I am very new to investment. But since I have strong interest in the financial market, I decided to use $500 (the amount I can let go if I fail) and lean from actual trading...
... OK, I really want to make some money.
I thought I would do stocks, but since I have to pay $10-13 commission through online brokers, $500 initial deposit will go away pretty soon. And I want to start making money fast. So, I am now thinking about foreign exchange.
There are terms that I do not know. Would you please explain what Spreads and Pips are?
If I use online trading like FXCM for USDJPY, how much are they going to charge?
Which currency has the most return (most risk)?
I want to know your experiences.
I know I sound stupid because I do not know anything. I am sure many of you will say to put the money in CD or mutual fund. But I am looking for a way to make money instantly.
Thanks for your help! I first want to commend you for already realizing one of the most important elements in trading Forex.....only risk money that you can afford to lose.
A few of my students are using micro accounts with GFT and this may be perfect for an account the size of yours.
I like to utilize conservative strategies that reduce market risks, generate an interest payment everyday and minimize the amount of time it takes to manage one's account (about 30 minutes per week).
I have two suggestions for you....first spend some time at babypips.com for some very good Forex information presented in a very enjoyable format. Second, I would be happy to send you an investment guide that will explain a couple of the strategies that I use. Just drop me an email.
Best wishes for your success.
Paul Upp
(925) 236-1839 If you want to make money instantly, you are pretty much guaranteeing that you will lose money instantly.
If you're dead set on gambling instead of investing, it might be simpler just to blow all your money on lottey tickets.
Good luck! You need to work the market NOT play the market,
Check out http://www.samstownecenter.com/forex/
there are two books there that was recommended to me by a forex trading broker to read first before opening a live account. There are also some good training materials there.
A price spread is the difference between the bid and ask prices the broker gives you. say for instance 1.2400/1.2405 is the spread of the USD/JPY currency pair.
There are no commission fees with forex trading they get their money through the pip spreads.
A PiP is the smallest amount that a price can change for instance 1.2400 to 1.2401 moved up in price by one pip.
Each broker has different pip spreads. you want to go with one with a closer pip spread. The one broker listed at http://www.samstownecenter.com/forex/ is a good one.
Before you put down any money you need to read the books and do a lot of studying or your just going to lose your money.
I've been doing various training things for 2 months now and haven't yet done a live bid.
You can set up demo accounts at various brokers to see which trading platform you like best.
Start there then start trading after you've learned some things. there is a lot of money that can be made on forex, I was told some guy increased his account by 360,000$ in just 48 hours but he put down a lot of money to make that much. Stay away from excessive leverage.
Do some paper trades before using real money -even if its just $500-.
Otherwise you have a 99% chance of losing money. Zecco is FREE.
FOREX is not for small investors with just $500.00 USD. I have heard amazing things about 12MinuteFX... and Kenny Reese is giving it away for free, I just got myself a copy... and its quiet good. (link below)
That should answer all your questions... and many more. | 