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Thread: Essential beginner questions

  1. #1
    Junior Member
    Join Date
    Dec 2009
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    3

    Default Essential beginner questions

    Hi,

    I am beginner, i try to trade on FX. Few days ago I found this information wrote by one broker: This contract has a settlement date 2 days following the day the position was opened, at 5pm EST.

    What does it exactly mean? Canīt i hold position more than 2 days?

    And another question: Which currency pairs are best on beginner?

    Thanks

  2. #2

    Default

    I have no idea how to help you with your first question. I think you'd better contact the broker directly and ask them what they mean by that. As for your second quesiton, I would recommend EURUSD. Easy to predict, lots of info available on the net, usually this pair has the lowest spread as well.

  3. #3

    Default

    I am yet to understand the real concept of Metatrader4. It's usefulness for a first time forex traders and those who are trying to learn forex trading.

  4. #4
    goldie.kyles
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    Settlement Date means the business day specified for delivery of the currencies bought and sold under a forex contract.

  5. #5
    shirley.williams
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    You can hold a forex position as long as you want.

    They let you leverage 100:1 because they feel it’s safe for them to let you do this. It doesn’t mean it’s a good idea and I never run my positions with that much leverage.

  6. #6
    kevinjones
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    Nevertheless, in the forex market, one can hold a position for as long as a few minutes to a few or more years. Depending on the goals of the trader, one can take a position based on the fundamental economic trends in one country versus another. For example, a long-term trade in the forex market, or a buy and hold position, if one prefers that term, would have been good for someone who had sold dollars to buy euro’s back in the early 2000's and then held on to that position for a few years.

    If one wants to buy and hold a currency, one would possibly sell a currency that pays a low interest rate, such as the yen and buy a currency that pays a high interest rate, such as the Australian dollar. This would be considered a carry trade, where the trader will earn the interest differential between the two currencies. While he knows how much interest he will receive, he does not know how the two currencies will continue to perform against each other.

  7. #7
    goldie.kyles
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    You can definitely average down as long as you don't over leverage yourself and keep the major trend in mind. When you're wrong, you need to recognize it and not be stubborn. Those are the toughest two things to conquer.

  8. #8
    Junior Member Janni's Avatar
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    Default

    Great sharing !!!!
    Its really very informative for beginners.

  9. #9
    kevinjones
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    Quote Originally Posted by goldie.kyles View Post
    You can definitely average down as long as you don't over leverage yourself and keep the major trend in mind. When you're wrong, you need to recognize it and not be stubborn. Those are the toughest two things to conquer.
    Agreeing with GK, Successful traders do not let their emotions, their temper, or frustrations get in the way of their trading. Novice traders often talk of the mythical beast-the market, and then proceed with revenge trading. For example, “I was so annoyed that I bought more as they fell,” the trader aims to get even with the market. Experience is the greatest teacher, with emotional discipline a result of the journey from novice to artisan.

  10. #10
    shirley.williams
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    Well the four most widely traded pairs are the GBP/USD, EUR/USD, USD/JPY and the USD/CHF. I personally trade the first three pairs but you may prefer to focus on just one pair. This approach definitely has it's merits because you can learn a particular pair's characteristics and behavior which will allow you to easily identify the same patterns that occur over and over again.

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