# Forex Trading



## Bigo (May 22, 2013)

Guys any one dealt with forex?. how realistic is the profit margin...and is it better to do it yourself and learn the hard way or give your money to a broker. iam recieving mixed feedback some say they made a good 10-15% over 6 month some say they lost. Please if there is any froex experts kindly advice.

Cheers


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## m1key (Jun 29, 2011)

You seem to be seeking a get rich quick scheme. Try emailing back that Nigerian that wants to send you lots of dollars


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## Bigo (May 22, 2013)

m1key said:


> You seem to be seeking a get rich quick scheme. Try emailing back that Nigerian that wants to send you lots of dollars


hahahah no man, but been seeking to open something or partner with something to slowly start building a cushion iam starting a family soon and iam sick of only depending on a salary and at the same time i cant afford to put downpayment to buy a property for my family. so i have some money in the bank that so far thanks god iam keeping so i want to make benefit of it...thats all...


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## sammylou (Oct 29, 2012)

10-15% over 6 months in any market is pretty great. not surprising you had people tell you they lost. i'd hazard to guess that the ones who made money were either lucky or extremely experienced. i'm no expert but that kind of return in so short of time is not the norm and tells me maybe they are day trading. not a little hobby you pick up quickly.

if you are going to invest via trading [whether it's currency or otherwise] you ned to be very comfortable with the risk level. and if you are investing to provide further for your family and future [and thanking god you have managed to hang on to your savings thus far], then i suggest you forget about high/quick returns and invest for longer term as it's much less risky [sort of like buying a home you will own for 25 yrs and riding out the market lows vs trying to flip it in 4 months]. and of course, you need to do your research!!! i can't stress that enough. learn how to read charts. if currency is your thing okay, but if not then i'd recommend you stick with indexes.

if anything i have said confuses you then you should probably just forget about the forex.

btw, weren't you just on another forum deciding to invest in real estate?


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## Bigo (May 22, 2013)

sammylou said:


> 10-15% over 6 months in any market is pretty great. not surprising you had people tell you they lost. i'd hazard to guess that the ones who made money were either lucky or extremely experienced. i'm no expert but that kind of return in so short of time is not the norm and tells me maybe they are day trading. not a little hobby you pick up quickly.
> 
> if you are going to invest via trading [whether it's currency or otherwise] you ned to be very comfortable with the risk level. and if you are investing to provide further for your family and future [and thanking god you have managed to hang on to your savings thus far], then i suggest you forget about high/quick returns and invest for longer term as it's much less risky [sort of like buying a home you will own for 25 yrs and riding out the market lows vs trying to flip it in 4 months]. and of course, you need to do your research!!! i can't stress that enough. learn how to read charts. if currency is your thing okay, but if not then i'd recommend you stick with indexes.
> 
> ...



Thank you. Yes was thinking to invest in real estate but the hidden cost involved in starting in such a thing were way more than I can afford now. That's why was thinking of forex. I will do my deep deep deep research and monitor , watch and learn then will decide.

Thank you


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## Mr Rossi (May 16, 2009)




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## saraswat (Apr 28, 2012)

Personal opinion here, Forex is one of the most volatile markets to be dealing in. Volatility brings with it the chance to make some great returns but also the chance to loose huge in a moment's notice.

What you need to be thinking about is why Forex ? If it's because you are familiar with the markets and have the technical knowledge as sammylou alluded to, then yes go ahead, but again be careful. If not then look into the equity / bonds markets, again as sammylou alluded to (props btw). 

In regards to Day-trading. No matter which market you decide to jump into, please be extremely wary of the 'margins' that your broker will no doubt be forcing/promoting to you. In a nutshell, a margin enables you, the investor to take up a position (investment) without having to put in all the money required. Eg: Say you are trading in the equity/stock market and want to invest 10,000 AED in Apple shares. If your broker approves you a 5% margin, then all you will need to invest to hold that position will be 5% of 10,000=500 AED. When you liquidate the position, assuming in a profitable position, you get back the profit plus 500AED you put in and the broker takes the balance (9500) plus fees for both the initiation and liquidation of the position. 

This would be the fairytale scenario though, in cases where you liquidate in a loosing position, say your 10K turns into 8K and you decide to pull out, then you would have to reimburse the broker 1500 (2K less the 500 you put in initially), plus fees. There are some brokers who follow the ethical requirements and do their due diligence before approving margins but most out here in my experience don't really care, as long as you are willing to take up the risk ... 

