YOUR QUESTIONS ANSWERED:
Question: What is the top broker to use?
Answer: Please note there is no perfect broker and even some of the biggest well known firms have closed down. With that said however stick to well known companies and avoid little ones in some remote tax haven country.
Here are a few to look at:
IC Markets http://www.icmarkets.com/
Please note that I have no affiliation with these. It is highly recommended that you try a demo with each and see which you like most. Another tip is to contact the customer support a few times and see how quickly they get back to you.
Question: What are the best currency pairs to trade?
Answer: You want currency pairs that have low spreads under 4 pips and that typically have strong volatility during the day. For those of you who are new, volatility refers to the daily trading range. In other words, if a stocks lowest to highest point on the day is 100 pips it would have a lot more volatility then one with 60 pips. The more volatility the easier it is to make money.
Some currency pairs that I like:
USD/CHF EUR/USD GBP/JPY EUR/JPY
USD/CAD AUD/USD USD/JPY GBP/USD
Question: What is the best time or times of the day to trade?
Answer: Usually the best time to trade any market is the first 2 hours that it’s open as that’s when there is the most volatility. You do however have to be careful of the first 15 minutes of a market open as it can get a bit crazy and unpredictable.
Question: What’s the difference between day trading ans swing trading and which one is better?
Answer: Day trading involves getting into trades that are held usually minutes to hours but always closed at the end of the day. Swing trading are trades that can be held for days, weeks and even months at a time. Scalping is a super-charged form of day trading where trades might be held for seconds to 15 minutes. Scalpers are usually looking to make 3 to 10 pips over and over again.
Question: How long will it take for me to become a successful and highly profitable trader?
Answer: That depends on how much prior experience you have and how much time you have to devote to studying and live trading. Also consider that everyone’s brain is slightly different in the way it learns and perceives things. For that reason everyone will reach a level of self improvement based on their unique situation.
Question: What type of charting software do you recommend?
Answer: There are many types but here are a few that I like…
Question: How much money do I need to start trading?
Answer: To start trading forex usually you need $500 and to trade stocks about $2000. To trade the futures markets you’ll usually need $5,000.
Question: How much money can I expect to make trading?
Answer: How much money you can expect to make varies greatly and depends on many factors…
- If you have only a $500 account your not going to make $2000 a month as that would require you to make a 400% return. If you make a more realistic 20% in a month that would only be a $100 profit for the month and certainly not enough to live on but… Say you have a $10,000 account then a 20% return would be $2000 a month.
2. How much you make will also depend on your experience level and how much time you have to study and trade.
It will also depend on your self discipline and ability to trade your system according to the rules over and over again.
3. It depends on your ability to handle losses. Some traders can’t handle it and get very nervous and avoid taking trades or start changing the rules constantly.
4. Another critical trait is the ability to remain emotionally cool and calm under the pressures of the markets. Without this it is hard to make money.
The bottom-line trading isn’t easy and takes time and perseverance and due to all the factors above there are no guarantees on how well you may do.
Question: What do you think about trading Binary Options?
Answer: Binary options are nothing but a scam and no one ends up making money.(Except the broker) This type of trading is very appealing to our “Get Rich Quick” desire but as they say… “If it’s too good to be true then it is”.
Question: What do you think about forex robots and do they really work?
Answer: The idea of a trading robot is very appealing… Who wouldn’t like to install a piece of software that will do all the analysis and hard work and place trades for us automatically and on top of that make us money day in and day out?
The reality is that in over 20 years of market experience I’ve never seen a robot that will hold up. Some will do amazing for a few weeks or months and out of nowhere they fall apart and stop working. Once again, “If it’s too good to be true, then it probably is”.
Question: Can you guarantee that I’ll make money trading following your strategies?
Answer: No not at all. There are just too many factors involved. What I can tell you however… If you train with me and do exactly what I say, you will raise your trading skills to a new level. If anyone promises that trading is easy and guarantees you’ll make money then I suggest running the other way.
Question: All the markets look interesting to trade and I’m confused with which one to start with?
Answer: Each market has it’s own advantages and disadvantages and you need to look at all of them to see what appeals to you the most but…
If you are limited on funds then start with forex trading as you can open an account with just $500 and trade micro-lots. Once you get really good and start growing your account then you can have a look at other markets.