Advice for a trading novice

[vettelsfinger]

Hi All,

I have recently decided to try to start and make money on the side of my regular income. I used to have a stock investment account investing in AIM shares which was unsuccessful to say the least, yet I miss the excitement of being in control of my own financial destiny! I think that trading rather than traditional investing will offer me a greater chance to learn and ultimately achieve my goals.

I have done some initial research and I am amazed by the amount of different trading opportunities and systems that are out there. I am having trouble choosing which platform/asset/strategy to focus on.

It would be good to hear your views and experience on how you have chosen your particular trading strategies etc... I am new to the concept of actively trading and feel it could be lucrative if I take the right approach and advice!

Thanks
Tom

 

[darktone]

It would be good to hear your views and experience on how you have chosen your particular trading strategies etc... I am new to the concept of actively trading and feel it could be lucrative if I take the right approach and advice!

Thanks
Tom

Hello Tom and welcome to T2W.
Im keen to hear how newbies view this http://www.trade2win.com/boards/discretionary-trading/180396-keeping-things-simple.html have a scan through and let me know what you think. Most importantly that ive made it understandable. Feel free to ask questions btw.
Cheers
D

 

[NVP]

Hi All,

I have recently decided to try to start and make money on the side of my regular income. I used to have a stock investment account investing in AIM shares which was unsuccessful to say the least, yet I miss the excitement of being in control of my own financial destiny! I think that trading rather than traditional investing will offer me a greater chance to learn and ultimately achieve my goals.

I have done some initial research and I am amazed by the amount of different trading opportunities and systems that are out there. I am having trouble choosing which platform/asset/strategy to focus on.

It would be good to hear your views and experience on how you have chosen your particular trading strategies etc... I am new to the concept of actively trading and feel it could be lucrative if I take the right approach and advice!

Thanks
Tom

hey there V.......

Take a look through the beginners section of T2W and go from there...

take your time .....its a marathon and not a sprint

N

 

[vettelsfinger]

Hello Tom and welcome to T2W.
Im keen to hear how newbies view this (keeping things simple) have a scan through and let me know what you think. Most importantly that ive made it understandable. Feel free to ask questions btw.
Cheers
D

Hi darktone,

unfortunately the link does not work for me, could you repost it so I could have a look?

Thanks

 

[darktone]

Hi darktone,

unfortunately the link does not work for me, could you repost it so I could have a look?

Thanks

Ooops, I dunno what i managed to do there! Should be working now. If you still have trouble its in the Discretionary Trading section.

Cheers
D

 

[neil]

hey there V.......

Take a look through the beginners section of T2W and go from there...

take your time .....its a marathon and not a sprint

N

Heed NVP's words above.
It will take a long time and you may be one of the very, very few, that emerge as a profitable trader.

 

[vettelsfinger]

Thank you for all of the advice, I have a long journey ahead! I have had a look at a few things so far but keep getting confused by the sheer volume of different options out there. The only thing that I have decided so far is that I will not have the time to dedicate to it that some of the strategies or techniques require.

It would be good if somebody could do it for me (but I suppose that is cheating!) I am interested to know what each of you did for your first steps into trading and the platforms and assets that you used.

Thanks
Tom

 

[vettelsfinger]

Darktone

Ooops, I dunno what i managed to do there! Should be working now. If you still have trouble its in the Discretionary Trading section.

Cheers
D

Hi Darktone,

is it the keeping things simple thread? before looking at particular strategies I suppose I need to decide upon an asset, Do you feel this strategy works across all assets? I notice that it finished profitable anyway I will look into this once I get the basics sorted...

Thanks for the heads up
Tom

 

[darktone]

Hi Darktone,

is it the keeping things simple thread? before looking at particular strategies I suppose I need to decide upon an asset, Do you feel this strategy works across all assets? I notice that it finished profitable anyway I will look into this once I get the basics sorted...

Thanks for the heads up
Tom

Yep thats the one. The method should be applicable to any instrument in any timeframe imho. The best candidates in general would be something that you feel trends well, with small spreads/costs.
Its success is very trader dependant, the main focus being keeping losers small, and following price rather than predicting it.

If you have any questions just ask in the thread. No such thing as a silly question imo.

Cheers
D

 

[Hate2Lose]

Hi All,

I have recently decided to try to start and make money on the side of my regular income. I used to have a stock investment account investing in AIM shares which was unsuccessful to say the least, yet I miss the excitement of being in control of my own financial destiny! I think that trading rather than traditional investing will offer me a greater chance to learn and ultimately achieve my goals.

I have done some initial research and I am amazed by the amount of different trading opportunities and systems that are out there. I am having trouble choosing which platform/asset/strategy to focus on.

