Professional Forex Guide, Helpful Tips. Useful Answers

I trade only stocks right now but I’ve heard people swear by trading futures or forex. I’ve never tried either. Is one more volatile and therefore easier to make more money?

Answer:

The main difference between trading stocks and futures is the leverage involved.

In a stock margin account, you can trade at 2:1 or 4:1 leverage. In a futures account, you can trade the E-mini or Dow mini futures with 20:1 or 40:1 leverage. This causes your profits and losses and account value to be extermely volatile, and very dangerous if you trade at maximum leverage. In a futures account, you can lose more than you have invested.

Forex is just another form of futures account, except here, the maximum leverage is 200:1. Wo, how much trouble can we get into now? You have to be aware of the economic reports for the currencies traded and the US reports, like GDP, retail sales, and particularly interest rate adjustments and differentials. Unless you are willing to trade gap trades, the opportunity is very little here compared to the huge move from the report. These trades can be very plodding, in between reports. Or some big news announcement will break, or someone declares war, or sets off a bomb, and blows you completely out of the trade. Trading the forex is not for the beginner or faint of heart. Find a good simulator and practice, practice.

Hello everyone,

I’m wondering if it is possible to win money from FOREX with only changing currencies.

For example, we have 10000 USD.

We change it to EUR. Than we change the EUR to JPY and we have like 10000,03 $.

Is there any moment to catch (possibly with a local script) that this three rates make this possible.

Thank you.

Answer:

transacting in currency speculative market is like bird hunting in lions land.
in your above calculation you had not considered of deductible charges on transaction.

I am planning to run an automated forex trading platform hosted on a server outside Singapore. Client’s trading platform will be hosted on the server and trades will be executed on their behalf. Do I need a license and how do I obtain the license?

Answer:

If you are trading for others, you may need a license based on your countries rules about being an advisor sort of speak. You may want to contact some of your local officals You should be okay if the funds remain in your account. If you are looking for the best forex software, visit this site

http://the-best-forex-software-in-internet.blogspot.com/

This software is the best software that can help increase your trading profit and user friendly.

Best Wishes,

I am new to the Forex market and I am very interested in the potiential that it has to offer. I am trying to weed through all the nonsense and not become overwhelmed with all the info out there. Does anyone have some guidance on this subject and can you give me some pointers that may help me out of the gate. Any information on this would be greatly appreciated.

Answer:

The particular website linked at the bottom specializes in giving novice/beginner forex-traders helpful fundamental information regarding large and detailed introductions on foreign exchange, forex-trading tips, concepts, fraud warning info, trading safety info and also excellent, detailed information on the Major currencies of the world and the Central Banks that go with it.

There is also an article written especially for novice traders, where a more advanced trader is writing about his experiences in forex-trading during one day. All these articles are for novices and beginners, but the very first link at the top of the list below is especially written for novices. On the home-page of the website, it will show the latest news on economies and forextrading and may help you while you trade.

I find this site particularly helpful since im still learning too! hope this helps!

There were any signs such as significant Yen’s price change, trading volume or anything else? Or BOJ just confessed after the intervention? I’m newbie in Forex so i need a clear explanation.
Thank you so much!

Answer:

Pull up a daily trading chart of USD/JPY currency pair. You will see a significant rally in USD (and simultaneous decline in JPY) happen on 9/14.

This was the result of BOJ intervening by selling JPY against USD. Estimates of the size of the intervention are ¥1.5 trillion, or a little over .6 Billion.

I was just fooling around with the practice forex for a couple of hours today and made around k profit.

Answer:

The simulations frequently do not match real world conditions.

Quoting from a federal government website:
“Real-time is not real: when marketing trading systems, some promoters claim that their systems have performed successfully in “Real-time Trading.” This means only that the system has been tested using a live data-feed, rather than being tested using historical market data.
Remember though that in real-time trading, no trades have actually been placed in the market. Performance results based on real-time trading are merely another form of hypothetical results, with the same limitations. “

Has anybody purchased or familiar with the forex auto pilot system.Please get ahold of me and let me know if its a scam or not.thanks!

