advfntrader
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What do you wish you had been told?
- Thread starter MarketMoverTrader
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theroguetrader
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Thats its better to be out the market wishing you were in, than in the market wishing you were out !!
Shikamaroo
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I wish they told me that reality is a bugger and the reports about forex all over the internet is just great marketing. You wont be making 225% a month (except when u're fantasizing)! You wont be making 20% a week either!! And most importantly newbie, "focus on one strategy at a time", does not mean pin bars in January, Adx in Feburary, Session Breakouts in March and Retracements in April. Wishing wont make u a better trader, hope definitely wont, and staring at the PC 16 hrs a day trying to decipher the market will damage your eyes!! Help me, I'm at the end of the rope.
If you are suffering in Forex (or any market) may i surgest as an option that that perhaps you could put a smaller amount of your account to a different market and learn that one gradually? Say commodities (such as food - basics of life, and perhaps metal - basics of development) or equities?
For instance with commodities they can never go to 0 (but margin can take your account out) as someone is always going to need them to survive/live or build with and chances are as of (19th April 2011) for the majority of those commodities they would have been wanted them at yesterdays prices (An observation - not a recomendation).
Some of the entities effecting the price will want the commodity for delivery and are purchasing it in the market; for example chocolate companies and steel companies. Plus it takes years to build a new mine and i believe something like 7 years for a Coffee tree to be grown to fruitation. Creating a lag of supply and demand when conditions become unbalanced.
Where as with forex i heard 90% of people use it as speculation and do not want delivery of the currency - therefore forex is dependant upon speculators? and not actual need?.
Markets are inter-linked also. For example high cotton prices will effect the price of clothes and those high prices may effect retail sales of clothes. Where as high energy prices and high food prices will effect everyone.
For instance with commodities they can never go to 0 (but margin can take your account out) as someone is always going to need them to survive/live or build with and chances are as of (19th April 2011) for the majority of those commodities they would have been wanted them at yesterdays prices (An observation - not a recomendation).
Some of the entities effecting the price will want the commodity for delivery and are purchasing it in the market; for example chocolate companies and steel companies. Plus it takes years to build a new mine and i believe something like 7 years for a Coffee tree to be grown to fruitation. Creating a lag of supply and demand when conditions become unbalanced.
Where as with forex i heard 90% of people use it as speculation and do not want delivery of the currency - therefore forex is dependant upon speculators? and not actual need?.
Markets are inter-linked also. For example high cotton prices will effect the price of clothes and those high prices may effect retail sales of clothes. Where as high energy prices and high food prices will effect everyone.
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Or dare someone say it, trading stocks like the good old days in 1 or 2 companies that you learn to watch intraday. However, you have to prevent yourself from falling into the trap of trying too many things and trading too many markets.
Agreed. Personally i see Forex as exotic.
However I see commodities as preceding equities/stocks in the "chain" as they are the things that the business needs to use (in some form or another on most cases) - like cotton for primark clothes, wheat for greggs bakery in order to make a profit. - And that everyone who wants it needs to pay what is being asked as their is only so much to go around/finate amount available. Perhaps there is too much, lowering prices, or there is too little, highering prices.
When the commodity prices are going up this can show whether the company has a good moat etc. If they can put there prices up and increase sales while creating a better same-store-sales profit then they have good customer loyalty and/or they have great internal management, cost controls and sourceing ability. - If they can keep their prices up at those levels when commodities go down - then chances are you have found a winner and it will reward you due to increased profit levels on the same sales.
The downside is if the management has become bad and/or that some big shareholder wants to liquidate - and that your speculating in the other direction. However if Warren Buffett wants to take over the company you are in for a premium - and you are long - then your going to be a very happy person.
However I see commodities as preceding equities/stocks in the "chain" as they are the things that the business needs to use (in some form or another on most cases) - like cotton for primark clothes, wheat for greggs bakery in order to make a profit. - And that everyone who wants it needs to pay what is being asked as their is only so much to go around/finate amount available. Perhaps there is too much, lowering prices, or there is too little, highering prices.
When the commodity prices are going up this can show whether the company has a good moat etc. If they can put there prices up and increase sales while creating a better same-store-sales profit then they have good customer loyalty and/or they have great internal management, cost controls and sourceing ability. - If they can keep their prices up at those levels when commodities go down - then chances are you have found a winner and it will reward you due to increased profit levels on the same sales.
The downside is if the management has become bad and/or that some big shareholder wants to liquidate - and that your speculating in the other direction. However if Warren Buffett wants to take over the company you are in for a premium - and you are long - then your going to be a very happy person.
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How do you think most of the international companies do business?
brewski1984
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To listen to yourself.
The amount of times I'm sat there either thinking "this set up isn't quite right" or "I should get out the market before I lose my profit and/or take a bigger loss" and end up entering the trade anyway or sit watching my money tick away is unbelievable.
I bet I still don't listen to myself even after posting this.
The amount of times I'm sat there either thinking "this set up isn't quite right" or "I should get out the market before I lose my profit and/or take a bigger loss" and end up entering the trade anyway or sit watching my money tick away is unbelievable.
I bet I still don't listen to myself even after posting this.
Sorry - replied too slow.
(SanMiguel - two above).
They will do it with forex, swaps etc as you say (i assume). Do they actually speculate on the exchange do you know? or just transfer them normally and pay the difference/fees? (I see forex as the USD/EUR etc - not as a normal transfer - even though my latter definition is in all fairness incorect).
However to me i do not have much understanding of how they work - or why they work. Therefore i consider them exotic. To others they won't be exotic.
Personally i prefer to stick to what i know. And if to learn something new i will go into the market slowley and read what i can about it. - I only have limited information on forex. But feel safer with commodities/stocks.
However i do remember when i considered stocks exotic. And then commodities exotic.
I know people who have never traded/invested either (or interacted with an exchange) and consider what i take for "normal" as exotic.
(SanMiguel - two above).
They will do it with forex, swaps etc as you say (i assume). Do they actually speculate on the exchange do you know? or just transfer them normally and pay the difference/fees? (I see forex as the USD/EUR etc - not as a normal transfer - even though my latter definition is in all fairness incorect).
However to me i do not have much understanding of how they work - or why they work. Therefore i consider them exotic. To others they won't be exotic.
Personally i prefer to stick to what i know. And if to learn something new i will go into the market slowley and read what i can about it. - I only have limited information on forex. But feel safer with commodities/stocks.
However i do remember when i considered stocks exotic. And then commodities exotic.
I know people who have never traded/invested either (or interacted with an exchange) and consider what i take for "normal" as exotic.
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I have only just read this and as a newbie this is quite useful. However I think if you gave this advice to most newbies they wouldn't take it too seriously when their emotions take over and thinking they know better. From what I learnt so far is your emotions is your biggest barrier to being successful.