Finally for anyone wondering, why exactly a broker would promote 'margin' trading. It's rather simple, they (the broker's) work off of percentages of positions (usually) so the larger the position the larger their fees. Also it helps in attracting larger investment into the market via their terminal which adds other benefits for them ... So please be extremely wary of the 'margin' and don't end up in a situation where one trade breaks you....


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## R_Smithy (Jun 13, 2010)

Bigo said:


> Guys any one dealt with forex?. how realistic is the profit margin...and is it better to do it yourself and learn the hard way or give your money to a broker. iam recieving mixed feedback some say they made a good 10-15% over 6 month some say they lost. Please if there is any froex experts kindly advice.
> 
> Cheers


If you are GOOD at trading forex you can easily make more than 15% over 6 months. The problem is it might take you 5 - 10 years before you are good. One of the best trading coaches favourite quote is "Trading is the hardest easiest money you will ever earn"


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## Mr Rossi (May 16, 2009)

R_Smithy said:


> If you are GOOD at trading forex you can easily make more than 15% over 6 months. The problem is it might take you 5 - 10 years before you are good. One of the best trading coaches favourite quote is "Trading is the hardest easiest money you will ever earn"


Lifted from "Poker is a hard way to make an easy living" 

And like poker, you will experience a lot more downswings than up. It's only a small minority of people that can remain emotionless through it all and turn a profit at the end. 

15% over 6 months with any level of consistency though still sounds unrealistic.


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## R_Smithy (Jun 13, 2010)

Mr Rossi said:


> Lifted from "Poker is a hard way to make an easy living"
> 
> And like poker, you will experience a lot more downswings than up. It's only a small minority of people that can remain emotionless through it all and turn a profit at the end.
> 
> 15% over 6 months with any level of consistency though still sounds unrealistic.


Its not unrealistic.


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## Mr Rossi (May 16, 2009)

R_Smithy said:


> Its not unrealistic.


You must let me know when the Oxford Union invite you to talk.


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## R_Smithy (Jun 13, 2010)

Mr Rossi said:


> You must let me know when the Oxford Union invite you to talk.


Don't worry I will send you a PM and let you know.


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## sammylou (Oct 29, 2012)

R_Smithy said:


> Its not unrealistic.


i think Mr Rossi is saying it is unrealistic if, like the OP, you don't know what the ***k you're doing and it is the first 6 months of doing any kind of trading ever. and i have to agree.

the OP asked for opinions on trading on the forex and he obviously has no knowledge or experience. so i'd say you're doing him a disservice by misleading him and telling him it's a realistic expectation to make 15% on his money in 6 months. personally, i think he'd be lucky to break even!


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## R_Smithy (Jun 13, 2010)

If you read my first post you will see I said its not unrealistic if you are GOOD at trading and it could take 5-10 years to get good. At no point did I say that a complete novice could make consistent money trading.


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## Mr Rossi (May 16, 2009)

Most "sure things" from stocks, blue chips through to casinos or a balanced sports book runs at between 8% and 12% and that it generally over a fairly lengthy period of time, longer than six months.

Also the known finance houses, Goldman Sachs etc, don't have departments for or indulge in the FX markets, it's left to 'experts' running classes in that financial epicenter that is Bur Dubai.

If it was there was guaranteed 15% over a six month period, these institutions would have their Ivy League and Oxbridge grads on it, but they don't. Which tells me something anyway.


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## Jager (May 26, 2012)

The AUD to the AED has fallen from 3.65 to 3.47 (5%) in 3 weeks - linked to the 5% fall in the AUD against the USD over the same period. 

Much of the movement was the result of an unexpected interest rate cut by the Australian Reserve bank (this reducing interest rate arbitrage opportunities). Few predicted the outcome. 

As others have said, its a complex area and impacted by many different factors. Depending on whether you backed the USD or the AUD, you would have made or lost 5% these last couple of weeks.


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## R_Smithy (Jun 13, 2010)

Mr Rossi said:


> Most "sure things" from stocks, blue chips through to casinos or a balanced sports book runs at between 8% and 12% and that it generally over a fairly lengthy period of time, longer than six months.
> 
> Also the known finance houses, Goldman Sachs etc, don't have departments for or indulge in the FX markets, it's left to 'experts' running classes in that financial epicenter that is Bur Dubai.
> 
> If it was there was guaranteed 15% over a six month period, these institutions would have their Ivy League and Oxbridge grads on it, but they don't. Which tells me something anyway.


From your posts it looks like you have tried to become a trader at some point and didn't succeed and now to make yourself feel better you are saying that its not possible. There are loads of finance houses trading forex and making a lot more than 15% over a 6 month period.


