Why Forex?

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Unreal

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There are many people who say Forex is far too risky yes they say it works but drawdowns are far too large over time you will be left with what you made or even under. So, they say its better to invest in physical products as they always will contain value like gold, silver, precious metals, products, rather than investing in currentcy. Although, I love the idea of trading forex and making a full time income is anyones dream.
 
Trading twenty-four hours daily, in foreign exchange, assure market liquidity with the availability of willing buyers and sellers of any foreign currency, (EURO, JPY, GBP and CHF) at any rate. Margins for trading do not have maturity. Foreign currency buying or selling may be terminated at client's option at any time and for any reason.
 
Unreal said:
There are many people who say Forex is far too risky yes they say it works but drawdowns are far too large over time you will be left with what you made or even under. So, they say its better to invest in physical products as they always will contain value like gold, silver, precious metals, products, rather than investing in currentcy. Although, I love the idea of trading forex and making a full time income is anyones dream.
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Forex is the fastest way to make money or lose money.............If you you are very independent then forex is the way to go,........
 
Forex trading is difficult because it is unregulated. Any broker can hit your stops and you have no grounds for dispute. I have heard horror stories. I have also lived horror stories. Stay away from retail forex. if you want to speculate on currencies, you can use ETF like FXE.
 
Isnt selling products or providing a service not more beneficial than the forex. It seems to me people say forex is the holy grail of money making schemes.
 
I often wonder why so many new punters go straight for forex. Something like index futures is so much simpler.
 
trader_dante said:
The same reason that punters go for anything. Because its pushed at them through intense marketing.
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True enough. It's strange though. For example, it would be perfectly possible to make good money on say YM or NQ with just patience, a 15 minute chart, and the methods outlined in your thread. With a bit of lateral thinking you could use those same principles to significantly increase the number of trades (there's more than one way to play a reversal signal after all).

But no, it's always "Make 500 pips per day trading the FOREX (Wow! Sexy!) markets!!!!" blah blah blah.
 
Another reason may be that Forex often requires a very small amount for account opening
 
Blaiserboy said:
Another reason may be that Forex often requires a very small amount for account opening
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True, but in the UK for example you can spread bet futures contracts. IG have a version of YM, NQ, ES etc, and personally I haven't noticed any hanky panky going on. Spreads are a little off-putting of course, but not totally unreasonable.
 
Pazienza said:
True, but in the UK for example you can spread bet futures contracts. IG have a version of YM, NQ, ES etc, and personally I haven't noticed any hanky panky going on. Spreads are a little off-putting of course, but not totally unreasonable.
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I have no knowledge of spread betting, certainly it is not marketed as is Forex, perhaps the SB firms need a lot more capital.
 
Blaiserboy said:
I have no knowledge of spread betting, certainly it is not marketed as is Forex, perhaps the SB firms need a lot more capital.
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Maybe it's not allowed in Canada? It's certainly not legal in the US.

Basically, you're betting on price movements instead of trading the underlying. You bet simplicity, total granularity, and tax advantages. Against is wider spreads and possibly some monkeying around, although I can't say I ever had a problem with IG.

That said I suppose there's probably much greater scope for said monkeying when it comes to forex rather than futures, and I've never really done forex in a serious way.
 
I think IG is the name of a broker.?

I have not had any trouble with forex brokers to date and I have made a lot of trades over a few years.
 
Blaiserboy said:
I think IG is the name of a broker.?

I have not had any trouble with forex brokers to date and I have made a lot of trades over a few years.
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Yeah, there's IG Markets (CFD broker) and IG Index, the spread betting side. People will tell you all kinds of horror stories about SB companies, and there probably are some bad ones, but I never had a problem. The occasional bit of slippage too far, that kind of thing, but not very often. The main thing against it is cost, although spreads have come down in recent years.
 
Pazienza said:
That said I suppose there's probably much greater scope for said monkeying when it comes to forex rather than futures, and I've never really done forex in a serious way.
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Plenty of monkeying in forex, but nothing to go ape over.

Peter
 
"Forex trading is difficult because it is unregulated. Any broker can hit your stops and you have no grounds for dispute. I have heard horror stories. I have also lived horror stories. Stay away from retail forex. if you want to speculate on currencies, you can use ETF like FXE.", guess what?, i use no stops and no limits so in any case there will be no discussion at all, forex is exciting of course, but if you have learnt it and understood the way to trade and made up a trading method and you have a plan B for any case, you can make some bucks.
Horror stories?, it depends, a specific pair hopping up and down far than 200 pips in a matter of seconds?, i have seen it, so make your calculations regarding how much you can invest in a safe way at each position and how many positions you can be at, at the same time, it is called "money management".
I am not affraid if i have a position losing more than 200 pips, if i know its a bad position i just close it and follow the trenf to where ever it can go.
 
intradaybill said:
You are probably an exemption to the rule.
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Exception pal?, i dont think so, i guess its simply because i have made what i have to do to make a system that really works.
I have lost, of course, we all have, but i have not remain sitted crying for my disgrace, each time i have lost i have analyzed the whole situation and found out what was wrong, if it was me, what i did wrong, if it was the market then i have simply taken in consideration that new variant and each time a new variant shows up i consider it into my trading model.
 
Some time ago i had an very interesting argument with another member of these site, ForexKunta, i rmember he said "markets are predictable" and i replied "markets are random", after some time i can tell you he was rigth and so do i, everything depend on the TF, so if you want to win learn to predict the markets to find trends.
Another funny thing i have found a lot of times is that most people makes "wonderful 30 pips", into a 500 pip trend, in those cases wonderfull would be to get the whole 500 pips but there will be no way to make it unless you learn to follow a trend, to do that you have to learn to predict the markets, to do that you have to learn to use and read indicators and apply PA into your favor.
Its not easy, its a whole challenge but its worth, believe me.
 
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