Hi guys, I'd recently developed this craze about learning about global economic market and other things, especially the the currency market . So, just to have some experience in it, I joined this website howthemarketworks.com and started trading with virtual money. The first day I made around $90, and the second day i went into a loss of $400. The next day I managed to make a profit of $1400. I was really delighted and thought i was learning something. I was investing around $10-50k. I know I won't be able to invest that much money My first question is- What is the minimum investment for forex trading? Do i need huge amounts or i can do with small amount as well? Second question- Is the real forex market somewhat similar to the virtual world? Third- I'm an Indian. Am i allowed to trade?
hi as for the minimum - you can find forex firms that will let you trade with 100$ only.. but if you want to succeed you will need 20,000$ account at least.. (sure, everybody will tell you it is BS and you can go rich in 30 days with only 2000$ account, well it is half true, the one who will get rich is the broker... ) most people choose to live dreams when it come to forex/trading and ignore advices they dont want to hear, but as it is my main income I will give you my 2 cents - hopefully you will gain something from it. 1. stop doing demo/virtual trading now. it is worthless and make you develop real bad trading habits. 2. real trading has slippage and order flow, which mean you dont get the price you wanted and you dont get the price at all sometimes, if 100 people want to sell for a certain price, and you are 101st in line so you have to wait to be filled, if it for entry its bearable, but imagine you want to close a bad position and you get filled 5-8 pips above it (the you have 50-100$ bigger loss than you planned..) 3. forget about forex - it is very risky and your money isnt safe. go for futures, you can trade currencies with futures too. 4. forex fee is usually 2-3 pips (20-30$) - futures fee is about 5$ 5. futures account are insured and are segregate - means if your broker gone your money is still yours.. 6. trading is easy - the psychology part is what make only few profitable! 7. is a journey and not a trip - prepare your self for 4-6 years of hard work and patient, or you can gamble and call it trading about the fact you are an Indian, I am not sure, but India has a big stock exchange so I guess you are allowed to trade but you will have to declare profits and pay taxes - but make sure to ask a professional in your local city! Good luck, Kobi
I trade live everyday. I use robots. Some win some lose. Always demo first. Another tip is watch the news everyday.
Trading needs a lot of proper education. Know about the basic of how it works before you jump into robots or forecast. I would say robots will never work (at least for long term) Invest your time/money learning from professional is essential. How do you know if the person you learn from is real? 1. The person will tell you the most important part in trading is control your risk and psychology of trading. Not how to predict where the market will go. 2. The person will ask you to find out your own personality and design/find a system that fits you. 3. The person will never complicate the process of trading because the more simple system you trade the more likely you will succeed. 4. They usually will encourage you to trade for longer term timeframe chart because it's more accurate and spread will never be a problem. But not necessary, it depend on your trading plan. Certainly trading is not for everyone but it is the best "job" if you can master trading. So invest more in education and not just jump into overhyped products. There's no shortcut in trading successfully. You should always start with demo account, so you can get familiar with everything and test out your system and plan. The downside is the psychology because you are not trading with real money then you can easily ignore your discipline and simply trade around. But if you are serious in trading, you need to treat demo as real account and trade according to your plan. And the spread is definitely different between demo and live account. As for starting capital, you can easily find brokers that accept $200 or less around now. You can trade micro-mini lots which 1 pip = 1 cent (if you trade against USD pair) With this you wont risk too much and get the feeling of trading real market. Better than demo account. I'm not sure with India, I guess you have to ask local traders in your country. Hope this help.