Wazua
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Realities of Forex Investment
Rank: Member Joined: 5/6/2008 Posts: 107
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@mandlagh
Demo/virtual account is not necessary a gateway to successful trading but it is vital and extremely important as it gives you some practical experience of the real live trading accounts.What you need to look is with good brokers who have good demo accounts platforms which are almost similar to their live accounts.This is because there are most brokers who have dealing desk mostly have difference in their demo and live accounts.I don't mean others don't have but the non-dealing desks are open and about 98% the same in their demo and live accounts.
One thing in demo is that although it is virtual money(not your money) you still need to take it seriously when you practice with it as if it is your own money.Just be disciplined and you will learn more and try new and a lot of strategies.Most guys always say it is boring but its boring because the person learns nothing from it as he only places an order anyhow and practice for some few days then opening positions with huge sums,thats why with time the person will look at it and feel it is boring cause he/she gets nothing out of it!
- In demo account try to put the exact figure (1000,2000,3000,10000)which you intend to trade with when you will get into live account so that you can gauge and develop your trading plans realistically .Its not a sin to practice with a $100000 demo account but with huge sum like this you will have psychological aspect of relaxing and taking maybe big lots and a lot of risk as you will have enough funds while in the live account you will only trade with USD 5000 only.Try to have the amount which you intend to trade with it in a live account.
- Although you cannot identify all the behavious of brokers while in demo account look mostly for market makers to practice with them.
- If you take the demo with concentration and ease you need to practice each and every single move and learn its behavior and make calculations as well where necessary and try as many strategies as you have as if you are in live account.
- While in demo account try to look at the behavior of the platform you are in and look into their spreads carefully and closely if they resemble what they are advertising or telling you,just look for curiosity and differentiate it with other platforms.Look at their execution speed and ask any questions to the help desk where necessary and also compare notes in forums and colleagues.
- Try to open more than three or four demo accounts and look at their behaviours and make comparison.
Although people say it is tedious and boring i think its the way the take it as demo and relax their brains so in the end most get nothing out of it.If you take it seriously though i think even if it is not 100% like a live account it will give you almost the same way as live account or the same.Just take it seriously and it wont be boring and tedious.
@passyson and @tonicasert hows the weekend.Hope you are all good. Gustav is wrecking things i suppose.
@NGAATU
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Rank: Member Joined: 8/8/2008 Posts: 97
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Hi Ngaatu...the last week and a half has been a tedious one for me with all sorts of demands...now that the pressure has eased a bit,hopefully i will be back to doing what i like. Gustav is ushering in a new dimension for oil price movement. I can see the buck getting a beating this week if the oil prices go up. There are also more weather calamities expected and this might really affect the USD in the short run. I expect to see a healthy interplay of lousy Eurozone economy and a USD being beaten by oil. A lot of whipsaws if you ask me. My favourite one this week will be the USD/CAD. Tokyo session on Monday may set the tone for the trading considering that US market is on holiday till Tuesday. Any newbie in here,kindly refrain from trading in the US session on monday (from 3pm onwards). The price movement MIGHT be a bad experience for some of us. I have created an email for forex purposes only. passysons@yahoo.comHappy trading all. Anyone who lives within their means suffers from a lack of imagination
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Rank: Member Joined: 2/12/2008 Posts: 345
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@ngaatu... First and at the very fore,i hav totally no problem with your trading stance and methods. Fortunately u do not rely sooo much on economic theory to make money here. Why.? You state money is leavin NSE coz of inflation and liquidity crunch? U do realise that's an impossibility? Liquidity crunch..means less cash...inflation means too much cash chasing too few goods... All over the world since stock markets were started..annualised return always..ALWAYS..beat inflation.. Check zimbabwe. Cash is not leaving NSE..its just been totally wiped out by Safcom,share splits and rights issues. All factors remainin constant NSE commands a fixed amount of cash movin from counter to counter..increase of cumulativ volume of shares in quantities thro ipos,rights,bonuses and splits while holdin the cash amount fixed means less cash for other counters. Agreeable u can't hold investin constant.. saving=investments thus the more people save the more investments grow. Problem..saving aren't rising as fast as share volumes..thus reasons people took LOANS to invest in Safcom The most stupid idea. Please note..the idea is stupid..not the people.
' I have heard of You,o Lord. Now mine eyes have seen thee!! Baal-Perazim.. The Lord of the Breakthrough!!'
