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Forex Trading
Former Member
Posts: 1,876,323 The Mix Honorary Guru
Has anyone ever tried or made any profit from Forex Trading. I'm thinking of giving it a go, due to some testomoinals I've seen online.
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Sit on a few grands worth of copper for 5 years.
TBH, unless you're willing to accept the gamble i wouldnt advise ForEx or stock markets, they are way too volatile if you need the money. A better option would be secure bonds, commodity trading or fixed deposits.
Just my opinion, but then i'm not one to gamble too much.
For example, oil collapsed $9 the other day, its now at $130, and everyone's confident at some point it will hit $150. Buy oil (as a CFD or ETF or whatever via a website - basically synthetic rather than buying the oil) and you should make short-term money from here.
Stocks and shares - we are now officially in a "bear market", and these things tend to take a while to materialise. The FTSE100 is at about 5,100, and is likely to go to 4,500 in the next 12mths if you just look at any historic chart about these sort of cycles. So again do a CFD saying the FTSE will go down and you should make money.
These things much easier than FX, where the best people I know make 20% return in a year (vs 50%+ for commodities and stocks if you're lucky / know what you're doing).
Before you start you need to ask yourself what you want to gain and what you can afford to invest because the minute you ignore what you want to gain is the minute when you lose your money, stay focused on your goals and stick to it.
. If you've got £1000's worth of outgoings a month can you take any extra from your bank account and happily invest it and lose it guilt free without causing any financial damage? I would say that any savings you have don't be to keen to spend them any time soon because if you taking a chunk out of your current account for investing and 6 months later you lose your job, how are you gonna pay for that £1000 p/m? Your gonna sell your stocks to cover your arse which isn't gonna do any good for your strategy, that's why you need money stashed away so if you get in to finance trouble you can use whats in your savings account to cover you and not lose any investments, that's how I do it any way.
Another thing is that you absolutely need to scrutinize the companies and sectors you are going to invest in and follow every move they make. A friend of mine brought a load of HBOS shares in 2007 and at the time the price was about 958.00p per shares and he still owns them today, worth just over 300p per share as of today, needless to say he has lost a chunk of his money but if he had actually bothered to research the company and follow the news and company goings on he could of saved himself some money and issued a stop order before things started to plummet, so research, research, research, follow, follow, follow.
Have a look at www.investopedia.com and buy Stock Investing for Dummies, it has invaluable information which I guarantee you will only help in making future investment decisions and you'll get a great idea how to research a company and get inside information, it really is a great book to read.
Also be sure to visit www.bullbearings.co.uk which is a fantastic free fantasy share trading website and works the same as the real market, they also offer FX trading too.
EDIT: As we are in a bear market (prices are falling) I wouldn't advise you as a new investor to buy at the moment, just wait a while until things start to climb (bull market) and go invest in some companies in the FTSE 250 as they have better growth potential as those that are in FTSE 100 are pretty much at the top of their game, though there is less risk with blue chips. Use this current market state as a learning curve and play fantasy stocks as if it's real and your playing with your own limited amount of money. Also I wouldn't invest in the FTSE 350 as a newbie because the 350 market is a lot more volatile that the others, the FTSE 250 is slightly less volatile but there is still more risk than going for FTSE 100 investments.
I'm sure in that documentary about what people earn with Peter Snow and his son they pointed out that the majority of traders (in whatever, I dunno) in the big banks lose money day trading. It's only because long term the value of their stocks and whatever go up that they make money. I'm no expert though, as someone else said if you use a simulator for a while and work out how you can do it then great.
trading is a zero sum game and in the long term it's usually the brokers that get rich, only around 10% of traders make money consistently.