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## Mr Rossi (May 16, 2009)

R_Smithy said:


> From your posts it looks like you have tried to become a trader at some point and didn't succeed and now to make yourself feel better you are saying that its not possible. There are loads of finance houses trading forex and making a lot more than 15% over a 6 month period.


No, I just have an interest in these things and like to speak to people about their jobs over the dinner table, for example. It's not the most academic of ways to gain knowledge, but it beats relying on the word of those that offer nothing at all to back up their claims followed by fairly poor, presumptuous insults.


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## Byja (Mar 3, 2013)

sammylou said:


> the OP asked for opinions on trading on the forex and he obviously has no knowledge or experience. so i'd say you're doing him a disservice by misleading him and telling him it's a realistic expectation to make 15% on his money in 6 months. personally, i think he'd be lucky to break even!


...and most likely he won't break even.

The way I see it, ForEx creates no additional value whatsoever (as well as any other virtual trading, but ok). The only "profit" that is made there is by having someone else lose.
Yeah, there were guys who made money on the ForEx wheel of fortune. And that money used to belong to those who had less fortune.
Better go buy bunch of those Scratch & Win cards, at least you don't have to pretend that you know the rules of the game.


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## Leverette515 (Apr 15, 2014)

Not to change the subject, but are any of you online trading in Dubai? Are there in restrictions? What platforms are you using? I trade at home in the US and will be moving to Dubai soon with my husband. I'm hoping to continue trading there if possible as my part- time job.


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## sammylou (Oct 29, 2012)

we trade online using interactive brokers so our account is an american one and considered offshore to dubai. we own it jointly and it is good offshore from here so in the event of either of our deaths it is protected from any sharia inheritance or probate freezing. we easily transfer funds with our local HSBC account.


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## Rainmaker (Oct 11, 2008)

Bigo said:


> Guys any one dealt with forex?. how realistic is the profit margin...and is it better to do it yourself and learn the hard way or give your money to a broker. iam recieving mixed feedback some say they made a good 10-15% over 6 month some say they lost. Please if there is any froex experts kindly advice.
> 
> Cheers


Trading on your own requires lots of technical knowledge and watching news all the time. And very good money management. You should spend maximum 1% of your capital for open positions, but as a newbie you will be trapped in loss by exceeding your set limits. As an alternative, you can go for social trading platforms offered by some leading forex brokers. They hire traders with proven history from whom you can copy signals, for a fee. Copying is done automatically. There are some signal providers who have stable results over years whom you can copy. And of course you will need 50-60K account if you want to make living on forex.


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## ayeshwasim (Sep 9, 2014)

Hey!

It can sound realistic at times..but it all depends on the best do's and dont's. I used to be one like you few months back and trust me in da beginning it was like greek and latin for me..and in 2 months it took me to get in dept..anyways

If you Need Forex trading and market related info or the best company to open accounts with,
I can probably guide you or send you over information over to ya

email me : ayeshwasim007atgmaildotcom


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## jgw99 (May 26, 2014)

Bigo said:


> Guys any one dealt with forex?. how realistic is the profit margin...and is it better to do it yourself and learn the hard way or give your money to a broker. iam recieving mixed feedback some say they made a good 10-15% over 6 month some say they lost. Please if there is any froex experts kindly advice.
> 
> Cheers


I'm a full time trader and trade coach (for US and some Canadian traders). Wife is an expat in the engineering field here. I've been a FT trader since 2008 and I trade US/European Equity, options and futures products as well as Forex. For the record, the time difference is killing me and I might just do more Forex trading vs Equity.

For a beginner, realistic expectation is a loss (or breakeven if you're really good) during the 1st year. And if you know a thing or two about risk(unless you're a too big to fail firm), you should be around to There's so much psychology that goes into trading that most folks entering it underestimate. 

At end of the day, it's not about what you make in a 6 month period. If you plan to trade/proactively invest for the long haul, you need to be consistent. Anyone can tell you they made 15% in 6 months. Correct questions to ask are: a) How much did you risk to make that 15%? b) what's your hit rate? c) have you been able to replicate that into 12, 18, 24 months etc.?

Risk, reward, probability, psychology (fear/greed) are just the basic tenets you need to understand.

As for brokers, I use Interactive Brokers(IB) but I opened that account back in the US. There are a lot of European and Asian based Forex only brokers that have better charting than IB. There's FXCM, Alpari and FXTM to name a few. 

There's so much to consider from commission to pip spread. Some brokers will offer low commission cost but kill you on the spread.

If you need any additional info PM me


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