Questions regarding Forex?
hi I’m new to forex trading and I just had some technical questions for anyone who has some experience
My first question is regarding margin calls, now say I’m investing a hundred dollars at 100x, what would happen if my losses were more than 100 dollars but I had another 10 000 dollars in my bank account. Could I set it up for the broker to take more money out of my account instead of losing my position?
Another question I had was once again about margin calls. how much money should I leave in my account and not touch to avoid margin calls? If I’m investing with 2000 dollars and I leave 8000 extra in my account could I avoid margin calls?
What currency pair on average has the least fluctuation?
What is the most detailed site that’s not a broker where I can get free analysis, newsfeeds, and good up to date charts?
what’s a good simple strategy? my plan is to start with 1500 and invest with 1000 dollars at ten times leverage and keep adding more to cut my losses
every 8% the value of the currency goes down, I’ll put another 1000 and when they go up I’ll wait till the money is 100 pips over the average to sell. now that’s a beginner strategy which probably has tons of flaws please point them out. Thanks in advance
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Tagged with: 100x • account • broker • fluctuation • margin • money • newsfeeds • pips • question • technical questions
Filed under: Trading Forex
In my opinion the best way to learn Forex is:
1 – Open a demo account with a broker,
2 – visit free websites like http://www.freeforexebook.org/ and http://www.forextopten.com/ to learn the basics,
3 – practice your skills on the demo account until you’re making consistent profits,
4 – take a course or buy a system that allows you to improve your trading. Read reviews on website like http://www.topforexeducation.com/
You only get a margin call if your total losses are more than the total money in your account. If you have $10,000 in your account and you drop -$100 it’s no big deal.
I made the mistake of buying too much stuff last night and not leaving enough margin…. then I left my computer for several hours. Bad idea. When I came back I had lost $7,000 due to margin calls out of my initial $10,000.
Good thing it was only a practice account, not using real money.
Which brings me to another point….. make sure you use a practice account for at least 2 months before you start real trading.
To avoid margin calls:
- Keep at least 5x as much cash in your account as you are actually investing.
- Use stop losses!!!! I can’t emphasise this enough now that I’ve learned the hard way.
As a long time Forex Trader I strongly recommend you take some quality courses focused on trading systems that best suit your situation. Then choose a quality platform with a paper (no money) account. Practice Practice and be patient. The cost of the courses and time practicing is well worth the time and energy. Good luck