FOREX trading - some questions (1 Viewer)

[Bloodstriker]

Hi,
just have some quick questions on forex trading

- How much startup capital is necessary for it to be of any use?
- Is it a good method for short/medium term returns?
- What would be the best sources of information as to what is happening in economies around the world (interest rates, inflation etc)

 

[iSplicer]

1. Very few successful traders use CFDs, given the spreads are horrible and there's a lot of evidence to suggest that they're rigged. My friend told me of a plugin that's designed to create artificial price spikes to take your stop out. if you're serious about this, at least 100k, risking 0.5% per trade.

2. Excellent risk management comes before ANYTHING. Your trading skill will kick in after years of practice, but risk management is THE KEY.

3. Forums, WSJ, newspaper articles, etc.

Good luck!

 

[Bloodstriker]

Who exactly is behind rigging the rates with these plugins? Surely it must be illegal
Anyways i just had this idea because i remembered when the US government couldn't finalise a deal for spending money and the US$ plummeted by 10c or so even though it was obvious the republicans were just being jackasses and would eventually agree. It then recovered the next day.

Also, how much do currency traders inflate/deflate the market rates?

Thanks for the help

 

[harrisony]

The brokers and no its not illegal, I forgot the name of the MetaTrader plugin used. Avoid dealing desk providers (you want an ECN account).

 

[iSplicer]

Who exactly is behind rigging the rates with these plugins? Surely it must be illegal
Anyways i just had this idea because i remembered when the US government couldn't finalise a deal for spending money and the US$ plummeted by 10c or so even though it was obvious the republicans were just being jackasses and would eventually agree. It then recovered the next day.

Also, how much do currency traders inflate/deflate the market rates?

Thanks for the help

No - when you sign up for CFD accounts you're basically agreeing to a clause that says "all prices are completely made up by us, and we provide no guarantee whatsoever that these prices in any way resemble the prices of the 'underlying' securities".

Use CFDs for hedging and the odd bet on a stock - don't use it as a supposed means of steady income. You'll get screwed.

 

[seremify007]

Times like this I stick to my very simple physical and margin FX.

 

[iSplicer]

Times like this I stick to my very simple physical and margin FX.

Is there a minimum balance to be able to trade real, physical FX, like 500k? Curious =].

Also, any tips, seremify? Short the euro?

 

[Newbie]

guys, any statistic you can read has already been priced into the markets
you need to take a view on the future and make the bet

 

[harrisony]

Also, any tips, seremify? Short the euro?

hah, good luck getting anything out of him

 

[iSplicer]

hah, good luck getting anything out of him

Was worth a try =P.

Goldman recommended buying the Euro yesterday with a 1.30 target. Which means they're offloading to suckers.

 

[seremify007]

Is there a minimum balance to be able to trade real, physical FX, like 500k? Curious =].

Also, any tips, seremify? Short the euro?

Minimum trade is $100k physical. Lately I've moved all my funds back into pure AUD cash as no time to monitor markets and equities are uncertain.

Seriously though, sheer volume makes even a 10c profit (on equities) that much more worthwhile.

 

[raidenX]

grab a demo account from the platform called Metatrader4. one of the most widely used programs.
Upon registration just punch in some fake details and demo trade til your heart's content.

check out websites like babypips.com to get the basics.
read, backtest, and do NOT trade the news

 

[mark007]

Dear Forex trading requires different types of investments. There is a lot of benefit or Return in Forex trading. Many people are involved in This business. But one thing must be kept in mind that may be there is a huge Return in this business but there is also a big Risk involved in this business. Many have lost their investment due to non experience investor. so if you want to make investment Consult with a broker and then start making money by Forex trading.

 

[Garygaz]

Minimum trade is $100k physical. Lately I've moved all my funds back into pure AUD cash as no time to monitor markets and equities are uncertain.

Seriously though, sheer volume makes even a 10c profit (on equities) that much more worthwhile.

come to the value investing side, my son. throw away your technical gibberish and invest on fundamentals!

 

[Drifting95]

I find this site useful as i'm slowing learning.

http://www.investopedia.com/forex/#axzz29i2wAEkR

They have a FX trading simulator which is quite good as well.