Your Mother Could Make Money In Forex Trading

Comments (16)


Your Mother Could Make Money In Forex Trading

By: Wayne Watson

The question would be not whether she could but rather would she enter the Forex trading market. The Forex day trading arena is a veritable snake pit ripe for scam artists to bilk money out of unwary investors. On the other hand, it is a forum for educated traders with the correct education, tools, and trading strategy to make a handsome income.

Becoming a successful Forex trader basically comes down to four things; 1) attaining the correct education, 2) using Forex tools which 3) use your own personal trading strategy, and 4) finding the correct Forex broker to fulfill your requirements. Let's look at these individually:

  1. Attaining the correct education. Your Mother may not know the difference between a Forex PIP and one of the backup singers for Gladys Knight. So would you send her to one of those infomercial Forex riches classes to find out? We hope not! There are literally hundreds of training courses and materials out there for proper training. Word of mouth recommendations might be the best path to follow here.
  2. Forex tools can also do many things like send trading signals and various buy/sell alerts to your desktop or mobile device based on what your personal trading philosophy dictates. Many of these tools are software based and some are provided via your favorite Forex trading sites. Not all people base decisions based on these signals though and use things like technical and fundamental analysis to determine when to buy or sell.
  3. It also is essential to develop your own personal trading strategy. Your ability to assume certain risks might not exactly be what other traders or your broker recommends. A Forex trading strategy is not something generic and involves your personal game plan.
  4. Before trading FOREX you need to set up an account with a FOREX broker. You may feel overwhelmed by the number of brokers who offer their services online. Deciding on a broker requires a little bit of research on your part, but the time spent will give you insight into the services that are available and fees charged by various brokers.

One of the most important ways to make the greatest return (and, also carry a greater loss risk) in Forex trading is with the use of a margin account. These accounts may let you trade as much as $100k in currency for as little as $1000. Margin accounts are the lifeblood of FOREX trading, so be sure you understand the broker's margin terms before setting up an account. You need to know the margin requirements and how margin is calculated. Does margin change according to the currency traded? Is it the same every day of the week? Some brokers may offer different margins for mini and standard accounts.

Used correctly and together, the above items can lead to a comfortable part or full time income. If you don't use all the information available to you, though, you may as well let Mom take the weekend visit to Vegas with her money to see Gladys Knight. Make sure that she has developed her own Forex trading strategy and has used "paper trades" many times before actually beginning trading for real. Better that ole Mom is equipped to make some real money rather than throwing it away on the gaming tables.

About The Author

Wayne Watson is editor and publisher of Forex Market Explained, a site dedicated to beginning Forex traders. This site is one of many development projects that he has created or contributed to in the past. Info is (c) 2005 forexmarketexplained.com.

http://www.forexmarketexplained.com

Comments

blackmamba81 20.03.2012. 22:44

How can I invest $300 dollars and make more money? I am a single mother of 2 and unemployed. I am fresh out of an abusive relationship and have $300 dollars to my name. I know ill eventually have to file for child support, but for now, I need money for the bills and to continue looking for work. I know this was not the best time to leave a relationship, but it was now or never. (Serious answers pls!) + ( don't judge me)

blackmamba81

Admin 20.03.2012. 22:44

Hey I will not suggest you to invest your valuable $300 to stock trading or forex if you are not aware about this. In place of that, you can try providing your services or sale some items under $300. Or you can check with your friends or relative whom you can lend and ask for some return like if he is investing in his business you get some profit etc.

United state citizen have many kinds of grants for single mothers those can be helpful for single parents. With the help of these grants a single mother can serve her life and also she can ward her child carefully. United state government has made many kinds of grants for single mothers to help them. If you are a single mother and looking for help from government and you have desire to know about the grants so just go ahead to read full page to know more about the grants. Here you will get full knowledge about the top five grants those are best for single mothers. Most of the people are not aware from these grants.

You can apply for those grants if you need any financial assistance. If you know web designing or article writing etc, you can start your own website and sale your services.

Admin

Jace 15.01.2013. 22:06

Trade Forex with my mothers account? I am 17 years old and have been demo trading forex for a few months and have been doing well. I can't seem to find a broker that allows custodial accounts. I turn 18 in july but would really like to get started trading it now. I plan to open a micro account with FXCM, but i just want to know whether this is legal or not. My mother agreed to give me all of the profits i make. I dont want to hear all the your too young to trade bs because that is entirely not true. thanks
It is my own capital. FXCM doesnt allow you to lose more money than what is in your account. and what makes it your place to say that i wont make money? because you failed at it?

