Singing Pig

An old friend of mine (I mean old) has just paid over a Thousand Pounds for a program called FX Trainer. He was informed by his sponsor who has since quit the program that he would be able to trade successfully on the FX markets. This guy is sooo computer illiterate that he would find it nigh impossible to execute any online trades. He asked me to trade for him and he was actually willing to let me use his account. On inspecting his website I discovered that his initial investment did not even entitle him to any charts. FX Trainer suggest you paper trade with a $50,000.00 demo account and attend regular online training before you actually trade for real (they suggest 3/4 months).

Forex (Foreign Exchange) can be confusing. There are loads of charts and indicators available, mostly for free. Best thing to do is go to http://www.spreadtrade2win.com/forum/ There is stacks of info on Forex trading.
 
Most Forex traders spread bet. You can set up a demo account to practice at http://www.capitalspreads.com/
 
I definately do not advise anyone pays for programs. There isn't a program out there that can accurately predict the markets - too much human emotion involved.

Does anyone have recommendations on good FOREX books that can get one started?

Hi Guru

It really depends how you want to trade, do you want to scalp, swingtrade, day trade, or trade medium to long term, do you want to trade using technical analysis or using fundamentals.

The key to successful trading is to formulate a trading strategy, stick to it like glue!!! do not, I repeat do not deviate from your plan (and I am as guilty as the next man for this) do not try to second guess the market and as well as your trading plan, you will need excellent money management skills. I would look for books on amazon that provide simple entry/exit strategies, then concentrate on the emotional and money management side of trading. Go on the www.FXCM.com and read the threads from the guys who actually trade, you can pick up alot from them, and there are some big players in the market on that forum (there is also alot of bull!! but its a good start

I can recommend one book The disciplined trader by Mark Douglas, once you get through the waffle (you have to read it several times) it has truly changed my way of thinking over how and why I trade, I have found this to be the biggest barrier in successful forex trading

hope this helps

 

 

There are a number of rules that need to be broken before being mentally prepared to take trading seriously, like trade more than 10% of your bank at any time, forcing trades, second guessing trades, not using stop losses, not trailing your stop loss etc.

After 2 months of breaking every rule and bit of advice I'd read/been given, I'm finally settling down to steady trades. I'm making money but the main thing is I'm now doing it consistently, loosing consistently too, but consistency means there is no erratic trading going on, so I'm sticking to my plan.

A trading plan, similar to a business plan has helped me stay focused on my trades and stopped me from being irratic. I have three strategies, one is technical, one fundemental and the third a combination of the two.

A simple strategy is to place a long and short trade at the same time 5 minutes before a major news anouncement (study the Economic Calender to pick the important announcements), set a stop loss on each at 10 pips and then wait to see how the market reacts. One will stop out, one will go to profit. Nothing too stressful, most people don't trade news as there can be huge uncertianty in the movement of the market but it's just a simple hedge that takes away from the chart gazing and false entry signals.

A couple of sites that helped me learn are:

Forex 101 with these guys is a great introduction www.babypips.com (funny too!)

The MoneyTec forum www.moneytec.com

Currancy Trader Magazine www.currancytradermag.com

Trading Strategies www.trading-strategies.info

Trade2win www.trade2win.com

 

Happy Trading!

 

Russ