Forex looks Interesting

[Science87]

I have just started looking into Forex with a little more detail, Does Technical Analysis hold much weight within Forex?

Can you change currency pairs like socks or is it safest to stick to one pair (currency not socks )

I have been looking at Swiss forex they claim 2 pip spread on all but exotic's and a 500:1 leverage, Compared with the main Forex sites it would appear it has to be a fraud?
They also Claim no commision.

Also what in your oppinion is the biggest downfall for most traders?

Lack of Disipline or a poor/no stratergy

Thanks

 

[csv]

[...]
Can you change currency pairs like socks or is it safest to stick to one pair (currency not socks )

If you're a beginner stick to the "big" majors, e.g. EUR/USD.

I have been looking at Swiss forex they claim 2 pip spread on all but exotic's and a 500:1 leverage, Compared with the main Forex sites it would appear it has to be a fraud?
They also Claim no commision.

The transaction costs often are incoporated within the spread.

Also what in your oppinion is the biggest downfall for most traders?

Lack of Disipline or a poor/no stratergy

+ undercapitalization
+ little or no knowledge about margin and leverage
+ greed and illusions
+ poor risk / moneymanagement

There are many more but these four crossed my mind first.

 

[Science87]

If you're a beginner stick to the "big" majors, e.g. EUR/USD.



The transaction costs often are incoporated within the spread.



+ undercapitalization
+ little or no knowledge about margin and leverage
+ greed and illusions
+ poor risk / moneymanagement

There are many more but these four crossed my mind first.

Thanks for the reply, "+ undercapitalization" what would a ideal startup capital be for forex?

 

[csv]

Thanks for the reply, "+ undercapitalization" what would a ideal startup capital be for forex?

Ideal? As much as you can afford . But to be honest, a good start would be 1000 units in the base currency for a micro, 10000 for a mini and 100000 for a full lot. If your capital is below 10000 stay with micro's, if it's below 100000 stay with mini's and if it's below 1000 don't trade yet. For training purpose and gaining "real" trade experience (besides demo trading) I recommend to begin trading with micro's and "low" leverage.

A very useful resource for beginners is Forex Trading: Education & Training - Learn FX Currency Trading Online.

 

[Science87]

Ideal? As much as you can afford . But to be honest, a good start would be 1000 units in the base currency for a micro, 10000 for a mini and 100000 for a full lot. If your capital is below 10000 stay with micro's, if it's below 100000 stay with mini's and if it's below 1000 don't trade yet. For training purpose and gaining "real" trade experience (besides demo trading) I recommend to begin trading with micro's and "low" leverage.

A very useful resource for beginners is Forex Trading: Education & Training - Learn FX Currency Trading Online.

Superb link, Its speaking my type of language nowhich doesnt involve the get rich quick crap

 

[Rhody Trader]

...if it's below 100000 stay with mini's and if it's below 1000 don't trade yet.

If you want to start live trading with a small amount, use Oanda. They have no fixed lots, so you can literally trade 1 USD, EUR, GBP, etc.

 

[Gumping]

If you want to start live trading with a small amount, use Oanda. They have no fixed lots, so you can literally trade 1 USD, EUR, GBP, etc.

Yup!

I use Alpari, where you can do 5p/pip.

The link you have been given is the best place to start - ask questions once you have read it

 

[Science87]

That sounds great, I am looking at making maybe 1/2 trades a week dependant on what oppertunitys present themselves (and hold the position for 4-5days) I was wondering if there is a brokerage that is more suitable for overnight positions?

 

[Gumping]

That sounds great, I am looking at making maybe 1/2 trades a week dependant on what oppertunitys present themselves (and hold the position for 4-5days) I was wondering if there is a brokerage that is more suitable for overnight positions?

I trade like that through Alpari. Having not traded any other accounts I cannot tell you if it rates as good or bad, however, it seems to suit me fine trading this way through the broker.

 

[Science87]

Does the federal reserve give advanced notice of when news will be released? (So we can stay the hell outa the market when the news breaks )

 

[Minimee]

Ok time for my first ever post, I have been on a demo account for about a week, watching trends and just learning in general, but what the hell just happened???

 

[Science87]

Ok time for my first ever post, I have been on a demo account for about a week, watching trends and just learning in general, but what the hell just happened???

US Federal Reserve released a statment

 

[Rhody Trader]

Does the federal reserve give advanced notice of when news will be released? (So we can stay the hell outa the market when the news breaks )

It was actually a Bernancke speech, not a release per se. And yes, they do give advanced notice. Visit their website.

 

[Minimee]

US Federal Reserve released a statment

Arhhh, ok so where do I look in the future to be pre-warned of events that have this sort of effect? i.e. time for me to stay away

 

[Science87]

Arhhh, ok so where do I look in the future to be pre-warned of events that have this sort of effect? i.e. time for me to stay away

I Think I am getting the gist of this now
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Bernanke Speech USD

President Bush Nods
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Easy (I Wish)

 

[pseudo straddle]

You might find this useful - if I'm allowed to post it?

useful calendar of financial events

:smart:

or just put - forex calendar - into google and pick which one takes your fancy.

 

[Science87]

You might find this useful - if I'm allowed to post it?

useful calendar of financial events

:smart:

Superb

(Bookmarked)

 

[Minimee]

Ok, took a look at that calendar and it states that there are many "high impact" moments each day but I have never noticed it hit like that (ok I know I am very new) is there high impact and then really really high impact because otherwise best staying away full stop in a sense

 

[Science87]

This might not be correct but the way I see it is that anything released from the US FED or Comment from one of the senior figures within the FED will have a huge affect on the Dollar

 

[Gumping]

This might not be correct but the way I see it is that anything released from the US FED or Comment from one of the senior figures within the FED will have a huge affect on the Dollar

Sometimes - especially if it's unexpected. Generally if what they do/say is expected, it is already priced into the market and won't effect price. Yesterday's statement (which beat the cr*p out of my position I may add!) was obviously a bit unexpected, or worded more strongly than some may think. Whatever it was, the Euro is showing no signs of any strength today.