Full time Indian Resident FOREX trader??
- Thread starter AdaG
- Start date
Hello
I have traded live funds(Real money).
Almost 6-7 years.
From all the above posts I understand that there are quite a few here who would like to know more about money markets.
I will post the broker I have used and additional information in the end of this post.
Let me be really negative here and post only the cons related with this issue:
(I am posting in bullets followed by the reason in paragraph form. Please read both)
1- You will lose money
Every seasoned trader no matter who, can recount the number of times his/her account has gone to zero at the start of their trading career. If they tell you otherwise, well then check your source.
Spot Money markets are 24/5 markets, since you are not a robot and do have some social commitments+sleep requirement etc etc you cannot be at your terminal every second of the day.
Majority of people start assuming they will make huge profits. Even if you dont start with high expectations, the greed factor jumps in. For example: I started with a 200$ account 1:100 leverage. Expectation 10% per month return. In the beginning my trades looked green and all was well and good. My expectation was low and +50 pips on a trade looked good enough to close. One month my account history showed a 210% gain. I was euphoric and full of confidence. My Stop-losses became deeper and no. of trades increased. To cut a long story short in the next month I had lost all profit and was showing a sizeable loss. Then came the inevitable, I will get it back by trading more and being dilligent.
End result: a/c showed 0=Confidence lost
2- The psychological make-up
There is a reason why only 5% of all aspiring traders actually manage to stay in this market and very few who actually trade it full-time using their own money.
You will find most full-time traders NOT trading their own money.
The reason is psychological make-up. Losing a big chunk of money in a matter of minutes(See any Non-Farm Payroll announcement hour) may sound easy enough to take in your stride but it isn't. I know people and am myself a part of the group, lost money 40,000 plus in a matter of minutes because? terminal froze could not close trade. The high leverage ate up my account like a slice of oven fresh pizza. I was 18 at the time. Well, the next 24 hours I stayed awake not because I wanted to but just that sleep was hard to come by. The amount wasn't big but the psychological pressure of seeing the red is hard to stomach.
The psychological make-up takes a lot of time and effort. At the terminal you have to be completely emotionless and as soon as you are away from the terminal you should be able to relax.
Nearly 80% of traders trading their own real-money hardly get a moments peace and usually either burn-out or give up due to reasons I am sure you can understand.
3- Steep learning curve
I believe money markets are the only profession which requires you NOT to study but to learn each and every day. Their is literally enough information, different interpretations, your own analysis, testing, answering the why's and what if scenarions to consume every waking minute a 1000 times over.
The above reasons are very basic. If someone wants to have a detailed discussion feel free to contact me.
I am not trying to discourage you, if I can do it then anyone can. However I am also not trading my own funds now rather handling a few accounts.
For my own funds I am currently using Marketiva and North Finance.
Although I am also using these non-CME brokers for anyone using serious amounts a CME broker is a must.
Regards
Neo
I have traded live funds(Real money).
Almost 6-7 years.
From all the above posts I understand that there are quite a few here who would like to know more about money markets.
I will post the broker I have used and additional information in the end of this post.
Let me be really negative here and post only the cons related with this issue:
(I am posting in bullets followed by the reason in paragraph form. Please read both)
1- You will lose money
Every seasoned trader no matter who, can recount the number of times his/her account has gone to zero at the start of their trading career. If they tell you otherwise, well then check your source.
Spot Money markets are 24/5 markets, since you are not a robot and do have some social commitments+sleep requirement etc etc you cannot be at your terminal every second of the day.
Majority of people start assuming they will make huge profits. Even if you dont start with high expectations, the greed factor jumps in. For example: I started with a 200$ account 1:100 leverage. Expectation 10% per month return. In the beginning my trades looked green and all was well and good. My expectation was low and +50 pips on a trade looked good enough to close. One month my account history showed a 210% gain. I was euphoric and full of confidence. My Stop-losses became deeper and no. of trades increased. To cut a long story short in the next month I had lost all profit and was showing a sizeable loss. Then came the inevitable, I will get it back by trading more and being dilligent.
End result: a/c showed 0=Confidence lost
2- The psychological make-up
There is a reason why only 5% of all aspiring traders actually manage to stay in this market and very few who actually trade it full-time using their own money.
You will find most full-time traders NOT trading their own money.
