# Currency Trading - Anyone doing it?



## tmitch45 (Jul 29, 2006)

I've been seeing a lot recently about currency trading and am thinking about giving it a go in my spare time as a hobby and see where it takes me. I've been doing a lot of research and reading around and am fully aware this isn't the get rick quick scheme that some people suggest it is. 

So does anyone do this or had any experience of it and what can I expect if I take the plunge? Is there decent money to be made in the long run if you start off slow and with a little investment.


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## kolarn (Nov 12, 2012)

Yes you can make money, even better if you have a crystal ball, just have to watch out for the commission and dealing costs along with the spread. Gold seems expensive just now but a lot of the analysts seem to think it has a bit of scope yet. A lot will depend on America.


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## tmitch45 (Jul 29, 2006)

The stuff I was looking at was the currency trading in terms of current pairs. I would be starting at this as a novice but willing to learn.


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## jamest (Apr 8, 2008)

I've been reading up on share trading recently and it seems like currency trading is a lot riskier due to not being able to do good solid research mainly because currencies are highly volatile.

You have to ask yourself if the money you want to put in can be lost without any issue, if yes, would there be better avenues such as shares rather than currency trading.


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## Vossman (Aug 5, 2010)

It is the same as any sort of gambling - if you can afford to lose it then go for it, good luck with whatever you do and if you discover a magic winning formula drop us a pm please :thumb:


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## bmwman (Jun 11, 2008)

I've been buying and selling equities/shares in companies for a number of years. Made a fair amount of money on the commodity boom two/three years ago. With the world economy the way its been equities are not really giving good returns. For the last two years I've been trading the indices I.e FTSE 100. There's been times where on news/ market moving event I've made a 4k in half an hour. This like trading currencies is a leverage method i use IG markets as the broker. The honest truth is you need to be willing to risk 3k minimum even on a small trade of say 3 contracts. You'll probably use a stop loss to limit your losses though this usually costs you an lot of money. For example you take a position long/buy on the FTSE that's £10 a point. With a 30 point stop. That means you limit your loss to 300 on any given day market volatility means it may fall 40 points before it goes up 140. If your involved you'll get stopped out and loose 300. For such a trade you'll probably need to have a margin of £700. The FTSE on a good day can go up 100 points etc or vica versa. 

Currency trading I.e EUR/USD can move 800 points or more a day and is very very volatile. 

I started as a hobby and to learn something new. Truth is although I limit to trading on news maybe once or twice a month I'm finding you need to know more than just the news. You need to know what the market makers are doing/ big traders. A lot of the time on good news theyll drop the markets take me and you out then rally to high heaven.. Im happy to answer any queations on this. Or debate if someone thinks I'm wrong.

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## Jem (Aug 10, 2007)

Can anyone recommend a website where you can open an account, add some funds to said account via debit card, bounce the funds about into different currencies and then draw out the money? Paypal for currency trading if you will.


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## bmwman (Jun 11, 2008)

Jem said:


> Can anyone recommend a website where you can open an account, add some funds to said account via debit card, bounce the funds about into different currencies and then draw out the money? Paypal for currency trading if you will.


I don't believe it works like that.

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## dean j (Mar 30, 2007)

I looked into this a while ago. I signed up to LSE which has a forum but you don't usually get any help from people on there. Took me a while to figure out what D.Y.O.R meant (do your own research). 

BMW man. Where do you find your info/do your research etc?


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## bmwman (Jun 11, 2008)

dean j said:


> I looked into this a while ago. I signed up to LSE which has a forum but you don't usually get any help from people on there. Took me a while to figure out what D.Y.O.R meant (do your own research).
> 
> BMW man. Where do you find your info/do your research etc?


Hi dean, it depends on what your looking to do, of its currency trading then you need to first and foremost understand why a currency fluctuates, then you need to be on the ball with regards to world news and global/regional politics. If your looking to buy small caps [penny shares] go on to the iii.co.uk forum its pretty good but reality is no one knows what's going to happen to an x company and the oil well they are drilling otherwise wed all be rich. You have to look at fundamentals, how many shares have been issued, money in bank, profit margins, director dealings, take in to consideration the country the company you are investing in operates etc.

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