New to Trading and I Would Like Suggestions

[Meh 10]

I am a younger person and am interested in trading/investing. I have a basic knowledge as to how trading works, but that is about it. For the last six months or so I have been reading as much as I possibly can on the subject. Could anyone point me in the right direction? Learning from your mistakes is good, but learning from other peoples' mistakes is even better. I have very little money to invest, but an excellent credit rating. Will this help? I am willing to learn and unlike most people my age I do not believe that I know everything nor do I think of the market as a get rich quick scheme. I understand that many of you have years and years of experience (something that I am sorely lacking) and would like to hear any and all advice that you can give. Thank you very much for your time.

[Jack Francisco 10]

I am a younger person and am interested in trading/investing. I have a basic knowledge as to how trading works, but that is about it. For the last six months or so I have been reading as much as I possibly can on the subject. Could anyone point me in the right direction? Learning from your mistakes is good, but learning from other peoples' mistakes is even better. I have very little money to invest, but an excellent credit rating. Will this help? I am willing to learn and unlike most people my age I do not believe that I know everything nor do I think of the market as a get rich quick scheme. I understand that many of you have years and years of experience (something that I am sorely lacking) and would like to hear any and all advice that you can give. Thank you very much for your time.

 

Knowledge is Power - When starting out trading forex online, it is essential that you understand the basics of this market if you want to make the most of your investments.

 

Never invest money into a real Forex account until you practice on a Forex Demo account for at least 3months and see whether you are able to get constant profit!

 

When finish practice in demo account, you can continue your practice on real account with micro amount maybe $200-$300

 

Always stay with Trends as its our friend

To all beginners, when trading for the first time, it is always advisable to invest by the trends. Trading with a trend can facilitate you by advancing your chances with profit. Many new investors are enthusiastic to start trading as soon as they can, eventually ending up trading in any direction.

 

Trade pairs, not currencies - Like any relationship, you have to know both sides. Success or failure in forex trading depends upon being right about both currencies and how they impact one another, not just one.

 

This small tips can help you my friend:helloooo:

[SIUYA 11]

I am a younger person and am interested in trading/investing. I have a basic knowledge as to how trading works, but that is about it. For the last six months or so I have been reading as much as I possibly can on the subject. Could anyone point me in the right direction? Learning from your mistakes is good, but learning from other peoples' mistakes is even better. I have very little money to invest, but an excellent credit rating. Will this help? I am willing to learn and unlike most people my age I do not believe that I know everything nor do I think of the market as a get rich quick scheme. I understand that many of you have years and years of experience (something that I am sorely lacking) and would like to hear any and all advice that you can give. Thank you very much for your time.

 

as you are young.....depending on where you are and possibilities - get a job in finance some how....or even you if volunteer at a place for three months, get your foot in the door somewhere that trades (not that just advises), probably a cheaper option than paying someone. You will always be lacking experience until you get it yourself - you cannot buy it, you cannot trade it you cannot substitute for it.....you can however as you correctly say learn from others experiences.

 

As you dont have money - I would strongly advise you not to use money from borrowings to invest. A good credit rating is irrelevant except that it will allow others to fleece you as they will tell you to borrow.

 

Also the best learning as advised is by SIM trading initially - but be aware of its issues/cons/disadvantages - SIM trading does not have the same psychological impact real trading does. It may not represent the same as live trading.

 

It is a cliche but it cannot be repeated enough - trading will only work for you when you develop your own strategy based on your understanding of how a market works, you have tested that it works, and you can show it has a chance of working.....and then the rest is up to you not to stuff it up.

[Meh 10]

Thank you very much for your time and advice. I appreciate the ideas you have given me and I will practice them as time permits (unfortunately I have to make ends meet while trying to become proficient, but nothing worth doing comes easy ) I have one uncle that invests across several markets. He previously owned a few (I won't name the brand, because I'm not sure if it would break the rules of this forum) franchise tax businesses in several cities. He was also a CPA. I think he might be a "gold mine" of information. And I also have an uncle that trades futures (again I won't name the company). The second uncle that trades futures is something of an expert and trades a MASSIVE volume of commodities. I think I will sit down with them and take notes. Both would be more than happy to teach their trade. The reason I haven't is the psychological component of trading. A self defeating attitude more or less. Basically I work for my money and would hate to see it go up in a puff of smoke. One other question I have is how much money is needed to invest? I assume it comes down to the more you put in the more return you get (or lose). Also Jack Francisco you mention investing micro amounts ($200-$300) is this the smallest amount that can be invested?

