As many of us found out the hard way, starting out trading in the forex market can be a painful experience in a process lined with pitfalls. The key is to stay in the game until you can master what it takes to manage risk and move up the learning curve.
With this in mind we have started this thread called Beginners Tales where the objective is to get traders, whether new or experienced, to relate their experiences when they got started as a way to educate those new to the game to what they might face.
We will permit aliases if you do not want to disclose yourself. We hope this becomes a community effort.
Bulverde BB 02:14:56 GMT - 09/25/2011
To give you some background on me, Iâ€™ve been a mortgage banker for 34 years but I just started trading in the Forex markets back around April of this year. I thought trading the Forex would be fairly simple, but after losing over half of my investment and spending too much money purchasing software that is supposed to take the guesswork out of trading and unconfirmed recommendations, Iâ€™ve learned that trading Forex is much more complex than I ever expected. Iâ€™ve found out that relying on another personâ€™s data to place trades is not always a wise thing to do, which is the reason I started looking for something in which I could trade off of actual facts and conditions, which I am used to in dealing with FNMA and GNMA securities. For me, hearing current news and trying to decide how it will impact a currency pair is a fun and interesting way to trade the Forex. One other thing that I've learned recently that I make one of my trading rules is to trade the trend. If a pair is in a moving down trend I buy when a currency comes off it's high. I like using candle sticks and I look at the (8,3,3) stochastics when trying to decide on the right time to buy. Of course I also take into account support and resistence levels. But I have so very much to learn and I would appreciate any feedback from the more experienced traders.
Thanks for setting this up Jay!
Bulverde BB 14:02:13 GMT - 09/25/2011
To correct my prior post, when the currency is in a down trend I sell, not buy when the price reaches a high.
Seattle ML 14:07:48 GMT - 09/25/2011
What really hurt me was a false sense I knew it all when I transitioned from a demo to a real account. There was no stress when trading the demo but my emotions took over when real money was involved. Too much leverage not enough experience. This is real life and a warning to newbies.
Plattekill PT 22:44:27 GMT - 09/25/2011
For me loss was my hurdle. I would earn good profit for a week or so, get a losing trade, then frantically try to earn it back and lose all my profit and then some. When you get a losing trade use it for learning. Look at the trade and see if there is something you did not take into consideration.
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