Answer:

It offers a money back guarantee, so it’s not a Scam. Some people really love this system, while others simply hate it. You can read reviews on it on http://www.forextopten.com/forex-trading-system.html .

I want to know your opinion on which 2 types of trading you are most likely to win at if you trade, either Forex or stock trading? Which is most likely to give you better returns and make you richer quicker?

Answer:

First, take 6 months in learning about stocks and trying it out with fake money in a stimulation web site like Yahoo! Finance.

www.finance.yahoo.com

The stocks you want to focus on is consumer staples, consumer discretionary, and healthcare. These are DEFENSIVE stocks that will survive through good and bad times. Most of my positions are in these stocks. Some names include 3M, Procter & Gamble, Kimberly Clark, Exxon Mobil, Walmart, Costco. Everybody’s got to eat and wipe their butts regardless of the state of economy. Many of these companies survived through the Great Depression.

That’s the benefits. You can sleep at night knowing your money is doing well. There are NO guarantees that you won’t lose money. It’s just that these stocks are the best. They pay good dividends too.

If you’re new to stocks, DON’T DAY TRADE. You’ll a rookie in a world of professionals. I tried day-trading with Citigroup and AIG when they were a little bit over . I had some luck at first, making about a day but I was way over my head. My luck didn’t last long and I had to rethink my strategy.

Besides you can’t do much with 0 in the market. Day trading involves A LOT of commissions to the broker. With all the commissions deducted from each trade, you’ll be lucky if you only lose half your money.

I would just day trade using Yahoo! Finance. Open a stimulation account, give yourself 0 worth of fake money and play it in the stimulation format. You’ll see what I mean by losing money every easily.

Good luck.

how well the known systems work in Forex trading (carry trade,…) and how much do you risk applying them, and for how long?

Answer:

Traditional trading of stocks on margin at 2:1 leverage is considered risky. Forex is leveraged at 100:1 and even 200:1 but few people take the time to understand this and simply focus on potential profits. All beginners focus on all the wrong things like “How much can you make?”

How much do you risk? Beginners risk their entire account and their house every time they put on a trade. How long? minutes. A leveraged position is almost impossible to hold more than an hour by anyone less than an astute trader. Most people don’t have a clue what a trader is or does, but it takes many years to become an astute trader. There are no shortcuts. Most people think that if they work harder and learn more, they will eventually become successful at trading like they would any other conventional “job”; not true. Most very smart, hard-working people lose money trading.

Factoid: 90% of traders lose money, regardless of what they trade.

The carry trade is generally done only by institutions with millions of dollars to invest and need a place to park those millions.

Known systems? You mean that make money consistently? Myth.

I want to know in your opinion what you think would happen if one day an extremely skilled, talented and diciplined forex trader took £100, and doubled it every day for a year which I know isn’t even possible, but if they managed to, and managed to corner and accumulate the currency markets worldwide, what would the govenments and people of the world do about it if someone did this?

Answer:

Firstly, there isn’t anywhere near enough money on the planet for someone to double their money every day. Do the maths and you’ll see that you end up with well over 10^100 pounds – which is billions of pounds for every proton in the universe!!

But even the greatest traders do not come anywhere near doubling their money in a day. They make profits by trading vast sums on tiny margins. A 1% profit in a day is excellent if you were trading with £10 million.

And in any case there is a limited supply of currency, which is small compared to the reserves held by governments (of their own and other major world currencies). If one trader (or bank) bought up all the available Pounds Sterling, the impact would not be catastrophic. And to do so would mean they probably had to spend all their reserves of other currencies, which is a highly risky strategy.

The national government that issues a currency has a number of defence mechanisms to avoid any possibility of this kind of thing. EG they could set interest rates to zero, meaning the trader holding the currency would not be earning anything on his holdings. So he would have to sell, which would lower the price, so he might end up with a loss. Or a government could take even more extreme measures such as devaluing the currency.