Forget the demo account.
Go and buy a 99c blank book to use as a diary. Every night look at the market and write down why you would buy / sell something. Once you progress from 1 or 2 lines per decision to half a page or more and you're getting things right or can explain why it went wrong you're ready for a demo account.
Forget the demo account.
Go and buy a 99c blank book to use as a diary. Every night look at the market and write down why you would buy / sell something. Once you progress from 1 or 2 lines per decision to half a page or more and you're getting things right or can explain why it went wrong you're ready for a demo account.
Hey guys, im brand new to the game! Trying to learn as much as possible. Ive been reading up on a few sites, watching some videos and going through posts on here. My biggest issue is i have no idea where to begin. I have been looking for somewhere i can set up a demo account nice and quickly and learn by using that and reading articles etc. Can anyone shed any light on this for me?thanks! need all the advice i can get!
Hi all,
I'm a new self teaching forex student
1. I assume the two primary analysis most use in trading is technical and fundamental. Is this true?
2. In regards to an average trader who works from home trading monday to friday, does he/she just use a program like commsec or is there more popular broker software? and what is the most popular trading software?
3. Excuse me if this is a very broad question: An average trader, working from home, would he/she be buying selling on a daily basis (example: buy shares in the morning and sell in the afternoon) or more likely buy and hold for several days OR is both unlikely and most would hold trades for weeks?
4. In forex, when you want to buy currency it happens generally immediately and can also generally sell immediately. With stocks what is the turn around time of buying and selling (as a general assumption, I understand it may vary depending on popularity of stock - is this right?)?
Hi all,
I'm a new self teaching forex student at present who recently came across a friend of a friend who trades shares as his primary source of income from home. This lifestyle he has achieved has sparked a desire to learn share trading and then decide whether I prefer and shall pursue forex or share trading further.
Thank you for you response in advance.
1. I assume the two primary analysis most use in trading is technical and fundamental. Is this true?
2. In regards to an average trader who works from home trading monday to friday, does he/she just use a program like commsec or is there more popular broker software? and what is the most popular trading software?
3. Excuse me if this is a very broad question: An average trader, working from home, would he/she be buying selling on a daily basis (example: buy shares in the morning and sell in the afternoon) or more likely buy and hold for several days OR is both unlikely and most would hold trades for weeks?
4. In forex, when you want to buy currency it happens generally immediately and can also generally sell immediately. With stocks what is the turn around time of buying and selling (as a general assumption, I understand it may vary depending on popularity of stock - is this right?)?
Thanks
Travis
From my experiences of the past, it does not matter if you trade shares or Fx, they each have their own nuances pitfalls and traps. The popular FX advert is a 24/5 trading session and high liquidity and get the price you desire all the time. Share trading advert is safe, and very cheap by the intro of no frills brokers and regulated by ASIC.
Here are the typical pitfalls for Fx,
over trading
drill down to 1M time frame
trade the news
Just sit down pick a free time and trade like how you pass the time in a casino
massive leverage
bucket shop brokers
buy actual trading software called ATM machines LOL
Here are the pitfalls of share trading,
Speculative trading are fun and massive profits
CFD leverage = over trading = over exposure
bottom picking stocks
haven't sold haven't made a loss
bottom drawer hold
tips from friends/media/brokers/forums
holy grail maths indicators, strategies, bias stock research
I am sure there are plenty more but I think you will get the picture as you progress.
Next one is self teaching FX student, I suspect you will have a long and steep learning curve not to mention you don't know what you don't know. If you are lucky you will use a demo before real money. Also suspect demo always easy to make money until you go live.
1. Some are pure FA or TA and some are hybrid that use both. Some just depend on a full service broker who is a human on first name basis and some have privileged knowledge.
2. I think you will need more than a "program like commsec". It helps to cut down cost as it is a no frill broker but you will need some charting package. Some brokers especially CFD offers user friendly charting that you can trade on the screen
3. day trader = open and close same day. Position trader may hold for several days to weeks. Buy and hold investors for months or years.
4. FX unless under extreme circumstance google CHF with Swiss Nat Bank this year, price is very liquid and filled at any price. Shares has liquidity issues of slippage unless the large stocks in top 20 dependent on size of orders. Specs will usually have fairly large slippage dependent on market depth volume etc.
Comparing the 2 markets is like apple or orange. Whatever you decide, learn to equip yourself with a strategy like trend following, swing, rotational, mean revert, counter trend, etc. You don't know until you educate yourself on each of the style and demo trades to see which one suits your personality.
A good starting book is Stan Weinstein, Trading in bull and bear market,
Here is a good link, http://www.jltrader.com/trading-videos/
I particularly like Mike Douglas, when you start out his teachings will be the last thing on your mind but along your journey you will realise it is one of the most important. Schwager is good too. Money and risk management concepts. Keep things simple instead of complicated. You will either follow the math indicator, Elliot wave fibonacci natural progression to Harmonic, raw charts with price action candlesticks or a combination of these. Gann is another favourite. Another is intermarket analysis.
Then there is the time frame from 1min to 1h 4h 8h 12h daily weekly monthly or any other exotic TF in between. If you go for FX make sure you understand the different type of orders to buy/sell, position sizing and most important beside these basic stuff is TRADING PSYCHOLOGY, the least taught and most relevant.
Lets go make money
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