sKaLpZ Currency Trading For Beginners
- Thread starter sKaLpZ
- Start date
I received an email from a beginner forex trader who expressed dissappointment that I don't offer more one-on-one training.
A few points got brought up and I want to paste some of the text of my reply, as it may help my readers.
I'm no wonder-trader, -----, I learned just like everyone else, one trade at a time.
Just keep pounding the trades but stay on a demo until you have MORE than one profitable trade set up and structure.
no use paying the market to learn what you could have on a demo.
btw, yes I trade a live acount, but I have about a dozen demos running in the background at any one time that I am constantly testing strategies and tactics on, so, demo trading should remain part of your war-chest.
I don't commit real money to a system or trading structure until I see it pay off consistently for months trading on a demo.
to do anything else is just dumb - this market is WAY too volatile to enter with real money without knowing you stand a chance to win.
always remember: the market will test your system(s).
try different demos too.
Sam
The nice thing about forex is, there is at least one broker out there where you can trade as little as 1-unit per trade.
At 50:1 margin that is 1/100th of a penny of your money exposed to the market.
I cannot think of a better way to actually trade currencies "live" yet risk practically nothing of your own real trading money.
And, you could trade live this way until you have good trade set-ups and structures.
I cannot emphasize enough to run your trading tests on a demo(s) before committing real money.
I know what they say about your not being able to get a "live trading experience" feeling, and I say that is overrated.
There's nothing good in experiencing half your live account going up smoke when you could have blown out a demo or a dozen demos without losing a cent of your own money.
If someone came to me for one-on-one training who had $100,000,000 I'd tell 'em the same thing I saying here.
Though I may ask when do I get served the lobster dinner.
sKaLpZ
A few points got brought up and I want to paste some of the text of my reply, as it may help my readers.
I'm no wonder-trader, -----, I learned just like everyone else, one trade at a time.
Just keep pounding the trades but stay on a demo until you have MORE than one profitable trade set up and structure.
no use paying the market to learn what you could have on a demo.
btw, yes I trade a live acount, but I have about a dozen demos running in the background at any one time that I am constantly testing strategies and tactics on, so, demo trading should remain part of your war-chest.
I don't commit real money to a system or trading structure until I see it pay off consistently for months trading on a demo.
to do anything else is just dumb - this market is WAY too volatile to enter with real money without knowing you stand a chance to win.
always remember: the market will test your system(s).
try different demos too.
Sam
The nice thing about forex is, there is at least one broker out there where you can trade as little as 1-unit per trade.
At 50:1 margin that is 1/100th of a penny of your money exposed to the market.
I cannot think of a better way to actually trade currencies "live" yet risk practically nothing of your own real trading money.
And, you could trade live this way until you have good trade set-ups and structures.
I cannot emphasize enough to run your trading tests on a demo(s) before committing real money.
I know what they say about your not being able to get a "live trading experience" feeling, and I say that is overrated.
There's nothing good in experiencing half your live account going up smoke when you could have blown out a demo or a dozen demos without losing a cent of your own money.
If someone came to me for one-on-one training who had $100,000,000 I'd tell 'em the same thing I saying here.
Though I may ask when do I get served the lobster dinner.
sKaLpZ
Skalpz, I found a great chart that helps us in anticipating what the next PIP will be here: http://www.mataf.net/en/analysis-correlation.htm
Like, have you seen the USD/CHF do the opposite of what the EUR/USD does? I've been experimenting this morning with exiting the trade when the USD/CHF pair downticks when I'm short the EUR/USD.
Like, have you seen the USD/CHF do the opposite of what the EUR/USD does? I've been experimenting this morning with exiting the trade when the USD/CHF pair downticks when I'm short the EUR/USD.
It appears that my pair setup is changing to "eur/usd" <---only 1 I trade for now.
and then the other 4 pairs for 2 that go with & 2 that go against:
gbp/usd & nzd/usd <---both have >=98+ flow with correlation vs euro
usd/chf & usd/dkk <---both have -100 flow against correlation vs euro
Measured over 5 day averages.
This reminds me of paper rock scissors and checkers.
and then the other 4 pairs for 2 that go with & 2 that go against:
gbp/usd & nzd/usd <---both have >=98+ flow with correlation vs euro
usd/chf & usd/dkk <---both have -100 flow against correlation vs euro
Measured over 5 day averages.
This reminds me of paper rock scissors and checkers.
Two frequently recurring questions come up by beginners or those new to the global money-trading game:
1. Can I trade forex?
2. Can I make money trading foreign currencies?
Being self-taught, and having started with no knowledge whatsoever about trading money online I can speak, thus answer, only from my own experience.
