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Does anyone do this or know of it. I heard an ad on this , but need to do some research. It is something where you buy and sell foreign currency and sell it for a profit. Anyone have more info or advice
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Currency Trading
- Thread starter Mini Monster
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I have always wanted to do this. And never had time. But i have looked into it a bunch. An yes you are correct. Buying and trading (selling) of foreign money.
Forex | Currency Trading | FX/4X Trade | FOREX.com there is a nice tutorial on there to watch also.
Forex | Currency Trading | FX/4X Trade | FOREX.com there is a nice tutorial on there to watch also.
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As far the dollar is , i know it is low but what about buying other countries money and then selling . To do this i would have to get the other money at a discount and sell higher to make anything, i really need to look into this....
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Thanks for the link,This looks like a good website to start checking out, it sounds like something to look into but i don't want to get so consumed with it , that it's all i think about. It reminds me of that Seinfeld episode where Jerry and George bought some stock and tha is all Jerry did was worry about all the time, ended up selling low and then the stock jumped up and George made a good bit.
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You "can" do it as a side hobby. BUT in order to ake some real money at it, you will have to give it some serious time and devotion every day. Because the markets fluctuate so much and quickly. And every day there is another disaster or worst in foreign countries which make the currency go up or down almost over night.
Good luck with it.
Trading currencies is the domain of huge hedge funds and national banks, so when a small investor dives in, you have to be prepared. There are three ways to trade: ETFs that follow currencies (similar to a stock, and you buy and sell just like a stock), futures contracts (traded on the Chicago Mercantile Exchange), and forex -- actually trading in the "spot" market.
Forex is the most popular with small investors, but for the wrong reason: it gives you 100:1 leverage. That's right: you only need to put up $1,000 to trade a $1,000,000 position. But it doesn't take much for you to lose that $1k given the leverage!
If you are new to this, I'd suggest a good primer on technical analysis (how to read price charts; learning about technical indicators like RSI, moving averages, stochastics, etc; and pattern recognition). You then might want a primer on currencies: how interest rate differences affect currencies, how the whole forex market works, etc. After that, find a broker that allows you to trade virtually, meaning without money for practice. Do it for 6-12 months. then see if you have the chops, without losing $10-50k of your own money to find out.
Last thing to consider: forex trades around the clock, 24/7. So if you are doing it part time, know that you are badly behind the eight ball. At professional funds, traders "hot seat" -- one shift leaves and the new one steps in, so that they have coverage around the clock. You'd hate to have a big position in the yen when the Japanese Central bank raises rates by surprise at 2am while you are sleeping...
Can't say it can't be done, but it is NOT as easy as you see in the ads. Those people make money by selling you HOW to trade. If they made great money trading, they wouldn't be teaching. So learn first and take baby steps.
Best of luck to you!!!
Forex is the most popular with small investors, but for the wrong reason: it gives you 100:1 leverage. That's right: you only need to put up $1,000 to trade a $1,000,000 position. But it doesn't take much for you to lose that $1k given the leverage!
If you are new to this, I'd suggest a good primer on technical analysis (how to read price charts; learning about technical indicators like RSI, moving averages, stochastics, etc; and pattern recognition). You then might want a primer on currencies: how interest rate differences affect currencies, how the whole forex market works, etc. After that, find a broker that allows you to trade virtually, meaning without money for practice. Do it for 6-12 months. then see if you have the chops, without losing $10-50k of your own money to find out.
Last thing to consider: forex trades around the clock, 24/7. So if you are doing it part time, know that you are badly behind the eight ball. At professional funds, traders "hot seat" -- one shift leaves and the new one steps in, so that they have coverage around the clock. You'd hate to have a big position in the yen when the Japanese Central bank raises rates by surprise at 2am while you are sleeping...
Can't say it can't be done, but it is NOT as easy as you see in the ads. Those people make money by selling you HOW to trade. If they made great money trading, they wouldn't be teaching. So learn first and take baby steps.
Best of luck to you!!!
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Point taken, I would need to hire a day and night shift team to really make this work and be profitable, my funds are not that high as of yet.
Well, this doesn't have much to do with trading on the forex. Doesnt matter whats up or down, matters its moving and you know which way. Trade thousandths for pips.
