Why not to trade the forex market.

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Hi all,

Here's something for you to read this weekend.

A link to Joe Ross' forum and when NOT to trade the forex market.

http://tradingeducators.com/forum/showthread.php?t=28

Enjoy!

 

Hi, very good article, what about futures brokers?

Do anyone know if there is any futures broker that offer mini-accounts (400-500 usd) and with a good leverage (1:50 or 1:100 or 1:200 or more) and that accept paypal (if we talk about mini accounts it can be good to save the 30-40 usd cost of a international wire-transfer) ?

Please post here if you know any good broker that offer these things, tnx

Have a nice day

 

hi

w4rn1ng:
Hi, very good article, what about futures brokers?

Do anyone know if there is any futures broker that offer mini-accounts (400-500 usd) and with a good leverage (1:50 or 1:100 or 1:200 or more) and that accept paypal (if we talk about mini accounts it can be good to save the 30-40 usd cost of a international wire-transfer) ?

Please post here if you know any good broker that offer these things, tnx

Have a nice day

You can try Northfinance

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Forex Indicators Collection

 

If I want to start trading future, where should I start with - where I can learn future trading? Thank you so much.

 

Forex Spot vs. Forex Futures

Let's first address why so many trade forex spot and why on MT4 platform. Here are some of the reasons:

  • FREE Charting Software & Data Feed.
  • Plenty of FREE custom indicators, trading systems, expert advisors, and really "expert advisors" (gurus)
  • Very Low Start-Up Capital - High Leverage - Low Margin Requirements
  • Over a dozen currency pairs to trade. WOW! Diversification (they say).
  • Different Ways of Depositing and Withdrawing Funds
  • Hundreds of Brokers and more popping up every day from all over the world

    • Forex Spot trading is a step up above MLM - multilevel network marketing - and HYIP - High Yield Investment Programs. It is the new get rich quick scheme or scam. MT4 platform and brokers opened the floodgate to "wannabe" traders and quickly filtered them out. However, if you have the discipline to learn how to and trade forex spot properly, MT4 platform could be and is a "gem", inspite of its many downsides.

    Now, the when and why not to trade forex spot or why trade forex/currency futures.

  • If and when, the above 5 reasons are not the issues with you in getting into forex trading. Meaning, you have the necessary capital to start with.
  • Uniform data feed and realibility of server connections.
  • Many other reasons were already mentioned on Joe Ross statement (See link on post #1)

Honestly, I trade both. I now swing trade forex spot and daytrade currency futures along with eminis. Yes, I use MT4 platform & charting, took advantage of the above 5 reasons because they are readily available, and trade with MT4 and non-MT4 brokers. Primarily, because my indicators and systems are designed and developed for and on MT4 platform. Shoot, that's almost $200 a month in savings over Tradestation plus the monthly lease on custom indicators/systems, like Nexgen and/or Kwikpop, the Hotcomm software and trading room access fee. I am talking BIG bucks of savings and that's more than plenty low capital to open multiple MT4 broker accounts. Anyhow, I have started the process for the conversion of my MT4 trading systems and custom indicators to work on Ninja Trader platform for charting, order management, and automated trade executions to trade forex spot thru MB Trading and other ECN brokers, eminis, futures (currencies included), stocks and options.

Sure it costs 2-3 or more pips spread or $20 up to trade forex spot compare to $5.00 round trip on my currency futures trade. With higher TF, swing trade, the forex spot spread "overhead" is well covered as part of doing business. I just have to put up with all the other downsides of forex spot and MT4 brokers, i.e. server connections, etc.

Oh, for your viewing pleasure, here are two charts, one for the forex spot USDJPY and the other, JPY Futures.

Best wishes to ALL.

ENJOY!

fxcruiser

Files:
yen_forex_spot.jpg  97 kb
yen_futures.jpg  99 kb
 
talktome:
If I want to start trading future, where should I start with - where I can learn future trading? Thank you so much.

To learn about futures (don't forget the "s" at the end) you can start with the Chicago Mercantile Exchange (CME) Education Center, where you will also find a number of links pointing to simulated trading facilities. A nice program to practice with is Track 'n Trade. Other than with Forex, though, you don't have free real-time or even EOD data feeds. Also, I found it a hassle to maintain data, keep track of contract expirations, etc.

 

a lot of the problem is from all of these bucketshops. It's best to stick with ECNs. Just knowing your trade is controlled in the house of a bucketshop is a scary thing.

 
zuijlen:
To learn about futures (don't forget the "s" at the end) you can start with the Chicago Mercantile Exchange (CME) Education Center, where you will also find a number of links pointing to simulated trading facilities. A nice program to practice with is Track 'n Trade. Other than with Forex, though, you don't have free real-time or even EOD data feeds. Also, I found it a hassle to maintain data, keep track of contract expirations, etc.

Thank you so much for your correction and your information.

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