Complete Newbie looking to start

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Old Jan 3, 2010, 2:24am   #1
 
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Joined Jan 2010
Question Complete Newbie looking to start

Hello

This is my first post, just looking to get some advice. In the near future (within this year) i will be coming into some money, approximately 20k but maybe more.

A bit about me, i'm 19, currently an IT student and i finish my course this year around Easter time.

I've always found ways of making money and had a business / investment side to me and now i'm finally coming into some money i want to do something with it unlike most people my age who'd simply blow it!

Someone i know left work to start as a forex trader and is doing relatively well for themselves - but they had a lot of help from someone with a huge amount of experience.

My thought is this, I'd like to learn as much as i can about forex trading and practice using demo accounts till around easter time, then hopefully i will have learned enough to invest a small amount of money in and see what happens. I'm not going to shove 20k in an account and hope for the best - before anyone tries to accuse me of that

I'm just looking for some advice, where to start, what options are good, good platforms etc. I did try a demo account on IG markets for two weeks and managed to double my starting money but that was mostly due to sheer luck and guesswork if i'm honest.

I did read a thread about books / articles to read and whilst i will definitely have a look through those, there were just such a vast number to choose from, so if anyone could maybe advise on something a bit more specific then that would be helpful.

Thanks
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Old Jan 3, 2010, 4:47am   #2
Joined Feb 2009
Re: Complete Newbie looking to start

Hi,

Well, the best thing you can do is get together a methodology of what markets you would like to trade, and getting some money management skills. To do this, its inherent that you backtest a strategy (using patterns and/or indicators).

Once you have done this and happy with the potential win rate, should you go ona nd forward test (actual trading) with conservative money managment.

Kind Regards

V!P
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Old Jan 3, 2010, 12:05pm   #3
 
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Re: Complete Newbie looking to start

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Originally Posted by investme View Post
My thought is this, I'd like to learn as much as i can about forex trading and practice using demo accounts till around easter time, then hopefully i will have learned enough to invest a small amount of money in and see what happens. I'm not going to shove 20k in an account and hope for the best - before anyone tries to accuse me of that
Good man!

Demo with Alpari.co.uk (download Metatrader). Learn to use the platform. Risk only 1% per trade and if you can double the account, you're on to something. Then deposit £200 and trade at 5p/pip when you think you have something. If you can turn that into £400, then you may have something.
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Old Jan 3, 2010, 12:34pm   #4
 
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Joined Nov 2009
Re: Complete Newbie looking to start

I, myself, am also new to SB!

I placed my first trade back in October and lost several hundred trading the Gold...bad mistake. Lesson definitely learnt.... the hard way!

I'm currently writing my trading plan, which involves identifying the most successful, consistent and profitable trading techniques. I'm backtesting MACD, stochastic and RSI over a one month trading period on a 15 min time period. I will then use a demo account (TradeFair- fresh with the £10,000 they let you play with) and test my plan until I achieve 40 successful trades. Of course there will be changes along the way, and im expecting this to take several months. After this I will deposit an amount, say £500, into a live account and then trade using £5p/pip. Unfortunately I haven't the luxury of coming into £20000 haha!

Let me know your thoughts peeps!

Peace out ;-)
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Old Jan 3, 2010, 12:50pm   #5
 
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Re: Complete Newbie looking to start

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Originally Posted by Seanyboy123 View Post
I'm currently writing my trading plan, which involves identifying the most successful, consistent and profitable trading techniques. I'm backtesting MACD, stochastic and RSI over a one month trading period on a 15 min time period. I will then use a demo account (TradeFair- fresh with the £10,000 they let you play with) and test my plan until I achieve 40 successful trades. Of course there will be changes along the way, and im expecting this to take several months. After this I will deposit an amount, say £500, into a live account and then trade using £5p/pip. Unfortunately I haven't the luxury of coming into £20000 haha!
Well, definitely, take it slowly. The markets will always be there.
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Old Jan 3, 2010, 12:57pm   #6
 
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Re: Complete Newbie looking to start

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Originally Posted by Seanyboy123 View Post
£5p/pip.
?
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Old Jan 3, 2010, 5:54pm   #7
 
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Joined May 2007
Re: Complete Newbie looking to start

Quote:
Originally Posted by Seanyboy123 View Post
I, myself, am also new to SB!

I placed my first trade back in October and lost several hundred trading the Gold...bad mistake. Lesson definitely learnt.... the hard way!

I'm currently writing my trading plan, which involves identifying the most successful, consistent and profitable trading techniques. I'm backtesting MACD, stochastic and RSI over a one month trading period on a 15 min time period. I will then use a demo account (TradeFair- fresh with the £10,000 they let you play with) and test my plan until I achieve 40 successful trades. Of course there will be changes along the way, and im expecting this to take several months. After this I will deposit an amount, say £500, into a live account and then trade using £5p/pip. Unfortunately I haven't the luxury of coming into £20000 haha!

Let me know your thoughts peeps!

Peace out ;-)
£500 @ £5 a pip. Account will be blown in no time. Try to learn a bit more first. Take a look here. http://www.babypips.com/school/
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Old Jan 3, 2010, 6:15pm   #8
Joined Nov 2008
Re: Complete Newbie looking to start

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Originally Posted by Tenapenny View Post
£500 @ £5 a pip. Account will be blown in no time. Try to learn a bit more first. Take a look here. http://www.babypips.com/school/
Agreed, do the IG trade sense programme, start of with ten pence bets, build it up to 50p after 6 weeks. I think you can stay on 50p on forex for a few months thereafter...can't honestly think of a better way to attempt to learn the trade with real money...
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Old Jan 3, 2010, 9:35pm   #9
Joined Oct 2008
Re: Complete Newbie looking to start

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Originally Posted by investme View Post
Someone i know left work to start as a forex trader and is doing relatively well for themselves - but they had a lot of help from someone with a huge amount of experience.
A correct education in this field is very hard to come by. You are extremely fortunate indeed if you are taken in hand and shown everything correctly by one of the few who are truly proficient.

It is possible to learn without such assistance of course, but it is a route open to the very special few. I am sorry to have to tell you that you are unlikely to have the levels of awareness required to self generate the correct thought to progress. It will become clearer to you when you have more life experience.

It is unlikely that a truly proficient trader would wish to mentor someone of your age. If you are truly interested in this profession, I suggest that you look for jobs within the industry which will give you exposure. Think of learning rather than earning at this stage. In the future you may find a mentor - focus on finding work within the industry and learning all you can.

I do not recommend that you think of actively trading your capital. You have an opportunity to save and invest it wisely so it is available to you when the right circumstances present. When I started trading I supported myself from savings for almost three years before I was ready to trade live. During this time I worked almost all day every day developing my understanding of the markets.

If you are fortunate enough to find a mentor later you will be very pleased to have £20,000 or more to support yourself when you are learning to trade, and through your paper trading also.

I recommend that you do not take any heed of the recommendations made to you on this thread which involve treating trading as a hobby, opening betting accounts, "starting small" when you should not be starting at all, etc. If you wish to have a hobby this is a poor one to pick. More or less all hobbies will cost you money, but you will receive nothing enriching by losing money in the market as a hobby.

I am sorry that this is not the response you would like to hear, but it is an honest one given with the benefit of experience (and dare I say from someone older and perhaps wiser). If you wish to succeed in this profession you have been given a frank and honest start.

I trust this assists you, to your benefit and my satisfaction.

Very kind regards
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Old Jan 3, 2010, 10:04pm   #10
Joined Nov 2008
Re: Complete Newbie looking to start

alternatively you could ignore Nicorette's *advice* above and just give it a go...
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