09-09-2013, 08:12 PM
1
Forex Trading?
Anyone well versed in this particular money making pursuit? I am currently looking into it as a way to earn a few bob.'Forex Trading', for the unenlightened, is more or less the same as gambling on stocks on shares except different as you buy and sell such stuff as currency. Sounds exotic but not really as you can have a go with more or less next to nothing in your pocket.
Anyone have experience in the above or in stocks and shares or commodities etc?
09-09-2013, 08:27 PM
2
Re: Forex Trading?
MKJ please don't do it, it sounds wonderful but trading on margin is very VERY dangerous, and if you have not been working in a proffessional FOREX company you will loose out.Putting down a small deposit does NOT mean you will not have to layout a large sum of cash if the trade goes against you and it will (sooner or latter if you are a private trader.)
Please believe me the 'margin calls' are not nice and of all the financial products you could think of trading FOREX is the most fast moving and as I said definately one of the most dangerous. Prices can move in milliseconds, you will be competing against automated trading computers and the only reason the proffessionals can do it is because they are using other peoples money.
In the Great Wall Str. crash it was people trading on margin who lost out heavily and contributed to crash even more, and while the stories of people jumping out of tenth floor windows on Wall Street are all fiction there were certainly tens of thousands of people who lost everything at that time.
As I said, I urge you not to get into this form of trading, buy shares long, buy them short (if you must), trade CFD's or even commodities, but please PLEASE do not trade FOREX.
Edit to add:-
If you need any more convincing read up the story of Nick Leeson and Barings Bank and he wasn't even using his money
09-09-2013, 08:38 PM
3
Re: Forex Trading?
Originally Posted by Losos
->
MKJ please don't do it, it sounds wonderful but trading on margin is very VERY dangerous, and if you have not been working in a proffessional FOREX company you will loose out.Putting down a small deposit does NOT mean you will not have to layout a large sum of cash if the trade goes against you and it will (sooner or latter if you are a private trader.)
Please believe me the 'margin calls' are not nice and of all the financial products you could think of trading FOREX is the most fast moving and as I said definately one of the most dangerous. Prices can move in milliseconds, you will be competing against automated trading computers and the only reason the proffessionals can do it is because they are using other peoples money.
In the Great Wall Str. crash it was people trading on margin who lost out heavily and contributed to crash even more, and while the stories of people jumping out of tenth floor windows on Wall Street are all fiction there were certainly tens of thousands of people who lost everything at that time.
As I said, I urge you not to get into this form of trading, buy shares long, buy them short (if you must), trade CFD's or even commodities, but please PLEASE do not trade FOREX.
09-09-2013, 09:08 PM
4
Re: Forex Trading?
Originally Posted by MKJ
->
is it possible to make a good living out of trading even if you don't have a great deal of money behind you?
95% of all private investors who trade frequently loose money overall.
If you want to get into financial investments and trading I strongly suggest you start by reading up some of the many books on investing in shares, bonds, and commodities, and even if you don't have a lot of money go long on a FTSE100 share and follow it daily on a web site like ADVFN which is free if you don't want live prices.
You'll find a chat forum on there where many private traders will talk about 'deals' but believe me much of the talk is rubbish and many peole on there boast about their trades and how much they have made, but never tell about their losses, so you have to learn who are the knowledgible people and who are the bull sh****rs
it takes a little time tobe able to spot them.Then if you reinvest your dividends, and you are patient, you'll build up a small portfolio, and over time it will grow, then, and ONLY then could you consider the more exotic products.
The best way to look at the stockmarket, and the commodities trading floors, and FOREX, is to only invest money you can afford to loose, in other words if you invest £100 and you at some point in the near future might need that to pay your mortgage or the 'lecky bill then don't invest it. If on the other hand you have £100 and you really can't think of anything to do with it then consider investing it.
09-09-2013, 09:20 PM
5
Re: Forex Trading?
Originally Posted by Losos
->
Sorry but the short answer is NO.95% of all private investors who trade frequently loose money overall.
If you want to get into financial investments and trading I strongly suggest you start by reading up some of the many books on investing in shares, bonds, and commodities, and even if you don't have a lot of money go long on a FTSE100 share and follow it daily on a web site like ADVFN which is free if you don't want live prices.
You'll find a chat forum on there where many private traders will talk about 'deals' but believe me much of the talk is rubbish and many peole on there boast about their trades and how much they have made, but never tell about their losses, so you have to learn who are the knowledgible people and who are the bull sh****rs
it takes a little time tobe able to spot them.Then if you reinvest your dividends, and you are patient, you'll build up a small portfolio, and over time it will grow, then, and ONLY then could you consider the more exotic products.
The best way to look at the stockmarket, and the commodities trading floors, and FOREX, is to only invest money you can afford to loose, in other words if you invest £100 and you at some point in the near future might need that to pay your mortgage or the 'lecky bill then don't invest it. If on the other hand you have £100 and you really can't think of anything to do with it then consider investing it.
.
09-09-2013, 09:50 PM
6
Re: Forex Trading?
Originally Posted by MKJ
->
Soaking it all up. Thanks .
There is one bit of advice which you'll see quoted frequently on ADVFN which is DYOR
Means Do Your Own Research
You can make money by investing but like evrything in life nothing comes easy.
These days you can research any company on the internet and you can learn the basics of company finance and make decisions based on fundamentals (The accounts) technical (The graphs) and your own knowledge of the company or market.
I wish you all the luck in the world, it's a fascinating occupation (I was going to say 'hobby' but it is more than that)
I started many years ago with just a few hundred pounds so the amount of money you have is not as important as the care and research you do before investing it.
Have to go now as SWMBO has some chores she wants doing
16-09-2013, 01:09 PM
7
Re: Forex Trading?
Ok, here I am so far. I just posted this on another forum but any advice from anyone is very welcome and you seem to know what you are talking about.|
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