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Forex currency trading

shrayali (finance) (32 Points)

24 August 2011

.my friend is doing trading with Nordfx forex broker and also suggesting me to do . I know he is my friend and he will suggest me goodone but i wanna more from recent trader of that company. Is that broker is reliable ?. i have no idea about forex market .I am intrested to know more about forex currency trading . so i hope you will suggest me best.

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38 Replies

Rajiv (Director) (42 Points)
Replied 24 August 2011

Shryali, any kind of forex or trading in any market is a very risky proposition. I have been an active trader in the forex, commodity and equity markets in the last several years, and in my trading career, I have not seen a single common trader/investor (leave players like me or other seasoned players) take out any money out of the market. 99.99% common traders in these markets are losers. Trading is a very difficult way to make easy money. So keep this in mind before plunging in any of your money. All your capital can be wiped out very easily in a few trading sessions if you come without learning and a deep understanding of technicals and fundamentals. Suppose you start trading today, how would you select which trade you should enter into? Would you buy dollar/rupee contracts today or would you sell them. Do you know how the market moves and behaves? Do you understand the economic scenario of the world and India completely? Are you aware of the interest rate fluctuations which have happened in the recent past and which would have a bearing on the present trade scenario in currency pairs? Are you aware which countries have got trade surplus and which have got deficits. Are you aware of the intrinsic value of each currency pair. Are you aware what the smart money is doing in the trade. You need to be aware of all and more of these and have a good working knowledge of technicals before you commit your money. Do not go by tips of either the dealer or anyone else (there are hundreds of tips providers who will take a very small sum of money from you (say 5-10k each month) to provide you tips. These are all scamsters who know nothing about the markets. So go and buy a technical book and study it, read the financial newspapers, follow the trends for some days, and do some paper trading before you get into real trade. And even after this, get into small trades at first, learn from your mistakes, do stringent capital and money management, and ensure you do not lose your capital. You can look at my blog at moneycontrol.com under the id empowertheloser. I am also posting this reply at empowertheloser.com on 'the consultants' blog' page, should you like to pursue the chain of discussion further.

1 Like

ganesh negi (na) (33 Points)
Replied 24 August 2011

very true ............i have worked with trading company as a equity adviser and its a fact that the self life of a trader is not more than a year...............be a investor not a trader

Chakravarthy3434 (Forex trader & CA FINAL) (34 Points)
Replied 30 August 2011

well Rajiv u gave some nice piece of advices, they are pretty useful.

But ur scaring the hell of that little girl.

First let her know what is trading and she'll eventually understand the taste of it.

Yes its risky, but NO PAINS NO GAINS, without risk there isnt any money, only thing is that they should know and have good money management skills.

Yes ur right abt tips and etc, they are BS.

Shrayali, Fx tradin is nice subject, if u have interest in tradin just invest only a few bucks and trade with smaller lots there are many forums which could guide u.

Anyways i will try to help u out in trading

Regards,

Chakravarthy.

Krishnamurthy (Founder) (54 Points)
Replied 06 September 2011

Trading requires skills. Like a Doctor undergoes almost 5+2 years of toiling before he becomes a qualified medical practitioner, trading too requires skills to be a successsful trader. People often feel that, if you have money, you can trade. Thats not true. More than the money, you need the skills. So, before you start trading, spend time and effort to learn the tricks of the trade OR avail "Managed Trading Advisory" services.

Financial markets are defined based on many perspectives. Fundamentals, Technicals, Astrology, Elliot Wave Theory, Chaos Theory, Gann Theory and many more....These multiple market theories reminds me of a child hood stroy of 5 blind men and an elephant....So, each theory is correct in its own way, but they are not absolute/whole truths.

The truth is that, financial markets have price and time dimensions...Simple...If you understand the "Science of Price Action"...trading becomes fun....Many 'learned' traders have achieved great success in trading. Ethically. Systematically and Consistently...With the advantage of internet, you can now trade Anytime and Anywhere...There are risks. But there are ways to mitigate them. Treat Trading as Business. In any business, there are risks and expenses. And the one who handles risks better and manages money well has an edge.

