Wats ur take on Forex Trading?

khaos11

khaos11

New member
hi guys, would like to know wats ur take on forex trading.. yeh or ney? with the trend of the bearish market this days i know the forex market with the USD is pretty volatile... so i was wondering whether i should try out trading?


wats ur say... hope to share ur exp and views... i belief stocks/ shares and forex are trraded diff, so if u were once a stock trader... i think ur views will be pretty diff from a forex trader to a certain degree...


hope to hear ur replies..
cheers.:mrgreen::mrgreen:
 
go for it bro!

i always thought of trying it out, seems very profitable if you have some basic common sense...

you don't need much education etc too! just simple buy and sell!(isn't it?)

good luck!
 
when the stock market crashed...

yea... it seems pretty tempting... my fren just made something like 150 pips over a few hours.... people were like crying and committing suicide when the stock market crashed on one bloody wednesday.... he and he's few friends were freakin laughing their way to the bank man... any gd fx schools out there?
 
NO forex trading is NOT a good idea, especially without comprehensive knowledge of its instruments, and especially in the current climate. they are extremely speculative. the layman may find it surprising that financial markets are actually highly scientific and thoroughly calculated, rather than using 'intuition' 'feeling' or common logic. that's the job of the trader. the actual outcome depends on the risk tolerance of the investor.

do NOT trust a broker, especially YOUR broker (ironically). they profit from you making big transactions, so there is little incentive for them to dissuade you from making risky decisions.

forex trader and stock trader, no difference. both will have a wide view of the economy. it's just that they have to do different things as required in their respective markets.

http://en.wikipedia.org/wiki/Forex

if excess gain was so clear-cut and obvious, millions of investors would have already profited. but of course i am wrong, because if the millions of investors could profit, nobody will be making excess gains, everyone will only be getting normal (if any) returns.

in short, you are betting on the future outcome of a given currency. without any knowledge on the determinants of that outcome, it could be suicide. there is very little to base your investment decision on, which is why it is SPECULATIVE.

forex should only be used for hedging purposes, but due to its abuse we are now in deep shit. it happened in 97, it is happening today.

AND WHY IS THIS IN OPEN MIC? :evil:
 
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am working on a case now involving forex and it ain't no joke. my client lost millions. if you are a minnow, don't swim with the sharks. the banks, hedge funds etc are waiting for people like you to jump in thinking its easy money. leveraging in forex can go up to 400:1, tempting but crazy imho. i would advise you to research carefully, go do a demo account and get familiarized with the terms, techniques, strategy before you start actual trading. research says forex is the most volatile and liquid, with over $1.3 trillion traded each day. i don't even know how that happens...but it sure makes you itch to get a piece of the action. but statistically, i just read yesterday that 90% lose money, 5% break even and 5% profit....is this true? i don't know...
 
1 sentence: Do not play/invest/gamble/speculate with money that you can't afford to lose.

Be prepare to lose whatever money you put in. Make sure its not money for the hospital bill, children's school fees, household living expenses, etc.

And +1 to shinobi.

DO NOT trust your broker/financial advisor/relationship manager/insurance agent. They will not advise you according to your needs, more often than not. They will advise you according to the margins they can get out of your investment.

Nowadays, the products are so complex. A lot of the marketers who are promoting the product don't even know what is the nature of the investment product that they are selling. They may not even be able to quantify the loss for you. Only the structurer (the person who came up with the product) truly knows the nature of the product.
 
I do Forex trading as well as invest in stock markets....take my advice....dont play the forex market until you know what you're doin...there forex schools will not help u .....if you are really interested...first pick up some books on finance....first play the stock market...and then try the forex market...its very easy to say that someone made 150 pips....its easy to loose the money as well....and dont forget that during forex trading...you are leveraged...you make large amoutns of money through leverage....and you also LOOSE large amounts of money through leverage....if you dont have the ability to top up once your money is lost...you can lose everything...

there is no free lunch....
 
thnks for the advise guys.... i'll open a FEW suicide demo accounts and try it out... while i'll do a lil more research on the matter to build up my own strategy before i actually open a live acount.....

the FX schools here dun teach much? shouldn't they get reported to the authorities...?
 
