New Trader need a quick start guide into Forex trading

[AntVel]

Hello everyone,

I would like to strat Forex trading. I am a quick learner with University background (Ph.D in Physics) and have a few thousand GB pounds to invest. My Forex education is minimal, I just read some articles, forum posts and went through a Forex Rebellion course by Russ Hord on his trading system for MT4. It seems pretty clear and relatively easy to grasp, but I lack any practical experience whatsoever.

From what I read so far it's best to open a demo Forex account and do some dummy trading to learn the ropes. What would be a good platform/service to start with this?

Another big question is - do I really need a broker or is it best getting a solid private coaching, practice with demo and start trading on my own? Any particular private coach/mentor from this forum (or elsewhere) that you could recommend?

Sorry to ask so many questions from the start, but I really need some help in developing strategy on how to approach the whole thing. Any ideas and suggestions are highly welcome!

thanks a lot

 

[pboyles]

Hello everyone,

I would like to strat Forex trading. I am a quick learner with University background (Ph.D in Physics) and have a few thousand GB pounds to invest. My Forex education is minimal, I just read some articles, forum posts and went through a Forex Rebellion course by Russ Hord on his trading system for MT4. It seems pretty clear and relatively easy to grasp, but I lack any practical experience whatsoever.

From what I read so far it's best to open a demo Forex account and do some dummy trading to learn the ropes. What would be a good platform/service to start with this?

Another big question is - do I really need a broker or is it best getting a solid private coaching, practice with demo and start trading on my own? Any particular private coach/mentor from this forum (or elsewhere) that you could recommend?

Sorry to ask so many questions from the start, but I really need some help in developing strategy on how to approach the whole thing. Any ideas and suggestions are highly welcome!

thanks a lot

You've got a phd so you should be an expert in carrying out research. Before you get into any of this I suggest you research the following topics.

1. MT4 Virtual dealer plugin
2. Mike Baghdady
3. FXCM fine
4. Gain Capital fine
5. FXDD investigation
6. Guy Cohen Nazi box
7. Senen Pousa managed forex account

That should give you a thorough grounding in what the retail forex business is really about.

 

[new_trader]

A Ph.D in Physics? You're too smart to be a FOREX trader.

 

[AntVel]

You've got a phd so you should be an expert in carrying out research.

I am indeed. If there is one thing I am good at, research would be it.

You've got a phd so you should be an expert in carrying out research. Before you get into any of this I suggest you research the following topics.

1. MT4 Virtual dealer plugin
2. Mike Baghdady
3. FXCM fine
4. Gain Capital fine
5. FXDD investigation
6. Guy Cohen Nazi box
7. Senen Pousa managed forex account

That should give you a thorough grounding in what the retail forex business is really about.

That's a long list. It will take me a while to research. Multiple mentioning of the word 'fine' doesn't sound too encouraging though especially if that's what I think it is. )

Anyway, thanks very much for your list. I will check it out.

 

[AntVel]

A Ph.D in Physics? You're too smart to be a FOREX trader.

Not as smart as you are. yet you are doing it...

 

[pboyles]

I am indeed. If there is one thing I am good at, research would be it.

That's a long list. It will take me a while to research. Multiple mentioning of the word 'fine' doesn't sound too encouraging though especially if that's what I think it is. )

Anyway, thanks very much for your list. I will check it out.

Thats fine in the 'heavy fine' sense not the 'doing fine' sense. Suggest you stick with the physics and avoid the corrupt forex industry like the plague. Anyhow you will see if all for yourself if you research these matters.

 

[DT]

You've got a PhD yet you seem to want to follow a magic lines on chart/statistics-made-easy approach... something that relies on belief not evidence and is generally sold by training providers using rather neat cherry picked examples.

Just a thought but perhpas subjects such a market microstructure, time series analysis, signal processing etc.. would be more worthy of your time than the advanced tea leaf reading, subjective nonsense that seems to be prevalent within 'Technical analysis'. I'm not completely dismissing TA, you should be aware of it but you should also question a lot of it (and tbh.. ignore the subjective bits).

Also - FX isn't a level playing field, even with a 'ECN'... you're not getting access to Reuters or EBS any time soon so look elsewhere - Futures or US equities perhaps....

 

[AntVel]

Thats fine in the 'heavy fine' sense not the 'doing fine' sense. Suggest you stick with the physics and avoid the corrupt forex industry like the plague. Anyhow you will see if all for yourself if you research these matters.

What is a better alternative to Forex then?

 

[BeginnerJoe]

What is a better alternative to Forex then?

Roulette at casino offers better odds. It was proven that the odds improved even further with a toe operated computer. Then there's more +odds for someone who understood physics. Going by your background, you can't really loose in this even if you try.

 

[AntVel]

You've got a PhD yet you seem to want to follow a magic lines on chart/statistics-made-easy approach... something that relies on belief not evidence and is generally sold by training providers using rather neat cherry picked examples.

Are you saying that all these FX courses is a heap of BS and the whole game is more of a gambling rather than a modellable system? How come then there are people who consistently make living of it?

I'm not completely dismissing TA, you should be aware of it but you should also question a lot of it (and tbh.. ignore the subjective bits).

That's exactly what I do - question it. And that's why I am looking for advice of experts like yourself to help me separate the seeds from the chaff.

Also - FX isn't a level playing field, even with a 'ECN'... you're not getting access to Reuters or EBS any time soon so look elsewhere - Futures or US equities perhaps....

Correct me if I am wrong, but those look like the same gambling fields but with (substantially) smaller ROI and (considerably) longer time frames.

DT, pboyles - I really appreciate your contributions, thanks a lot men. But now I feel even more lost than before coming to this forum

What would be your best advice in terms of more calculable investment/trading?
Or there isn't such a thing?

