Forex vs Other investment opportunities
Postagens: 561
Membro desde: 21/04/2011
Forex market is becoming very popular investment opportunity. There are many other programs too. How do you rate Forex as compared to other investment programs.
I rate Forex as highly risky and for most of the people "loosing" opportunity. In my opinion you should be a good analyst of data. You should have full understanding of financial indicators.
But most of the forex investors dont have this ability. They just see the "line graph" and make trades.
Postagens: 8
Membro desde: 25/04/2011
I traded currencies for about 3 months just losing money. Was down about 10% by the end of the 3rd month.. Then I switched to commodities. Made back my 10% in the first week. Now I'm sitting at a 23% gain. For me, oil is about the largest money maker I can find. Although I'm still waiting for this mornings drop to level out.
Postagens: 8
Membro desde: 25/04/2011
Note: I'm using the same platform and broker to trade the commodities as I was the currency. (MT4 on Trading-Point.com)
Postagens: 939
Membro desde: 21/04/2011
So in your opinion Commodity trading is better than currency trading. You are saying this because commodity behavior is predictable. right?
Stick to your rules
Postagens: 8
Membro desde: 25/04/2011
I think I'm saying that Commodity trading suits me better as an investment platform, and you'll have to investigate yourself to see if it suits you. And yes, I find that the behaviour is much more predictable. Then again, I've only been doing it for 3 weeks. It may change on me. I'm still a newbie, that's why I only put $100 in my account. Never risk more than you can lose.
All I know is that at last post (2 days ago) I was 23% up, now I'm 55% up ($155 in my account now
Postagens: 561
Membro desde: 21/04/2011
Postagens: 8
Membro desde: 25/04/2011
I was trading crude oil. But, I made about 4 newbie mistakes all on top of each other and got a margin call. So, I'm now at a 100% loss. Trying to decide if I can learn from my mistakes and get back in, or if I should leave it alone.
Postagens: 939
Membro desde: 21/04/2011
100% loss!!!!! If you learn from mistakes, it will make you a better trader. But the problem in forex trading is when we see a a big return, we take bigger risks. It makes us loose our money sometimes.
Stick to your rules
Postagens: 8
Membro desde: 25/04/2011
Yeah, I lost $100 (100%) of investment on one account, and $80 (80%) on another (was trying 2 brokers). Started with $100 accounts, smallest I could, just to play. 1) I used way more than 20% of my account for margin (was more like 50%+) 2) I didn't get out when I could have, because I got greedy for more profit 3) I didn't pay attention to the fundamentals. I was mostly trading oil, and I didn't pay enough attention to the Federal Oil Reserve news 4) I thought the market turning around was just a fluctuation and would go back up again. 5) I didn't have stop losses set 6) I held a position overnight (My trading style tends to be very scalperish, so I definately shouldn't be holding while not paying attention)
Hopefully other people can learn from my mistakes. Today I did better. Set stop losses, traded with the trend. Paid attention. 100% gain in 1 afternoon. Then lost 75% of my gain. 25% gain on my account total today. Still counting that a win for today.
Its a fun game at $100. Not sure I could handle being in for thousands of dollars or more.
Postagens: 939
Membro desde: 21/04/2011
:). You explained you mistakes very nicely. It will help other traders too. How much amount you use on average to open a trade?
Stick to your rules
Postagens: 8
Membro desde: 25/04/2011
I'm typically in for a .01 lots. Typically it costs me <$15 of margin to buy a lot. So, with a $100 account, I figure I should be buying only .01, maybe .02. When I got a margin call, I had .05 open. I kept "averaging down" my losses, which is a bad mistake.
I'm breaking that rule again now, but I only have a $29 account at the moment, so I don't have much of a choice. Still, I'm only in for 0.01 lots at all times now.