The reason is psychological make-up. Losing a big chunk of money in a matter of minutes(See any Non-Farm Payroll announcement hour) may sound easy enough to take in your stride but it isn't. I know people and am myself a part of the group, lost money 40,000 plus in a matter of minutes because? terminal froze could not close trade. The high leverage ate up my account like a slice of oven fresh pizza. I was 18 at the time. Well, the next 24 hours I stayed awake not because I wanted to but just that sleep was hard to come by. The amount wasn't big but the psychological pressure of seeing the red is hard to stomach.
The psychological make-up takes a lot of time and effort. At the terminal you have to be completely emotionless and as soon as you are away from the terminal you should be able to relax.
Nearly 80% of traders trading their own real-money hardly get a moments peace and usually either burn-out or give up due to reasons I am sure you can understand.
3- Steep learning curve
I believe money markets are the only profession which requires you NOT to study but to learn each and every day. Their is literally enough information, different interpretations, your own analysis, testing, answering the why's and what if scenarions to consume every waking minute a 1000 times over.
The above reasons are very basic. If someone wants to have a detailed discussion feel free to contact me.
I am not trying to discourage you, if I can do it then anyone can. However I am also not trading my own funds now rather handling a few accounts.
For my own funds I am currently using Marketiva and North Finance.
Although I am also using these non-CME brokers for anyone using serious amounts a CME broker is a must.
Regards
Neo
hi all,
Its good to see investors diversifying into FX/commodity (i consider most commodity similar to FX). Almost everyone i know does stocks for obvious reasons. hope to see Indian bond/credit markets open up in the near future.
came across this site today. I have been trading FX for 1 year now and also work in a FX related role. i opened up an account when i was abroad, but i have no problems transferring funds through Indian credit cards. (however u need to fax over a statement of the card and other particulars which differs with brokers).
however, most of the brokers are good and there is a very marginal different in the spreads. most brokers have more due diligence while withdrawing funds than depositing, but since this is a one time thing for a card, shouldn't be an issue.
i don't see why it could be illegal. if you notice the rbi website, points 31 onwards, you would have an idea.
http://www.rbi.org.in/scripts/FAQView.aspx?Id=53
its best not to and also hard to trade USDINR (compared to other ccy pairs) as INR is not freely floating due to regulations.
FX is to an extent is about liquidity of the currency pair and its sensible to trade most of the G10s. however its best to concentrate on couple of currency pairs, though most of them are very much correlated.
also, the most important thing to note is that message which you would probably see in every broker site offering FX trading. cos most of retail FX trades are traded on margin and are v short term. the message being :
" FX trading involves substantial risk of loss, and may not be suitable for everyone " though most of them ignore this, it is very true cos of the way margin works. (your Profit and Loss are magnified in the same manner due to leverage)
however expert u r, always try the demo to get familiar with the system of different brokers, before trading with real money. it takes 10 mins of your time to demo.
my two cents worth...
GBPEURUSD
Its good to see investors diversifying into FX/commodity (i consider most commodity similar to FX). Almost everyone i know does stocks for obvious reasons. hope to see Indian bond/credit markets open up in the near future.
came across this site today. I have been trading FX for 1 year now and also work in a FX related role. i opened up an account when i was abroad, but i have no problems transferring funds through Indian credit cards. (however u need to fax over a statement of the card and other particulars which differs with brokers).
however, most of the brokers are good and there is a very marginal different in the spreads. most brokers have more due diligence while withdrawing funds than depositing, but since this is a one time thing for a card, shouldn't be an issue.
i don't see why it could be illegal. if you notice the rbi website, points 31 onwards, you would have an idea.
http://www.rbi.org.in/scripts/FAQView.aspx?Id=53
its best not to and also hard to trade USDINR (compared to other ccy pairs) as INR is not freely floating due to regulations.
FX is to an extent is about liquidity of the currency pair and its sensible to trade most of the G10s. however its best to concentrate on couple of currency pairs, though most of them are very much correlated.
also, the most important thing to note is that message which you would probably see in every broker site offering FX trading. cos most of retail FX trades are traded on margin and are v short term. the message being :
" FX trading involves substantial risk of loss, and may not be suitable for everyone " though most of them ignore this, it is very true cos of the way margin works. (your Profit and Loss are magnified in the same manner due to leverage)
however expert u r, always try the demo to get familiar with the system of different brokers, before trading with real money. it takes 10 mins of your time to demo.
my two cents worth...
