Newbie Question for the seasoned trader

Hello, I just joined this forum.

I was wondering if anyone could tell me what level of mathematics or economics education I would need in order to be successful at Forex trading for a living? Do I need much knowledge of statistics or stochastic techniques?

Can I start with as little as a £2000 sterling? If so which online broker should I go with? Are FXCM any good? I am based in the UK.

Thank you in advance

You could be a pre-school drop out and make money in forex!

Common sense is much more desirable than education any day in this field. I absolutley suck wind at math (and yet I'm a programmer by trade - but hey, the computer does all the math!) and I mean SUCK WIND!

Learn and practice various systems and develop a style that is uniquely yours that works for you. I demo'd for 4 months prior to opening a live account as I studied what the hell the charts were indicating and where I was supposed to enter the trade.

I can't comment on paid courses because I have never taken one - I studied all online/free material.

Brokers - shoot, you just have to look around and try to get opinions from other people. People have a tendency to turn against a broker if they lost money while they were with that broker - even if it wasn't the brokers fault - so opinions are kinda like....

i dnt know for sure what the level of education do we need in trading but before u start trading..u must first fully understand with your heart abt the meaning of trading..then the force of trading will be by ur side..simple terms of TRADING..
T-trend-just follow it!!
R-reward n ratio-good MM
A-attitude-positive n felxibile-sumetime negative also good
D-Deffensive equal drawdown-use proper stop loss
I-indicators-Tech. analysis
N-news-fundamental news
G-GOD!!GREAT!!i mean praying!!

hope this help a bit!!

Hi Dark1,

Here's what I use, but it's just me:

Math: Add, Subtract, Multiply, Divide. (Although on occasion I do need to find the integral of a seven element Fourier waveform analysis.....Nah, I'm just kidding. ASMD is all I really use.

Economics: I recognize a dollar bill when it's in my hand and know how to buy candy with it. That's the exent of my economics knowledge.

Broker: With only £2000 you really, really need a broker that allows you to trade 1K lots so you can utilize proper money management. I use FX Solutions and I'm happy with them. I was with FXCM and overall I was happy with them too, but their smallest lot size was 10K which was too large for my small account. It created too much risk in my position size. In my "opinion" (yeah, I got one too :-), you'd need at least $20,000 US to trade 10K lots with any degree of risk management.

Thank you MuddBuddha, shahfx and diallist.

someone told me... how big or small ur a/c is.... its doesnt really matters... what matters most is how ur money management was.... some say.. dont risk more than 5% of your capital/equity.... everyone said 2 me... rule no 1 was to know a risk .. and minimize ur losing... thats true .. each trade I made... ive never gamble.... if I dont know what is going on.. ive just simply let it go... NEVER GAMBLE... u already lose when u start gambling..... so.. ive just wait for a right momment to pull a trigger... we r 'sniper' after all.... and u have that talent....

Well, I'm new too...

But then, as newbie, I found out trading is very much self-challenging (note how I said self not mind).

I found out how difficult it is to control myself while doing trade.

I began to panic and hoping something happen soon while my position is losing.

I tend to afraid of my profit will turn to loss and ready to jump at will while I'm having winning position.

But well, yeah, I'm justa newbie. Such things happened right? Maybe even for the seasoned? I don't really know.

Select a good trading strategy and focus on fundamentals.
Fundamentals include paying attention to money management principles also.

I know a lot of people keep searching for one strategy after another..But they miss on money management principles.

Use those and you would be fine.

I just recently started studying this stuff. I already make good money practicing law. My impression is that I have the aptitude but aquiring the skills needed may take several months or a year or two. Is it worth it? Seems like a good way for someone to make a fortune but not without the aptitude and alot of work. Am I right?? I just don't know anyone making a killing.

Aquiring the skills is possible through practice. I mean this isn't some phd sort of thing. But it requires some good amount of practice and of course realistic expectations.

I guess this is my question. what are realistic expectations? I don't know any pros. if i got good could i turn 20k into 50k in a year? more? could i make 10% a month? i've got a 6 figure income now, can i make 7 figures on this? does anyone know anyone making that much? i don't want to invest alot of time into this without knowing that it can be done. thanks

Well here's my 2 cents worth and I can totally empathize withyour situation.

