Welcome to
Introduction
Foreign Exchange Trading is viewed as a form of gambling
by many but it can form part of your income if you are able to
capitalise on the opportunity and master
the trade. This web site aims to show the sett-up and lessons learnt
from my trading experience. It is by the means the way to enable one to
consistently make money from Foreign Exchange
(FX) trading but to share my FX trading experience.
FOREX market is huge, trades 24/7 for 5 days a week
so one can chose the time where such trading can be done during non-working
hours. The numerous trading platform available with many major FX
institutions with competitive spreads (pips) present unprecedented
opportunity for retail traders who can open a trading account with as
little as US$250 to trade in foreign exchange.
Demo Account
Get a good demo account and start trading. The
objective of the demo account is to enable one to be familiarised with
the system. How to put in orders, set stop-lost, trailing stop,
etc. A good tradesman must know his tools. At times, this can save
you some pips if you are scalping. There are many FX demo account
available such as City Index Asia, IG Markets, CMC markets, Deutsche
Bank (dbFX), GFT etc.
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Starting out
It would be best to just get a good book on FOREX
trading and read it from cover to cover to understand the basics of the
trade. Chose a book that is specify to Foreign Exchange trading, ie. not one that
is generic to trading.
There are also plenty of information on FOREX Trading in
the web. Sites such as babypips.com and FOREXfactory provide excellent
information for beginners interested in foreign exchange trading.
Courses/books
Personally, I did not attended any courses but read a
fair bit of FOREX books (e-books) that I have obtained from
friends as well as purchased 1-2 good books on FX. If you required an
good e-book to read, let
me know and I can forward you a simple one for starters.
Mindset
Have the right mindset before you
embark on FOREX Trading. If you wants to trade full time, it may be
better to be a trader and use other peoples' money. Personally, I do not
think
it is a good idea to go full-time for FX trading. It should be for
earning of extra pocket money (with money that is not required)
supplemented with a permanent job that can bring home the basic income. |
How much can you afford to
lose?
If you cannot afford to lose, DO
NOT TRADE. First decide how much spare cash you can afford to invest in
this FX trading. As in many ventures, you may need to pay for "school
fees" and able to take failed ventures to become successful. No venture
no gain.
Have a Trading Plan
After reading all the information, device your trading
plan. Of course, if you are comfortable, you can also just follow
whatever plan that is recommended. In any case, it is a good practice to
start with one that you can understand and slowly modify to further suit
your needs. This means that you can include other indicators that you
are comfortable but bear in mind that one should avoid using indicators
that measures similar data as this would meant that you would get all
the same trend, thus giving you false signals.
My sample trading plan and set-up is
shown
here.
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