R
rookie007
Guest
Hi, I'm a newcomer to trading and there's a few things I've been wondering about that I couldn't find through google.
1. Something I would like to understand better is what is actually happening when you engage in forex trading. For example, I set up a demo account on Forex.com that put 50,000 USD in my virtual account. How then am I am able to buy more USD against other currencies as it seems to me that I should have to have that other currency in my account before I can sell it for dollars. Or how can I engage in EUR/GBP trading when I have neither currency in my account? I know it's because I'm trading one currency against the other but I'm not sure what this means.
2. I've read a fair few articles that mention Warren Buffet and his value investing approach. He talks about looking for business that are undervalued that lead to profitable situations when the market eventually reflects their true value, he refers to it as "buying dollars for 50c". What I would like to know is how he comes up with valuation for a business? How does he decide a stock is worth $10 when it is currently priced at $5?
3. What are peoples opinions on Technical Analysis? Are there people out there making serious money with this approach? I've seen a few articles that basically make it sound redundant but from what I read it's split down the middle on using fundamental analysis (which was was also made to sound redundant, as any information is already reflected in price) or technical analysis, and I presume there are people employed by large companies using it so I don't know what to think.
4. Who sets stock prices? I know higher demand and lower supply drives prices up but who literally sets the higher price? I was also wondering about how a price can open (gap) higher (or lower) than the previous day's closing price?
5. What market would you advise investing in as there seems to be loads of them out there. From what I see forex looks good with high leverage, no commision fees, 24hr trading, etc.... I like the sounds of swing trading over the course of a week or two, I am not interested in putting money into something and sitting on it for a few years I would like to be actively trading and seeing relatively quick results of trades as in over the course of a week or two. I don't mind losing trades as long as I'm winning on a fair few more than I'm losing. The stock market is too long term for me (at the moment anyway), would the forex market be a shorter term market that you could analysis adaquately(as in you wouldn't just be looking at noise) over this kind of timeframe, if not what market would suit? I've been playing internet poker for a living for the last few years but I am sick to death of it at this stage and the games have dried up significantly, especially since the yanks got the boot, so I am prepared to looking to give trading full time a go (after I've learned enough and been trading for a few months on demo accounts).
1. Something I would like to understand better is what is actually happening when you engage in forex trading. For example, I set up a demo account on Forex.com that put 50,000 USD in my virtual account. How then am I am able to buy more USD against other currencies as it seems to me that I should have to have that other currency in my account before I can sell it for dollars. Or how can I engage in EUR/GBP trading when I have neither currency in my account? I know it's because I'm trading one currency against the other but I'm not sure what this means.
2. I've read a fair few articles that mention Warren Buffet and his value investing approach. He talks about looking for business that are undervalued that lead to profitable situations when the market eventually reflects their true value, he refers to it as "buying dollars for 50c". What I would like to know is how he comes up with valuation for a business? How does he decide a stock is worth $10 when it is currently priced at $5?
3. What are peoples opinions on Technical Analysis? Are there people out there making serious money with this approach? I've seen a few articles that basically make it sound redundant but from what I read it's split down the middle on using fundamental analysis (which was was also made to sound redundant, as any information is already reflected in price) or technical analysis, and I presume there are people employed by large companies using it so I don't know what to think.
4. Who sets stock prices? I know higher demand and lower supply drives prices up but who literally sets the higher price? I was also wondering about how a price can open (gap) higher (or lower) than the previous day's closing price?
5. What market would you advise investing in as there seems to be loads of them out there. From what I see forex looks good with high leverage, no commision fees, 24hr trading, etc.... I like the sounds of swing trading over the course of a week or two, I am not interested in putting money into something and sitting on it for a few years I would like to be actively trading and seeing relatively quick results of trades as in over the course of a week or two. I don't mind losing trades as long as I'm winning on a fair few more than I'm losing. The stock market is too long term for me (at the moment anyway), would the forex market be a shorter term market that you could analysis adaquately(as in you wouldn't just be looking at noise) over this kind of timeframe, if not what market would suit? I've been playing internet poker for a living for the last few years but I am sick to death of it at this stage and the games have dried up significantly, especially since the yanks got the boot, so I am prepared to looking to give trading full time a go (after I've learned enough and been trading for a few months on demo accounts).