I got interested in trading years ago before I was making really good money (comfortable 6 fig) in my chosen career field. However here are a couple of things for you to consider which are some of the reasons I have stuck with trading for so long to finally get profitable.

Your chosen profession whether you work for a firm or you have your own has limitations.

 

1. You trade your time for money.
2. Your job is typically geographically limited. Meaning you have to live in a decently populated area in order to have a decent clientel.
3. Your income is limited.

Now take forex.

You can live anywhere there is an internet connection.
You trade based on your own needs and schedule.
Unlimited income potential.

There is a thread on this forum by a gentleman named Jacko who posted the following on the 1st post on his thread:

Why do I trade Forex?
Because I am ABSOLUTELY CONVINCED that this is the best "business" in the world.

There are:
1. no rent of offices (that is, NO dealing with Realtors, Lawyers, and government departments...man, what a pain in the ass). Also no office fit-out costs

2. no staff, (man, unless you have had large numbers of staff depending on YOU for their paypacket each week, you cannot know what a huge pain in the ass it is. They ALL want you to solve their problems)

3. No inventory or stock to buy. No shrinkage (theft of stock) and no "slow moving" items. No massive amount of funds tied up in inventory

4. You can "borrow" as much as you want (by increasing your leverage), WHENEVER you want. (Try running a big business and going to the bank for a short term loan for $10 mill...it will take a month minimum). I am trading $10-12 mill all the time and I get it instantly through the brokers by the use of leverage.

5. If the business becomes a hassle for whatever reason, you can shut it down (that is, close all positions) instantly...and re-open (initiate new positions) whenever YOU want to re-open your "business."

6. You can "scale" your business to whatever size YOU want simply by increasing/decreasing your positions.

7. Absolutely minimal paperwork. Simply send your 12 month summary Profit and Loss Statement to your Financial Accountant for tax payment purposes.

8. You can trade from anywhere in the world. My wife and I travel most of the year. (take your laptop or PDA or whatever else they will come up with and trade while sipping a nice drink as close by as your local cafe or as far as some open air cafe in some remote little town in beautiful Italy while you watch a bocce match at the park.)

I could keep telling you more of the benefits of this business, but suffice to say...this is the best "business" in the world. I run a multi-multimillion dollar business from my laptop.

And did I mention that it was exciting and fun????



What are the disadvantages of this "business" of trading Forex?

For me there are none. I am old (early 50s), retired, financially well-off and experienced (20+years) in trading shares property and commodities. I have also had much experience in business (haing sold two businesses for substantial amounts of money) Even though I trade large volumes, the financial risk at the margin is relatively small. Also, I have had extraordinarily good luck in this market and have made a significant sum of money in the last twelve months ( so I am now playing with the Forex casino's money).

For many of you, the situation may be different. You are probably young, working, keen to make a lot of money and inexperienced. That is a dangerous combination.

Most young traders here all suffer from the basic same problems.
1.There is a tendency for newbies to "PANIC" when the market goes a little against them This is due to:
a. Probably scared to lose money
b. Probably undercapitalised
c. New to industry....therefore probably uncertain about your own abilities
d. Unsure that the trend lines, 50% Fib line and "round numbers" are as reliable as they are in practice.
e. Probably inexperienced in business and investment from a practical aspect
f. Probably unsure who to talk to for guidance

2. The second problem is that they are all looking for the "Holy Grail" There is no "mechanical system" that is a "Holy Grail"...I have been watching the contortions of a trader here who is trying to prove that Elliott Wave is the answer... BS !
However, let me tell you a secret...there is a "Holy Grail". Every time you look in the mirror, you will see it. It is you.

3. The thing that kills new traders is the "wild punting" on everything that moves two ticks.

4. stop thinking that you have to "outsmart" the market.
You don't have to..this business is very easy if you leave your brain at the door....just follow the trend = follow the money =going with the flow = barking with the big dogs.
Stop thinking that "it can't be that easy".......it is!!!


