I dont see any difference between trading futures and trading forex. There are people making a living from it. One of time being on Simons website Justonelap...he uses Pepperstone. Ive only opened a demo account with them but the service has been good.
Before you decide to go with a broker just double check them on forexpeacearmy.com
Why is it that you guys recommend that people stay away from Forex? Is it just because of the ridiculous gearing or are there some other reasons? You can ask for lower leverage from certain brokers.And if you implement proper position sizing and money management it should be the same as trading any other instrument? or am I missing something?
I would ask similar questions as TraderRoss, so if you apply good money management then whats the problem. i realise you guys mean well though. With the huge $4 Trillion market your S/L should always be covered. Or what???. Come Simon, give us the full story.
truth is most people don't trade equities very well (albeit they jump straight in with derivatives and burn out) .. as you up the gearing you wipe out quicker .. further extra gearing is like driving your car at 200 instead of 100 .. sure at 100 it easy, but at 200 you gonna burn .. what I don;t get is the attraction of FX, why does everybody wanna trade it ?? ya liquidity, spread etc .. but then we have ALSI
I trade ZAR/US$ on the SBK platform. Costs R570 per contract vs R2820 or R28200 for ALSI.for a gearing of 16 times vs 30 times for the ALSI. I have a far better "feel" for where the ZAR is going from day to day vs shares and have made in excess of 100% in the past year but have lost money on trading shares and only made money with my buy-and-hold shares. Each to his own. It is all just trading/position sizing/money management. I am too nervous to trade forex with brokers who offer 400 times gearing.
I have traded derivatives and done ok, up over all. Barrier to entry on index's is far too high, rand value per contract. Currencies move faster, shorter time in market. Agreed higher gearing is higher risk but the barrier to entry is lower and the high liquidity makes it very attractive