New in Forex- Where to start?

So I basicaly in forex already a couple of weeks. I was looking for something to make my savings work to not get hit by inflation.

I see people making money currencies but I dont know how to do that. Would be fun to try it with some basic knoledge on currencies trading.

Im more interested in stocks - I find facebook stocks to be very good - They are stable going up the last 4 yerars since the date they were released. Bought few of them and They been going up well until yesterday when they fell again leaving me almost with same profit where I was before they raised. Also I tried to trade gold with 152:1 leverage and almost blew account but still went out with positive numbers in the end - this was my first trade ever.

Do any of you know how to predict facebook stocks price change and where and how to buy real facebook stocks without leverage? It seems like my personality would is better for long term investments than daily trades.

Nobody can predict the future. We can only speculate.

If you've just started you're a long way from trading with real money, let alone trading stocks. Of course, that's your choice, but I would strongly recommend spending at least a good six months to a year learning and practising on a demo account before you move onto a live one.

You are still a long way to go from trading real money as you don't seem to understand risk yet. I would trade with real money instead of demo, but trade the smallest amount that you can. Its just that if you trade fake money, it has no meaning. At least if you trade insignificant amounts it has some sort of meaning versus no meaning at all. You know maybe make or lose 5 bucks on a trade, that sort of thing.

Its really important to calculate risk in every trade you do and it is difficult to trade a stock that is 127/share and make much money if you have a smallish account. One really important attribute to have is a real passion for doing this. When you get advise most traders will say have an edge, risk management, patience and so forth. Imo they miss the most important point and that is really love trading and having an almost obsessive attitude towards it. All good traders have this and are constantly looking for edges or exploits to their advantage. If you trade because you think its some quick money or you find yourself bored with it, then absolutely do not trade.

I have only traded forex, but would like to get into stocks at some point. I've been looking at Timothy Sykes vids on you tube and he has some good info on how he trades penny stocks and so forth. It is very risky to trade these as they are very volatile, but I'm currently in the learning mode and looking for whatever edge I can find. The dude can be a bit brash lol, but he knows his stuff. I think 3 of his students are millionaires now. I'm taking it as general info right now and may get into it later.

Internet stocks will always be risky long term. Some new app may come along that everyone needs to have and leaves Facebook in the dust. It remains to be seen whether Facebook will be Myspace 10 years from now and trading at 5/share. Very bullish chart right now though, just peeking at the long term chart. Good luck.

Oh, one general thing about leverage and how everyone dumps on it. Leverage is there to use only if you want it you don't need to use it even if you have it. You can open an account with forex dealer with 100, 200, or 400 to 1 leverage. You can deposit a couple of hundred and trade micro lots for pennies if you want or max out the leverage and blow out your account, it is your decision.

It is kind of nice actually because you don't need to REAL risk. By that I mean the broker goes under and you don't get your money back. Yes this has happened on occasion. Consider the following scenario:

Just to keep numbers simple. Lets say you have $5000 that you want to invest and you want to risk one percent on a trade or $50. With leverage you don't need to deposit all 5k into the account. You can deposit 500 or less depending on the leverage and take that same risk (50 a trade). If you lose a few trades you can reload it back to 500 and continue. You can keep the bulk of your money out of the broker. Leverage is kind of nice actually. It just allows you take whatever risk you feel comfortable with.

Thanks Becel. You been usefull. I looked into Timothy Sykes videos and he seems like a very nice guy ha ha.

Leverage seems like adding to the risk. - As more leverage as more risk. I prefer 1/10 leverage or 1/20 max/ If I were rich I would not use leverage. Think its the poor man way to get into trading. Like Warren Buffed said about leverage - If you smart you dont need it, if you dump you have no bussines in it.

Indeed real account with real money is more interesting than demo account. I been trading qith 25$ free bonus on markets.com and plus500 brokers but cant withdraw money unless I deposit. Still those are not the brokers to trust your funds to. What is like safe broker who have FB stocks? I would like something with small deposit like 100 bucks and with small witdraws too preferably free of charge and all 100%.

In terms of stocks, I couldn't tell you where to deposit. I don't think there is much at all actually. Some have a minimum of 500 or so like etrade, but you really need to do a lot of research. In terms of trading currencies you could check out Oanda. They allow currency, metals, bonds and some commodities. You can deposit very little and trade pennies if you want. Just to sort practice and get the hang of it. They have been around for a long time.

I would check out forexpeacearmy for reviews and so forth.

