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Forex Training
- Thread starter NJTrader
- Start date
What exactly do you expect this learn at this class? Why don't you go to your local library and pick up a book put out by the Fed called "Foreign Exchange in the United States", auhor Richard Kubarick. This will teach you fundamentals of the economic factors that affect exchange rates. Then you need to log onto a live demo and paper trade, paper trade, paper trade.
Yes books are great. I have read more books then I care to mention here on all kinds of trading including forex. I have been paper trading on a demo account. Not sure if I know exactly what I am doing is correct, that is why I would like to take a class to sharpen these skills. Any suggestions?
Originally posted by NJTrader
Yes books are great. I have read more books then I care to mention here on all kinds of trading including forex. I have been paper trading on a demo account. Not sure if I know exactly what I am doing is correct, that is why I would like to take a class to sharpen these skills. Any suggestions?
You're doing the right thing, if you're making money. I'm trading a demo account too.. Caught 30 pips in two days, max drawdown 14 pips. Not ideal, but I'm getting there.. (trade exits and scaling are things I need to work on..)
Here's why I like forex, so far:
1. A LOT of specialized electronic trading knowledge is needed to successfully short-term (even swing, in some instances) trade equities. The forex market is soooo big, that it's impossible for one player alone to monkey with the market (no Axe).
The corollary is that there aren't a lot of retail traders, so there aren't as many 'shakeouts', i.e. obvious patterns (triangles, etc) that immediately fail as soon as the dumb money is sucked in. Don't get me wrong-- you need to be smart about broker selection, since your broker knows your stops, and can move their quotes off the market to run them. Find a firm whose desk is compensated on straight salary. (GAIN capital is the only US firm with a decent reputation here and abroad)
2. Very trending.. In other words, unlike the qqq (with random 5% up days), its generally easy to establish your bias for the day/week.
3. Pure TA I trade under the influence of bollinger bands and a set of moving averages, and some (very simple) fibonacci analysis. I sell strength and buy weakness. In the short week I've been trading, I generally find two trades in about 6 hours at night, and miss 1 or two others.
4. There is so much room to be a superstar. Most of us will never trade a $5000 account to $1B. But the retail forex market is just beginning-- it will eventually have its own Teresa Lo's, Larry Williams'.. If your mind works this way, and you can achieve some decent results, it shouldn't be that hard to emulate any of the other advisory service/chatroom businesses. They can be very lucrative, and smoothe out the ups and downs of tradings. (I'm sure this advice is sacrilege on this board, but it is something to think about). The hardest part of any of that is finding someone to warehouse your series 3 after you take it..
But as to your question, I don't think there's anything special about forex that requires real training. Most of the books out there (esp. Master Swing Trader) are applicable to the forex market. The differences you can learn from watching the forex market in real time every day. Just remember that the leverage is what can really really really kill you.
regards,
laziz
Originally posted by J-Law
Forget the class. You run the risk of being fed retail BS by some guy who doesn't trade day in day out.
The tape will teach you more than any class will ever. The other option is to try and befriend bank F/X dealers.
very true. the best you can do is learn by doing yourself.
In response to the posted "advantage" of not having an axe in F/X trading, I disagree. What about Governments? They're pretty big. Nothing like being short Yen when news of Japanese Gov't banking intervention gives it a kick in the butt. The thing is, as much as we all love to trade purely technical, currency trading has a lot of politcal risks. In addition to massive corporate and fund movements. Many companies move money in and out for their own reasons, not based on technicals.
Don't get me wrong, I hope you do well. But you are up against not Goldman or Merrill but Hedge Funds, International Funds, Multinational Corporations, and Governments.
Try it and see how well you do. You never know. As for me, what do I know? I used to be a F/X trader for one of the big brokers. I prefer futures/equities/options. But that's me. Actually I think bonds are more preferable than F/X.
Anyway, good luck.
Canuck
Don't get me wrong, I hope you do well. But you are up against not Goldman or Merrill but Hedge Funds, International Funds, Multinational Corporations, and Governments.
Try it and see how well you do. You never know. As for me, what do I know? I used to be a F/X trader for one of the big brokers. I prefer futures/equities/options. But that's me. Actually I think bonds are more preferable than F/X.
Anyway, good luck.
Canuck
Don't be fooled. With Demo forex platforms, the quotes offered by those evil market makers do not replicate real-time quotes and price action at ALL. Demos are designed to lure naive beginners with the promise of making good money. The fact is, unless you're swing trading with larger stops, making money is difficult. If you're chipping and getting results with demo's, don't expect to be profitable once you open a live account. It ain't gonna happen unless you go with a good broker. Sure, real-time charts show price movement to be attractive, but MMs don't keep their real quotes at bar extremes very long at all. It's more like a flash, so unless you have a limit order there ready and waiting, or a very quick with a market order, you'll be dissappointed by the fills you get.