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Rank: Member Joined: 5/6/2008 Posts: 107
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@jammo
Thanks for the reply.Maybe it wont be bad if you go through the text again.I did not say that the primary reason for money flowing out of N.S.E is liquidity and inflation per se.Similarly i am suprised when you say there is a place where economic theory is not used much,maybe this is place where economics is applied beyond the basics also.I did gave a general overview of the stock market and what i meant is the ripple effect caused by the inflation and liquidity on the general perfomance of the economy and hence the N.S.E.
If i term inflation(be it supply side or demand push inflation) i meant the effect of inflation on investment,individual and economy at general,lest it is countered by measures of spurrring the growth then a negative effect is going to be felt for some time. Inflation is always countered by the reserve bank by increasing the repo this in effect increases lending rates making expensive to get funds for investment and always curtails the growth of economy.What does that mean to the economy and investment? It will obvious decrease the patterns of individuals in even spending(consumption) e.t.c. And where do the firms in N.S.E get their money and returns from?dont they get them from the economy and what if the economy aint good,will they not have decreased revenues and returns?? What you are terming if the stock exchange is sustaning itself its true and of course the annualized returns always beat the figures,thats not disputable but not for a long time.About Zimbabwe stock exchange yes its still maintaing its robustness;but you should know most firms in zimbabwe are foreign based firms(and mostly mining and export oriented firms) which rely mostly on export based transcations and their operations mostly have not been affected that much as they dont rely on domestic economy that much for their returns,it is confidence and stability for future that threatens them but their returns are in fact booming as commodities in the world are on demand craze. What about our economy and the firms in the N.S.E very few are export firms and their commdoties are not that in high demand as substitutes in the world are there,so most or 95% rely on the domestic economy.You can check during the collapse of asian stocks market(from thailand e.t.c) and the effect during the south american economies (argentina and mexico) for more outlook in the developing markets equity markets.
Regarding the liquidity i did not mean that it was practical a crunch,liquidity can be constrained but not particularly will reach a level of crunch if its in parameters of being controlled. Yes the safcom had mopped liquidity but thats not the sole factor in the economy to constrain the liquidity,the C.B.K itself can put measures to curtail it or use expansionary measures depending on the prevailing conditions and in this condition the measure was to somehow counter the inflation. Money flowing from one counter to another counter is normal but it cannot flow to weak counters constantly as nobody will gain form them. General i only wanted to picture the effect as some counters will not perform well did not mean all counters will perform poorly,no infact other counters may perfom excellent and still people benefit from them,but in general the perfomance of the N.S.E is lukewarm for some time but will rally afterwards.So it depend on the person on stock picking.
So with due respect i find that saying we dont use much ecenomic theory you are a little bit off the facts.
@NGAATU
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Rank: Member Joined: 5/6/2008 Posts: 107
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@passyson,@toni
I think the effect of gustav was not that threatening cause it seems the measures which were put by the U.S goverment to combat it somehow worked as it did not rally as was expected and the european economic data may be not appealing that much.I went - 25 pips on the NZD/USD in the morning but am expecting to recover it as i was also pessimistic on the effect of the gustav but it is somehow correcting itself now.
Maybe after the labour day today we may expect something big tommorow.Hows ur take?
@NGAATU
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Rank: Member Joined: 7/18/2008 Posts: 53
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hello@ all
Am now back from a journey so very happy to be back in the forex forum,hope you have set the forex place for traders only.I have bought in new guys to learn the investment also.
HARD WORK,HARD WORK HARD WORK
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Rank: Member Joined: 9/1/2008 Posts: 12
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I have been following the posts and has been really interesting cause it had given me some light on more issues of the forex market.Basically i do not know the forex market in detail as some of the guys here,but i have opened a demo account and traded with it for the 2nd month now.But it seems i have a long way to go. I am working with an N.G.O and have somehow fair remuneration but i think i need more. I had invested Ksh 450000 in old mutual unit trusts for 2 years now but am disappointed with them and when i wanted to redeem them i saw a lot of charges which were not there in the beginning but i was forced to oblige. I dont have a family and i am 29 yrs now. I have some questions?
-How safe are my funds cause i dont know if the broker am with is safe?
-What is the rate of return i can get as i need to have my financial freedom in near future?
- Are you guys regulated?
- Where can i get the services at and how much is the minimum in investment?
- how can i start to learn myself?
Thanks
Mchumia Juani hula Kivulini
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Rank: Member Joined: 8/8/2008 Posts: 97
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Hi all...
Late post but if anyone is interested,i am going short GBP/USD...Entered at 1.801140.
I have been also short EUR/USD since Tokyo session...entered at 1.469050 and will let it run for the week. Gustav is category 3 and we are seeing some slight damage and flooding if this is the case.
