Newbie: Long term investment tips!

yasirdxb · #11 18th August 2008, 09:12 AM

Quote:

Originally Posted by vasa1

On a lighter note, I know that I don't know the difference between the two

!

On a lighter note, Speculation is derived from probabilities while gambling is based on hope and luck. if you have an edge in the market. you'll able to repeat profitable trading scenarios while avoiding blind gambling shots.

Yasir.

(A large number of day traders falls in to the gambling type catogary. they dont have any clear plan or method. they rely on gut feeling and tips. they are here for the excitement.)

spades · #12 18th August 2008, 05:12 PM

Hey Yasir,
What ur saying makes a lot of sense,The idea where in i can first trade with a demo account untill i've picked up all the tricks of the trade is a good idea. I don't have friends who deals with FX, So i guess i'll need to this forum as my only source to discuss strategies.
I'll need to first research on FX,Cuz it's a bit confusing on the ratioe part and how the investment can be done...
Jus another query,Since i'm new to this,Can u fx trading only be done in $ and not rupees. Is there any indan agency that offers FXtrading..

Regards
spades

yasirdxb · #13 18th August 2008, 09:15 PM

Quote:

Originally Posted by spades

Hey Yasir,
What ur saying makes a lot of sense,The idea where in i can first trade with a demo account untill i've picked up all the tricks of the trade is a good idea. I don't have friends who deals with FX, So i guess i'll need to this forum as my only source to discuss strategies.
I'll need to first research on FX,Cuz it's a bit confusing on the ratioe part and how the investment can be done...
Jus another query,Since i'm new to this,Can u fx trading only be done in $ and not rupees. Is there any indan agency that offers FXtrading..

Regards
spades

Spades,

Actually Indian Rupee is not a favourite candidate for fx trading. mostly the hedgers and few companies deal in INR. on the other hand Euro,Dollar,Yen and pound crosses are actively traded by speculators thus very liquid.

To my knowledge, there is no indian firms offering fx trading. NSE is going to start USD/INR future trading from next month. I dont know howmany brokers are going to offer this to retail clients. anyway I am not interested in that.
I trade in spot market

.

vasa1 · #14 19th August 2008, 03:42 PM

speculation
Definition

Taking large risks, especially with respect to trying to predict the future; gambling, in the hopes of making quick, large gains.

Got this from http://www.investorwords.com/4643/speculation.html

skee_kd · #15 14th September 2008, 09:32 PM

Quote:

Originally Posted by yasirdxb

Well....Decipline is one thing you need to trade all markets. I think the margin available in fx market is somewhat harmful for a newbie. In stock markets we gets margin around 10:1. even thats for intraday trading. you should close the position the same day. but not in fx. the leverage available in fx are way too high.most brokers offer 200:1 leverage(That means you can buy 10000 units of Eur/usd with a mere 50$) and you may hold the position as along as you wish,if your account is okay.

Leverage is a good help if you have a sound strategy and good money management tools.but 95% of the newbies misuse it and take positions too big for them. other than that its like any other market. actually its the biggest market in the world. the major participants in this market are banks like Citi,Goldman,JP Morgan. there is 24 hours trading.transaction costs are much lower than equities.Fx is very liquid. since its 24 hour market,there is seldom any gap openings.thechnical system works well in Forex.

There is only four or five major currencies in the world. so just like you analyze the companies in stock market,you can analyze the countries and their economy.

The best thing is that most of the brokers offer demo trading for new traders without any cost.if you want to try out the fx market,drop me a message and I'll point you to a good one. watch and learn. demo trade an account until you become confident...And go for the kill

Yasir.

HEY yasir thanks for the info. i would surely like to have a demo cuz i m very much interested in startin FX..CAn u help me this regard and Demo thing you are talkin about????

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