[dland007]

Hi all! Like the rest of you, I'm new to this site and for me - also fairly new to trading online. I've traded some stocks (with mixed success), but see the real financial potential in FOREX. I'm looking forward to hearing from and learning from you and the more senior members on this site.

I would welcome and suggestions, hints, tips, etc. for getting started with FOREX and especially with the N225.

Cheers!
Dave

[sevensa]

Originally Posted by dland007 »

Hi all! Like the rest of you, I'm new to this site and for me - also fairly new to trading online. I've traded some stocks (with mixed success), but see the real financial potential in FOREX. I'm looking forward to hearing from and learning from you and the more senior members on this site.

I would welcome and suggestions, hints, tips, etc. for getting started with FOREX and especially with the N225.

Cheers!
Dave

Welcome... I am curious about what made you decide that you "see the real financial potential in FOREX" as opposed to stocks? I am leaning over that this is not the instrument that give you real financial potential, but this is the trader.

[dland007]

Originally Posted by sevensa »

Welcome... I am curious about what made you decide that you "see the real financial potential in FOREX" as opposed to stocks? I am leaning over that this is not the instrument that give you real financial potential, but this is the trader.

Sevensa,
I do agree that the 'trader' does play a significant role in the success of any trade - whether that trade involves securities, options, or Forex. What I meant by my comment was that in my opinion, (given the same trader) the Forex market provides significantly more potential for income - for the following two main reasons: 1) much more so than with stocks, the Forex market allows for profit to be made in both upward and downward moving markets, 2) Forex provides the ability to significantly multiply your profits (and losses!) with the use of large margins (as much as 400:1 in some cases).

[throughthemud]

Originally Posted by dland007 »

Hi all! Like the rest of you, I'm new to this site and for me - also fairly new to trading online. I've traded some stocks (with mixed success), but see the real financial potential in FOREX. I'm looking forward to hearing from and learning from you and the more senior members on this site.

I would welcome and suggestions, hints, tips, etc. for getting started with FOREX and especially with the N225.

Cheers!
Dave

hey dave,
welcome to the forum. I just started here about a week ago but I've been trading forex for a while. Hope to see you in the forex lab often. My best advice for any high leverage market is to trade small and very cautiously until you are profitable for a few weeks straight. I doubt you'll take this advice (I know I didn't) but it's very important especially since you didnt have much success in trading stocks. Get a micro account so you can trade very small contract sizes until you get the hang of it.

[brownsfan019]

Originally Posted by dland007 »

Sevensa,
I do agree that the 'trader' does play a significant role in the success of any trade - whether that trade involves securities, options, or Forex. What I meant by my comment was that in my opinion, (given the same trader) the Forex market provides significantly more potential for income - for the following two main reasons: 1) much more so than with stocks, the Forex market allows for profit to be made in both upward and downward moving markets, 2) Forex provides the ability to significantly multiply your profits (and losses!) with the use of large margins (as much as 400:1 in some cases).

1) You can make money in stocks, futures, options or forex in up or down markets. All markets go up or down and money can be made in all of them. Stocks are no different.
2) If you think 400:1 leverage is a reason TO trade there as a new person, I hope you keep your account size small to begin with.

Here's a few reasons to NOT trade forex:

1) 400:1 leverage is available
2) Since quotes are not centrally located, you may find different quotes at different brokers
3) Spreads can widen quite far during news announcements
4) Forex is not a centrally regulated market - your broker can take the opposite side of your trade

If you want leverage AND a regulated market, then futures is the choice. Key there being that you'd like to be trading where regulators exist.

[throughthemud]

I started off trading stocks and the reason I switched to forex are no commissions and less regulation. I didnt start out with very much money so it was harder for me to get past the commission in order to make a profit so I always trade stocks that were not worth anymore than $30 and then after I day traded for a few days my stock account was locked due to an SEC rule prohibiting day trading with accounts less than $25000. Especially as a beginner I found forex much easier to trade and be profitable in. The leverage can certainly work against you though. Play very cautious and safe and you'll be alright.

[dland007]

Originally Posted by throughthemud »

hey dave,
welcome to the forum. I just started here about a week ago but I've been trading forex for a while. Hope to see you in the forex lab often. My best advice for any high leverage market is to trade small and very cautiously until you are profitable for a few weeks straight. I doubt you'll take this advice (I know I didn't) but it's very important especially since you didnt have much success in trading stocks. Get a micro account so you can trade very small contract sizes until you get the hang of it.

Thanks for the advice throughthemud! I did open a micro account and made my first "real" trades last night. After 5 trades, I was up 10%. Not bad (I think) for my first day. I definitely plan to stay small for a while though!
D

[dland007]

Originally Posted by throughthemud »

hey dave,
welcome to the forum. I just started here about a week ago but I've been trading forex for a while. Hope to see you in the forex lab often. My best advice for any high leverage market is to trade small and very cautiously until you are profitable for a few weeks straight. I doubt you'll take this advice (I know I didn't) but it's very important especially since you didnt have much success in trading stocks. Get a micro account so you can trade very small contract sizes until you get the hang of it.

Hey throughthemud - since you've been trading for a while, I'd really be interested in your success level, general comments on FX, etc.!!