 

Thanks again for your time friends!

[fast 10]

Meh,

 

Do not do that which you are not ready to do. Jumping the gun with eagerness and excitement will breed regret. I recommend a slow, methodical, conservative approach. In other words, be prepared. Strongly analyze the order in which you do what you do. Rome wasn't built in a day, nor will the wisdom to make the right decisions come over night.

 

Your overall financial health should be your first concern. For example, don't start investing if you have high interest debt. If you have no emergency fund, trading is the last thing you need to be doing. You can learn and trade on simulators and start building your strategies, but don't commit any serious money too early. Don't do it.

 

When you start investing for the long-term, start out with the goal of matching the returns of the market (e.g. an index fund that intends to match the returns of the S&P 500). After you fully understand the implications of deviating from that plan, then you need to make gradual adjustments (like steering a ship in the night) until your well-written plan is being followed.

 

Meanwhile, if you have put a sincere and devoted effort into learning how to trade over short time periods, you can take a small percentage of your portfolio and commit it to your trading plan--not a run of the mill, I tested it, and I think it'll work kinda plan. I'm talking about a full blown master trading plan that intelligently incorporates the top 100 elements that you believe is most critical to your success as a part-time trader.

 

When you make decisions or choose between options, know why you're doing what you're doing and not merely know what you're doing. Whether it's tweaking your triggers, adjusting your cycle or momentum indicator settings, altering the ratio between your different charts, or deciding what should and shouldn't be a filter to keep you out of otherwise good trades, etc., you need to know why your choice is the better choice (if it is). Do your decisions make good business sense?

 

In regards to trading, I'd recommend starting out by devising a robust plan that is not market specific, and you can figure this out by learning the commonality that moves each of the markets. You're not a professional who can read price, so make good use of a handful of carefully selected tools. Your goal isn't to find the best indicators. Your goal is to familiarize yourself with your options and learn the keepers inside and out so that you are keenly aware of their advantages and disadvantages.

 

Keep a daily trading log and become a master of money management. The list goes on and on, so as you start out with getting your own financial house in order, compile a list of the things you think will make a difference, and you can do this if you continue to read and learn.

 

PS: search for common trading mistakes. Then, learn which one’s are really mistakes and why.

[SIUYA 11]

T And I also have an uncle that trades futures (again I won't name the company). The second uncle that trades futures is something of an expert and trades a MASSIVE volume of commodities. I think I will sit down with them and take notes. Both would be more than happy to teach their trade. The reason I haven't is the psychological component of trading. A self defeating attitude more or less. Basically I work for my money and would hate to see it go up in a puff of smoke. One other question I have is how much money is needed to invest? I assume it comes down to the more you put in the more return you get (or lose). Also Jack Francisco you mention investing micro amounts ($200-$300) is this the smallest amount that can be invested?

 

Thanks again for your time friends!

 

suggestion.....

sit down with your uncle, learn, learn, learn.

See if he will back you with a profit share agreement with enough money to make it worth while for both of you, looking to build from a small amount....you dont need to just learn by yourself.....you can also use other people to help in other ways.

 

If you have a real self defeating attitude then I would suggest you stay away from trading.

If you merely have a 'fear' of loosing money that you worked hard to forget, then I think that is a god thing - what you need to do is work out how much "heat" you are comfortable with, and that is significant enough.....look up heat and trading on the net..

Basically, it sounds as if you are better off with risking smaller amounts on each trade.....you might not ever shoot the lights out, but you can make god returns.

[joshdance 10]

Meh, first rule is: don't just believe anything you read. Others will tell you what you need, like a full blown master trading plan, when they don't know your individual situation very well. Why not just open up some charts and observe for a while for starters?

[Meh 10]

Thanks for your time and advice everyone. I am going to have dinner with my uncle that trades futures this evening. I've talked with him before about what he does but never with a focus on getting into it myself. I hope to work something out with him. I hate getting something without working for it (capital to invest), but it does seem that might be a viable option for building a disposable account to invest with. Again thanks for the advice! I'll let you know how the dinner goes and what he and I work out.

[Obsidian 10]

you have what many don't have: TIME !

don't worry, don't rush, the markets still will be there when you are ready.

[Meh 10]

Good advice obsidian. Lots of ways to lose money, very few ways to make it.

