rider3160

its like trading big board stocks

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mp6140

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Forex, along with the spyders and the Q's are one of the most technically driven trading vehicles on the face of the planet and are traded that way by every bank, institution and home trader the world over.

Forex has a culture of following the LRC, Fibs (retrace and extension) very strongly, and since that culture is in place, traders rely on them, use them and find they tell the truth.

Forex has some of its own rules and ways of performing, such as trend reversals at noon (est) and then again at 2:30 or so, with another at 5pm, so one can learn their currency and trade long or short depending.

It differs from penny stocks in that its in constant motion, up or down, and if the long term is an uptrend (most are) then the currency will most certainly go back up, even if there is a major downside correction.

Get yourself a demo account and see for yourself --

enjoy and trade well

mp

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Within the great hall at Elfinore stands a wondrous coffer, precisely four cubits square and securely latched against the outside world. Inside that repository, shut away from impertinent eyes, abides many an intriquing trading secret garnered from around the world and over the ages !

As a child, i used to watch from the darkness as the secrets were debated and annotated by the elders. No one there held a single thought of my presence -- BUT I KNOW WHERE THEY HID THE KEY !!

zamase

Could one of you guy place a link to a good forex demo etc. so that we could take a look see?

mp6140

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It would take forever to go thru the various "brokers" and what advantages and disadvantages each offers, but a very good starting point would be Forex Bastards Reviews Home and a lot of intro information is available to the newb at Forex Education, Forex Training, Beginner's Guide to Forex Trading - BabyPips.com .

FIRST, you must understand that EVERY "broker" is a privately funded "market maker" who takes the opposite side of your trade IN HOUSE ! They offer FREE trading because they make their profit from the spread between bid and ask (you buy at the ask and sell at the bid, which often has a spread of 4 or so "pips" (smallest measure of price movement in forex), The really dishonest "brokers" will have a pip spread of 10 pips, which means you must earn those pips back with a rising price, and you are not in profit till the spread is made up --- some are just plain dirty !

Now, for the profit they make on the spread they do give you charts and a plethora of custom indicators and automated trading techniques. I use MB trading, which is an ECN with often NO pip spread, and trade off of their level 2, much like trading equities, BUT I have to spend $55 a month for a seperate forex feed for my subscription charts --- not a lot, but one does NOT pay that directly to a "broker", but rather as part of their spread profit !

As an aside, EFX trading will be offering "project omega" in Sept, which is the same charting package used by "brokers" and quite good at that. What costs, if any, I do not know, but it will make working with MB and EFX much easier !

OK, so a broker takes the opposite side of your trade --- SO WHAT ? Well, what happens at approx 11 - 12 AM EST is that the market REVERSES its trend, and now falls (often right back to support) and your "broker/market maker", already short by taking the opposite side of your long trade, now recoups all the money they were losing as the currency was rising. Of course, being fully aware and ultra sharp traders, we have gotten out at the high, and shorted the drop ourselves, thumbing our noses at the mm's !

"Brokers" have hundreds of tricks they use (like mm's) and use them constantly, unfortunately. Often, overnite, they will "sweep the stops", find your stop loss and spike the price to hit it for one second (remember, the market is going 24 hours a day for most of the week), wiping out your trade (I dont use stop losses for that very reason, and dont rely on them because i have a pretty good idea at this point, of where a currency is moving to --- and when i set a "take profit", I will set it UNDER resistance, forcing the broker to have to take my trade, even if they werent going to the very top price -- i give away a few pips to insure that my trade is taken and you should also !). During news releases, which spike the volatility of trading, they will often INCREASE the pip spread, making it harder for momentum traders to show profit, or they will simply ignore your bid altogether. Of course, trading news is a whole nuther subject, with a few really good methods that have proven to work well, but that takes a small book also !

this behavior affects longer term holders who have used a lot of margin by buying into an uptrend. Often what happens here is that the drawdown (downside move) will place this trader at risk of a margin call, which in forex is the immediate closing of your account --- NO phone calls, emails or 3 days to supply funds --- WHAM, BAM and your account is closed !

To avoid this, the longer term swing trader must avoid using margin to any degree, while the EXPERIENCED daytrader can justify using margin for the shortness of their trade and their knowledge of where the price is heading !

so in answer to your questions, until you are willing to pay for an additional chart feed so you can use MB or EFX or IB (which are ECN's and not brokers trading against you) go with practically any of the demo's --- FXXD is probably as good or bad as any !

MB, EFX and IB, working as ECN's, simply supply prices from the liquidity pool of trading companies working with the large banking concerns and make their money by charging a comission --- they have ABSOLUTELY no interest in how you trade, offer you the smallest pip spreads and can be considered completely honest, as they dont win or lose based on your winning or losing !

Since the broker you start with will rarely be the broker you end with, almost any brokers demo platform is acceptable bearing in mind that the lower the pip spread, the better. For flippers and scalpers, the ability to change your "tp" (take profit point) as close to the present market price is a huge plus because you can set where you wish to exit and walk away, not manually having to close the trade, but the one broker i know of, Interbankfx, who allows you to set tp right up to the present market price is an unabashedly crooked operation, but that is to be expected of the Swiss !

enjoy and trade well

any more information, and I have to write a book.

mp

__________________
Within the great hall at Elfinore stands a wondrous coffer, precisely four cubits square and securely latched against the outside world. Inside that repository, shut away from impertinent eyes, abides many an intriquing trading secret garnered from around the world and over the ages !

As a child, i used to watch from the darkness as the secrets were debated and annotated by the elders. No one there held a single thought of my presence -- BUT I KNOW WHERE THEY HID THE KEY !!

daytrader840

"enjoy and trade well"
"
"any more information, and I have to write a book."

"mp"

Well,I believe your already on your way! Looks like the first few chapters are already completed. ....
Jus messin with ya MP....

mp6140

HARUMPH !

mp



[quote=daytrader840;71035"any more information, and I have to write a book."

"mp"

Well,I believe your already on your way! Looks like the first few chapters are already completed. ....
Jus messin with ya MP....[/QUOTE]

fred333

Thanks for the links.

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