Can you call yourself a Forex Guru? Let’s check! Take the test and find out how many interesting uncommon facts about Forex do you know
So, you want to become a Forex trader – be your own boss, trade currencies, make a lot of money. The natural question is “Where to start?”. We prepared a simple answer! Below you will find several steps which will form a short way to your financial freedom. Please note that every step contains a link that offers a clear explanation what to do.
There are plenty of opportunities to make money, you only need to pay attention. Phongphat Wetchakarn is a simple young man from Thailand, a former student and a trader in his part-time. He didn’t have a lot of trading experience, instead, he used his knowledge and common sense to make the most out of $123 bonus.
Here’s a screenshot of his MyFXbook account, you can also see it here.
As it shown on the screenshot, he made a $49453.00 profit using only our $123 bonus and trading only on Wednesday, Thursday, Monday and Tuesday, just a few days after the American presidential elections. Let’s have a closer look at the history of his trading.
Phongphat used Fundamental analysis for most and managed to get such good results trading on the news. It is not a surprise that you can make more money trading on the news, but it takes preparation and some investigation to make a good prediction. Besides, it is important to stay in touch with the news and always search for a good moment to make a profit. If you want to know more about trading news, make sure you read our article here.
If you want to make money trading on the news, the second important thing you need is always to be aware of what’s going on in the market and why is it happening. Make it a habit to check economic calendar and read the news. Always practice and analyze your trading and you will be able to reach similar results.
Here’s a short interview with Phongphat Wetchakarn that we managed to take right after his successful trading.
FBS: Hello! Tell us a little about yourself: how old are you, where did you study, what do you do for a living?
Phongphat: I am 22 years old, and I graduated from Bangkok University. At the moment, my main and only way to earn money is Forex trading.
FBS: How did you become an FBS client?
Phongphat: I started trading with FBS on my friends' advice. A great number of lucrative promotions was the main reason why my friends and I found FBS appealing.
FBS: Did you at once start trading on a real account, or did you try your hand on a demo account first?
Phongphat: For a few years I was trading on a demo account, and only occasionally I allowed myself to trade with real money. Personally, I found trading on a demo account even more difficult than on a real one.
FBS: What trading strategy did you use?
Phongphat: I prefer fundamental analysis for currency trading.
FBS: What advice can you give to beginner traders?
Phongphat: Every time you lose money, ask yourself why it happened. The same is true when you make money - ask yourself: "Why?" You have to gain experience. The market is always unpredictable. I chose fundamental analysis, but when I was trading in profit, I used technical analysis as well.
FBS: Will you recommend FBS to others?
Phongphat: I will definitely recommend FBS to my friends.
FBS: What are your plans for the future? Do you have a goal or a dream?
Phongphat: My goal is to become a major investor.
All the secrets will be revealed, and the masks will be off! It’s time to find out who do you belong to. Find out your trader type by answering several questions!
This popular resource for Forex traders hardly requires an introduction, but for those of you who only recently got interested in the investment field, Forex Factory is one of the biggest informational resources about Forex on the internet. It provides traders with economic news, market charts, calendar and of course, the forum.
So why is it so attractive for traders? First of all, it’s free. Forex Factory survives mostly only on advertisement and endorsement of Forex brokers. They openly talk about it and you can find all the information, including prices of advertisement, in the media kit section of their website. And the second reasons is, it’s a vast base of knowledge. For 14 years they collected Forex strategies, guides, news and discussions on pretty much everything that is related to Forex.
Hello everybody! Ann is here again and ready to share the experience of trading with the easiest indicator “Moving average”. In this article I will describe my steps and the total profit made.
As you remember, I got the $50 Bonus and made $113 during my first 2 trading days. You can’t even imagine how I am proud of myself! I even was not so proud when earned my first money in a high school! Click here to read the first part of my story.
FBS does an exciting experiment: we were wondering what will happen if a girl who has never done a single minute of trading in her life would try to make money on Forex?
Miss Ann agreed to take part in this experiment and made $113 with the $50 Bonus. They say, beginners are lucky. Let’s watch Ms. Ann challenging the global market as a newbie. Read the fascinating story from the first person!
Hello! My name is Ann, I’m a 34 years old female who made a decision to take part in a sort of experiment. Can a girl like me make money on Forex or I’m too far away from all the financial gurus?
You don't have to take my word for it and you don't have to try it, but I made my first $113. I think if I can do it, you can do it too! Now I want to describe my first experience and impressions that can probably make you laugh and certainly this is not a guidance for trading.