Jace

Admin 15.01.2013. 22:06

Critics of the industry claim that few retail traders have the experience to make money trading forex. Drew Niv, chief executive of FXCM, said, "If 15% of day traders are profitable I'd be surprised."According to FXCM data, the percentage of profitable customers ranged from 21% for those with accounts under $1,000, to 37% for those with accounts between $5,000 and $9,999....

Admin

Heni Y 10.09.2009. 08:23

Does ebay support forex trading inorder of selling products? read below for details? Hi,
If I've something to sell on ebay and decided to do it this way would ebay allow me?
Let's consider my domestic currency is US Dollar. Can I do to ebay.co.uk and sell my items there with GB Pound? And can ebay deposit my earnings to my PayPal account in US Dollars, sothat I can profit from the currency discerpancies? THANK YOU!

Heni Y

Admin 10.09.2009. 08:23

PayPal makes the profit from currency discerpancies, and discrepancies too, and takes a chunk out of your pocket for the privilege.
https://www.paypal.com/helpcenter/main.jsp;jsessionid=KpKTW6pL2HVWdGnymMJspv6nxRS2n7JdpPl2ntPzTV2JLJDkMFTv!-726335105?t=solutionTab&ft=homeTab&ps=&solutionId=11529&locale=en_US&_dyncharset=UTF-8&countrycode=US&cmd=_help&serverInstance=9006
"For full details about the fees for receiving different currencies, please log in to your account and click Fees at the bottom of the page."
https://www.paypal.com/helpcenter/main.jsp;jsessionid=KpKTW6pL2HVWdGnymMJspv6nxRS2n7JdpPl2ntPzTV2JLJDkMFTv!-726335105?locale=en_US&_dyncharset=UTF-8&countrycode=US&cmd=_help&serverInstance=9006&t=solutionTab&ft=browseTab&ps=solutionPanels&solutionTopic=800041&solutionId=10190&isSrch=Yes

BTW Never, never, never log on to PayPal from a link on a discussion board or from an email. Not even if someone emails you that your mother, wife or daughter needs money (or is being held hostage, for that matter). Log on PayPal from your Favorites, Bookmarks or just type in paypal.com in a different window or tab of your web browser.
http://pages.ebay.com/education/spooftutorial/index.html

Admin

Johnbull Miyen 13.07.2010. 01:21

why is it very hard to make money in forex? why following all technical indicators person still lose I am tired.

Johnbull Miyen

Admin 13.07.2010. 01:21

Your question is about trading, not necessarily forex. Any highly leveraged trading vehicle is going to exacerbate any problems, but the problems are with trading technique. If you're tired, give it up. Just because it seems ideal for your situation or because it seems a great way to make money does not mean you personally are cut out to be a trader. You have to love trading to be a good trader, and you have to love to learn like in any profession. Just because you had the tools and access to an operating room, doesn't mean you would perform brain surgery or engineering. You might as well ask "Why is engineering hard?"

Most technical traders spend their whole lives looking for the holy grail of indicators; there are literally thousands of combinations. There is no best indicator or holy grail. Just find the ones that work for you and a time frame that fits your trading style. And yes, when two or three indicators confirm each other (not conform), there are better odds of success.

But most people never address the psychological side of trading, never address what makes them trade emotionally. Many people never develop a written trading plan, or test the plan or test the plan according to the plan exactly, or trade the plan exactly. Most people never accurately define risk. It comes back to the psychological aspects of trading. Why can't you trade according to a written plan? There's more to it than just hitting the button when a couple of indicators confirm. People fail technical analysis, not the other way around. But people being people, they need an excuse for their failure, and it's much easier to blame an object or method than deep introspection and honesty with oneself.

You'll know what I mean when price comes crashing down against the trend to your previous support or fibonacci retracement and you fail to hit the button according to plan, simply because price movement is in the wrong direction to your emotions. The market is structured in such a way to compel you to act contrary to your own best interest! That is the reason why most continue to buy at highs and sell at lows. But lazy people would rather blame technical analysis and quit before they learn good trading techniques, like buying on dips instead of chasing price or where two indicators confirm.

IF you believe that success/failure is due to luck or external forces like the PPT, TPTB, GS or Ben Bernanke, you will continue to repeat your errors, and your trading career will be short lived and end in disaster. Take the responsibility upon yourself. Own it! This is difficult for many to do. Many people actually believe the future can be known and/or predicted. These are many of the irrational thinkers that blame technical analysis for their failures.

IF you need to be right and have a need to seek to control the market, you are an inefficient decision maker. It won't matter much what method you use because it will be inefficient. But you will do better by keeping it simple so you can control it and not think too much or make complex decisions.