Well I seen that FXpro have FB stocks. But min deposit there is 500. Oanda really been around for a long time but reviews are not so good as they was 12 years ago. Been reading bad things about it. However they guy who works for Oanda was nice when we talked on the phone. Still I would go with Australian broker for currencies like pepperstone or something.

They guy you mentioned used brokers that trade stocks. But min deposit for them was 25k lol.

By the way, please don’t start your learning process with an initial money earning target! Forex isn’t any easy way of money making! In addition, don’t set any specific period of time for demo; spend your time in demo until you get a good result! Of course, you can start with BabyPips School; try to understand market language according to your technical and news trading knowledge! Best of luck!

thank you for your Good suggestion.

actually this is more appropriate to take demo account for a newcomer but when trading practically we lost interest after passing sometimes. so if we can start with mini account in live instead of demo , it would be better i think.

I am not sure whether starting on a live account, even if it's a mini account, when one is a total newbie is a very good idea. At the very least one should learn the software and the basics of trading on a demo account.

Hello, first of all sorry If this seems I am hijacking this thread but I can't start my own threads yet!

I am also new to trading (started 4 months ago) I have opened an account with IG and have been trading all the major FX on demo.

I have just recently deposited real money into IG and I too am looking for some advice.

I have been using the alligator + AO strategy on 1-4hr time frames in relation to support and Resistance and it seems to be working quite well. Could someone be able to give me some advice on where I would start when it comes to how much I need/money management in order to make £300-400 a week from trading.

Any advice would be much appractiated

Many thanks in advance!

We always advised by the senior traders and experts just for learning. but I think we the newcomers have to practice trading besides learning process. Demo account is more appropriate for them and as a learning Process newcomers can depend on Pips School.

Keep calm and don’t do illogical things even market goes the unexpected way. Always keep in mind what your trading system says about acting in different situations and follow those rules. But don’t panic. It can destroy the whole account.

Regarding Leverage and Risk:
Like some said in this thread, Risk management is by far the most important skill to master when it comes to any sort of trading. And to stick to your pre-defined Risk Management, you need a Trading Plan.

To trade without a plan is trading to fail.

Leverage in the end does not matter. Why? Because of position sizing. If you plan to risk 1-3% of your account per trade and know where you are going to place your pre-defined stop loss even BEFORE entering your trade, then you can easily calculate the trade size to accommodate for Risk in your trade.

Then depending on your trading plan, you manage the trade as it goes along. And this differs from trader to trader.
@pcmaster: You said you think you are more of a swing trader than a day trader. So you will probably have something in your plan that says you will keep positions open over the weekend if X,Y,Z is in place (maybe the market phase is still in order: ranging? trending? consolidation? etc.) or you might have something in your plan that says you will exit the trade if X,Y,Z happens.

The reason why the plan is so important is because of emotions.
I mean you even said having a large amount of money in your broker account is scary. Well,it is even scarier if that money is in a trade and not going the way you wanted to.
And so, as humans, we act with emotions sometimes (closing out early, increasing Stop Loss, letting the trade run even though the market says otherwise...)

And as soon as that happens, THAT TRADE is no longer a proper trade in terms of your "edge" (whether that is a method or a system).
That particular trade doesn't count towards the statistics, whether it was a win or a loss.

Any trade that is not according to your trading plan is a FAILED trade. Even if it was a winner. Does that make sense?
Because that win doesn't count towards the statistics and probability of your method. It is literally throwing money away.

I agree with @Mitchell to actually practice and not just learn. But practice by adhering and developing your own trading plan.

Thank you for your nice information .

but the matters you have described about leverage , risk , emotions and much more. These types of threads are available in this community.

Can you add new some of important trading tips with essential terms and conditions?

Yeah, I'm somewhat in the same boat--meaning, I've started recently--and I, too, heard that one should demo their way into understanding and psychology, yet others maintain that I should go live with small amounts. It seems rational to try and double a couple or more demo accounts prior to going live, though I do see how demo accounts may evade the training of a necessary psychology that is integral to currency trading. Hmmm.... my route is trying to double a few demo accounts.

If anyone has other experiences that they had at this stage, please share.:o)

Cheers.

Beginner should focus on learning in start and I know this is the hardest part seeing others making profit and you just watching them. You want to jump in market but it will not help without proper learning.

So many traders always advised for learning, I also appreciate learning process, but your learning can be valueless if you don’t practice trading. Micro account works really for practicing instead of demo.