The Forex Noob

You may have read an earlier post where I announced that I opened a live account. True, true. Yesterday afternoon it became active and last night I loaded my live account. I am still amazed at my behavior. I had trepidation about trading.

Demo accounts are fun especially after you have played with them for a few weeks and get comfortable. And the demo accounts usually have opening balance options of $3000 and above so you have a decent amount of money to work with. My demo accounts have been opened at $5000 with some early ones at $10,000.

I started my live account with $500.

The first thing you are hit with is that This is my money, I can lose it all. Next, at least for me and my $500 account, is that you don’t have the bank roll you are used to so you ahve to be careful how many positions you open. If you quickly open and close them fine but if you keep a few open for a while your margin is very quickly depleted.

My first trade last night was a gain. That was my first goal. Next I work to meet my daily goals. Plan your work and work your plan right?

Thanks for your time,
The Forex Noob

My desire is to build a usable resource for myself and others here on The Forex Noob so I search the internet for other blogs and forums that 1) contain useful information 2) contain up to date information 3) that are not full of ads and scams.

It’s a difficult task.

The majority of the blogs I find appear to be attempts to make a few cents on google ads, affiliate programs and the like. Most have few posts which are usually old and are hard on the eyes.

As a serious fledgling forex trader I want good info and quality communication. If you know of or have a blog, forum or site that has great info let me know. I’d love ot link to it.

Thanks,
The Forex Noob

With a dealing desk broker when you open a position they take the opposite side, correct? You and they are trading against each other. This human involvement along with the opposing position element has raised accusations of brokers cheating.

I’ve read stories about unscrupulous dealing desk forex brokers who artificially spike a pair to cause you to lose. But my question is do they cause only your chart to spike or does anyone trading with them realize the spike?

If they can only spike one traders chart causing that person to lose it seems that would cause a control nightmare. How many thousands of traders would they have to watch and manipulate?

If all traders experience the spike wouldn’t it make since that some traders would benefit from such an event and so the broker would, in the long run, break even?

I admit I don’t fully understand how this works but it seems that accusations about dd broker spikes to cause traders to lose is a bit hard to swollow.

I was asked about my reference to the spreads for the two demo accounts I’m running, FastFX & FxPro. Here’s what I have showing.

Screenshot of FastFX chart running Forex MegaDroid

Screenshot of FxPro chart running Forex MegaDroid

Am I incorrect when I say the spread for FastFX is 2 and FxPro is 20? I’ve been confused before so help me understand if that’s the case this time.

Thanks,

The Forex Noob

After two months of forex demos a few things have become apparent.

1 – Foreign Exchange Trading is addictive. Forex is exciting and can consume your attention if allowed.

2 – Forex Robots are boring. They may make money and trade while you can’t but just using a robot is not trading.

3 – Don’t Chase the Chart. I have screwed myself a couple times trying to chase a trend only to have it turn on me very quickly. More precisely I’ve chased negatives trying to catch a turn. “It should have gone back up but just kept heading down…”

4 – DON’T GET GREEDY. I’ve been very good at trading spot gold but have lost hundreds of dollars chasing thousands. I’d like to believe that if these were real money instead of demo accounts I would have exited up $500 instead of $300.

5 – Too Much Info can be Costly. Pick a couple things and get good at them don’t over research and don’t spread yourself over too many pairs.

6 – Forex Trading is Work. This is no easy get rich quick thing and if you don’t educate yourself you will lose your moeny.

7 – A Forex Broker you can trust is vital, and not easy to find.

8 – Be careful who you trust. There are a meriad of web sites selling forex systems and EA’s, giving advice and telling you how great they are. Watch your step.