Like fast food, people just want it simple, in one little package, real fast, like right now. Just give me the secret to success and riches; don't make me work or think or decide or learn or, heaven forbid, know myself and be honest with myself and responsible, etc.

It certainly takes bravery to remain skeptical, it takes inordinate courage to introspect, to confront oneself, to accept ones limitations. Scientists are seeing more and more evidence that we are specifically designed by mother nature to fool ourselves.

How else could there be so many fools and idiots, that are actually pretty intelligent?

Blaming technical analysis that is used successfully by so many, that is prevalent throughout the industry, that allows so much more than you've taken the time to comprehend, is like blaming your pencil.

Admin

NAI 23.02.2008. 05:24

Risks in forex investments? My mother started investing in the forex market recently. I'm afraid she doesn't know what she is getting herself into, because I heard that that returns are high but the risks are even higher and can lead to bankcrupcy. So can anyone please explain briefly on how it works and its risk?
Omg Stu G, english please.

NAI

Admin 23.02.2008. 05:24

Trading currencies is more than with stocks about risk management. I wonder if your mom has done an extensive fx course because education and experience are major keys to being successful. There's indeed the element of higher risk like with other things in life, however, brokers too are aware of that and therefore provide demo accounts or practice accounts to shape your personal strategy. I say personal strategy because in the end it's your personality and logic that's going to form your view of this huge market. Ideas and concepts derived from this view are going to be used, consciously or not, to shape a strategy. Those who don't have the patience for the latter usually get carried away by their emotions, such as fear and greed. From then on the individual becomes part of the 90% (or whatever the number is) of losers in the forex.
The risks are actually as high as the trader allows them to be. To say that the risks are higher to lose than to win is one of the many misconceptions, especially among those who had no training or had the wrong training.
You can?t go bancrupt because your account is protected by what?s called a margin call. It prevents you from going below 0 or the amount of lots contained in the trade. So you only lose the amount of money deposited initially. If you deposit $1000 then that is the maximum amount you can lose (minus the margin).

-you need to be aware how many lots you are going to use compared to your balance.
-Overleveraging will wipe your account fast so this a no-no.
-Technical analysis is a viable way of trading and works, no matter what others say.
-Only use money that you can miss for a few years.
-Common sense goes a long way.
-Losses are part of the game, but the art is to make much more winners, hence risk-management.
-There?s no such thing as getting rich quick, discipline your emotions because a forex account grows exponentially. That?s the good part..
-Again, you need to build your own strategy to increase your chances dramatically. Use a demo account with virtual money until you get it down and never stop asking questions until you do. Copy-catting a strategy often doesn?t work.

Admin

EndlessMountain 28.03.2009. 18:01

Buying Tangible Assets for the Dollar Collapse? What are some good assets we should be looking at to buy now, for trade after the dollar collapses.

I am looking for the following criterias

1) Must hold its value for at least a few years (or 30+ months)
2) There is a great chance the demand for this item(s) is going to be big when the depression hits full circle
3) The storage is very easy. Diapers are great and will be needed for mothers of infants, but very hard to store. I am looking for products which are small for the value they have. Silver of course is very easy, where Oil is very difficult

Thank you all for your help :)
---------------------------------------------------------

Note- To those who think I am full of it, that is fine. I have done a lot of homework on this situation, and am aware of the documentaries made like "Money as Debt", "Money Masters", "Zeitgeist Trilogy" and how a Fiat currency works. I am also aware what is going on right now with the G20 and the dollar collapse is very easy to see now.

EndlessMountain

Admin 28.03.2009. 18:01

Two ideas are gold coins (and other precious metals) and rental properties.

Oil and other commodities are valued in US dollars so that pricing structure would have to change if the dollar collapses.

Believe me when I say that when the day comes that the US dollar is "dead" (and its associated institutions like treasuries and FDIC/NCUA) the last thing on your mind will be your money and investments (assuming you live in the US). You will be more worried about food and shelter for you and your family.

The dollar "collapsing" is a strong idea however I believe you are concerned with inflation (or stagflation as things are going). If that is the case try Forex trading and open an offshore account if you can. The dollar will not collapse and rebound in 30 months, if it truly collapses the world is on the brink of WW3.

My $0.02

Admin

Cr-643 11.01.2008. 05:56

I'm an intelligent 14 yr old and want to get into the stock market. Can anyone help? I'm a very intelligent and college minded freshmen. I have a 4.5 on the 5 scale and I want a way to start getting money for college. I need some one who can teach me the basics like through email, so I don't put the burden of paying for college on my parents. I know working with stocks may have its ups and downs at times, but I'm willing to work through it. I know I will get the approval and probably the co-signature of my mother, so I can start. But, basically I need someone to tutor me in the stock market. I would appreciate any help that is given to me. And wish me luck on fulfilling my goal of going to a great college.