[samuel23 10]

I just hope the following tips can be some help for you:

 

Trade pairs, not currencies — Like any relationship, you have to know both sides. Success or failure in forex trading depends upon being right about both currencies and how they impact one another, not just one.

 

Knowledge is Power — When starting out trading forex online, it is essential that you understand the basics of this market if you want to make the most of your investments.

 

The main forex influencer is global news and events. For example, say an ECB statement is released on European interest rates which typically will cause a flurry of activity. Most newcomers react violently to news like this and close their positions and subsequently miss out on some of the best trading opportunities by waiting until the market calms down. The potential in the forex market is in the volatility, not in its tranquility.

 

Unambitious trading — Many new traders will place very tight orders in order to take very small profits. This is not a sustainable approach because although you may be profitable in the short run (if you are lucky), you risk losing in the longer term as you have to recover the difference between the bid and the ask price before you can make any profit and this is much more difficult when you make small trades than when you make larger ones.

 

Over-cautious trading — Like the trader who tries to take small incremental profits all the time, the trader who places tight stop losses with a retail forex broker is doomed. As we stated above, you have to give your position a fair chance to demonstrate its ability to produce. If you don't place reasonable stop losses that allow your trade to do so, you will always end up undercutting yourself and losing a small piece of your deposit with every trade.

 

Independence — If you are new to forex, you will either decide to trade your own money or to have a broker trade it for you. So far, so good. But your risk of losing increases exponentially if you either of these two things:

 

Interfere with what your broker is doing on your behalf (as his strategy might require a long gestation period);

 

Seek advice from too many sources — multiple input will only result in multiple losses. Take a position, ride with it and then analyse the outcome — by yourself, for yourself.

 

Tiny margins — Margin trading is one of the biggest advantages in trading forex as it allows you to trade amounts far larger than the total of your deposits. However, it can also be dangerous to novice traders as it can appeal to the greed factor that destroys many forex traders. The best guideline is to increase your leverage in line with your experience and success.

[joshdance 10]

The last post is a perfect example of how generic advice is either useless at best or harmful at worst. He posted the same thing here: http://www.traderslaboratory.com/forums/trading-markets/13178-tip-better-trading.html#post151480 and now is posting the exact same thing here when no one has even talked about forex. This is why you have to filter out the noise, Meh.

[TheNegotiator 13]

The last post is a perfect example of how generic advice is either useless at best or harmful at worst. He posted the same thing here: http://www.traderslaboratory.com/forums/trading-markets/13178-tip-better-trading.html#post151480 and now is posting the exact same thing here when no one has even talked about forex. This is why you have to filter out the noise, Meh.

 

Ah, but doesn't noise have it's uses too? It can help show itself for what it is and therefore highlight truly valuable information- and the more of it you see, the quicker you're able to "filter" it out.

[joshdance 10]

Ah, but doesn't noise have it's uses too? It can help show itself for what it is and therefore highlight truly valuable information- and the more of it you see, the quicker you're able to "filter" it out.

 

Indeed, good point N. "Fade the noise" if you will.

[zdo 20]

Best advice so far is joshdances‘s in post # 7 “…don't just believe anything you read. Others will tell you what you need…”

ie “Find your own way” zdo (…but btw, that does include garnering help and knowledge from others – see below)

 

So here’s my ‘bad’ advice to you

>“…interested in trading/investing…” Differentiate for yourself the difference between trading and investing. Then establish which one is for you

 

>If you are not sufficiently capitalized, open a real (not sim) Oanda account with what you have and size appropriately to prevent ruin. Actively trade it for six months – you’ll know by then if the ‘trading’ game is for you…

 

>When you do see your uncle ask if he’s willing to help get you up to speed. If he says yes, then have a BUNCH of questions ready to find out if his thinking style and trading methods are sufficiently compatible with your own nature --- No sense in ‘’learn, learn, learn…” from him if it’s not a fit ie don’t waste anyones’ time…

 

Late to the party but hth

[Jack Francisco 10]

Meh, first rule is: don't just believe anything you read. Others will tell you what you need, like a full blown master trading plan, when they don't know your individual situation very well. Why not just open up some charts and observe for a while for starters?

 

Great- good advice.To start, I think the best thing are first to understand some charts,selection of currency pair and entry and exits point.

 

Don't try too many strategies, they all lead to the money, trade one and make it perfect.

:haha: