Question by : What’s the best way to prepare for trading currency?
I’d like to start investing in currency, but i have no idea where to start. I’m not interested in misleading online forums, and online courses. I’d prefer to hear about textbooks, novels, basically anything that will give me a solid understanding of what makes currency values rise and fall.
Also, what is your honest opinion of trading in the Forex market? Is it over hyped? Is it really that difficult to earn, say $ 1,000 dollars of return every month? Please list whether you’re talking from experience, or research. Thanks.
Best answer:
Answer by KIRKUK
you will lose ALL your money and then owe even more to the Forex firm ,they make it sound easy for people to make cash ,that’s the bait on the end of the fishing line ,don’t be a muppet by believing it…
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Do you think could perform surgery or practice law; however unlike these professions you could still get lucky and mistake it for skill. Trade currencies allows
You to use massive amounts of leveage. If you have no experiece this is a stupid idea.
May be this could help you a bit.
http://www.masterandstudent.com/2010/12/are-you-trading-eurusd.html
Focus on learning technical analysis first such as drawing horizontal support & resistance, fibonaccis, trendlines, and the 10, 21, 55, 100, and 200 period moving averages (which traders also use as resistance and support). Watch how price moves around those levels. Forexlive.com is a great site for you as they provide (free) news coverage and analysis which over time will help you understand why the price is moving as it does and how news has different impacts on different pairs. As you master one pair and the fundamentals of it start learning a new pair. Make sure you learn about proper risk and money management this is extremely important so you don’t lose a lot of money on one trade.
http://www.traders-library.com/ has lot of free books on trading that should be helpful. Look for books on forex, technical analysis, risk and money management, and ignore ones that are about a system or method.
If you’re going to trade while you’re learning I’d recommend either trading on a demo account or if you feel you need to use real money find a broker who will allow you to open the smallest lot size possible i.e. you should be trading at worst case 10k lots maximum until you know enough about the markets, you have a strategy that works and you’ve tested it it long enough to be confident of that, and you you can look at a chart and explain a lot of the price movements on it.
Trading seems easy but to become a consistently profitable one takes a lot of time to gain the necessary experience. I’d say you’re looking at a bare minimum of a year of learning the markets before you should be trading a live account. Obviously this depends a lot on how fast you learn but learning price action (how a currency moves in real-time) can only be learnt while watching the charts as it happens.
Here’s a link to an ebook that you’ll need to read by John Murphy: http://bit.ly/qtjm8s. This book is the standard for technical analysis.
Good luck.
You can very much earn $ 1000 a month, but to reach there, a lot of hard work and patience is required. Forex analysis or theoretical learning cannot give accuracy, its always probability, due to the size and complexity of this market. A forex signal applicable today may not work after couple of months. You need to learn and analyze every day to be successful in forex trading. That is why experienced trades fare better in this market. Apart from analysis, you need a lot of instincts because there is lot of uncertainty and lot of risk associated in forex market. What you need is an intelligent trader’s attitude. Read more at http://forextradingattitude.blogspot.com/ Never give yourself to those tempting offers to make quick money. Its quite a bit of hard work and patience to make money in forex market.
1000 Dollars or whatever you earn (or for the matter lose) depends on the size of your account. I would always suggest that you should not have very ambitious targets in the beginning because that would only create psychological pressures and may make you take wrong decisions. Study hard and go slow.
Some other points:
1) There are many good resources and also misleading resources on the net. If a website is trying hard to sell you something, there may be some chance that they may have some misleading information. Try to see if they are selling or sharing without trying to sell. You may get a lot of learning material on websites like http://www.forexabode.com/ and that includes fundamental analysis, technical analysis and psychological aspects.
2) An overall understanding of how the market moves is important and hence even if you use only technical analysis, know the concepts of fundamental analysis and keep your eyes open for important economic releases and other news which may have impacts on the sentiments.
3) Study hard and go slow. Do not start big and do not start increasing your position size immediately after a bit of profits. Money management and trading discipline are the keys.
4) Take it as a business and not as the way to overnight riches thing.
forex is like regular job, more time you dedicate your time than more experience you are and finally more profit.
It’s never over hyped since the market control everything.
Maybe you can make some luck using FX robot, but who knows? lol
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