Newbie to Forex?
Yarcofin asked:
I have been investing in the stock market for several years, but recently Forex has caught my eye with claims of huge profits, and I have some questions:1. Is there a site with free tutorials about Forex, the same way Investopedia.com has for stocks? Is there a Forex simulator where I can try it out using fake money?
2. What kind of initial investment does Forex require? What are the commissions/fees like if any? What is the average return (%) for most Forex investors?
3. Where/how do you open up an account? (I’m Canadian.)
4. Is it a lot more speculative/luck-based than the stock market? (A lot higher risk?)
5. I’ve heard a lot of people talking about “systems”, “software”, etc that they are charging money for. Is there any free software I can get? Are most of the people involved with Forex scam artists or are there some legitimate ones?
Thanks
Also what are these “pips” I keep hearing about?
Since nobody has answered yet I went and found a great tutorial site on my own, http://www.babypips.com. It also offers links to brokers that offer free demo accounts.
Question posted courtesy of: Caffeinated Content
Comment by Ryan
March 11, 2008 @ 6:35 am
1. forex.com has great turtorials. I believe they have a free simulator. if not them, they are out there
2. Forex does require a pretty descent size bank roll because your buying on margin, and you don’t want to experience a margin call because of lack of funds.
3. Forex.com also offers a brokerage service. I think they are the most popular
4. It’s defiantly risky. There apparently is a science/art to it, but not one I’m willing to figure out.
5. I’m not aware of any free trading systems/software other than the basic stuff you can find on Forex.com and the like.
Comment by Common Sense
March 12, 2008 @ 6:36 pm
Bottom line. Too many people and brokers make FX look like the answer to everyone’s financial needs. This is so wrong I can’t begin to explain in this short forum.
Software, black boxes and even “alert” services will kill you financially. There’s only one way to make money in FX;
1. Develop your own strategy.
2. Remember “Money Management” is more important than having the right “picks”.
3. Take at least a year to really learn this stuff before putting down one cent. Read as many books as possible, mostly on Technical Analysis and Psychology of trading.
This is not the land of “big hits” (no trading is). Position Sizing and Money Management are the most important skills you can learn.
Comment by Doc H
March 13, 2008 @ 5:48 pm
Try this,
No need to guess.
No need to buy software if you chosen to rent method no.#2
in fact, do nothing!
Comment by Vahid Chaychi
March 16, 2008 @ 11:11 am
Hi,
1- There are a lot of websites with free information about forex:
There is also a good series of videos that were used to be free but unfortunately they are not free any more. You have to pay $10 for each but it does worth. If you watch these videos, it will save hundreds of hours of your time:
Also at you can find free daily/weekly signals every night.
Almost all of the forex brokers offer free demo accounts which you can practice with the fake money. Here is a small list of the brokers with free demo account:
1-
2-
3-
4-
The first two have MT4 platform. The last two have their own special platforms.
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2- You can start trading forex with as low as $100. The leverage is 1:100 but you can also find 1:400 leverage too. If you learn forex properly, you can double a $5000 account every month and there are forex traders who make much more.
As you have been a stock traders, you will learn forex much faster and easier because 99% of the techniques are the same.
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3- For Canadians CMC Markets is the best option:
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4- It depends on yourself. You can trade wisely or you can gamble with your money and lose it easily.
There is a higher risk than the stock market because the leverage is higher.
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5- There are some legitimate ones but you don’t need them. You can easily learn technical analysis and find buy and sell signals on your own. It is not hard.
Best regards,
Vahid
Comment by andrew
March 19, 2008 @ 3:57 am
\ i have been trading forex for 5 yrs. You can make big money when your trade is on the right side . You also loose more when your on the wrong side . I made 8K in a day but i also lost 10 K in less than 3 hrs. Not for the ones with a weak heart
Comment by Andrew L
March 21, 2008 @ 8:45 am
There is a lot of answers to your questions
Comment by offsore b
March 22, 2008 @ 12:41 am
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Comment by adb
March 24, 2008 @ 7:00 pm
Hello,
I am new to Forex also, my friend who is making great money refered me to the link listed below. I like it because they do not recommend trading everyday. They will pick their spots and make money rather then putting in a trade everyday. And hoping for a high percentage.
Good Luck
Comment by Joshua
March 26, 2008 @ 11:31 am
I know a guy running a HPD and a newsletter maybe it would be helpful to you.
Comment by dear_eggie
March 26, 2008 @ 2:14 pm
Answer to question 4 :
Actually Forex charts are much better than a stock charts. The technical charts on Forex forms faster in Forex than Stocks. For a simple reson that the Forex market is open 120 trading hours compared to about 40hours of stock trading if not lower. Thats about 3 times more volume but concentraded on a few currencies. Just imagine, that kind of volume concentrated on 6 stocks globally. Now you see beauty of the Forex Market !! Just brilliant !
If you are a technical trader, charts is everything, and if you are like me you want to know what will happen next as soon as possible and Forex charts allow you to see the charts unfold in hours.
And becasue of the leverage you can bet more on a position. Unlike stocks you do not need to create another margin account everything is built in. SO for every $1 you can bet $200. So you can bet $200,000 for $1000 account equity.
And all you can lose is $1,000. But becasue the eleverage is so huge, that $1000 can go very quickly. But technically your loss is limited to $1000 without margin call !!
How quickly ? Imagine if every loss, you lose, $50. It take you only 20 trades to lose $1000. How fast is 20 trades ? Very fast.
So if your win:loss ratio is 50:50, and every time you win you win $50 and loss $50, you still lose, but takes 40 trades to lose. So when you win, you will have to win big to cover number of loses that is inevitable. And when you lose lose small.
Hope this has help you,…..