It would be good to hear your views and experience on how you have chosen your particular trading strategies etc... I am new to the concept of actively trading and feel it could be lucrative if I take the right approach and advice!

Thanks
Tom

Hi Tom,

I have lots of friends who trade (as well as being full time myself). I’ve noticed that some people tend to have a good grasp of certain markets (e.g. some are natural FX traders, others very intuitive when it comes to equities). I think trading is more an art than a science, but that’s not to say it’s not a good idea to be scientific with your trading strategy!

My biggest lessons were learning to take a loss. Always cut your losses, run your profits. And be prepared to make mistakes. Lots of them. Nobody learned anything by taking a profit!

There are SO many FX brokerages out there, it’s a minefield. There seems to be a new one each week. I would suggest sticking to the most established and biggest. I use CFDs mainly, some spreads and FX. Have a look at the following:

IG Markets (good technology, market leader in SB and CFD in the UK. DMA.)
FXCM (straight through processing, so theoretically they give you decent execution – they advertise no dealing desk. They have slightly wider spreads, but it can work out cheaper if your fills are better)
Accendo Markets (you get to speak to a human, lots of assistance with your trading. Same platform as IG. DMA)
LMAX (DMA of sorts with FX. Not used myself, but have heard people mention)

 

[vettelsfinger]

Hi Tom,

I have lots of friends who trade (as well as being full time myself). I’ve noticed that some people tend to have a good grasp of certain markets (e.g. some are natural FX traders, others very intuitive when it comes to equities). I think trading is more an art than a science, but that’s not to say it’s not a good idea to be scientific with your trading strategy!

My biggest lessons were learning to take a loss. Always cut your losses, run your profits. And be prepared to make mistakes. Lots of them. Nobody learned anything by taking a profit!

There are SO many FX brokerages out there, it’s a minefield. There seems to be a new one each week. I would suggest sticking to the most established and biggest. I use CFDs mainly, some spreads and FX. Have a look at the following:

IG Markets (good technology, market leader in SB and CFD in the UK. DMA.)
FXCM (straight through processing, so theoretically they give you decent execution – they advertise no dealing desk. They have slightly wider spreads, but it can work out cheaper if your fills are better)
Accendo Markets (you get to speak to a human, lots of assistance with your trading. Same platform as IG. DMA)
LMAX (DMA of sorts with FX. Not used myself, but have heard people mention)

Hi Hate2Lose,

A good run down of brokers there to get me started. I actually opened an IG markets demo account to get familarised. I have also had recommendations about them from others in the past.

In regards to your trading, is there a reason why you mainly use CFD's? does it just provide a better fit to your strategy?

I am going to stick with currencies as I think this fits in better with my interest in world events and provides the liquidity out of hours which is when I am likely to trade. I am looking at all possibilities with this and aim to provide an approach that provides a basis for me to learn and grow upon.

Thanks for your input!

Tom

 

[neil]

Hi Hate2Lose,

A good run down of brokers there to get me started. I actually opened an IG markets demo account to get familarised. I have also had recommendations about them from others in the past.

In regards to your trading, is there a reason why you mainly use CFD's? does it just provide a better fit to your strategy?

I am going to stick with currencies as I think this fits in better with my interest in world events and provides the liquidity out of hours which is when I am likely to trade. I am looking at all possibilities with this and aim to provide an approach that provides a basis for me to learn and grow upon.

Thanks for your input!

Tom

Some info. to start you off.

http://en.wikipedia.org/wiki/Contract_for_difference

http://www.investopedia.com/articles/stocks/09/trade-a-cfd.asp

 

[Hate2Lose]

Hi Hate2Lose,

A good run down of brokers there to get me started. I actually opened an IG markets demo account to get familarised. I have also had recommendations about them from others in the past.

In regards to your trading, is there a reason why you mainly use CFD's? does it just provide a better fit to your strategy?

I am going to stick with currencies as I think this fits in better with my interest in world events and provides the liquidity out of hours which is when I am likely to trade. I am looking at all possibilities with this and aim to provide an approach that provides a basis for me to learn and grow upon.

Thanks for your input!


Tom

I use CFDs as the majority of my trading is short term equities. Accendo and IG offer DMA, which is important to my trading – I know the pricing is spot on, although I pay a commission.

Considering your interests, it sounds like FX is a sensible choice. Look for an ECN or straight-through processing solution – my friend swears by it.

Good luck!

