Forex Market Commentary
Today I will present a very short perspective on trading.
Here are what i consider to be the most pertinent questions and answers for new traders who wish to trade forex or even other areas like equities. There are no age barriers for trading so long as an individual is competent enough to read and learn. But what is important at all times is to remember that this is not an exercise in gambling. Throwing your savings to the wind is fool-hardy. Trading is a discipline that can bring results if the markets are treated with utmost respect.
Questions and answers:
1. Can anybody trade? Yes.
2. What is the usual size of account for new traders? $3000 -$10,000.
3. What is the success rate in the first year? Approximately 30% will grow their accounts.
4. Why is the failure rate high? Because people largely find it difficult to control their emotions and rush to make a decision. Seperate your domestic life from your work life. You are your own worst enemy.
5. What are the chief characteristics of a successful new trader? Ability to spend time on education and disciplining the mind to make better judgements in the future without being affected by personal emotional issues.
6. Is the new trader better suited to short or long term trading? If capital is under $10,000 a trader is limited with hedging mechanisms and therefore shorter term trades may suit a trader provided that a trader sticks with a well developed system plan that has been practiced.
7. Are all forex platforms equally fair at executing trade orders? No, each forex platform is very different and it's own prices are set with different calculations. It is for the trader to research correctly the pricing and the merits and demerits of each account provider.
8. Can a trader make a career out of trading after the first year? Yes, a trader can grow an account as does a tree grow from a seed.
9. What are the largest problems that a trader may face? Information overload; there is too much noise on the internet which frightens a trader into taking a decision or depending upon others. The amount of information out there on the internet has become astronomical in the 25 years I have been trading and teaching.
10. How does a new trader make the best preparations before real account trading? Simulated systems are offered by many platform providers and give the necessary room for a trader to practice. The best all round retail forex platform that I have looked at is at Oanda. The Oanda platform has the ability to keep the information short and sweet whilst offering an excellent means for trade execution. You can sign up here to test practise:
https://fxtrade.oanda.com/demo-account/login?app_name=SecureSignIn&next=%2Fdemo-account%2F
Success will not come in one day, week or month; but success is the natural order of things when a new trader acquires a new set of habits through education that may fashion his story of evolution in the forex markets.
Yours sincerely,
Pieter Bergli - DeLoren Trust Holdings
A non-profit commitment to provide education on the properties of currency markets. Forex market commentaries and media reports for free
Disclaimer - U.S. Government Required Disclaimer - Commodity Futures Trading Commission
Futures and Options trading involves risks of losses. No representation is being made that any reader and account will or is likely to achieve profits or losses similar to those that are being discussed on this blog http://forexeducationperspective.blogspot.com/. The past performance of any trading system or methodology discussed is not necessarily indicative of future results.
CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
All trades, patterns, charts, systems, etc., discussed in this blog http://forexeducationperspective.blogspot.com/ are for educative and illustrative purposes only and not to be construed as specific advisory recommendations for actual trades. Disclaimer - http://forexeducationperspective.blogspot.com/ bears no responsibility for the trading actions of its readers.
* European Union laws require European Union visitors to this blog to know that cookies are used by Blogger and Google, including use of Google Analytics and AdSense cookies and in reading material from this blog do consent to the use of such cookies
A non-profit commitment to provide education on the properties of currency markets. Forex market commentaries and media reports for free
Disclaimer - U.S. Government Required Disclaimer - Commodity Futures Trading Commission
Futures and Options trading involves risks of losses. No representation is being made that any reader and account will or is likely to achieve profits or losses similar to those that are being discussed on this blog http://forexeducationperspective.blogspot.com/. The past performance of any trading system or methodology discussed is not necessarily indicative of future results.
CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
All trades, patterns, charts, systems, etc., discussed in this blog http://forexeducationperspective.blogspot.com/ are for educative and illustrative purposes only and not to be construed as specific advisory recommendations for actual trades. Disclaimer - http://forexeducationperspective.blogspot.com/ bears no responsibility for the trading actions of its readers.
* European Union laws require European Union visitors to this blog to know that cookies are used by Blogger and Google, including use of Google Analytics and AdSense cookies and in reading material from this blog do consent to the use of such cookies