@Ngaatu...Gustav doesn't look that bad so far.
Anyone who lives within their means suffers from a lack of imagination
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Rank: Member Joined: 8/8/2008 Posts: 97
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My S/L has been hit...the whipsaws i was talking about are in play here.
Anyone who lives within their means suffers from a lack of imagination
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Rank: Member Joined: 3/10/2008 Posts: 301 Location: Abu Dhabi
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Hi Ngaatu,Passyon,Kilabe,all others!
Hope you have all been having nice trades. Havent logged to sk for a while,too busy.
My focus for now is on GBPUSD. Its been amazing. You just close your eyes,enter a short,and voila! Alistair Darling's comments that UK's economy is at its worst in 60 years shows that all is not well for Her Majesty the pound. My Trades are shorting on upticks. Today = 77 pips on 2 shorts.
Hurricane Gustav just downgraded to CAT 2. Was fearing it might have a large impact on oil as rigs on the gulf coast are being shut,but it seems the effect may be less catastrophic,and the govt is more alert after Katrina. So oil may continue holding down,and USD continue gaining,if not maintain its strong tone against the majors.
Am seeing US,UK and ECB holding rates stable this month,though dont be surprised if UK cuts by 25 bps (UK inflation hasnt come down significantly to warrant a cut)
I'll continue shorting cable this week on upticks. After the US labor day,a break of 1.7980 will shed probably another 250 pips.
GL and GT
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Rank: Member Joined: 3/10/2008 Posts: 301 Location: Abu Dhabi
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@Passyon
I've noticed you enter many trades at Tokyo open. How successful are they? Do you hold them through London session? Want to give it a try,though I also love my sleep :)
@Timber
I dont have all or perfect answers,maybe other members here might contribute more.
On Brokers - You need to look at the service the broker is giving you - how wide are the spreads,do they have online help / easy telephone access incase of some communication breakdown,are graph and news facilities upto market; Also check with the broker's regulators (depending on the country). US brokers are regulated by cftc and nfa. They post any cases brought up against the broker (so you can make your own decision on what kind of co. it is). Are you comfortable with their station? Eg I prefer a station thats Java based so that i can log in anywhere without having to download.
Regulation - Read above. On local regulation,I know of non which is falling under statutes,but I think Stephen Alala of Genius is trying to push for the regulation.
Where to get services - You have to decide after looking at the various factors. Personally I use oanda.com. They may not be very common since its the co policy not to advertise,but so far so good. Previously also traded with FXCM but left coz of some reasons.
Learn - Passyon suggested babypips.com. Its a good site and I saw it contains alot you can learn from. Secondly,experience is the best teacher,so you have to keep practicing.
Rate of return - I've put this intentionally last because this should be the last thing to focus on. You need discipline and experience to make good money. After you have grasped these,the returns will follow. Trading is a psychological game. At times you can even make 10% return on your capital in a day! But also the losses can be huge.
Wish you the best mate!
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Rank: Member Joined: 8/8/2008 Posts: 97
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Hey Tonicasert...welcome back
Mostly,my tokyo session positions never see the light of London session :) unless there is a strong trend which i can carry through to the London session. Often,there is a strong EUR/JPY movement plus USD/JPY one.
EUR/USD and GBP/USD are other pairs that give you good pips in the Tokyo session.
Anyone who lives within their means suffers from a lack of imagination
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Rank: Member Joined: 3/10/2008 Posts: 301 Location: Abu Dhabi
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Morning guys!
The British pound does it again! Just keep shorting when it retraces. Waiting for it to go back above 1.7900 for another short (current 1.7860). So far +50 pips on 1 trade.
Gustav destruction much less than expected,and with oil hitting 110 level and below,we're bound to see a stronger USD. There's talk of GBPUSD going to 1.7200.
@Passyon
Thanks. Will try one of these days and see how it goes. For now just back testing on the graphs.
Have a great day all.
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Rank: Member Joined: 8/8/2008 Posts: 97
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Morning fellow traders!
Today i have really done a basket of USD based pairs. As Toni has said,crude oil is down and gold is going down too. I am waiting for the UK data @ 11:30 before i enter any GBP/USD trade.
US rally between now and the NY session should give you good money.
Happy trading all!
Anyone who lives within their means suffers from a lack of imagination
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Rank: Member Joined: 5/6/2008 Posts: 107
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@ passyson @toni kilabe and all
Hello guys.I didnt sleep well since jana cause i was witnessing the way the Dollar was pounding other currencies.Anyway the dollar i think is still on a good rebound since the Gustav level was put under control( i think @passyson we got it right ). The euro is just holding itself at the support level of 1.45 but i think it will still go under.Commodities are also feeling the pinch vibaya.