But, if you ar ein the U.S. it runs on London time, so key trading u.s. time would be around midnightish to the next morning.
In a nutshell think day trading tactics.
I trade Micro
I trade on the Forex Market. I have been studying for the past year or so. I'm still working on becoming profitable in the long term. If you choose the a USA broker your best leverage is 100:1. Right now there is regulation to bring this down to 10:1. I choose to swing trade mostly using the 4hr and daily charts. Right now I trade micro contracts. A full lot in the currency market is $100,000. With 100:1 margin it would cost you 1k to open a full contract on the market. This means each pip movements (Smallest increment change) is approx $10. Micro lot range from $10k - $100. I trade with 500:1 leverage with $100 lots. This means it costs me .25 cents in margin to open a $100 lot. Each pip move is 1 Cent. 1k lot would cost me $2.5 in margin and each pip move is 10 cents. 10K lot would cost me $25 in margin and each pip move would be $1.
There is plenty of risk management that can be taking in this market. You are able to set stop loss along with take profits. There is no need to sit and watch the market all day if you trade longer time frame. Most would agree to learn price action, and keep the indicators a minimum on your charts as this can cause confusion. I place my trades at the start of the next days Candle if the setup looks proper to my method. I set my stop loss and take profit and let the trade run. There are many ways to trade the currency market, you have to find the method that best fits you and.
I trade on the Forex Market. I have been studying for the past year or so. I'm still working on becoming profitable in the long term. If you choose the a USA broker your best leverage is 100:1. Right now there is regulation to bring this down to 10:1. I choose to swing trade mostly using the 4hr and daily charts. Right now I trade micro contracts. A full lot in the currency market is $100,000. With 100:1 margin it would cost you 1k to open a full contract on the market. This means each pip movements (Smallest increment change) is approx $10. Micro lot range from $10k - $100. I trade with 500:1 leverage with $100 lots. This means it costs me .25 cents in margin to open a $100 lot. Each pip move is 1 Cent. 1k lot would cost me $2.5 in margin and each pip move is 10 cents. 10K lot would cost me $25 in margin and each pip move would be $1.
There is plenty of risk management that can be taking in this market. You are able to set stop loss along with take profits. There is no need to sit and watch the market all day if you trade longer time frame. Most would agree to learn price action, and keep the indicators a minimum on your charts as this can cause confusion. I place my trades at the start of the next days Candle if the setup looks proper to my method. I set my stop loss and take profit and let the trade run. There are many ways to trade the currency market, you have to find the method that best fits you and.
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I have traded Forex for 6 yrs and net + for 4yrs. I can tell you that the leverage you are trading in micros is to high to ever be net + over a yr. Even on a full lot level 100:1 will blow your account up before you make any coin. That kind of leverage is a fools game. Also most of the spot market brokers are bucket shops which means they hedge against their book i.e. you. In short the bid ask spread along with the stupid leverage is a great way to loss money. Also, risk managment is not just putting out a stop, it is money managment. Go read a book on it, some of the best are written for poker players. You will never make money let alone a living until you get MM down. Just my two pips.
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Huh
I trade Micro account. $100 lots. Each pip move is 1 cent. I have $500 account and don't risk more than 3% per trade. What the heck are you talking about. I could potentially take a 1500 pip swing without blinking a eye. I'm not over leveraging my account I just choose 500:1. I know I'm not going to be rich trading with penny moves but I'm learning on a live account and you have to start somewhere. Maybe you misunderstood I'm not trading full lots or even 10k lots. I shoot for 2:1 or 3:1 on my take profit. Please correct me if I'm doing something wrong here. I trade very conservative.
I trade Micro account. $100 lots. Each pip move is 1 cent. I have $500 account and don't risk more than 3% per trade. What the heck are you talking about. I could potentially take a 1500 pip swing without blinking a eye. I'm not over leveraging my account I just choose 500:1. I know I'm not going to be rich trading with penny moves but I'm learning on a live account and you have to start somewhere. Maybe you misunderstood I'm not trading full lots or even 10k lots. I shoot for 2:1 or 3:1 on my take profit. Please correct me if I'm doing something wrong here. I trade very conservative.
Intensed
Intensed,
I went back and read my post. After re-reading my post it seems a bit harsh. Sorry if I offended you.