Cr-643

Admin 11.01.2008. 05:56

Ok first lesson. Look at Fedex (FDX) chart; on 1-09-08 it closed at 82.78, on 1-10-08 it closed at 85.02. Which is about a 2.5 % gain. The candlestick is called a hammer for 1-09-08, which is bullish and a great buying entry. The 1-10-08 candlestick confirms 1-09-08 candlestick. Also the 82.78 and 85.02 are at/near option strike prices of 82.50 and 85.00. OSP's are every 2.50. Now FDX could hit 87.50 on 1-11-08 which would be about a 5% gain in 2 days.
Let's look at (ALEX) it closed at 45.09. Ok now you tell me what is the meaning of the candlestick for 1-10-08? Since the close and low are near 07 low, could current price be at/near support? What would be a good risk/reward ratio entry point? If you were to enter a buy on open order, what is your exit price or time frame for being in trade, 1-3 days, weeks, or months? Ok it should go up and I would be out by Tuesday open for a short time-frame entry then exit
Look at the Dow Jones Industrial Avg. and tell me why you think it did not reach 12,500 this week.

Since your in school you should find some work 1-3 hours daily m-f, 6-8 hours s&s. Then this summer if your ready and can pass a test by me you can focus on trading when your out of school. If you can't find work in your neighborhood then check with some churches to see if anyone needs help. Helping elderly or disabled people with reading mail, cleaning house, yard work can create a good source of investment income. And they may even be able to teach you something about investing, taxes, real estate, work, friendship, and the joy of helping others.

I was 14 when I started helping a forester and I continued until his death in 04. But he was the one that got me interested in investing by reading and recording his stock investments' qoutes, buying/selling timber, and real estate. After his 2nd heart attack and he lost 85% of his eyesight I got more involved in helping and advising him with everything he owned, sold, and bought. And when he passed I helped his heirs with his multi-million dollar estate. Everything he taught me, I was able to pass on by helping his heirs. Because he had several properties, several investment accounts and thousands in gold/silver coins I helped with the estate taxes and his personal taxes by informing, advising, doing, and reporting what I, the heirs, lawyers, and everyone involved needed to do.

But, my point is this. Even though I started learning from him at 14 and even though he passed when I was 40, I am still learning and will be until my passing. But he was my mentor and a true friend that suggested and advised me to where I in turn could do the same for him when he needed such from me. So don't be so rushed to invest before your ready. Believe me, time is on your side long term

Start learning the basics of fundamentals and technical so you will be more informed in your investments. You can find all the basic info you need to learn on websites for free.
This site should give you a good start.
http://finance.yahoo.com/education

Only invest money that you can afford to lose. Making some quick money is nice but if you lose it, it gets right ugly. So identify the current trend in market and the investment you intend on buying/selling. Timing your entry/exits, protecting your profit, respecting your stop loss, identify support/resistance, know chart patterns, and don't forget the fundamentals are crucial to investing. And don't forget the tax man because he will want his share.

Try what you learn on demo sites. They can be a very fun but educational way to learn from mistakes. If you pick 75% right with play money then you might be ready to start slowly investing.
http://simulator.investopedia.com/
http://simulator.zacks.com/
http://www.fxcm.com/open-free-100k.jsp
http://www.alpari-idc.com/en/metatrader4...
Or just google for more.

I use Lightning Strikes Trading System for trading in any time frame and it works on forex, stocks, bonds, etf's, mutual funds, etc... They have 3 free training sessions a week and you don't have to buy the software to join in the live chat and text. You can even watch some recorded past live sessions. Here are some past charts that I used.
http://f1.grp.yahoofs.com/v1/MB16R0zjjaZ...
http://f1.grp.yahoofs.com/v1/MB16RxjOUQt...
There are 7 indicators (2 short, 2 medium, and 3 long term) and if volume is reported another one is added (on balance volume). Plus whatever time-frame is used the 2 green horizontal lines are the support and resistance for that time frame. So when indicators are all touching the bottom price is at or very, very near support. At top is at or very, very near resistance. Which helps my entry/exits and risk/reward ratio.
http://f1.grp.yahoofs.com/v1/MB16R9Wv-wt...
http://f1.grp.yahoofs.com/v1/MB16R9wSKdV...
http://f1.grp.yahoofs.com/v1/QCt6R2fYIj6...
http://f1.grp.yahoofs.com/v1/QCt6R3R0VQe...
If you can not view charts above I can email them. Or if you want a chart of something I can email you one. My email is rbw1226@yahoo.com and don't forget your answers.

