see how i deal with volatile market lol

i believe risk management is the key in any market you involved in.

https://www.forexfactory.com/jacktrader1

set up a small trade explorer for forumers to see. don't dare to put too much into xm too, scare later susah withdraw lol

finding a reliable broker is hard. i only trust tickmill atm since they are uk regulated. but if locally you can try XM, they seems to start to gather some reputation already. i start with a small capital first with them only.

In forex , if you are buying usd meaning you have to choose to trade against which currency you think is weak. Thats why they comes in pair. Usually against yen, swiss, aud etc. You can see yourself from a brokerage platform.

It doesnt necessary means you own the dollar. Because with leverage you get to trade up to 4 decimal points for a pair. Meaning when the market is volatile, a little drop in dollar could mean nothing to the world wide currency exchange, but when its against a stronger currency you could lose a lot due to leveraged trading. Its more of a speculation rather than actually buying dollar and own it, even though it sounds like you are buying it. If you wish to own real dollar and foresee a future gain, forex probably isn't the suitable ground for you. Unless you are a swing trader and you know your risk, then yes, you can try ''buying'' dollar against other currency and own it digitally. By end of the day, you will profit from it and withdraw your initial investment+profit. (Assuming you made the right trade)

When you leveraged your trade, you are basically borrowing money from your broker. You can use a small capital with borrowed money from the broker to trade the market. Here is a link on babypips about leverage. It explains better why some people like high leverage, while some other prefer lower.

https://www.babypips.com/learn/forex/leverage-defined

In forex, always trade with the amount you are ready to lose. That way you won't face this heavy mental pressure of losing the money to get the market.

Usually end of year no big firms or major player will open positions. End of year is the time where most retail investor take profit or cut losses before the new year or Christmas holiday. Over this long period of uncertainty and quiet market, the low votality and volume in market will cost them much more if they open any large positions. That's why you see its usually quiet over these holiday festive.

This post has been edited by Lupine101: Dec 27 2017, 09:37 AM

Start with baby pips. Learn the basics. There are plenty to learn about investing forex.
When you start knowing what's technical analysis, then you can start looking for fundamental stuff. After all these, look for deeper topics like market psychology, Auction Market Theory, order flow, volume analysis, market depth etc.

This is the journey you cannot miss if you are passionate in trading.

A few good reading materials by wycoff, Jesse livermore also good for you to pick up some idea how the market work.

Good luck man.

If floating then they should be fine. They can't afford to open position if market don't have the liquidity. The size of their position will trigger movement in price and it would be expensive for them.

Our retail orders won't matter much to this big forex market. Even some orders are likely being traded by brokers in house order book. All brokers are bucket shops, they will collect our orders and either hedge it themselves or pass to banks order book. That's why some brokers have different spreads. Best place to look for liquidity would be the spot everyone is looking at, where bankers hedge funds retail traders would place their limit orders. Example those Big round number, ever wonder why price always linger around these areas or attracted by it? That explains why.

Most big players they trade forex just to hedge their exposure in other market, maybe the options, maybe commodity. That's why they tend to hold these positions longer.