Anyway I do not know enough about the way you trade to reply on your MM. Some questions: What pairs are you trading, Spread bid/ask, which market(NY, London, Japan", win/ loss ratio, are you setting any profit targets (like .5% ROI per week / day), type of trade set up, do set auto SL and TP and if so what is your rational, how much time do you spend trading??? There are more questions that I have but I will save those depending on your answers.
The reason I ask all these ?? is telling me you trade 3% of account and 2-3:1 risk tells me nothing without the other info.
Look forward to talk trading. I have thought about starting my own trading thread and post info/ results and set up. Just nobody has ever mentioned it before as an interest.
Intensed,
I went back and read my post. After re-reading my post it seems a bit harsh. Sorry if I offended you.
Anyway I do not know enough about the way you trade to reply on your MM. Some questions: What pairs are you trading, Spread bid/ask, which market(NY, London, Japan", win/ loss ratio, are you setting any profit targets (like .5% ROI per week / day), type of trade set up, do set auto SL and TP and if so what is your rational, how much time do you spend trading??? There are more questions that I have but I will save those depending on your answers.
The reason I ask all these ?? is telling me you trade 3% of account and 2-3:1 risk tells me nothing without the other info.
Look forward to talk trading. I have thought about starting my own trading thread and post info/ results and set up. Just nobody has ever mentioned it before as an interest.
Hi
No offense taking man, forex is a very tough market! Never claimed to be making millions and 1,000 pips each day from the market. I'm still very new to the forex scene. I have been reading the forexfactory for many years trying to make sense with everything. I'm sure we can both come to an agreement when it comes to money management it must be sound. I'm sure my money management has many flaws but each day my goal is to become better. I will try to answer your questions to the best of my ability.
What pairs are you trading? EUR/USD, USD/JPY, EUR/JPY, CHEF/JPY...
What Market Hours do I trade? I trade from 8pm - 200am --Sydney / Tokyo Session.
win/ loss ratio? I have been trading 2 different styles at the moment maybe I'm trying to run before I walk. I'm learning to trade pure price action along with the Ichimoku indicator. Both seem to have around 50/50 at the moment I don't quite have them mastered. I always aim for at least 2 to 1 win ratio. For example my stop loss will be 50 pips from entry take profit 100 pips.
how much time do you spend trading? I spend about 4 hours each day trying to reach charts and work on my skills.
You sound very knowledgeable about the forex market. What method do you use? Do you use price action no indicators? Do you trade longer time frames? Or do you trade full time on the intraday? From reading my post you can see i'm trying to find the best style to meat my needs and something I can refine to make me a winner in the market in the long run.
Still in the learning process.. I'm all ears and willing to accept wise advise from someone that has learned the right way to trade.
No offense taking man, forex is a very tough market! Never claimed to be making millions and 1,000 pips each day from the market. I'm still very new to the forex scene. I have been reading the forexfactory for many years trying to make sense with everything. I'm sure we can both come to an agreement when it comes to money management it must be sound. I'm sure my money management has many flaws but each day my goal is to become better. I will try to answer your questions to the best of my ability.
What pairs are you trading? EUR/USD, USD/JPY, EUR/JPY, CHEF/JPY...
What Market Hours do I trade? I trade from 8pm - 200am --Sydney / Tokyo Session.
win/ loss ratio? I have been trading 2 different styles at the moment maybe I'm trying to run before I walk. I'm learning to trade pure price action along with the Ichimoku indicator. Both seem to have around 50/50 at the moment I don't quite have them mastered. I always aim for at least 2 to 1 win ratio. For example my stop loss will be 50 pips from entry take profit 100 pips.
how much time do you spend trading? I spend about 4 hours each day trying to reach charts and work on my skills.
You sound very knowledgeable about the forex market. What method do you use? Do you use price action no indicators? Do you trade longer time frames? Or do you trade full time on the intraday? From reading my post you can see i'm trying to find the best style to meat my needs and something I can refine to make me a winner in the market in the long run.
Still in the learning process.. I'm all ears and willing to accept wise advise from someone that has learned the right way to trade.
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Some Thoughts
Def can tell you FX is tough. I aim for .5%ROI but normally get 1/2 that which when compounded is a good return compared to what you can get marketwise. I have not been trading as of late because I am starting a biz to help clients payoff their debt fast without increasing their monthly outflow. So that has been burning up my days and some nights. Anyway, let me give you some tips that should help ASAP.
