Starting Out!

peedee

1
341 0
Let's say a friend or whatever approaches you and says, look, i'm quite interested in this trading/investing lark( not that it's a lark, but he may say that because he doesn't know!). What market would suit him and how would he know that a particular market suited him if he had not tried all the other markets i.e. stocks, futures, FX etc. What would you say? Where does he start?
 

chump

Senior member
2,212 274
I would say asking about markets when he is just starting out is the wrong question to be asking unless he already has a strong financial background.


Cheers
 

hammer

Active member
185 1
I think you should give him a trading simulator or virtual account and tell him to use that until he has a preference. I wish i had used more virtual accounts when i started to test out what i feel comfortable with rather than using real money to find out! :(
 

riwf

Member
87 2
What does he want, and what can he afford? I'd say, start with binaries. That way, he is going to be confronted by the fact that the 'lark' is gambling and that everyone he comes across on the other side of the fence are bookies who will be trying their hardest to relieve him of his cash.

Binaries, and betting on indices, because that way he will have to pay close attention to the market and how it behaves in order to try and anticipate its movement. Concentrate on one index to begin with - probably the Dow, because it respondes more quickly to stimuli than any other. Paying close attention to it will teach him which stimuli have what effects. Within a month or so he should be able to anticipate some of its movement, and this will give him confidence in his abilities which, along with deep pockets, is what successful traders require.

When he reaches that stage, he should know where his interests lie.

Good luck to him

RIWF
 

riwf

Member
87 2
Peedee

You trade money with binaries.

Seriously, I don't think it matters what your friend trades when he starts - what is important is that he learns how the market works. Binary betting is as good a grounding as any.
 

peedee

1
341 0
Look, all that i am trying to say is that you have got to know your market before you apply any basic principles. If you know your market and you apply the basic principles why should any trader ever lose money? Except if you break the rules! And don't mention crashes, it can happen, but it's extreme and unless youv'e got a guarenteed stop account or your short at the time, no basics would probably save you!
 

donaldduke

Experienced member
1,665 257
riwf,

You dont work for IG Index do?

I mean in this thread you are recommending Binaries and
in the other thread you mention you made 25K in Feb trading
binaries. What better way for IG to attract punters than for
someone to post and tell the world how they made more
than a years takehome in a month!

Now I think most traders if they made that much via an
SB would want to keep their heads down especially if they are
concerned about being banned! (as you said were in the other
thread)...
 

rossored

Senior member
2,103 56
quote
If you know your market and you apply the basic principles why should any trader ever lose money

This really is a daft question when you've been on these boards as long as you have peedee! ;)

Traders lose money because statistically speaking, not every trade can be a winner. There are simply too many variables for every single trade to turn out in your favour. The only thing that is certain about the markets is that they are all uncertain.

As for your "friend", I would suggest completely skipping Binaries because of some of the reviews I've read on here and other sites, and the way they work - simple SB's with a tight spread (so that means steering clear of IG Index) would be the best bet, and the smallest possible size (under £1) until he/she gets the best feel for them. I would, however, agree that the Dow is probably the best instrument to learn on, given the amount of information available on it, and the "speed" of the learning process.

And yes, you should trade just the one market - sorry your friend should trade just the one market - until they are comfortable with it.
 

peedee

1
341 0
Ross, i,m not on about losing any money, ever, losing money is part of trading, i was meaning long term, making more than you lose. Surely making money on the markets must be achievable, not just achievable but an actual goal that somebody can honestly and seriously set for themselves. I just want to be realisticly positive. Let's face the facts here you can make money on the markets if you stick to the basics! PeeDee!
 

chump

Senior member
2,212 274
The one market should be baked beans if they are really starting out ,unless they have very deep pockets.

It's been said time and time again that there is a learning process to go through and imo this process should precede active trading in any market unless there is a generous supply of funds for trading capital.

Your post is worded to suggest that that process has not yet been started. If that is the case and that person cannot even say read a chart what difference does it make which market he chooses.He should lose in all at that point ?

Just caught your post above. Your original post was a bit misleading.Sounds like you have the answers.

Cheers
 

TBS

Well-known member
385 0
before he does anything - what time does he have available - hours in the day? and what are those hours?

This will be the first cut in deciding what markets he can actually trade and over what timeframe he can consider trading them.
 
 
AdBlock Detected

We get it, advertisements are annoying!

But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.

I've Disabled AdBlock