So I am curious whether I can make some money with Forex trading, by starting with relatively few amount of money.
As far as I see the trends are small and for a 3 days period from Dec-15 to Dec-18 was the GBP/USD with +0.4% trend of the GBP.
Well…I am not into this business so I have no idea what kind of money you need to start….but seeing the change rate above this means that if I buy GPB with 500USD and resell it 3 days later in the best possible case I will end up with 0.4 percents more? That of course will be funny money…
So what you will advise me to do?
The key comes in understanding pivot points, fibonacci retracements, bollinger bands and consumer sentiment (over bought and over sold conditions). You also need to take a careful look at the times of day that the market is normally most active.
20 pips per day is very doable……..the cost is the amount of time you need to spend staring at a computer screen all day. Personally, I retired from technical analysis once I got a firm grasp on the merits of longer term conservative hedge trading.
Good luck.
Paul
Gaminig
Although a currency pair may range for a number of days what you are really looking for is the point at which you can capture a breakout.
The bulk of my client's use a Forex hedging tactic as part of a long term investment strategy.
Good luck in your ventures.
DEAR ALL, thanks for your responses, overall you seem to think currency trading is high risk and not really a viable way of making money from home. I should have mentioned in my question that if i were to do it, i would want to rely more on technical analysis and all the ratios and different theorems etc. I would also be making trades that are from about 30 minutes to at most one day. Does this change anyones opinion on the subject?
These trial trade programs do not always properly simulate the market. I would not trust them.
Any trading is risky business, but you can make money if you trade smart. You don't need much money to start trading currencies. Some forex brokers will allow you to enter market with $50, or even less.
While the size of investment dictates the size of possible profit, I would advise AGAINST investing large amounts of money and AGAINST trading with a leverage. You should invest only what you can afford to lose.
Some forex brokers offer leverage of 50:1, 100:1, 300:1, even more. If a leverage is 100:1, it means that if you invest $50, broker will allow you to trade with $5000. Trading with leverage can get you great profits, but it can also whipe your investment clean before you even know it. You should always get familiar with margin agreement of any broker you choose to deal with.
ALWAYS trade with leverage 1:1 (only your invested money) and NEVER go beyond 10:1. People who make money on forex are doing it this way. Greed can be your downfall.
Hope this helps!
Regards,
The first poster that said to trade currency futures is insane. Futures contracts possess the potential for unlimited losses. Like the one poster said, you can lose 100% in fx, but you can loss 200% in futures. I've seen several instances of futures traders losing their entire account and then having to cough up more money to cover the losses above what was in their account. If you have a $10,000 futures account, you could realistically lose $50,000 on a trade that goes horribly wrong and you'd have to come up with an additional $40,000 to cover the loss above the $10,000 in your account. In fx, you can only lose your entire account.
I am an fx trader and I love it, but I don't think it's for everyone. It bothers me when a person knocks a specific investment vehicle because they don't like it or it doesn't fit their investment style. I don't like medicine. The hours are long, the field is tough, but I wouldn't go knocking being a doctor. Because it's not what interests me or what I want to do doesn't mean it's a bad occupation. There are people out there that love medicine and are geniuses in the field. It's good for them, but it's not good for everyone.
The same thing with investments, I love the high risk markets, but only a small percentage of the population are suited for them. Doesn't make them bad.
I really wish people would stop being so judgmental about things they don't like or don't understand. If forex trading is not for them, then they should just say, "Hey, I don't like it, but that's me", instead of making it out to be an evil that EVERYONE should stay away from.