5, you have to detach yourself emotionally from the money...that is the hard part...stop seeing it as money, and look at it as numbers.
Also, don't play with money you can't afford to lose...or alternatively, put the money aside and tell yourself that it is already lost. (You MUST detach yourself from the money

6. And remember, Leverage can make you a fortune...but leverage will kill you quicker than you think..!!


Finally, I am not saying anything different to what all the good trading books say...but it is amazing that every newbie wants to "take on" the market and then wonders which express freight train flattened them (and destroyed their trading accounts).
Most people are trading for the adrenaline rush rather than the boring concept of just maximising profits.


I can attest that I am making great money trading forex! I also have clients and building my business to a level which not only provides me with an income that exceeded the 6 fig income but also provides me with a lifestyle of my choosing.

Hope this helps.

Cheers!

I'm interested in knowing how much time everyone here spends on forex. I have a full time (9-5) job and a wife an kids. I can't seem to get to forex till after 9 and then I only have an hour or so to devote to it.

I don't think I can really trade after work because that's when the Tokyo and Sydney are in session (I'm in the US) and those sessions seem to be soooo lethrgic....but I digress.

How many hours a day/week do you guys spend - reading, watching the arkets, backtesting systems, thinking about which Ferrari you'll buy after you've figured this big puzzle out?

An hour per day in the begging is too low You have to devote at least 2-3 hours per day for the first 4-6 months just to get the basics - how the market moves, what the basic indicators are and what they show you... the basic stuff. Oh and in the process of learning all this you will probably loose 2-3 or even more demo accounts.. which is normal.

I'm trading with real money from 3 years, but i've more than 5 years of combined (demo and real). For this long period I realized intraday trading is NOT for me - so I'm going on H4 and bigger charts. On those timeframes the things are more slow, so I don't have to sit all day scratching my face by trading the minitrends - I'm going with the major trends, trying to run after the big dogs (the banks).

FYI: When i started trading with real money (my own and only), for the first two months i lost more than 10k USD, because it is way much more different when you are trading with real money, compared to demo accounts (virtual/unreal money). Yeah, I was broke, but I didn't quit - I analized my mistakes and started over - since then I'm improving my skills every single day. The best is part i managed to create a system (manual trading) that is matching my psychology, my way of life and style - it's like my own clone
With this I'm getting between 80-87% successful deals which is very good (probably there are even better traders out there).

The hardest lesson is to learn to LOOSE and to kill the Greed in you forever!

I'd love to share my strategy, but its too complex for a newbie - it includes japan candlesticks, fibos, trendlines, 4 technical indicators and correlation data.

Can anybody upload market sessions indicator/Thanks.

yes, sounds very much like me when I started. You need patience.

It's easier said than done, but you need to find a way to get it under control. Either you right or you are wrong, but if you don't give it enough time you will just be wrong.

You can't survive being wrong.

80-87% is very good. You should be proud of that, that is no easy feat to pull off. I typically can get to around 80% at various times but over time I end up around 72-75%.

I never lost as much money as you, but very close. Once you find the difference things are completely different. You start winning and your confidence builds, but never forget about Mr. Ego either as him and Mr. Greed are first cousins.

For newbies just starting out.... 1000 hours spent on this in the beginning is nothing. 10,000 hours is probably closer to a more realistic number, but that depends on what you are trying to do... manual or auto trade.

Even still I've heard stories of people who spent 30 yrs on trading and could never find a profitable system.

FX is like a lover but ya know it's like a career in something. Like a business degree in econ or whatever. You don't show up for class one day and then get hired for a 6 figure salary a day later. If it's going to be anything worthwhile you have to work for it.

Around here we make money the old fashioned way... we work hard for it in the pits of the market.

On the bright side my hard work paid off... I can spend as little as 5-10 minutes a day in FX if I want or more if I want. I never viewed any of this as "work" I was never "under the gun" to "have" to make money at it. If you are "Under the Gun" you will never pull it off.... as Mr. Greed and Mr. Patience will pay you a visit.

"They might as well be Mr. Brownstone...."

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