@tonicasert welcome home you were becoming extinct mzee. Hope things are good.
Still looking at the movements closely.Very optimistic of going long with USD/JPY for at least 20- 50 pips today.
@timber
I think what you have been briefed by colleagues is enough but i can add a few.You need to take time and practise well and have enough information which you can gain slowly with time.There are no short cuts if you want to be sustainable in the long run.
- You can start with babypips and then try to learn further with the market.
- Regarding the regulation you need to ensure the broker is well regulated with the N.F.A and C.F.T.C i think you will get his position and how sound he is.For us in kenya we are still looking of putting things in order with colleagues around here.
-For demo you can check with oanda it has simple and good platform to understand.
For returns is as you have been told.
Welcome in the market.Dont fear.We are all here to help another in case you have problem.
@NGAATU
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Rank: Member Joined: 3/10/2008 Posts: 301 Location: Abu Dhabi
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@ Ngaatu
Thanks. Good to see you around.
USD is really on a roll! Oil hit 106.50 briefly,though gold is heavily supported at 800.
GBP didnt break 1.7900 on retracement earlier (just went to 1.7995),so shorted at 7860 for 40 pips. Waiting for another retracement from the current levels of 1.7805. May enter a short again at around 1.7820-30 and target around 1.7785 levels. Next support we're headed for is 1.7650.
GL and GT
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Rank: Member Joined: 9/1/2008 Posts: 12
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@toni,@ngaatu
I realy appreciate for your briefing.Am now somehow focused and will look forward to have knowledge before trying to invest.There were guys who told me they could invest for me but were not trufthuly and transparent with the information which i got here.It is really helpful.Can you assist me with your personal mails so that i could contact when am in problems or need explanation.
Regards
Mchumia Juani hula Kivulini
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Rank: Member Joined: 9/2/2008 Posts: 4
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WOw! Wow! Wow! Believe me not,anyway i don't want all guys to believe me as i make myself and make losses myself.
I only slept less than four hours yesterday following the Gustav calming down.AS a scalper i went away with over 150 pips on the EUR/USD,GBP/USD,USD/CAD NZD/USD.
I scalped 65 pips on EUR/USD when it went 110 pips and over i took what i wanted,USD/GBY i went with 48 pips,USD/CAD i went with 33 pips,NZD/AUD i went with 29 pips. I took positions and really jana was a great day since i started trading. Total was 175 pips and my pip value was $6 (60000 units).
Ooh Ooh i have never had this amount in my life,i made a cool Ksh 71400 jana and leo.Maybe a lot would be skeptical but its the truth,even my salary at the consultancy is less than 45k. I will rest for a whole week. Somebody there i can give him some??
I am trading my self funds and have no need to trade for anyone,so do not think i am marketing no sitaki pesa ya watu,am enough .What i want to tell you is that there is money if you work hard and be focused and discplined.Pesa iko ya kula.Those who are negative about this do not know about it at all.
On weekend i will be at naivasha for resting.
He he he he .God is Great
Perseverance and right information and tactics = tons of $$$
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Rank: Member Joined: 5/6/2008 Posts: 107
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@ dakiku Good for you!
@toni i think the GBP/USD has hit the third support level at around 1.7778 seems the fundamentals are strongly moving the cable( its economy fear is that its at its lowest since 1940's,amazing!!). I think you have hit it with 60 pips cause it went beyond 1.7800 to 1.7778but its now trying to go up at around 1.785. Thats a good move.
The pair of USD/CHF was amazing too today going long around 65 - 90 pips were in the offing.The market was pretty around good probabilities in estimation.
Looking at the comdolls now. @ passyson how are their movements??
@NGAATU
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Rank: Member Joined: 8/8/2008 Posts: 97
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God is great for sure...forex trading is an issue of applying that God given wisdom...I am happy for you...kindly do not get overly excited and make lousy mistakes along the way.
This is the beauty of forex trading and the reason why i am encouraging more people to start trading on their own is that it can give you financial independence. With time Dakiku,you will learn that you can make that at least 500k and above per month on forex trading.
Sad to say,you can lose the same amount too...instead of rushing to Naivasha as you are saying,i would advise you to let like 50k remain in your account to cushion you against any losses you might make in future...that way,you can either increase your lot size or open another position in addition to your normal trading positions per day...
All the best and keep on making money!
Anyone who lives within their means suffers from a lack of imagination
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