i'm a newbie of forex (foreign exchange currency), i wonder why most of trader using multiple monitor to see their chart, if you and experience trader please help me, tell me what are they looking on first monitor and the second one.

what are the most important of being a forex trader?
does it need a specific time to do a trading?

thank you..

Answer
Hi,

There's actually no need to use multiple monitors when trading Forex.

Although multiple monitors do help a trader to better visualise relative price movements (i.e. compare movements between currencies and time frames), you can already do that using multiple "windows" in one single monitor.

Multiple monitors are honestly more a luxury than a necessity, at least at the retail trading level.

Now, to answer your other questions...

The most important thing about being a Forex trader is money management. There are many free resources available on the internet where you can learn from.

About your last question...
There is no specific (or compulsory) time to trade, although there are better times to trade than others. The better times to trade typically coincide with the London and U.S. trading hours because of the high liquidity.

Hope I've been of help to you. If you want more information, you may like to get a free copy of my Forex trading report at http://forexsystemprofits.com

Several questions about forex?

Hello everyone,
I want to start trading forex and I am still hesitating about a lot of things.
First, most people say they have bad experiece trading forex.
I know that even Warren Buffet (I don't know how to spell it exactly:)) said that: "In stocks you could predict the price of a stock, but how can you predict the price of currency")-
That in fact sounds very reasonable since we all know that in shares it's enough to read a news that some company has planned to invest some money in Rolls Royce...to say...and then you buy shares from Rolls Royce...But wherefrom you can guess that USD will not find a way up again?
Some people say that the forex brokers have very high commisions and thus you can never win? Is it me or this sounds very stupid?
How about you? What was the amount of money you started and how much you have earned?

Thanks alot!!!

Answer
Warren Buffett may not play the FOREX market but he did convert a lot of his money to Euros to hedge against the falling US dollar. The only difference is that most forex trading is done on margin. He just converted his money, he didn't leverage it as far as I know. He also bought a lot of silver a few years ago to hedge against the falling dollar. So he obviously found it easy to predict the price of the US $.

Most people that trade forex are introduced and "taught" by the brokerage firms that want them to execute as many trades as possible. Common brokerage fee in the industry is 3 pips which equates to approximately $30 USD for a $1,000 trade at a 1:100 leverage (example using EUR/USD). This is about 3%. Many traders do swing trading or interday trading. They may do several trades a day. Even doing two trades a week can hurt. 2 trades a week x 52 weeks = 104 trades a year. 3% x 104 trades = 312%. Hard to make any money when doing a lot of trading!

So why would anyone make several trades a week? Why not determine where the price of a currency pair is heading over the next 3+ months (based on whether interest rates will rise or fall according to the comments by respective banks). Have plenty of money to back up your highly leveraged account. Also, not leveraging your account as much makes it easier to absorb any negative price action. But sooooo many people start off by being told to enter and exit trades quickly so they make as many trades as possible. I believe you should invest for the long term and have enough money to support the fallbacks that will inevitably occur. A long term strategy in forex can work. But you must have enough money so you do not get called out of the trade (margin call). Forex is extremely risky. I wouldn't bet the farm on it. You can still make a ton of money by investing in stocks, if you find the right stocks. You don't need to go into forex to make money. Forex is like investing in real estate except the market value of the property can go up or down very quickly and the bank will instantly foreclose. At least in real estate they don't instantly foreclose the second the house has depreciated a little due to a down turn. In the end, it's all about the leverage. Due to the extremely high leverage allowed in forex trading there is an opportunity to lose or make money very quickly. Most fail from what I have heard.

You could also find a forex broker that is a public company (I never actually looked to see if any are!) and just buy the stock... that way you can make your 3% of other people's money on each of their trades.