5 Star Hotel Discount - A #7 - Can You Learn to Trade Forex; triple Your Trading Profits - Q&amp?

Discuss how difficult it is to learn to trade forex and then go on to discuss indicators, renowned traders, stuart McPhee and David Jenyns.

What they don't understand is the risks that come involved with that. 000 is by trading the forex because of the massive leverage, 000.The only way people can come to the market and trade full time with $20, they may start out with $20. David: Some people have unrealistic expectations about how much money they are going to make from trading.

You're going to more than remove your entire trading float if you were to reach your drawdown, if your trading system has a five percent drawdown. 000, 000, 000 you leveraged that out to $2, you need to work out your drawdown of your leveraged amount of your trading float and with your $20, if your drawdown is five percent. 000 and forex enables you to multiply that by one hundred you have to think what sort of drawdown your system has, if you come to the market with $20.

I think a good place is to look at between twenty and forty percent return, if you're starting. And this is why we try to steer people away from trading the forex especially while they are starting, these are the things you need to think about before you start trading.

They'd come to the market with more realistic expectations and increase their odds of success, if people did that. Is it reasonable to expect that kind of return in that type of market? What sort of return am I looking for and then look at the markets you're going to trade, capital growth, am I looking to get income, you need to decide. Because this will really dictate what sort of trading system you're going to trade and that's going to determine what market you're looking to trade, first find out what are your objectives.

Try to learn to trade forex and lose a lot of money very fast, for example, and try a high leveraged product, so forget stocks. 000 and that's not earning a full income, you're only going to get $2, 000 and twenty percent, with $10. Stuart: That's probably why people ditch stocks early on and go for the more leveraged product. Because they have a few losing trades and their confidence is shot, people don't continue trading.

Are there any reliable indicators when these sectors have bottomed out? David: The next question is: I have put options on XLF and XHB financial and housing.

It all comes down to the price and what is the price telling you, to me. I can't place any great value on any of these indicators to tell us when certain sectors or even stocks have bottomed out or topped out. There'll be some people who do have an indicator they use to identify when certain conditions have happened. Stuart: No.

Twelve months I think you'd look back and say I think it has bottomed out, six, three, when you see a sector go through a period of consolidation for a period of two. It's probably going to go sideways and through a period of consolidation for some time. It's not going to suddenly go back up again, we know if something has experienced a very extended downtrend.

It is not wise to trust indicators or to try to learn to trade forex, so for a beginner. I don't know of any indicator that's going to tell you that it has bottomed out or oversold.