Best Place to start learning Forex?

beware: the fx market is extremely efficient at incorporating the latest news (rumors) into price action. in the majors the market is deep, liquid and directional.

extracting a statistically significant (from zero) information ratio is difficult especially for day trading.

in fact avoid day trading fx, the noise to signal ratio is simply to high to consistently profit.

like any trading game, work out your edge first. for example, it obviously won't be flow based (customer orders). do you have any informational advantages over other participants? i doubt it.

if you can't find your edge in this market, don't trade it.

some the comments on this post seem extremely naive and misinformed. there is no free lunch.

some rules of thumb that might help you:

do not venture in markets and products you do not understand. You will be a sitting duck.

the large hit you will take next will not resemble the one you took last. do not listen to the consensus as to where the risks are. what will hurt you is what you expect the least.

believe half of what you read, none of what you hear. never study a theory before doing your own prior observation and thinking. Read every piece of theoretical research you can - but stay a trader.

don't be fooled by randomness.
 
Quote from Kicking:

Just watch the majors every day or look at them EOD, and read the news like on Forexnews.com. Watch Bloomberg TV and learn what economic release move the market. Do this for a year or two and trade a mini account. Don't try to daytrade for 20 pips here and there.
More...

Cant agree more, while you may see great profit potential in the extreme price movements within the day, they are -extreme-, concentrate on the larger trend. Less stress, less intensive, concentrate on significant entry points and hold for as long as possible using a moving stop loss.. Dont exit the trade unless you see a good reason to, i.e a major support/resistance line on the daily charts or just keep a moving stop loss going and let the stop loss take you out (this has so far raked me up over 2000 pips in one trade)

I concentrate on Daily and 4hrs charts, and following the major trend. You will earn far more holding your trades rather than trying to grab 20 pips here n there, less stress for you and less sitting infront of the monitor staring at a moving target (go out and do something else while your trade is racking up the pips while some poor guy is burning out trying to catch all the whipsaws).
 
You must log in or register to reply here.
Back
Top