Foreign currency exchange

[highnote]

I have been looking into setting up a futures account. I noticed a lot of internet brokerage websites offer demo accounts to trade on the Foreign Currency Exchange (FOREX). So I set up a demo account with XPresstrade. They give you $5,000 in play money. And you can start trading.

So let's say I have $5,000 real money and start trading. Now I'm investor. If I have a $5,000 account with Youbet I'm a gambler. LOL

Anyway, they have some really nice charting tools, etc. Plus I can bet on currency over the internet. Best part is you can start trading with as little as $300 in real money.

Funny, I can't bet a horse (something I know how to do really well) over the internet as a Connecticut resident, but I can bet on foreign currency (something I know nothing about) perfectly legally.

Go figure.

Anyway, my point is, if you are having a hard time getting a betting account or if all the expensive racing data is a bit too much then trading foreign currency might be a good alternative to abstinence.

Hell, I've lost $2,500 play money in one day trading the EUR/USD. Can't wait to put some real money in the account. ;)

[Dick Schmidt]

Ya, you can get a play money account with play tools to use to lose as much money as you like. If you want serious charting tools and information, you'll pay for it. My data costs run about $500 a month. Don't be in too big a hurry to fund that account. FOREX is difficult, and you're trading against the best: Bank of America, Citibank, European Central Bank, Central Bank of Japan etc. They can swallow your whole account and not even notice. Be careful out there.


Dick

Who has real money in his account.

[highnote]

Ya, you can get a play money account with play tools to use to lose as much money as you like. If you want serious charting tools and information, you'll pay for it. My data costs run about $500 a month. Don't be in too big a hurry to fund that account. FOREX is difficult, and you're trading against the best: Bank of America, Citibank, European Central Bank, Central Bank of Japan etc. They can swallow your whole account and not even notice. Be careful out there.


Dick

Who has real money in his account.

Dick,
Sounds like you have a lot of experience. What do you get for 500 bucks per month?

FOREX is really interesting -- and I'm really bad at trading it. I have 15 years of racing experience and about 1 day of foreign currency experience.

I've been reading a pretty good book called "Trading for a Living" written by a psychiatrist. He starts his trading by repeating a slightly changed mantra from Alcoholics Anonymous -- "I have the ability to do very serious damage to myself."

What is really interesting to me is that almost every time I make a trade I am wrong. So all I have to do is be wrong consistently and trade the opposite. :D

I think one of the keys is not to overbet -- just like in racing, overbetting leads to gambler's ruin. I think I will be able to be good at trading. A lot of what I've learned in racing seems to apply.

Would love to hear any advice you can offer.

John

[Dick Schmidt]

Sounds like you have a lot of experience. What do you get for 500 bucks per month?

Data, charting software, a good trading platform, analysis and some proprietary stuff.

FOREX is really interesting -- and I'm really bad at trading it. I have 15 years of racing experience and about 1 day of foreign currency experience.

I've been reading a pretty good book called "Trading for a Living" written by a psychiatrist. He starts his trading by repeating a slightly changed mantra from Alcoholics Anonymous -- "I have the ability to do very serious damage to myself."

Good book, but dated. His newer one is better. The best advice I can give you is to read everything available but to do no trading at all until you can consistently double a bankroll on paper. Do it several times.

What is really interesting to me is that almost every time I make a trade I am wrong. So all I have to do is be wrong consistently and trade the opposite. :D

I think one of the keys is not to overbet -- just like in racing, overbetting leads to gambler's ruin. I think I will be able to be good at trading. A lot of what I've learned in racing seems to apply.

Racing is amazingly good training for trading. I am constantly finding things that apply to both. Before you jump into the deep end of FOREX, try trading the financial futures. I would recommend the S+P e-mini as a good place to start. If you are serious and willing to spend a few thousand on education, e-mail me and I'll point you at some good people.

[bigmack]

Dick - A real honor...

What are your weapons of choice?

-Interactive for trading
-Fabernachi et al for trends
-Strength in futures
-The standard arsenal of divining rod indicators

Additionally, if I might, how have your horsin' around days translated to your trading days?

All the best

[highnote]

If you are serious and willing to spend a few thousand on education, e-mail me and I'll point you at some good people.

Dick,
I am in no hurry. I've always got too many things on my plate. So I don't want to spend too much money right now. However, I don't mind buying books, so if you can recommend some good reading, I would appreciate that very much. Thanks in advance.
John

[skate]

swetyejohn:


damn good points, simple and direct.
i had a bad weekend at Mnth, but i'll be back.

but who can say that about "the market"?

WSJ (Clements), today had a good article on finance advisers, a little off track from your points, but in the same vane.

thanks