Each newcomer wonders, what features a trader should have to achieve an outstanding success at Forex market. One thinks this over and over again, dreaming of incredible profits, while, sometimes educating of these skills take a lot of time and efforts. But, can you imagine that there are people who have innate trader’s instincts? That’s the case of the most powerful trader on Wall Street you surely never heard of. Steven Cohen is an American hedge fund manager who was ranked by Forbes at the 106th richest man in the world and the 35th overall in the United States.
Steven Cohen was born in 1956 in Great Neck, New York, where his father was a dress manufacturer in Manhattan's garment district, and his mother was a part-time piano teacher. Growing up in big Jewish family among seven brothers and sisters, he got used to concentrate on the essentials from the very early childhood.
Young Cohen credits his willingness to take risks to his love of poker, which he played extensively in high school. He graduated with a degree in economics from the Wharton School at the University of Pennsylvania where he opened a brokerage account with $1,000 through the help of a friend. Word through the grapevine is that the money had been set aside for study.
At the age of 21 future billionaire got a job in Wall Street as a junior trader in the options department at Gruntal & Co. Legend has actually it that he made $8,000 in profit on his very first day on the job. Just 6 years later his profits were ranking $100,000 a day, and he was eventually managing a $75 million portfolio and a team of six traders.
In 1992, Cohen started his own company called S.A.C. Capital Partners with $20 million from his own pocket. Do you often meet people who have a fortune of $ 20 million at the age of 35? The firm managed $14 billion in equity as of 2009. He was dubbed the “hedge fund king” in a Wall Street Journal article in 2006, ranking 94th in Time’s 100 list of most influential people the following year.
He first suffered losses in 2008 in the midst of the financial crisis. Then, overnight his firm had lost $150 million, or 1.5% of its assets. But even then Stephen Cohen did not lose heart.
He spent most days trading stocks on his 180-person trading floor in Stamford, Connecticut. He and 100 portfolio managers bought and sold 100 million shares a day, about 1 percent of all shares traded on U.S. exchanges.
Everything changed dramatically in 2013 when Mr. Cohen faced civil charges in for failing to prevent insider trading in S.A.C. Capital Advisors. He was plead guilty to these violations, paid a $1.8 billion fine, and agreed to stop managing funds for clients until 2018. Still, he is known to maintain a net worth of $12.7 billion as of May this year.
Steven A. Cohen was prohibited from managing money for outside investors for two years after failing to properly police the actions of a trader at his former firm, SAC Capital Advisors. The ban expired on Dec. 31.
For two years Mr. Cohen has been patiently planting the seeds for a comeback. He registered a new fund, Stamford Harbor Capital, in 2016. He hired a marketing firm to meet with prospective investors. And he showed up in Las Vegas in the early 2017 for one of the hedge fund industry’s most prominent conferences. So, hedge fund king is back to the stage again.
So, what’s a secret of Cohen’s stunning success?
Though he is called a professional of short-term transactions and the king of hedge funds, Steven Cohen’s strategy is far from rocket science. One can even call it a supernatural luck, but as a matter of fact he combines lots of information coming at him from all directions with a good feel for how the markets are moving to make market bets.
He prefers to get a lot of support, so he is definitely not a lone wolf as many other traders fighting their own battles.
Steven Cohen strongly believes that the main reason for his success is his talent to build an incredible team.
The 20000-sqare-feet trading room, at SAC Capital Advisors was usually chilled to 21 degrees to keep traders alert. Mr. Cohen was sitting at its center likes it that way. Phones were blinking rather than ringing. Computer hard drives had moved off the trading floor to eliminate hum. Rows of traders wearing SAC fleece jackets kept a sharp look-out how Forex legend was trading.
Cohen was always an adherent of short-term trading
As it was mentioned by his colleagues; he sometimes managed to enter up to 300 transactions per day, not delving into any economic details. The head of SAC believes that the biggest profit can be gained as a result of stopples monitoring of the quotes during the working day. If you constantly watch the changes in the charts, after a while you can learn to predict the market movement. For years, Stephen Cohen has bought and sold shares of companies, not even knowing their profile.
Cohen doesn’t like to waste time on trifles like selecting undervalued or overvalued assets.
He developed a special program that did most of the routine work for him.
Incidentally, Steven Cohen alleged that his fund was disliked just because he did not invest but traded.
At this point, if we sum up all the money for various funds run by Steven Cohen’s inferiors, the capital scrip will amount to $1.2 trillion. According to various sources, 2% of transactions on the stock exchange are owned by his funds.
Sharing his priceless trading experience, Steven Cohen advices one to define clearly what they are, and not try to be what they’re not. Being a day trader, trade during the day. If you are an investor, then be an investor. It’s like a comedian who gets up on stage and starts singing. What’s he singing for? He’s a comedian. Well, have you decided who you are? Ready to check it?
The strongest people are those who faced defeat but didn’t give up.