The schools and books will teach the general principles. But the dynamics and market sentiments are hard to grasp. That requires experience and foresight.

Look up this term call 'information asymmetry'. The movement of the markets depends a lot on information (economics, politics, weather predictions, etc - its integrated, not any single arena) which we may not have to make the best decision. You might also be surprised at how much the market directions are determined by sentiments or investor confidence in future economic outlook instead of available information.
 
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yes, markets are essentially made or busted by investors. What Keynes calls "animal instincts". Investor pessimism results in people selling off their shares, devaluing them, and viola, market goes bust.
 
Yeah play with demo account 1st. but beware sometimes what you applied in demo cannot be applied in real acct. I learned this the hard way. If you really want to try real forex I reccomend FXCM Micro acct. It lets you start with minimum US$25 and buy/sell at low rate. Even if you lose money its not going to be a big lost.

Oh...and wrong section to post?
 
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if you have limited experience in investment, it's always safer to start with less risky or safer (duh) investments, just to get an understanding of financial markets.

$1million can mean little to one person, or alot to another. the amount of wealth you have plays a part in determining your level of risk tolerance. and your level of risk tolerance plays a part in determining the kind of investment decisions you will make. an investor's investment strategies are not scalable to the kind of money that the layman has at his disposal. he may be able to afford losing his firm, but surely you can't afford to lose your home.

and regarding brokers/advisers/AGENTS, it is not a matter of integrity or honesty. nothing in this world is black or white, right or wrong.

however, just as with anything else in life:

if someone has a stake in the outcome of your decision, any advice he will give can never be truly objective. he then involves himself, his own interest, his own agenda in your decision and what will be favourable to him may not necessarily be favourable to you.

this applies to investments, choosing girlfriend and also some more personal and sensitive issues.
 
i have this mini generalising theory call the "conservation of money". money is not created nor lost. rather it is changed into something else. for eg, u buy a new axe with $1000, the $1000 has turned from cash into a material object. is the $1000 gone? nope, it just went to the axe manufacturer.

likewise, in forex trading, money is not created nor lost. rather it is changed into something which is either relatively more valuable or less valuable. if it is more valuable, it appears that you "make" money; if it is less valuable, it appears that you "lose" money.

another perspective of this conservation of money is that, since money is neither created or lost, it has to go somewhere. whatever amount you gain, someone else somewhere will have to lose, and vice versa. banks, hedge funds, want u to put ur money in coz when u lose, they stand to gain.

the point of this, is to remind you not to be greedy. be content with what you have. if u feel that u have too much money and the money has to go somewhere, rather than putting your money on something you are not certain of, i will suggest that u invest in things that u know will have a higher chance of yielding positive results.

trading is not a get-rich-quick game, tried before le. retail traders like us, who trades in our free time, and invest puny, very difficult to win big. it is quite easy to have small wins, like 100-200 bucks, if u have some fundamental concepts of trading. but if u see those newspaper ads, where pple make 1000000 bucks in less than 3 days, take it with a pinch of salt.
 
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shinobi said:
and regarding brokers/advisers/AGENTS, it is not a matter of integrity or honesty. nothing in this world is black or white, right or wrong.
Click to expand...

let's just say things as they are. Brokers and advisers are human, it is human instinct to watch out for yourself, obviously they are in the game of advising to MAKE MONEY. So what they ask you to do may not be in your best interests.

when I first saw this post I thought he had a band called "Forex Trading"
 
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Hydrofly said:
let's just say things as they are. Brokers and advisers are human, it is human instinct to watch out for yourself, obviously they are in the game of advising to MAKE MONEY. So what they ask you to do may not be in your best interests.

when I first saw this post I thought he had a band called "Forex Trading"
Click to expand...

eh... not bad idea to have a band called forex trading,... thnks for the idea.... lol
 
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