Forex for a beginner

Harmless_Venom
Harmless_Venom

So I was thinking about saving up £500, and setting up an automated program to trade on my behalf. £500 is nothing in the long run, it's less than half my ordinary monthly wage but I need to pay off some things first.

1. How much of a shit idea is this? Would I be correct in thinking I would need to manually trade before setting up the program, or could I just set really conservative parameters and just let it run for an hour or so?
2. What are materials or courses you can recommend me to learn about forex or coding for the program? Are there any particular programs or platforms you would recommend?

inb4 Google

I just want your perspectives

All urls found in this thread:
http://www.babypips.com/school
https://minergate.com/benchmark/all
Spamalot
Spamalot

@Harmless_Venom

Don't mess around with the EA's. They won't consider the fundamentals, sentimental and news events like a human would. I'm not saying automated trading doesn't work. It's just a hard strategy to implement for the little guy.

My advice is to spend lots of time educating yourself about the following: fundamental themes and their impact on the currencies, how to gauge and profit from retail sentiment and solid money management and emotional discipline theory.

takes2long
takes2long

@Spamalot
fundamental themes and their impact on the currencies, how to gauge and profit from retail sentiment and solid money management and emotional discipline theory.

Thanks man, where did you learn about this?

I want to avoid doing degrees in economics or business for the time being, as being an accountant is a bigger concern for me. Would short introduction courses into forex be a waste of time? Are there any books to read up about these subjects, or fx in general that you would recommed?

Playboyize
Playboyize

@takes2long

No worries. I actually wrote my own strategy in MQL. Back-tested beautifully. However, it relies on two things: consistently low spread and fairly nonvolatile markets.

Thankfully I didn't lose too much of my starting capital.

Honestly, it seems super lame and childish but start by going through babypips.com. Then learn a bunch of mechanical trading systems (pure technical, pattern recognition etc.). Then use your knowledge of technicals simply for entries, exits and timing the market (with a reasonable expectation of failure of course).

There are lots of fundamental currency strategists out there. You just need to learn how to speak their language and to learn when and how the pundits are right and wrong.

Gigastrength
Gigastrength

@Harmless_Venom
I need to pay off
Do that. Gives a better return most of the time.

Carnalpleasure
Carnalpleasure

@Gigastrength
Oh believe me I'm doing that, I'm just thinking about after it's settled. Ultimately should take no more than 4 months provided nothing goes majorly wrong.

RavySnake
RavySnake

@Playboyize
babypips.com

Ah that's like one of the top results when searching for how to's about forex, especially for automated programs.

I assume there are training accounts for testing automated programs like there are test accounts to learn how to do it manually?

I accept I'll have to start with a little bit of live manual trading at least so I have real experience of what to look for, what not to look for, and to win and lose of course

FastChef
FastChef

@RavySnake

training accounts

Yeah, they are called demo accounts. Here's the thing: on Metatrader 4 (the standard for entry-level automated trading) you can only backtest EA's with a fixed spread. It doesn't provide a great reference for success and failure as live or forward testing does for pure scalping strategies.

There's a portion in babypips where you essentially take a quiz to determine what type of trader you are. Knowledge of self is one of the most important things in trading. You may want to be a mechanical mean-reversion trader but in practice it's the worst for you and you're much better off as a trend-following swing trader.

You have two options:

1) Learn who you are first by manually trading on a demo account. I use tradingview to chart and then execute orders on the MT4 app on my smartphone so this is accessible to everyone right away.

2) Go into the rabbit hole of searching for or designing an EA that actually works. Pray that the market conditions hold for it to work or develop a suit of EA's for a general range of market conditions and become the "conductor of the orchestra" so to speak.

Sir_Gallonhead
Sir_Gallonhead

@FastChef
develop a suit of EA's for a general range of market conditions and become the "conductor of the orchestra" so to speak.

I was leaning on doing this, as I wanted to trade in multiple pairings of GBP and keep the accounts separate

Aside from that, cheers for the info

Boy_vs_Girl
Boy_vs_Girl

@Harmless_Venom
OP READ THIS READ ALL OF IT
THANK ME LATER
http://www.babypips.com/school

PackManBrainlure
PackManBrainlure

@Boy_vs_Girl
you should really do what he says, op. or you could just open an account and let me take all your money. i'm good with that too.

kizzmybutt
kizzmybutt

@Boy_vs_Girl
Will do dude

Techpill
Techpill

https://minergate.com/benchmark/all

Firespawn
Firespawn

@Techpill
On a scale from 1-Scam, how much of a scam is this?

eGremlin
eGremlin

Can you actually get decent profits with 500 bongs?

Nude_Bikergirl
Nude_Bikergirl

@eGremlin
Gotta start somewhere senpai

And besides this is only going to be part time/for fun for me. I think trying to go forex full time is waaayyyyyy too risky for my liking.

But I really only want to make enough money to help buy and renovate (not scared of taking a mortgage out though) a relatively cheap house in Northumberland (literally other side of the country to where I live rn). A mid-high 4 figure sum would be great. But desu I would take any profit.

Booteefool
Booteefool

yeah how much money would you need to start trading currencies

Deadlyinx
Deadlyinx

@Booteefool
Could literally start with like 1USD or 1GBP I would think, you can still trade with them

Trades do tend to be done in large amounts tho

Skullbone
Skullbone

@Deadlyinx
Could you actually make anything in a decent timeframe with such low amounts?
I honestly doubt it

Flameblow
Flameblow

you don't even know how to code or literally the first thing about forex... stick to saving your money for now. learn to code. build multiple systems to test. you have a long way to go.

Stupidasole
Stupidasole

@Skullbone
Maybe leverage the fuck out of it? Pretty sure if you get the right swings you'll be cashing in a lot of money if you get returns of about 10% monthly with some nasty leverage.

@Flameblow
Not too much into Forex but what do you guys mean code? Are you relying on programming code for positions and patterns rather than using your own intuition and information in real-time?

Sharpcharm
Sharpcharm

@Deadlyinx
no website does that
there is always minimum amount
or isnt?

RumChicken
RumChicken

Are these a good forex broker for beginners?

I know very little about this stuff and I don't want to accidentally walk into a scam.

Flameblow
Flameblow

@RumChicken
go to gkfx and open a demo account

happy_sad
happy_sad

@Stupidasole
if you're using your intuition or real-time information for yourself, how is that automated trading like you specified in the OP?

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