The first thing I would tell you is to stop trading all of those pairs! BTW a lot of those pairs are correlated which can greatly throw off your MM.
The most consitent pair is the Euro. Learn everything about the Euro/US from historical daily / monthly charts. When you see changes in long term S/R then google the financial news a week before the change. Find out why. You will see history repeat itself. The S/R changes will have differnt depths but you will start to "get" the pair almost feel it. Weird sounding I know but it does happen as your single pair depth increases. Print off the monthly charts for 6 months to a yr and mark the changes by hand! Mark the changes and important S/R for the time frame. Do not fuck around with anything other than daily or monthly charts for now. Do not trade shit until after you have completed this history lesson.
To answer your questions; I only trade Euro while NY is in session. I trade "naked" except for S/R on the screen and I use little to no leverage. BTW you do not trade your account 500 or even 100 to one. Also, I do not put in any take profit or SL orders, limit or otherwise. I do have a stop loss target and when that is hit I order it. I.E --I babysit trades. There is no take profit target I let it run without SL trails. When it looks like it is going to run out of steam I take profit. Now that does not mean I will take a trade next to long term S/R but I do not predetermine expectation. So setting some bullshit take profit will only make you tense and hurt your wins!! A hard SL target is a must but let the wins run bro! Do not limit yourself because you will loss your money. And the biggest advise I can give you is dont loss money because you have to do a "double back" to get even.
Do the history lesson and do not trade! We can talk trading somemore and we can talk about leverage and MM because there are some misunderstandings that you have based on earlier post. Plus I have to get my software done for my new company.
I am going to trade again in May and we can start a trading thread if others want too.
Be cool and let me know if you have more questions.
Def can tell you FX is tough. I aim for .5%ROI but normally get 1/2 that which when compounded is a good return compared to what you can get marketwise. I have not been trading as of late because I am starting a biz to help clients payoff their debt fast without increasing their monthly outflow. So that has been burning up my days and some nights. Anyway, let me give you some tips that should help ASAP.
The first thing I would tell you is to stop trading all of those pairs! BTW a lot of those pairs are correlated which can greatly throw off your MM.
The most consitent pair is the Euro. Learn everything about the Euro/US from historical daily / monthly charts. When you see changes in long term S/R then google the financial news a week before the change. Find out why. You will see history repeat itself. The S/R changes will have differnt depths but you will start to "get" the pair almost feel it. Weird sounding I know but it does happen as your single pair depth increases. Print off the monthly charts for 6 months to a yr and mark the changes by hand! Mark the changes and important S/R for the time frame. Do not fuck around with anything other than daily or monthly charts for now. Do not trade shit until after you have completed this history lesson.
To answer your questions; I only trade Euro while NY is in session. I trade "naked" except for S/R on the screen and I use little to no leverage. BTW you do not trade your account 500 or even 100 to one. Also, I do not put in any take profit or SL orders, limit or otherwise. I do have a stop loss target and when that is hit I order it. I.E --I babysit trades. There is no take profit target I let it run without SL trails. When it looks like it is going to run out of steam I take profit. Now that does not mean I will take a trade next to long term S/R but I do not predetermine expectation. So setting some bullshit take profit will only make you tense and hurt your wins!! A hard SL target is a must but let the wins run bro! Do not limit yourself because you will loss your money. And the biggest advise I can give you is dont loss money because you have to do a "double back" to get even.
Do the history lesson and do not trade! We can talk trading somemore and we can talk about leverage and MM because there are some misunderstandings that you have based on earlier post. Plus I have to get my software done for my new company.
I am going to trade again in May and we can start a trading thread if others want too.
Be cool and let me know if you have more questions.
leverage is 50:1 on forex.com. I make quick trades, buy and trade(less than a min hold) sell than trade. You also need to watch the margins as they fluctuate, a .9 margin is the least amount of margin and is the best time to buy or sell. The only pair I trade is euro/usd. You can easily make a 100+ pips a day by make quick small trades of 1-3 pips.
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I think the OP was talking about arbitrage. Either-way, it is nice to see that there are some Forex traders out there. I never played in the Forex; commodities anyone?
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