1. Sure, you can trade money. People have found ways to do just about anything conceivable on earth. Using a mouse to click buy and sell is not that difficult.
Stats say there are over 13,000,000 people who trade forex online.
I doubt they are all mentally equivalent to Einstein. I know I'm not.
2. Can YOU make money?
Ah, this is the better question. The answer is twofold. Yes, you can make money, but you can lose money.
Especially in the open forex market.
It doesn't take much common sense to figure that out, yet I guess most people don't have even enough common sense to understand the loss part of trading forex. So they either 100% avoid currency trading as a "sin" in the sight of Heaven, or go in and get bagged.
If you do decide to open a forex trading account, you should know, going in, that you can and will most likely lose money.
I'm not saying you'll lose all your money.
You just must know going in that forex trading is risky.
The "risky" part means there is a risk of losing.
That's all it means.
It's not a guarantee that you WILL lose some or all of your money, it is just the reality that, if you do anything with your money, other than put it in a bank account, you're taking on "risk."
I like to think of a common CD as the first tier of risk for people new to the "investing" or trading game.
Why is opening a CD risky? Because of the other money you are 100% guaranteed to LOSE by locking up your money for a year (for example).
Typically nowadays you can find a CD that will pay you 4% on your money by your opening a one-year CD.
The lady who cuts my hair and I were discussing trading money the other day and she said she's opening an CD with $100,000 at 4% "to do the sure thing."
She would do this to get $4,000 back on her $100,000 deposit at the end of the year.
I got home and ran the numbers on her $100,000, afterward I picked up the phone to call her... then hung up before I dialed.
I was going to say to her,
"Look, you can open a trade on such and such currency pair exposing only $1700 to the market and without making a single other trade you'll earn $7,000 in one year.
"If you made only minor and light trades on it, you'd make well over $12,000.
"If you put it into substantial (but NOT high-aggressive risk) trade, you'd stand to make well over $20,000 in a year."
And, if she were willing to increase risk to what I would call "reasonable limit" (though, high-aggressive) she'd be able to gain over 50% on the $100,000 she opened the forex trading account with.
That's over $50,000 earned on the SAME initial deposit money that she is going to earn $4,000.
Now then, what does she stand to lose on her $100,000 within one year?
Up to $46,000 in missed gains and profits. Where is the real risk then?
Tell me, what is the difference between taking $100,000 and starting a business, knowing that 95% of all new business fail, experiencing catastrophic loss within the first 3 years?
Where are you getting?
The only alternative is to work the rest of your life for meager wages, living check to check as the cost of living skyrockets around you.
Oh, don't think you're not losing substantially in that scenario, you are. If fact, you're being wreckless taking that route.
Traded right, forex is a simple, effective and perfect instrument for super-compounding your money by using money, in trade, with which to do so.
Getting back to a better re-wording of the original question, Is there risk of you losing money by trading forex?
The right answer is, What is your risk of loss by NOT trading global currencies?
The answer?
More substantial than you may think.
Have a good week trading.
Sam
1. Can I trade forex?
2. Can I make money trading foreign currencies?
Being self-taught, and having started with no knowledge whatsoever about trading money online I can speak, thus answer, only from my own experience.
1. Sure, you can trade money. People have found ways to do just about anything conceivable on earth. Using a mouse to click buy and sell is not that difficult.
Stats say there are over 13,000,000 people who trade forex online.
I doubt they are all mentally equivalent to Einstein. I know I'm not.
2. Can YOU make money?
Ah, this is the better question. The answer is twofold. Yes, you can make money, but you can lose money.
Especially in the open forex market.
It doesn't take much common sense to figure that out, yet I guess most people don't have even enough common sense to understand the loss part of trading forex. So they either 100% avoid currency trading as a "sin" in the sight of Heaven, or go in and get bagged.
If you do decide to open a forex trading account, you should know, going in, that you can and will most likely lose money.
I'm not saying you'll lose all your money.
You just must know going in that forex trading is risky.
The "risky" part means there is a risk of losing.
That's all it means.
It's not a guarantee that you WILL lose some or all of your money, it is just the reality that, if you do anything with your money, other than put it in a bank account, you're taking on "risk."
I like to think of a common CD as the first tier of risk for people new to the "investing" or trading game.
Why is opening a CD risky? Because of the other money you are 100% guaranteed to LOSE by locking up your money for a year (for example).
Typically nowadays you can find a CD that will pay you 4% on your money by your opening a one-year CD.
The lady who cuts my hair and I were discussing trading money the other day and she said she's opening an CD with $100,000 at 4% "to do the sure thing."
She would do this to get $4,000 back on her $100,000 deposit at the end of the year.
