When I started trading I started on the forex market. I'm convinced that it was the right move. I started loosing big money on futures and if I would do it over I would have stayed longer with forex before moving to futures.
Why ? You can do sim trading, but there's nothing like the real feeling of trading with real money, even if it's not your complete checkbook you're putting on the line, it is a different feeling to trade with live money. The huge leverage they provide with forex (1/50) is also because moves are % wise small on the currencies, it's a big deal of a currency pair moves from 1,30 to 1,40 while a stocks can move from $10 to $30 in a matter of days.
On forex you can start with a micro or a mini account, which I think is a way better idea than to sim trade.
Normally you should test trade with a mini acount were 1 pip is $1 profit or loss. If you can't afford that you shouldn't be trading at all or you could move to a micro were 1 pip is $0,1. Once you become consitantly profitable increase your size to 4 mini contracts and then move up to standard lots were 1 pip is $10. Opening an account can go as low as $100, but start with an account of $1000 and trade with a mini contract.
I would advise to trade on the EUR/JPY and the GPB/USD, they have strong moves during the euro morning session, you can have nice moves around 8-9am EST, or really nice moves at 2-4am EST but that might be a little early for USA residents.
Watch out for news on forexfactory.com, don't trade on high impact news 20minutes before news and after news let the news settle in. On medium impact news if you are in a trade you can stay in but don't enter a new trade 20minutes before or just after news. Forex Factory In ninjatrader you can use JtEconNewsAddln indicator which I love very much. It give you upcoming news events on your chart so you don't miss a thing.
Use a stop loss on these markets of 8 ticks and you could trade 2 micro lots and take half of at profit target of 10 and let the other one run.
You could use any technique described here on Bigmike, just remember that you don't have real volume information so basic technical analysis is known to work good on the forex market.
A good all round forex broker is PFGBest who works really good with Ninjatrader but there are other good ones like Dukascopy who is really cheap and stable or maybe even Oanda. You can get a demo account for free over there. Make sure you pick an ECN broker, that means he will put your orders on the market instead of trading against you.
Concentrate rather on the 2 currency pairs I mentioned once you are better you can expand to more pairs.
Work on the 5 range chart for entries, and monitor the 10 range or the 15 range for breakouts or whatever technique you want to use for forex trading. Keep an eye on the 45 range for a global overview what is happening.
In forex you can work with 1/10th pip, that gives you more detailed price information, remember if you work in Ninjatrader with 1/10th pip as a setting your ranges will be 50 for 5, 100 for 10 etc..
Use in ninjatrader the chart trader, most of us trade on 1/10th pips and that is not working on the DOM.
Don't overtrade, use the 6 bullet rule, you have 6 bullets in your gun every day, so only 6 trades, once you run out of bullets you must wait for the next day, use them wisely, shoot to kill !! Take only the best trades!!
Happy trading, I'm not an expert but I'm happy to help new folks learning to trade on forex.
Moves of 60 to 80 pips are possible in Forex, and I promise you, it kicks when you are grabbing one of those, you only need 1 of those a day
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I went to spot forex because I just couldnt risk the proper $ amount in the futures world without a little fear influencing me - I admit that one . I could trade a sim on 6E but live uh uh . One thing I would add to your excellent post here is about how spreads work and how they affect entries and exits . A pair that has a wider spread can trigger your stop orders with the bid end or the ask end . Say the spread is 4 pips and your stop order is 1 or 2 pips from lets say the high of a bar you want to go long above you can get filled before the last price occurs at your desired level . Thats a pro for EURUSD because of (usually) tight spreads . So be aware of the spreads cause they can nail you like that .
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if u see a breakout go to the 5 range, WAIT until the breakout pulls back for 1 or 2 bars and then enter the trade if the next closing bar is in the direction of the breakout
one of the basic trading systems but it works very good on forex where we don't have volume info,you won't have all the trades with this system but you will increase your probability on profit massiveley and avoid overtrading
combine it with other points i mentioned in my first post
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