Choose A Broker

Protect your money. Do your research before dealing with any broker.  There will always be scammers out there, so beware.  Remember, if it's too good to be true, then walk before you leap.

As much as your are doing right now, I used the internet to help me pick the more trustworthy broker.  I read several blogs, visited a number of forums, read some reviews and their company profiles. Read about other people's opinions about each broker.  Then, formulate your own pros and cons with each broker that you have researched.  

In the end, I chose FXCM.  I chose FXCM because they have been in the business for a long time now (since 1999).  They have weathered a lot of hiccups along the way but are able to stay afloat (most recent was last Jan 2015).  It is a US-based company which, in my opinion, may have better regulations.  If anything goes awry with their company, then I would definitely hear it in the news.

Here are links for some research on FXCM:

• Who is FXCM?
• https://en.wikipedia.org/wiki/FXCM
• http://www.marketswiki.com/mwiki/Forex_Capital_Markets_(FXCM)
• http://www.bloomberg.com/news/articles/2015-01-16/fxcm-said-to-be-in-talks-with-jefferies-for-200-million-rescue

FXCM owns the Forex trading news and research web site - DailyFX.  I find this valuable in getting insights on how the market will pan out during the day.  A lot of jargons there so take some time to get yourself familiarized.  Do not be intimidated by the terms, but allow yourself to be challenged, to be curious to learn.

They also run a monthly contest for small account holders.  They award prize money to those who would be able to get the highest returns on their investment.  There are indeed a few percentage of traders who are able to double their money in 30-days.  However, proceed with caution.  Read more on their contest here.  As for me, I did not chose FXCM for the contest, in fact I have learned about the contest only a month after I join.  Winning this contest is not my goal.  My goal is to proceed with caution that I may earn and limit my losses. 

Disclaimer: This is not a promotion.  I do not have any affiliation with FXCM or am I receiving any compensation for writing this article.  I am solely a client and FXCM is my broker. Please use your own discretion to pick your broker.  I will not be liable for any loses you will incur should you also choose FXCM as your broker.

I will update this blog soon to share to you the links to other blogs, reviews and articles about other brokers, that you may be wiser when you finally pick your broker.  

In The Beginning

I started out my Forex Trading in December 2015.  I have always dreamed about becoming a day trader given as I believe I have the right qualities for it, namely:

• I love staring at the computer for long hours
• I have nothing better to do
• I have hours on my hand
• I need to earn an income but I have to stay at home at the same time
• It's the only trading opportunity that let's you start with $50

Not some qualities that a professional trader would look for an apprentice I suppose.  (*grin*)  

Seriously, though, if these are your only reason for starting then please evaluate yourself further.  Don't do Forex Trading if:

• Don't do Forex Trading if you are using your grocery money to fund your starter account. In other words, don't use borrowed money to start your account, but set aside (spare) money to start this trade.  A few people may disagree, so let me just say that they are entitled to their opinion.  Why do I say this?

1. The myth that you can double your money in a month is not accurate for 80% of the newbie traders.  If you will research further, a lot of the readings available on the internet gives several warnings.  The reality is you can lose that starter fund in an hour or a day, if you don't do your research beforehand.
2. 80% of trading success is psychology and money management, 20% is strategy. (Reference: 80/20 rule).  But the experts have spoken and I find this to be true in my own experience.  It's a mental game, so you want to make sure to start with the right settings.  To explain further, imagine your mental torture if you start losing on a trade and fear kicks in because you are losing that money intended for your house mortgage. 

Note: image taken from an article on trading psychology. 

• Don't do Forex Trading if it is your only source of income. The returns on your investment depend on a lot of things.  One consideration is how much money you have on your starter account.  To give you a ball park figure, I was earning $5 daily average when I started with my $120 account.  There would be times when I would close the day having to borrow from my previous days' earnings.  It takes time and strategy to earn a considerable amount of money trading Forex.  Don't get me wrong, I like this Trade hence the blog, but I would just like to keep it real for you.  The image above will start to surface if you lose your only source of income.  It will be difficult to stay calm when market is not going as you predicted.  You may just find yourself broke sooner rather than later.

I invite you to start your Forex Trading journey with the right frame of mind and with an investment money that you have saved up for this purpose.  There is a big chance that you will be able to do well in this trade, but there's also a bigger chance that you can lose all your money if you are not cautious.  

Allow me to share to you my journey so you may avoid the mistakes that I have made along the way.  Experience is the best teacher, and I hope that you will learn from my experiences.

Further blogs will be available soon.  Please bookmark my page.