Who We Are. This is only a really quick effort of writing.
- Brief explanation of how and why I got started in trading.
- Go through the process of starting with the following.
- Stockmarket
- Options
- Futures
- CFD’s
- Eminis
- Forex
Personally trade Forex because: 8 years ago my flat mate was a member of some stock market report and he traded traditional buy and hold shares in companies that were showing good growth. I became interested and researched that people were making some cash in the markets. I soon became disillusioned with the fact you needed money to buy these, I was broke at the time, they wouldn’t even let me borrow to invest and buy shares. This sucked and the more I read the more it dawned on me that you could really only make 20% roughly with money you already had. I could have gone into getting some margin lending but that wasn’t even enough, so I went back to the drawing board and found that if you traded ‘Options’and ‘Futures’ you could leverage your money. Meaning I could effectively buy ‘1’ contract and control either 10,000 or even 100,000 shares for a small percentage of the total price of the share. This was working great for awhile until I realised they had expiration dates on them. That was shit, why did I want to buy and control something that expired after 1 month or 3 months. The way I wanted to trade was ineffective this way. Also if you don’t have a buyer you want at a certain price then it grabs the closest one in which might half your profit. So I moved to ‘CFD’s’ I found the spreads on these, commissions, were a little large but the CFD’s that I was trading could be leveraged and didn’t have an expiry date so I traded these for over a year. It was around this time that I started taking my trading seriously and wanted to see if I could trade full time so I did a course with Traders International, same info I could have really gotten for free, but oh well. I decided to trade the US market because of the products I wanted to trade which were the main US index’s. The DOW JONES, NASDAQ, RUSSELL, S&P. I started trading these as Emini’s in which I could leverage them, and I was intraday trading in which I buy and sell in very short spaces of time, plus the cost was only $5 for each buy and sell I did. Great I thought. Wrong. I was absolutely wearing myself out looking at charts for 4-8 hours a day. I was getting really confused about the trading and what’s more I had a really big loss one night when my stop loss, which is an automatic get out if the price hits it, did get me out and the market plummeted. This was so bad, I lost a shit load of capital. The number 1 rule when trading is protect your capital. So back to the drawing board again to find that if you don’t have enough buyers and sellers at your price it will just get missed. That is what happened to me so I was having no part of that. So I trade FOREX for all of the above reasons. Doesn’t expire, I can leverage it big time, cheap spreads, and more importantly it is so liquid that I never ever have a problem in getting out or into the market at my price. $3 trillion dollars a day speaks for itself.
