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Help me to clear Forex doubts?

Help me to clear Forex doubts?

Postby misu » Wed Mar 20, 2013 1:37 pm

I have been trading Forex for 6 months. I had earned dollars but eventually lost all, three times. Last time I lost 1600 USD. It was because of lot of sell trades remained in minus and i lost. But just after my balance finished, the chart started moving downwards. I had 3 times experience in this same manner. Why is it so? Any body can trade against me ? Can any one move the chart up or down? Is it a competition between traders? What actually happens? I get money of another trader? Can i earn money if another trader not losing? Please explain clearly.
misu
 
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Help me to clear Forex doubts?

Postby wyatt54 » Wed Mar 20, 2013 1:49 pm

Six months is a very short time to have learnt Forex and opened 3 accounts. Six months you should still be practicing using a demo account. The reason why you lost is because you over-leveraged and your free margin level went below the margin level required by your Forex broker to maintain the leverage that you were using.

The reason price moved against you is because of what is known as a retracement, price will always retrace for some pips even if the direction is moving in one particular direction. This is why traders will wait for a retracement so as to place an order at the best level. The place to determine where to place a trade is to use a Forex trend-line and buy or sell when price touches the line.

No one can move the price up or down, the price moves because of demand and supply of a particular currency.

Here are some of the Forex concepts you need to learn money management, leverage and margin, trend-lines, Fibonacci retracement, writing rules of buy and sell trades, technical analysis, forex trading strategy, Forex trading plan among many others.

While you learn, use a risk free demo practice account until you come up with a forex trading strategy that is profitable.
wyatt54
 
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Help me to clear Forex doubts?

Postby katelinn » Wed Mar 20, 2013 2:14 pm

Where's the doubt?

You don't understand the market.

You don't understand how to trade profitably.

You don't understand what other traders do.

You focus on profits, exactly the opposite of what a trader does (risk is the priority, profits come later).

You don't understand price moves or ranges or what the chart is telling you.

You don't understand what makes price move.

You don't have a clue what's going on.

You don't understand the auction process.

What's left to explain?
katelinn
 
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Help me to clear Forex doubts?

Postby karcsi » Wed Mar 20, 2013 2:30 pm

Haven't learned your lesson yet?

FOREX trading is a scam. Well, for 99.47% of people it is a scam. Seventy-five percent of all investors lose nearly their entire stake in just a few months. The problem is that the company sets the exchange rate, not the open market. Also, if you buy on margin (required for almost everyone) the company can force sale of your shares for a margin call when a currency falls a tiny amount, thereby not letting you survive normal fluctuations. Stay away. You'll have better luck at the roulette wheel, which isn't saying much.

http://www.latimes.com/business/la-fi-amateur-currency-trading-20110403,0,588787.story
karcsi
 
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Help me to clear Forex doubts?

Postby barric » Wed Mar 20, 2013 2:54 pm

No one makes money in Forex. No one.
Money Magazine had an article stating that more than 90% of forex traders lose money their first year out.
Why not just invest in stocks?
What is this love with this losers game?
barric
 
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Joined: Tue Jun 26, 2012 5:03 am


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