One night while surfing the internet came across an ad for a forex company. Decided to give it a try since I was already in stock trading. Filled in the form for a practice account, check out how could I fund my account, and the options were:
Credit Card
Wire
Paypal
Neither of which I did not like, so I forgot about it and did not bother to proceed with the account.
After about 2 weeks I got a call from a sales guy from the forex company and after talking to him about 15 mins, I brushed him off by saying I needed some more time to think.
Then after the agreed upon time I got a call from the same forex guy to check if I had made a decision.
Since it was December, workload due to approaching christmas season was pretty low, I decided to find out more details about how forex market really worked.
It seems that there are various tools to "predict" the forex market some of them are:
Japanese Candles
Trend lines
History
Channels
Fibonacchi
Andrews Pitchfork
Delta Trading
MACD
SMA
EMA
People get comfortable with a couple of tools stick to them. Some of the tools are considered leading or lagging. Leading indicators predict the future while lagging indicators tell of the past.
I used varous methods to learn the above tools, one of the most useful sites was http://www.youtube.com
I opened a live account in Jan 2010 after I felt I was comfortable with the tools. there were a few ups and downs. Overall my experience has been:
For every standard lot you should have about 5x capital available to avoid account liquidation. I was caught up in this and having extra capital allowed me to have the position open for longer time period until I was able to break even and closed it.
You need a lot of time to trade, most active time being when London market opens, the rest of the markets are just a waste of time. If your lifestyle supports trading London trading times you are in better luck.
You should have the ability to see the position going against you and still know when to get out.
Always get into the market with a risk reward plan, whereby you will close a position how much you in green and if the position goes against you when to get out of it
You should trust your instincts as on one can predict the market, I have seen so called "expert" say the market will go this way and it goes the other way and they always have an explanation as to why it happened.
If someone know exactly how to make money in forex, why will they be trying to waste their time teaching the technique instead of spending that time making money.
Forex market is not regulated like to stock market so you never have a picture of the whole market
I have managed to go way negative, recovered all the losses and break even and now have decided to go back to stock trading where I feel it is safer as you own something tangable and I only buy divident paying stocks. Which means of they go down, I still get paid. I will write more about stock trading in my next article.