Trader forums are full of stories from people who lost their money and quit Forex. The authors repeatedly blame the market, a broker, or even fate, but the outcome of this will hardly surprise anyone: it gets them nowhere.
Mr Phone Myat Naing is a remarkable trader from Myanmar. He lost a substantial amount of money, but managed to get it back and continued to trade. Apart from trading he lives a full life, travels and loves spending time with his family.
We hope that you will enjoy this interview as much as we did and maybe even find something useful for your trading.
Here we gathered the most interesting of common myths about trading on Forex. Some of them you already might know from somewhere, but we decided to give more simple explanation for those who might be scared off by technical details.
Did you believe in any of those myths? Read and let us know what you think in the comments below.
#1 You can achieve 100% profitability
Losses are an inevitable product of trading, and every trader/system may encounter them. Unfortunately, perfection can never be achieved, even the biggest traders lose money. There are thousands of anonymous participants in the market. Each of them has his/her own goal that you cannot know beforehand.The trader is at fault only when he fails to follow his plan, regardless of the outcome (win or loss) of a trade.
It is only the possibility of loss that creates the opportunity for some traders to win. Without some kind of risk, no profit is possible. If you learn the fundamentals, develop a good strategy, trade according to that strategy and manage the risks - your account will grow.
#2 A good system can be transferred to a different timeframe, and still remain profitable
Markets may be 'fractal' to some extent, but the price patterns on long-term timeframes are qualitatively different to those on short-term ones. This is likely caused by such factors as macroeconomics, liquidity needed by heavyweight players, relative effect of news announcements, session considerations, etc. You can’t change strategy’s timeframe and expect it to work with the same result.
#3 You shouldn't push your luck
So far there is no scientific proof that if you’ve made profit, you are less likely to make it next time. Quitting only because you earned profit (to avoid "pushing your luck") is based on superstitious fear. Millions of traders get profit and loss every day, market won’t change its behaviour because of one trader.
To put it simply, there are same chances of your gain increasing or decreasing, just like at any other time. Market behaviour and probabilities are not going to change merely because you had a winning or losing streak.
#4 It's better to focus on one or two major pairs
It works for some people, but most of experienced investors advice to diversify your portfolio. This helps to manage the risks and also useful in trading.
For example, pairing the most negatively correlated currencies (the strongest against the weakest) delivers the best probability of catching strong, clean moves.
For example if GBP/USD and USD/JPY are both trending upward, then GBP > USD > JPY, and hence GBP/JPY will be trending upward even more steeply.
#5 Adding more filters to a chart will improve your trading
All indicators are derived from the price (and, in some cases, the volume). It means that adding more indicators to the same timeframe will not necessarily provide independent confirmation, nor add value. Ultimately one will have to enter a trade on some candle, and one can enter on an earlier or later candle by simply re-calibrating any existing indicators.
Non-linear indicators (which aim to reduce lags and overshoots without compromising smoothness) are not necessarily superior to conventional indicators. Attempting to enter the market earlier may lead to the entry catching a minor correction in the trend, rather than the desired full-scale reversal.
#6 All price movements are random
Many traders and analytics struggle over this thought at some point. Sometimes it seems that whatever you do, the market will stay unpredictable. Many people have fallen into this trap of thought, but we will stay rational and try to analyse what it would mean if this were true.
Imagine that all types of analysis would be useless, all systems would have a long term expectancy of zero, all P/L would be completely random and all traders would eventually lose. This sounds terrible but at the same time not realistic.
Many proficient traders already know it’s not true, but let’s gather some evidence of non-randomness for those who have doubts:
- The large price spikes that happen after news announcements.
- The price stabilisation/profit taking that tends to occur after some rapid moves of the market.
- Traders tend to place their stops just outside swing points.
- That volatility frequently shrinks significantly as the market awaits a big news announcement and etc.
However, the fact that non-randomness exist doesn't automatically mean that it's always possible for the trader to exploit them profitably. Spikes that occur the instant that red news is announced is one such example.
The statement that “All Price Movements Are Random” is false. It is proven and mathematically possible to profit systematically from trading. What might look like randomness, at first sight, is probably just a lack of information or knowledge.
The Forex market is one of the most dynamic and competitive markets. By its initial nature it is a system that develops rapidly and is very sensitive to all kinds of challenges and changes in the world. The market follows trends, and the market creates trends itself. Facing the new era of social globalization, social trading came to power.
FBS Loyalty program is an exclusive option that allows FBS clients to get extra rewards… just for being FBS clients. Particularly, upon joining the program, you will get special Prize points that you can exchange for amazing gifts: from special services to Mercedes S-Class. Here’s the guide on joining FBS Loyalty program and getting the most of your trading performance.