Providing Corporate News
Mutual Funds
Asia Market
Stock Market
Asia Countries Risk


From my past experience, it takes time, patience, a lot of research and reading, and most of all, a lot of trading. Besides what all the books say and all the indicators say, sometimes it can still come down to a "gut feeling" or luck when you pull the trade. So a good trader has to read the charts, have a great feel for it and know when and when not to trade. It took two years trading small accounts and losing lots of "small" money.

The third year breaking even, and the fourth year, moving forward. You are going to lose trades, so I figured out to do it in stair steps. Have a plan, try to take 2 steps today. Tomorrow, you will lose one, next day try to take 3 steps, because you will lose one or two. Keep going forward small. Baseball analogy: DO NOT try to hit homeruns at first. Try to get on base and don't get picked off.

Money management is the key. Try to always gain a few pips and keep moving forward. It is not gambling, nor get rich. Depending on your part of the world, betting on a ballgame, might actually be easier than spread betting the currancy market. I have a full time job, so I am just trying to learn and build up some wealth. I plan to trade full time in a few years when I retire early hopefully.

So I am still training and treating this just like starting a business. Open a micro account with about $200 and trade 1000 or 1 cent a pip. Do not trade a demo account. No money is involved and there are no emotions tied to your losses. If you can build up the $200 into $1000 or $2000 then move over to a mini account and trade $1.00 a pip.

However, I bet you lose the $200 and you have to reload it a few times before you start moving forward. (No matter who the broker is). Some humor: Just pretend that this is is the greatest video game ever while watching charts and trading, Be determined to win. Like a video game, you have to keep feeding it quarters to play. One day when you are good at it, you can play all day on the same quarter.

At that point, you are just getting ready to start to trade. I know this is long and didn't really answer your question as asked but for most this is the reality for a beginner. I have FXCM micro and FXSolutions micro accounts that I trade 1 cent per pip. I have a GFTForex account and Oanda account that I trade $1.00 per pip. I only trade the $1.00 account when I am confident in my trades and pretty conservative.

It is my long term account that I am trying to build up to start trading $10 a pip hopefully by 2012. I use the mini accounts still to guage the market and get a feel of direction, when I am "Overtrading" and when I am trying new trading indicators etc. GOOD LUCK! I wish you the best.

Kundrit, Good luck to you. I wish you the very best. Consider testing the waters "small" and just see how it goes for you. As stated before, the good traders "love" their broker, while the losing trader blames their broker. Do your homework on brokers before choosing one, but remember to take some of the comments with a "grain of salt" as the reason stated above.

You will not deposit a lot of money to start with so while training, the "lower the spread" on the pair you will be trading gives you a better chance of success and breaking even. So find a broker with a low spread. As you start to earn money and grow your account, withdraw some of your earnings and see how it goes. You can always change brokers later or try different ones. I mentioned don't trade a demo account, trade a micro account, that doesn't mean not to sign up for some demo accounts so you can see their trading platforms while you make your decision. The main thing is to trade. As you become successful, the compounding effect can make your account grow, and grow, and grow. But while learning I have earned pips and had had 19 trades in a row go my way and had one losing trade and busted my account with a marging call. Taught me a lesson about stop-losses and thinking it would turn around any minute. So 19 winning trades out of 20 for a 95% success rate and I lost money!!!

How did that happen??? I have also had only 3 winning trades out of 10 for only 30% success and had 7 losing trades and guess what? I made money! Money management is a huge piece to learn when it comes to trading in addition to just what broker to use and what indicator am I going to use to base my trade on.

There will always be unsatisfied customers of a financial institution, no matter who they are. Banks and credit cards... always people unhappy with every single checking account and credit card account... always... My theory? Those unhappy customers never knew how to handle those accounts and so incur fees due to misuse. They become so angry and complain to customer service, and through some random luck encounter service reps who talk down to them and these customers then conclude the financial institution is a horrible scam. Funny how for every unsatisfied customer there's three or more satisfied customers who don't have these problems with the very same company. This is a phenomenon that still amazes me.

I don't believe in brokers hunting their customers stop loss. That's just the market itself. What happens on one broker's feed happens on another brokers feed. The only way you'll find out if a broker is a scam is if you open up an account and use it along with other brokers and compare your own experience.
The answer is the term "rich" means different things to different people.

Some various meanings of the word "Rich".

1. Money and tons of it.
2. Independence --- no working for a paycheck.
3. Freedom --- sleep in, do what you want.
4. Life Style --- the more you spend the more you need to make.

I think many approach it with the #1 view point, which usually ends in disaster they get discouraged and quit. Forex is not for everyone. I have seen countless people come an go. It's hard fought for money. It's the ultimate challenge to be profitable and remain profitable.

There will be bad days, bad weeks and even bad months. You need a plan that doesn't involve you risking your entire savings. If you don't have any savings quit here and do something else. If you can't manage your personal money and owe more than you have in the bank the last thing you should do is trade forex.

If you have money you can afford to lose look at it and measure it. Risk it in chunks not all at once not even half at once or 1/3 at once. If you can't learn patience in doing this stop here and do something else.

Be prepared for losses, you will have them. If you can get to 70% profitability meaning the odds of you having a winning [for profit] trade better than 2 of every 3 trades you open the better your chance for success. Nothing is easy and you may spend 10 years or longer doing this and never find the secret winning formula.

With that said, nothing comes without hard work and dedication. You are only as good as what you put into it... and even then it still may not be enough all the time.

Continue to Part 2

Back to Index

Bloomberg Wallstreetcity WSJ FT CNBC Micropal Finportfolio