We at www.GannHurstTrader.com precisely practice that to create high probability trade setups. Please contact us to learn more. We do not provide tips or charge you for advise. There are some articles and more will come in the weeks and months ahead. We believe in creating an edge for the traders to trade profitably in the markets.

shrayali (finance) (32 Points)
Replied 07 September 2011

Thanks..... you all help me vey nicly.I agreed without proper knowledge its worst to go blindly into forex market.

Chakravarthy3434 (Forex trader & CA FINAL) (34 Points)
Replied 08 September 2011

yes it is,

but its worth a try in the fx markets.

well u can catch me here.

thezingthing @ facebook.com

rahul (Finance Manager) (91 Points)
Replied 10 September 2011

Can anybody here help me with the following query about currency trading--

How do you recognise sales for a company trading in currency derivatives only for it self?

Also, if this company is a subsidiary of a firm whose core business is importing material from abroad. Can the sales of this subsidiary be consolidated with that of the parent company?

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Gil Burt (admin) (38 Points)
Replied 21 September 2011

The good news is that average investors can put together an investment strategy best suited to the new economic reality by simply investing in mutual funds.

All five of the above investment options and more are available in funds. Plus, funds come complete with professional money management and plenty of flexibility.

Once you're with one of best fund companies you can easily make changes to your portfolio free of charge.

So, let's take a look at some of the exceptions to the norm or extremes that exist today. Then, we'll suggest changes to consider for 2011 and beyond in terms of mutual funds, starting with safe investments and ending with gold.

Stock Market Today Penny Stock Newsletters

(Guest)

Can you experienced forex traders tell me if Forex Trading with international broker is legal in India?

If one happens to earn profit from Forex Trading, what would be the Tax structure?

And how do you deposit and withdraw from the trading account?

Thanks & regards,

Nikhil

Krishnamurthy (Founder) (54 Points)
Replied 22 September 2011

RBI regulation restricts all sorts of "margin" trading through any foreign broker /exchange for Indian residents. However, if you are an NRI and forex earner, you can trade in forex. Also, recently RBI allowed an Indian resident to have a joint account with his/her close relative; who is an NRI and forex earner. So, these rules have created some loop holes in the system.

Forex trading is an excellent opportunity for serious traders. It provides a viable option to diversify your portfolio. RBI should consider Retail investors sentiments, and should allow forex trading in India. I hope, we require an Anna Hazare to create a pressure group on RBI/SEBI on such matters.

The answer to your 2nd question is, that there is no way you can declare forex trading and pay income tax against that.

Chakravarthy3434 (Forex trader & CA FINAL) (34 Points)
Replied 25 September 2011

Good info

thanks Krishnamurthy

Chakravarthy3434 (Forex trader & CA FINAL) (34 Points)
Replied 25 September 2011

Yes Fx is an awesome venture to get in to

Bad luck Indian govt. doesnt allow to trade directly in forex unless using INR as a quote currency.

(Guest)

Thanks for the reply.

Seems will have to wait , no idea for how many years to trade Forex in India.

I am very hopeful since we can trade INR major pairs futures on major exchanges. The spot forex trading and with moderate leverage/maring whould also be allowed some day..

Thanks again,
nikhil

Krishnamurthy (Founder) (54 Points)
Replied 27 September 2011

Hi Nikhil,

There is a HUGE difference between the INR denominated Forex derivatives offered by NSE/MCX-SX and the Forex Futures offered by OTC( like Alpari, ForexCentral etc). The two products are grossly different; in the sense that, the OTC creats AnyTime Anywhere lucrative business opportunity for seasoned and knowledgable forex traders. Its lucrative, because it provides upto 1: 400 leverage. That means, if you make a 50 pip profit each day( its not difficult though) , you end up making $10,000 in a month at the highest leverage for an investment of $500. For achieving the feat, you can put yourself in a remote village with just a laptop and an internet connection !!

Whereas, the INR denominated Forex derivatives offered by NSE and MCX-SX are low liquidity hedging products designed to meet the needs of importers to mitigate forex flucation risks. They dont actually map to features of OTC products.

My concern is that, Retail Investor's interets are not taken care by RBI, SEBI and the Govt. There are no lobby currently which works for the interests of the retail investors. We can certainly create a small group ( like the Anna Team) and setup a forum. Let me know, if anyone is interested to join ?