account has yet to blow up.

Anyway, after the first 2 initial weeks of demo trading, I've got some questions. I've not been to a seminar in forex although i've gotten the really basic stuff covered. I don't have access to any mentors as well.

I really want to get my hands dirty and really understand how trading works and how i can turn in profitable consistently. here goes,

1) Trading wise: I'm sometimes lost not knowing what I want to do, not sure what position i want to take even with news and looking at the charts, I feel I need the initial education in knowing what to do next. How to determine a trend, when should i get enter / exit and why?

2) Education: I'm always a supporter of learning by experience and not just reading. Although doing is important, but i like to know what books, courses (budget ones), and other reading materials should I be considering to balance the demo trading work I'm doing at the same time.

3) Pairs: There are like 25 currency pairs and as a beginner should we just focus on one pair or look at a few that links to each other to get a better understanding?

Basically, as a beginning what are key things to focus on while learning and at the same time trading demo in the FX market?

Any comments and opinions will be greatly appreciated. Thanking you in advance,
cheers,

Mike

[Norman1]

Hi Mike,

I'm sorry I don't have the time to answer all your questions in a full and detailed manner. It would take a lot of typing to answer your questions properly.

Firstly, you need to work out how much time you have to trade on a daily basis. Do you have a fulltime job? or can you devote most of your time towards trading/learning. This together with your psychological make-up, will determine what timeframe you will be best suited to trading. (e.g from a daily chart, monthly chart or 1 min chart).

Secondly you need to find a system. You can initially begin by trading systems freely available in forums or on the net, this will give you good practice and early experience at forex trading, whilst you find your own system that suits you. (This can take many years).

Lastly, you need to study money management. By what you've said about your demo trading, this needs urgent attention. You should not be getting a margin call after 2 weeks on a demo. There is loads of information on this forum (try doing a search) and the web. To start with try not risking more than 2% of your account on any single trade.

Hope this helps, If you get stuck on a particular subject and need some help, feel free to pm me, I'll get to it when I can.

[fxallien]

Welocme to the wild west of trading