Several years ago I started tentatively to study about the forex exchange market, I have read some books about it but never had the braveness to risk real money in it, If I have to use real money I will at least pump 1000 USD which I may lose in a couple of minutes and most probably it will be the first and the last trial for me, and ofcourse I do not like that.

I want to know the best broker companies, and the best way for technical and news analysis, and if I applied a good technical and news analysis, would I be at high risk either?

Do you have any recommendations?

Answer
FXCM has worked fine for me for many years, but I find myself trading more FXY or maybe FXE than any spot, along with the options.

For example, it's a lot easier to hold a long FXY and later sell a covered call, called "legging on," and you have a relatively risk-free long position with a little theta decay going on there in case it goes nowhere or down a little. It reduces your cost basis, protects the downside somewhat reducing risk, and at the same time increases your probability of success to 67%, way over a 50/50 guess directionally with high leverage in a cash FX position. The latter is doomed from the start to failure using leverage without the tools and knowledge to handle these markets.

Having traded FX for more than a decade, I'm lost in the gov't run, debt driven, and crisis insane FX markets. Fits and starts and stop farts.

Trading is about managing risks, not guessing what a politician will do next. How about when the rules change, or suspended law? How do you measure those risks?

Quite plainly, my "recommendation" would be to avoid forex like a plague, especially and until you can call yourself a trader.

Learn to trade stocks first, if you insist on trading, then see if you can do it with leverage. Develop a trade plan and test the plan. If you can make simulator profits by trading the plan, you're good. If not, modify your plan.

Read the book by David Nassar - Rules of the Trade - available at your local Interlibrary Loan System.

http://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/scalping_report/2013/05/08/Forex_AUDUSD_Scalps_Target_March_Lows_Bearish_Below_1.0220.html

"Which Is Better, Buy-and-Hold or Market Timing?"

"Do You Have What It Takes to Be a Market Timer

Lefevre, Edwin - Reminiscences of a Stock Operator (story of Jesse Livermore)

O'Neil, William J.- How to Make Money in Stocks - can also be your TA instructor if you buy his paper IBD.

I am so determined to achieve in life, i want to be rich, any suggestions on how to be?

Answer
Firstly, finish up with any education, studies etc and find a decent job in your chosen thing that you studied (assuming that was your original plan).

When you are secure with your life with your job and making a steady income and are happy, then you can look at becoming more wealthy. You hear stories all the time of people who come from "rags to riches"; well, these cases are rare, don't imagine for a second that you might just end up "getting lucky" and stumble upon fortunes like these people. If you want wealth you have to be prepared to think critically, learn, invest and be open-minded and intelligent (life isn't a fairy tale, only for a very few lucky people you hear about in stories).

Now, just "having a job" will never get you rich, do you know why? It's because by having a job, you are making someone ELSE rich! If you want to be rich, you have to make people work for you, not the other way around.This is the most common way to become wealthy, of course there are other ways like stocks, currency trading Forex, treasure hunting etc. but if you want a more solid, structured, less wild approach, then that's a good route to go down.

Don't misunderstand me and think that getting a job is wrong, getting a job is essential, you need to have money and a living before you can get anywhere in the first place, and many people are happy to just work their job without having to worry about much, that's a perfectly fine thing to do and can be considered wise, after all, money isn't everything.

But anyway, back to the point:

You are just one person, you are just a 24 hour 7 days a week existance and can only product a certain amount. If you have 10 people working for you, thats 24x10=240 and 7x10=70. That's 240 hours and 70 days worth of work in just 24 hours and 7 days; something you could never accomplish on your own, but you can if you have people working for you. As you see, by multiplying your productivity by 10 by getting others to work for you, you have also x10 your wealth in the process. If you have 100 workers then its x100 productivity and x100 your wealth! Of course, people don't work for 24 hours a day 7 days a week, but just for the sake of easy maths I used those numbers. Also costs must be taken into consideration such as pay, maintenance, rent etc, but on the scale of things, your profits must outweigh your costs (obvious) which if you set up your business well, it will.

Now, your workers are of course, NOT slaves and will demand pay and certain rights, this is why you take a small percentage of their production profit and give them the rest to pay them. If a worker can produce $3,000 worth of wealth a month, then you take $1,000 of it from him and pay him $2000. If you have 100 workers and you do the same for each of them, then that's $100,000 for you in just one month, that's $1,200,000 a year (rich now?). I hope your beginning to understand now how actual WEALTH is generated!

Never say to yourself "I'll just make it somehow" and then spend your whole life hoping that some kind of once in a life time opportunity is going to magically appear which will make a success out of you. That's like throwing all logic out of the window and expecting the stars to guide your destiny. It's never going to happen like that, you must be smart and often brilliant to achieve anything big in this life. There are no shortcuts, only in stories.