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    Anyone made any money trading FOREX?

    I've been looking at FOREX trading for a long time but never quite got round to trying it out, was wondering if any other HUKDers had given it a go and their experiences?
    All comments welcome!

    24 Comments

    Get Metatrader 4 software , its free , and sign up for a demo account.

    Check this site http://www.babypips.com/

    Trade with the demo account for at least 6 months before you commit any cash.
    Edited by: "mikewhite" 4th Nov 2010

    FOREX trading depends on very tiny margins and multiple trades per day.
    Ask yourself these questions before you start.

    Do you have online access to the spot price (without 15 min delay)
    Do you have an account with FOREX dealers?
    Do you have large amounts of cash that you can move about numerous times a day?

    Original Poster

    Thanks guys, helpful comments, have you done any trades yourselves?

    Bought Euros over the last 8 years in quantities up to 65K

    Original Poster

    cannyscot

    Bought Euros over the last 8 years in quantities up to 65K


    good results? who do you use a broker?

    I would look for a trader who offers a mini account , you can open this type of account with a very small amount of cash say £100 , if you shop around some traders offer 1:100 - 1:200 leverage, it is a good way to start

    Google Forex traders and set up trade with 4 or 5.
    They will contact you when the currency you are dealing in gets to a price that you determine.
    But
    They work on a margin and have access to instant pricing
    Unless you can get this too you have to do longer term deals that have bigger differences in price
    Problem with that though is your capital is tied up.

    my mate tried it a couple of years ago & basically crippled him. for a few days he was making around 250 a day on small trades, then ended up loosing 14.5k in space of 3 weeks. nearly lost everything, but luckily hasnt.

    my saying was always take ur days/weeks/months trade then walk away......

    Original Poster

    mikewhite

    I would look for a trader who offers a mini account , you can open this … I would look for a trader who offers a mini account , you can open this type of account with a very small amount of cash say £100 , if you shop around some traders offer 1:100 - 1:200 leverage, it is a good way to start


    Is it a good idea to have a high leverage as a beginner, couldn't the losses get out of hand?

    Original Poster

    lanc_red

    my mate tried it a couple of years ago & basically crippled him. for a … my mate tried it a couple of years ago & basically crippled him. for a few days he was making around 250 a day on small trades, then ended up loosing 14.5k in space of 3 weeks. nearly lost everything, but luckily hasnt. my saying was always take ur days/weeks/months trade then walk away......


    Yeah I've heard a few stories like that, make a bit then lose a fortune.........

    cycleman

    Yeah I've heard a few stories like that, make a bit then lose a … Yeah I've heard a few stories like that, make a bit then lose a fortune.........



    it was his own fault really cos he didnt walk away. he kept trading after he'd made his daily gain. i remember him calling me one night & said hed just lost 2.5k in a single trade cos the pips kept going down. he didnt know wether to pull out or keep it going. he then got a margin call from his broker....nightmare.

    i was going to give it a go, but reckon there a serious amount of research & a proper plan before dabbling. good luck tho

    Original Poster

    Anyone explain what a spot trade is, as far as I understand it's an immediate trade of currencies, but isn't that just buying or selling in one transaction so how is any money made?

    Banned

    This is one type of trading where setting fairly tight stop loss isa must, if a trade goes the wrong way than limit the loss and live to trade again, only trade 5-10% of your trading capital on each trade. you only need to win 60% of the time to make a constant overall profit.

    Banned

    cycleman

    Anyone explain what a spot trade is, as far as I understand it's an … Anyone explain what a spot trade is, as far as I understand it's an immediate trade of currencies, but isn't that just buying or selling in one transaction so how is any money made?



    spot trade just means immediate execution/delivery as opposed to a futures trade which has a future predicted price quoted.
    Edited by: "slamdunkin" 4th Nov 2010

    Original Poster

    slamdunkin

    spot trade just means immediate execution/delivery as opposed to a … spot trade just means immediate execution/delivery as opposed to a futures trade which has a future predicted price quoted.


    so no money is made it's just a single transaction?

    Banned

    if you are going long you first trade will be a buy, then at a later time when you wish to sell you will make a close trade (sell) both trades will be made at the current spot price = spot trade
    Edited by: "slamdunkin" 4th Nov 2010

    Original Poster

    slamdunkin

    if you are going long you first trade will be a buy, then at a later time … if you are going long you first trade will be a buy, then at a later time when you wish to sell you will make a close trade (sell) both trades will be made at the current spot price = spot trade


    Thanks for that, where would you suggest opening an account?

    Banned

    I wont be open one, as seems to much hassle for it!

    Banned

    No idea who is the best broker for FX trading....if I bet on oil, gold or an index then I use a spread betting company like financial spreads which works on the same principle as futures trading and profits are tax free...if you really want to get into it, then find the specialist forums and learn the pros and cons of each FX broker and what the platforms are like as well as the prices which will very depending on how many trades a month you wish to make.

    Original Poster

    slamdunkin

    No idea who is the best broker for FX trading....if I bet on oil, gold or … No idea who is the best broker for FX trading....if I bet on oil, gold or an index then I use a spread betting company like financial spreads which works on the same principle as futures trading and profits are tax free...if you really want to get into it, then find the specialist forums and learn the pros and cons of each FX broker and what the platforms are like as well as the prices which will very depending on how many trades a month you wish to make.


    OK thanks for all your help, I'm off to babypips now, hows the biking going, I'm out of action after a couple of nasty tumbles.

    Banned

    I'm only getting out once a week now the weather is shyte, so my fitness isn't as good as it was throughout the summer months. I'm going to ladybower this weekend hopefully.

    Original Poster

    slamdunkin

    I'm only getting out once a week now the weather is shyte, so my fitness … I'm only getting out once a week now the weather is shyte, so my fitness isn't as good as it was throughout the summer months. I'm going to ladybower this weekend hopefully.


    Cool, I won't be out of plaster till christmas and then intense physio, so no biking for me for a while, but plenty of time for FOREX!

    Banned

    Play a virtual game for a while and also look a few of the platform demos at various brokers.

    Please don;t forget what I said about your money management, don't be tempted to play to big a stake, it will be the differance between success and failure over the long term....SERIOUSLY!!!!!!!!!!!

    have a read
    http://www.onlineforextrading.com/learn-trading/money-management

    also how to choose an FX broker
    http://www.onlineforextrading.com/learn-trading/choose-forex-broker


    Hope the injury heals well....good luck

    Edited by: "slamdunkin" 4th Nov 2010

    Some great info here. "Bet" what you can afford to loose, and start small I think. There is a wad of oil on the Falkland Islands, so keep an eye out for any companies starting up there, or "testing" and buy shares for the long term
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