Am I understanding this right?

[Rickeo]

So I'm new to currency trading and right now I'm just messing about with a demo account on IQ Option.

I have ZERO experience in trading and I'm pretty bad at math, so not off to a great start, however I do have some common sense.

So right now on my demo account, I started out by looking at the financial times. I seen that an hour ago there was some news about the GBP slumping heavily. I checked the charts and low and behold it took an almighty all time 30 day low.

So I seen this as a good "common sense" move to put a "call" on the GBP moving up within the next week.

I know this is very basic and I know there's A LOT of other factors to consider, what with Brexit talks and news due to be released tomorrow it may have been an amateur move.

The question is, fundamentally and grasping the basic principles am I getting the overall concept right?

Surely with an all time low in 30 days it's only reasonable to presume that it will increase within the next week? Is that a safe trade? I know I can still lose but I'm trying to understand if my line of thinking/logic is correct or if it's flawed?

Any advice is much appreciated.

Also where's the very best place to start for a complete beginner who is terrible with math lol?

 

[forker]

I recently opened an account with iq option to test the option waters. With options you have 2 things to consider and that is direction and expiry. I am starting to like options a lot for intraday trading as you don't need to worry about stops. In terms of sterling. You will have a lot of volatility this week. If you are looking for a longer term view then options are not the place to be trading it

 

[forker]

Surely with an all time low in 30 days it's only reasonable to presume that it will increase within the next week?

reasonable yes but this week is not a normal week. Tomorrow is May's speech and on Friday Trump takes the reigns. So in normal markets you would follow economic news and contrast that with current economic positions but this week it will all pin off news events that are not directly related to economic data

 

[Pat494]

Interesting that you think options offer a better bet.
Which broker do you use ?
And do they offer a demo account ?

 

[tomorton]

Hi Rickeo - Welcome to trading!

First, do take to heart what forker says. I would only add stop trying to beat the market.

 

[timsk]

Hi Rickeo,
Welcome to T2W.

. . . I would only add stop trying to beat the market.

I would add you'd do well to heed the advice from the famous economist John Maynard Keynes who said "the market can remain irrational longer than you can remain solvent". In my early days, I shorted a stock that I felt couldn't go any higher. It did eventually fall - just as I thought it would - but not before I'd bailed out losing 70% of my account. So, GBP will probably come back at some point but, in the meantime, don't be surprised to see it fall even lower. Having a reason to take a trade is very wise. But, of even greater importance, is knowing what you'll do if the trade doesn't pan out as expected, to ensure you'll survive to fight another day.
Tim.