Forex Indicators

Forex Demo and Live?

About 3 years ago I was introduced to the FOREX market. I took a stupid technical analysis course which taught me almost nothing about application of technical analysis, just meanings behind formations and candlesticks. I invested 5k with FXCM and started trading. I lost the 5k in 2 months, and at the time, 22 years old, losing that much money was devastating. I have been running demos since then trying to figure out my problem. Finally, after three years, I am profiting in demo's substantially. Each thirty day demo I have ran in the last 3 months has had 50-100% gain. I feel so comfortable reading charts and analyzing economical data, I never thought I would be this way. I have been studying the market and patterns daily for 3 years straight. Anyone with REAL experience, think I am ready to give it another shot? Yes I know all about retracements, fibonaacci elliot wave, flag formation, pivot points, moving averages. all which i use. I understand the basics completely. emotionally, i think i will be fine, because i have a system and only move into trades if they meet my conditions.

Public Comments

1. Well nothing beats the real thing when our own money is on the line. Gathering from what I read, you are ready as ready can be. But nothing like going to the casino and bet with our own money. Making decisions when adrenaline is flowing when cutting loses doesnt seem so straight forward. End of the day is our emotion regarding our account equity. Forex Trading is exhilarting just becasue it is. I mean where are you going to get 120 hours of pure trading hours. Stock market only gives you the most 40hrs. That is 3 if not more times more volume. To keep alive in Forex is the money management part of trading vs the technical part. Just imagine there are 250 trading days and if we trade 3 trades a day thatis 750 trades. According to the law of probability in the long run the toss of a coin will end with 50:50 win loss. The trick is not to turn tricks but step by step increasing acct equity. While we may succumb to the "toss of a coin" inevitability, we can however control our risk reward to overcome the 1 step forward and 1 step backward eventuality. The thing is to take a big "profit" slide forward but a small "loss" step backward. So net off we will still be infront. And another thing, I bet you , if you chart your account equity on a spreadsheet, you will see a technical pattern. The triangular consolidation of your account equity. The trending of your AE , etc. Just try charting your own account equity , the answer to your question lies in there !!
2. Paper trading doesn't take into account "stop hunting" and how you'll react to draw downs (with real money). I commend you, you're on a great track. If other people did what you're doing.... they'd be much better off. You didn't mention the most important aspect of FX trading; Position Sizing, money management and psychology. You can be the best technical analysis around and still fail at FX if you haven't studied money management, position sizing and trading psychology (this does not mean going for a PHD). Assuming you've got these under your belt. I'd say go ahead. BUT... keep your "pips" down (meaning...... place good stops with a minimal amount of cash exposure).
3. Start slow. The difference between paper trading and the real thing is the emotional element in the decision making. When you see real money going bye-bye it tends to cloud your thinking in ways that don't happen when your aren't using real money. This is why most people can't do as well when using real money instead of paper trading. The biggest question is: do you have the self control to stay with your system during drawdowns?
4. Two things. First of all the problem wasn't you, the problem is that trading is not a predictable business and there is no system that can produce consistent returns. Second, you would do well to realize that the "success" you are having now may just be short lived. Don't be so eager to jump back into the fray. 3 months is not sufficient time to say whether you have a good system. You may just be getting lucky. As an example, there are lots of professional floor traders who make a lot of money every day over several months. Then one day, their string of luck runs out and they lose it all in three days. Educate yourself on trading before playing with real money. The following website is a collection of my Best Answers. It provides an excellent Recommended Reading, tips, and advice: http://commonsensetrading. googlepages. com If you insist on trading, the best thing you can do is trace large retracements. This works particularly well in Forex. Learn about the "50% retracement rule." The advice on the website comes from someone who has a lot of real experience trading, including currencies. I won't sugar coat it for you. In fact, the primary purpose of the website is to try to "discourage" you from trading. Which is sometimes hard to do. Hence the other half of the site is devoted to giving you trading tips to make your trading experience as successful as possible.
5. Hi there, Forex trading is a risky business, you can invest a lot of money in it and lose it all in one day or earn much more with the money. I advise you to visit this site because it has a list of articles to let you know more about forex and tips and strategies for improvement Cheers
6. you should be well prepared by now but nothing beats having a personal account service manager to guide you and work with you on your first actual trading days. this site offers you such person you can talk to over the phone for a personal one-on-one help plus they got a load of professional people in their dealing room to chat with.