 

[pro_fx]

I suppose you should go for forex trading. That gives more profitable ways of gaining money ofcourse with the same amount of risk. Even then profits also in same manner. Some of the forex brokers you can do Fx trading with are:
Greenvault Fx: http://www.greenvaultfx.com/
Insta Forex: https://www.instaforex.com/
Lite Forex: http://www.liteforex.com/
FX Pro: http://www.fxpro.com/
FXCC:http://www.fxcc.com/

 

[neil]

I suppose you should go for forex trading. That gives more profitable ways of gaining money ofcourse with the same amount of risk. Even then profits also in same manner. Some of the forex brokers you can do Fx trading with are:
Greenvault Fx: http://www.greenvaultfx.com/
Insta Forex: https://www.instaforex.com/
Lite Forex: http://www.liteforex.com/
FX Pro: http://www.fxpro.com/
FXCC:http://www.fxcc.com/

Can you show us some examples of these "more profitable ways of gaining money?"

 

[Hate2Lose]

I suppose you should go for forex trading. That gives more profitable ways of gaining money ofcourse with the same amount of risk. Even then profits also in same manner. Some of the forex brokers you can do Fx trading with are:
Greenvault Fx: http://www.greenvaultfx.com/
Insta Forex: https://www.instaforex.com/
Lite Forex: http://www.liteforex.com/
FX Pro: http://www.fxpro.com/
FXCC:http://www.fxcc.com/

Not familiar with these guys. Are they UK based? I would be careful, stick to established UK firms. FX brokers are ten-a-penny now, particularly those coming in from abroad.

 

[vettelsfinger]

Slowly but surely things are clicking into place! I like the level of advice that is being given it is exactly what is required, there is just too much sales fluff out there!

I am going to stay with UK based brokers as they are easily contactable for me if things go wrong and from what I see here are more reputable. At the moment there are three that stand out IG, Alpari and FXPro. IG Markets seem to be the one that I am leaning towards at the moment, just looks like a fully incorporated system that I can switch approaches if need be. Any thoughts and opinions on this would be much appreciated.

So now I will be moving onto the trading strategy side of things starting with some currency pair analysis! Will keep you all updated...

Thanks
Tom

 

[vettelsfinger]

Hi All,

I have conducted some analysis of the currencies that I would like to use for my Forex account. I have decided that EUR/USD is the best fit due to the liquidity, opening hours and correlation with news. I was also considering GBP/USD but I think the influence of Eurozone news may be too much, It would be great to hear your ideas on these pairs.

In terms of a strategy, I have been reading around support and resistance strategies at key levels. I guess my strategy will be refined around taking trades off these levels and holding into them for a while.

I have also been looking into alternative investment forms, i notice on FX news sites there is a lot of mention of copy trading and binary options. Is this an area that any of you have experience within? I like the idea of the concepts and think it could be a good idea to outsource some of the risk of FX trading to instruments such as these either through another trader or by myself...

Thanks
Tom

 

[valentino77]

Hi All,

I have conducted some analysis of the currencies that I would like to use for my Forex account. I have decided that EUR/USD is the best fit due to the liquidity, opening hours and correlation with news. I was also considering GBP/USD but I think the influence of Eurozone news may be too much, It would be great to hear your ideas on these pairs.

In terms of a strategy, I have been reading around support and resistance strategies at key levels. I guess my strategy will be refined around taking trades off these levels and holding into them for a while.

I have also been looking into alternative investment forms, i notice on FX news sites there is a lot of mention of copy trading and binary options. Is this an area that any of you have experience within? I like the idea of the concepts and think it could be a good idea to outsource some of the risk of FX trading to instruments such as these either through another trader or by myself...

Thanks
Tom

Correlation with news for a currency pairing is not always a good thing for trading. Especially with the large central banks and news announcements that can produce lots of volatilty. The AUS/NZD is less liquid and less reactive to European news imo (although you have to get up early to trade it!) this deserves an evaluation.

As with many "instruments" binary options and such should be treated with extreme caution. I have found with these more recent platforms, that there are reputable providers out there but they require due diligence to be found. In your post above you mention IG index, did you know that they have a binary options service that you could explore?

Valentino

 

[vettelsfinger]

Correlation with news for a currency pairing is not always a good thing for trading. Especially with the large central banks and news announcements that can produce lots of volatilty. The AUS/NZD is less liquid and less reactive to European news imo (although you have to get up early to trade it!) this deserves an evaluation.

As with many "instruments" binary options and such should be treated with extreme caution. I have found with these more recent platforms, that there are reputable providers out there but they require due diligence to be found. In your post above you mention IG index, did you know that they have a binary options service that you could explore?

Valentino

Hi Valentino,

The thing is about the AUS/NZD is that is is too early for me! I think if I keep track of the news events through my phone it will be manageable. I have now refined my strategy which I will be posting on here ASAP.

In regards to the other question I have got an IG account and have looked at the binary side of things it looks quite straightforward but I am a bit hesitant to experiment! what money management should I use? If I am being completely honest trading binary options may be too stressful for me to do myself alongside Forex trading! What is your experience with IG binary options?

Thanks
Tom