Here are my favorite sites that you should explore.

http://stockcharts.com/
Has basically all you need from fundamental to technical terms. Plus stock screens, charts, public chart lists, and much more useful info.

https://www.fidelity.com/
Has good learning resources.

http://moneycentral.msn.com/home.asp
In addition to yahoo finance.

http://www.reuters.com/
For news and more.

http://www.marketwatch.com/default.aspx
For news and more.

http://www.valueprime.com/index.php
For rating stock risk/reward ratio and reports.

http://www.barchart.com/
For investing in more than stocks.

http://www.investopedia.com/
For more great learning tools.

http://www.lightninglive.com/
For best software timing your entry/exits any time frame for day traders and long term investors.

Others worth exploring.
http://www.equis.com/
http://www.stockta.com/
http://www.secform4.com/

Best Wishes,
Burt Whitley

Admin

mxracer0 12.01.2011. 21:57

could some wise soul lend me advice on investing at a young age!? I'm 19 and have been wanting to open a Roth IRA for the past year but haven't got around to it because it just seems way too overwhelming. I understand the ira is a "vehicle" for your investing portfolio but i'm just not sure what to put in this vehicle, so to speak. I'll start by putting 4,000 in and add 100-200 each month, but there's a couple things I'm concerned about..

1. Who do I open a Roth IRA with? I just set up a sharebuilder account with ING direct to try and play around with some penny stocks (I know this is pretty much a gamble but i'm just talking 100-300$, nothing crazy). But anyhow, under ING they have the option to open a Roth with them, but I hear that Vanguard has lower fees??

2. What should I be looking at, in terms of funds to invest in? I was reading about vanguard's total stock market index fund which seems to be a good one, but i'm lost as to the differences between this and the other mutual & bond funds. I know that I'd like to have a diversified portfolio with a moderate risk, perhaps consisting of 60% stocks, 30% bonds, and the other 10% elsewhere?? And should I also think about doing any foreign funds?

I'm just confused and trying to get everything in order, since this is going to be my retirement, I'd like to pick something that will be good for the long term.

3. Is there any other types of investment options that I should consider?


Thanks ahead of time!
Chad

mxracer0

Admin 12.01.2011. 21:57

First- unfortunately, there are very few wise souls here, or on any other investment forum open to the public.

Roth is a good idea, especially for a young person as the growth isn't taxable. You can open it in many places, and move it any time you choose. I have mine with my online brokerage, and manage it myself. Do far better than any full-service broker.

Penny stocks are a waste of time. Buy real stocks that are depressed and cheap, but still sound and likely to recover. Much more successful. The penny area is near impossible to research, so scammers and cons are all over it. Many companies have no record of business at all.

What to invest in- depends on many things. This is a complex game, and if you are good, you can take what others think are wild risks. If you are not, it will all be risks and the same as gambling. Thus learning all you can and practicing with a simulator is the way to start. Good is a matter of opinion, but when all your portfolios are beating 100% annual gains, you aren't too bad. I manage 5, one of which was my mothers $16K CD cashed and invested for her three years ago in February. It's worth 99K today.

Critical to learn thoroughly if you do your own investing, and if you don't, you will never see returns much above Dow and exchange averages from hired brokers. That changes the entire picture- if you give it to someone else, it will go slow and tend to follow the general economy. The potential for real wealth is still there, but a long ways further out.

I hold only stocks, other than two mutual funds I should dump. I don't sell short or trade options, Forex/currency etc. This is because I do what I do well now. Better to master one area than be mediocre in three. I've been doing this 10 years, started with less than 10K. It has to start slow, because you must be cautious as you learn, and when you have a small amount of capitol you will have an equally small amount of gains. As your value grows, more money is working for you and the gains come faster. My last buy was about $91,000 on Dec. 31st; it's up $4500 so far and doing exactly what I forecast it would do. Assuming it stays on course, I will sell it at peak in about 4 months with an expected gain between 30-60K. Same game, but a lot more chips on the table. The trick is learning how to do the right things with the right stocks at the right time- and the game is always changing, so you have to be on top of it and able to change your strategy quickly to fit what the current situations are. Helps to be clairvoyant, but none of us are. However, most do develop an instinct if they are seriously involved.

There are books by the thousands, websites, newsletters from $50 to a grand a more a year offering advice. Study- you bet. However if you really want the best help, find a mentor- an experienced and successful investor who believes in you and will help coach you along. You probably know one even if you are unaware of it. Ask family, see it that's true.

Warren Buffet started as a teen. Good time to get in the game.

Admin

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