GBPEURUSD
Hello
I have traded live funds(Real money).
Almost 6-7 years.
From all the above posts I understand that there are quite a few here who would like to know more about money markets.
I will post the broker I have used and additional information in the end of this post.
Let me be really negative here and post only the cons related with this issue:
(I am posting in bullets followed by the reason in paragraph form. Please read both)
1- You will lose money
Every seasoned trader no matter who, can recount the number of times his/her account has gone to zero at the start of their trading career. If they tell you otherwise, well then check your source.
Spot Money markets are 24/5 markets, since you are not a robot and do have some social commitments+sleep requirement etc etc you cannot be at your terminal every second of the day.
Majority of people start assuming they will make huge profits. Even if you dont start with high expectations, the greed factor jumps in. For example: I started with a 200$ account 1:100 leverage. Expectation 10% per month return. In the beginning my trades looked green and all was well and good. My expectation was low and +50 pips on a trade looked good enough to close. One month my account history showed a 210% gain. I was euphoric and full of confidence. My Stop-losses became deeper and no. of trades increased. To cut a long story short in the next month I had lost all profit and was showing a sizeable loss. Then came the inevitable, I will get it back by trading more and being dilligent.
End result: a/c showed 0=Confidence lost
2- The psychological make-up
There is a reason why only 5% of all aspiring traders actually manage to stay in this market and very few who actually trade it full-time using their own money.
You will find most full-time traders NOT trading their own money.
The reason is psychological make-up. Losing a big chunk of money in a matter of minutes(See any Non-Farm Payroll announcement hour) may sound easy enough to take in your stride but it isn't. I know people and am myself a part of the group, lost money 40,000 plus in a matter of minutes because? terminal froze could not close trade. The high leverage ate up my account like a slice of oven fresh pizza. I was 18 at the time. Well, the next 24 hours I stayed awake not because I wanted to but just that sleep was hard to come by. The amount wasn't big but the psychological pressure of seeing the red is hard to stomach.
The psychological make-up takes a lot of time and effort. At the terminal you have to be completely emotionless and as soon as you are away from the terminal you should be able to relax.
Nearly 80% of traders trading their own real-money hardly get a moments peace and usually either burn-out or give up due to reasons I am sure you can understand.
3- Steep learning curve
I believe money markets are the only profession which requires you NOT to study but to learn each and every day. Their is literally enough information, different interpretations, your own analysis, testing, answering the why's and what if scenarions to consume every waking minute a 1000 times over.
The above reasons are very basic. If someone wants to have a detailed discussion feel free to contact me.
I am not trying to discourage you, if I can do it then anyone can. However I am also not trading my own funds now rather handling a few accounts.
For my own funds I am currently using Marketiva and North Finance.
Although I am also using these non-CME brokers for anyone using serious amounts a CME broker is a must.
Regards
Neo
I have traded live funds(Real money).
Almost 6-7 years.
From all the above posts I understand that there are quite a few here who would like to know more about money markets.
I will post the broker I have used and additional information in the end of this post.
Let me be really negative here and post only the cons related with this issue:
(I am posting in bullets followed by the reason in paragraph form. Please read both)
1- You will lose money
Every seasoned trader no matter who, can recount the number of times his/her account has gone to zero at the start of their trading career. If they tell you otherwise, well then check your source.
Spot Money markets are 24/5 markets, since you are not a robot and do have some social commitments+sleep requirement etc etc you cannot be at your terminal every second of the day.
Majority of people start assuming they will make huge profits. Even if you dont start with high expectations, the greed factor jumps in. For example: I started with a 200$ account 1:100 leverage. Expectation 10% per month return. In the beginning my trades looked green and all was well and good. My expectation was low and +50 pips on a trade looked good enough to close. One month my account history showed a 210% gain. I was euphoric and full of confidence. My Stop-losses became deeper and no. of trades increased. To cut a long story short in the next month I had lost all profit and was showing a sizeable loss. Then came the inevitable, I will get it back by trading more and being dilligent.
End result: a/c showed 0=Confidence lost
2- The psychological make-up
There is a reason why only 5% of all aspiring traders actually manage to stay in this market and very few who actually trade it full-time using their own money.