I got home and ran the numbers on her $100,000, afterward I picked up the phone to call her... then hung up before I dialed.
I was going to say to her,
"Look, you can open a trade on such and such currency pair exposing only $1700 to the market and without making a single other trade you'll earn $7,000 in one year.
"If you made only minor and light trades on it, you'd make well over $12,000.
"If you put it into substantial (but NOT high-aggressive risk) trade, you'd stand to make well over $20,000 in a year."
And, if she were willing to increase risk to what I would call "reasonable limit" (though, high-aggressive) she'd be able to gain over 50% on the $100,000 she opened the forex trading account with.
That's over $50,000 earned on the SAME initial deposit money that she is going to earn $4,000.
Now then, what does she stand to lose on her $100,000 within one year?
Up to $46,000 in missed gains and profits. Where is the real risk then?
Tell me, what is the difference between taking $100,000 and starting a business, knowing that 95% of all new business fail, experiencing catastrophic loss within the first 3 years?
Where are you getting?
The only alternative is to work the rest of your life for meager wages, living check to check as the cost of living skyrockets around you.
Oh, don't think you're not losing substantially in that scenario, you are. If fact, you're being wreckless taking that route.
Traded right, forex is a simple, effective and perfect instrument for super-compounding your money by using money, in trade, with which to do so.
Getting back to a better re-wording of the original question, Is there risk of you losing money by trading forex?
The right answer is, What is your risk of loss by NOT trading global currencies?
The answer?
More substantial than you may think.
Have a good week trading.
Sam
Since resident flamers got the thread closed chronicling my USD/JPY short trade, I'll update the trade progress here so those who are interested can follow the trade.
For new readers, here is the post:
So, there I was, 3AM last night, watching my USD/JPY long trade go higher and higher and higher in profit.
After taking numerous pips and re-entering, just to have it go up higher, it occurred to me... sKaLpZ, what happens if you open a USD/JPY short trade...?
so I made arrangements with my broker to open a sub-acct in my live trading platform that I funded immediately, opening a short USD/JPY trade.
As you know, I called a 650-pip fall in EUR/USD 40-days before it happened and nailed every pip down successfully.
Well... I think... I'm gonna do it again. LMAO!
Therefore, I present to you, ladies and thugs (especially the ladies *wink*) sKaLpZ' (NEXT) USD/JPY Short Trade.
In the same fashion, using a slightly-modified version of the last updated version of my trading system with components of KABIR in it, here are the beginning specs of the trade.
Trade pair: USD/JPY.
Trade direction: Short.
Average Price: 110.34
TP: 500-points.
Trade Status: Live.
Current Market: 110.56
As usual, I am challenging the globe to try to beat me trading in the open forex market, to try to wipe me out with any trading system before I reach my 500-point TP (or better - lmao), specifically central banks, the biggest banks with all their forex trading teams and the largest institutional funds, including Buffett, Soros and Gates, because I'm the best currency trader on the planet.
Global warning: Do NOT try to do the same trading maneuvers as I do because you will most likely blow up your account.
Good luck, and may the best forex trader(s) win.
*BUSTS UP LAUGHING*
The Coin
For new readers, here is the post:
So, there I was, 3AM last night, watching my USD/JPY long trade go higher and higher and higher in profit.
After taking numerous pips and re-entering, just to have it go up higher, it occurred to me... sKaLpZ, what happens if you open a USD/JPY short trade...?
so I made arrangements with my broker to open a sub-acct in my live trading platform that I funded immediately, opening a short USD/JPY trade.
As you know, I called a 650-pip fall in EUR/USD 40-days before it happened and nailed every pip down successfully.
Well... I think... I'm gonna do it again. LMAO!
Therefore, I present to you, ladies and thugs (especially the ladies *wink*) sKaLpZ' (NEXT) USD/JPY Short Trade.
In the same fashion, using a slightly-modified version of the last updated version of my trading system with components of KABIR in it, here are the beginning specs of the trade.
Trade pair: USD/JPY.
Trade direction: Short.
Average Price: 110.34
TP: 500-points.
Trade Status: Live.
Current Market: 110.56
As usual, I am challenging the globe to try to beat me trading in the open forex market, to try to wipe me out with any trading system before I reach my 500-point TP (or better - lmao), specifically central banks, the biggest banks with all their forex trading teams and the largest institutional funds, including Buffett, Soros and Gates, because I'm the best currency trader on the planet.
Global warning: Do NOT try to do the same trading maneuvers as I do because you will most likely blow up your account.
Good luck, and may the best forex trader(s) win.
*BUSTS UP LAUGHING*
The Coin