 

[AntVel]

Roulette at casino offers better odds. It was proven that the odds improved even further with a toe operated computer.

Is that what you are doing in your spare time?

 

[BeginnerJoe]

Is that what you are doing in your spare time?

No. I didn't pass my o level physics. I don't have the skillz to analyse the physics of the roulette wheel. Instead, I gamble with the a$$ raping odds of forex on a penny scale.

I reckon forex defeats analysis. See if you can prove me wrong. But not with a demo account though. Trading demo is like boxing against an inflatable dummy. Real trading, even at the 1/1000th penny scale, is like boxing against Mike Tyson. There I have given you a brilliant start, and warn you of the immense danger awaiting you, that most newbies would take years to come to realise. Forex is a very interesting puzzle, a perfect toy for those who think they can analyse. Although, I suspect the final solution is to not analyse.

 

[AntVel]

No. I didn't pass my o level physics. I don't have the skillz to analyse the physics of the roulette wheel. Instead, I gamble with the a$$ raping odds of forex on a penny scale. ...I suspect the final solution is to not analyse.

If they are both pure gambling, why you gamble on Forex not roulette? You don't have any strategies up your sleeve at all?

 

[Shakone]

Are you saying that all these FX courses is a heap of BS and the whole game is more of a gambling rather than a modellable system? How come then there are people who consistently make living of it?

Yes, they're most likely BS. You know how you can buy a degree or a PhD from some bogus university, that's the equivalent. You can't get a degree of any worth that way, and you can't get a trading system of any worth buying it from a vendor.

In what sense modellable? If you mean you can create a fixed set of rules such that you know what's going to happen next, then no, it's not. It's not deterministic. Of course you can create models which may be useful, but there's still plenty of uncertainty.

Another big question is - do I really need a broker or is it best getting a solid private coaching, practice with demo and start trading on my own? Any particular private coach/mentor from this forum (or elsewhere) that you could recommend?

This part confuses me. You need a broker to make your trades, even if it's direct access. The broker should not be training you or telling you how to trade.

As a demo account, you could try Oanda if it's FX, (I think) they still offer an unlimited time demo account. For futures, contact a broker and ask for a month or two demo.

Correct me if I am wrong, but those look like the same gambling fields but with (substantially) smaller ROI and (considerably) longer time frames.

Why do you conclude this? If you're thinking that Forex has great leverage and so great returns, I'd sugegst a rethink.

As a topic of research, look into money management.

 

[Aesop20]

AntVel, you shouldn't be looking for "Quick" Start Guides in Forex because that will end up being a recipe for disaster. There's plenty of threads on this forum and the internet in general (including the BabyPips school) where you can learn everything you need to learn about trading, Then you can think about a strategy and try out a demo account and get a feel for it all. Only after at least 4/5 months on a demo would i suggest going live, by then you should be consistent in your winnings and understand the markets you trade, you'll also need to train your emotions too especially on a live account!

 

[pboyles]

Yes all the forex courses are a heap of crap. They are no different to any other get rich quick scheme, they are selling you a dream. Look at the marketing, yachts, fast cars, make money for no effort.

If you really must get into trading then look at e mini futures, specifically the E mini S&P. The brokers are less likely to cheat you and it is more regulated. However my main advice would be to forget about the idea. Someone with your qualifications shouldn't be wasting their time on this. Get a proper job and forget about these promises of easy riches.

Everyone has been where you are now so it's not a put down.

 

[BeginnerJoe]

Well, you can become a trading trainer. If you wave your PhD certificate about, I am sure people will pay extra for your course. It shouldn't be too hard to become a trainer. You just mouth some common concepts to the beginners who are too stupid or too lazy to learn for themselves.

If they are both pure gambling, why you gamble on Forex not roulette? You don't have any strategies up your sleeve at all?

If the casino makes the roulette as challenging as trading, I may well be interested. Casino would normally just take your money and that would be the end of it. The market on the other hand, slaps you around first before taking your money. It's kinda wakes you up and makes you wanna slap it back. So it's more interesting to gamble in the market.

 

[AntVel]

Shakone, Aesop20, pboyles - thanks very much guys for you helpful replies and comments, they have indeed been very helpful to me. I will not go into forex.

 

[DT]

Are you saying that all these FX courses is a heap of BS and the whole game is more of a gambling rather than a modellable system? How come then there are people who consistently make living of it?

I'm saying that anyone trying to teach you a specific system to make money is inherently dubious. If it was any good the last thing they'd want to do is sell it. Selling training courses is a fairly good indication that someone isn't making much from actually trading.

Look at how they're presented - I can't quite understand how half that crap isn't screaming 'scam' to you already. If you were to publish a paper in an academic journal are you honest and open about the data you use or do you cherry pick examples? Do you expect others to be able to replicate your experiments and come out with similar results?

Correct me if I am wrong, but those look like the same gambling fields but with (substantially) smaller ROI and (considerably) longer time frames.

Yes and no... and this partially depends on the time frame - high frequency stuff is better suited to equities and futures at the moment, banks appreciate it less whereas exchanges are happy to encourage it. In general, considering the venues you'll have access to, you're probably safer trading equities or futures.

 

[AntVel]

In what sense modellable?

Well, al least to some degree where there is a consistency? Say if a strategy works 1 time out of 10, it's still better than complete randomness.

As a demo account, you could try Oanda if it's FX, (I think) they still offer an unlimited time demo account. For futures, contact a broker and ask for a month or two demo.

Why do you conclude this? If you're thinking that Forex has great leverage and so great returns, I'd sugegst a rethink.

As a topic of research, look into money management.

Thanks, I will consider these.