You will find most full-time traders NOT trading their own money.
The reason is psychological make-up. Losing a big chunk of money in a matter of minutes(See any Non-Farm Payroll announcement hour) may sound easy enough to take in your stride but it isn't. I know people and am myself a part of the group, lost money 40,000 plus in a matter of minutes because? terminal froze could not close trade. The high leverage ate up my account like a slice of oven fresh pizza. I was 18 at the time. Well, the next 24 hours I stayed awake not because I wanted to but just that sleep was hard to come by. The amount wasn't big but the psychological pressure of seeing the red is hard to stomach.
The psychological make-up takes a lot of time and effort. At the terminal you have to be completely emotionless and as soon as you are away from the terminal you should be able to relax.
Nearly 80% of traders trading their own real-money hardly get a moments peace and usually either burn-out or give up due to reasons I am sure you can understand.
3- Steep learning curve
I believe money markets are the only profession which requires you NOT to study but to learn each and every day. Their is literally enough information, different interpretations, your own analysis, testing, answering the why's and what if scenarions to consume every waking minute a 1000 times over.
The above reasons are very basic. If someone wants to have a detailed discussion feel free to contact me.
I am not trying to discourage you, if I can do it then anyone can. However I am also not trading my own funds now rather handling a few accounts.
For my own funds I am currently using Marketiva and North Finance.
Although I am also using these non-CME brokers for anyone using serious amounts a CME broker is a must.
Regards
Neo
1. You said "I know people and am myself a part of the group, lost money 40,000 plus in a matter of minutes because? terminal froze could not close trade" unquote, why was your terminal froze, Was it from your end or from broker end, I was wondering that if it was from broker end than it is highly risky for indians to open a/c in different geographical location and then calling broker on international calls, it would be a lot of stress.
2. You started from 200$ and leveraging 200:1 , were you following money mgt rules, and if someone followes mm rules, were your stops based on technical analysis or just you selected random stop.
hi
sorry i if i m interrupting,
but i also have a simiilar problem.
i opened an live trading account with avafx.com for forex and transferred money through netsafe card isuued by hdfc bank. it is a card which is made instantly on hdfc site by your debit card and can only be used once for online shopping.
my account was instantly credited and now i m live trading and earning also.
the people at ava fx say that the withdrawal can be made by paypal.
i want to know how to remit money back to india from paypal and what to do further with taxes.
should i show income in paypal to be trading in equities as you mentioned??
please help
thanks
sorry i if i m interrupting,
but i also have a simiilar problem.
i opened an live trading account with avafx.com for forex and transferred money through netsafe card isuued by hdfc bank. it is a card which is made instantly on hdfc site by your debit card and can only be used once for online shopping.
my account was instantly credited and now i m live trading and earning also.
the people at ava fx say that the withdrawal can be made by paypal.
i want to know how to remit money back to india from paypal and what to do further with taxes.
should i show income in paypal to be trading in equities as you mentioned??
please help
thanks
Hello,
Just to answer a few questions which have been put up.
1- No matter what anyone tells you:
Forex trading(except inr pairs available in indian exchanges is illegal.
Just to clarify:
It is illegal to send/use indian origin funds to trade anything with leverage.
2- If you have to trade and have a legal way of doing it, just follow simple rules when selecting a broker. Choose good ones such as Oanda, Alpari, etc.
Don't end up with bucket shops, ask the rep if there is a Dealing Desk. Search the net.
3- If you are looking to get rich quick then you probably wont last in FX trading.
4- Money Management(MM) is the key to every system out there.
Send a PM if you have questions, I don't log on much to this site so be patient.
Cheers
Just to answer a few questions which have been put up.
1- No matter what anyone tells you:
Forex trading(except inr pairs available in indian exchanges is illegal.
Just to clarify:
It is illegal to send/use indian origin funds to trade anything with leverage.
2- If you have to trade and have a legal way of doing it, just follow simple rules when selecting a broker. Choose good ones such as Oanda, Alpari, etc.
Don't end up with bucket shops, ask the rep if there is a Dealing Desk. Search the net.
3- If you are looking to get rich quick then you probably wont last in FX trading.
4- Money Management(MM) is the key to every system out there.
Send a PM if you have questions, I don't log on much to this site so be patient.
Cheers
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