Forex Trading Instead of the Stock Market
I’ve gotten myself into a bad habit of closing a trade too quickly and grabbing a small profit. I did it again this morning. Changed my profit point from 30 pips down to 10 pips. I did grab 10 pips ut I missed a big time play as it continued to show a profit. Had [...]
I’m still learning a lot but the good news is my account has not lost any money. Of course it hasn’t made much either. But I have made a lot of trades, some with good results, some bad. Some devastating and some terrific.
The other day I made some stupid trades. Started winning and then had [...]
I have made some considerable progress since my last post. My micro account, which started at $25 and dropped to $11, is now at $33. Now that doesn’t sound great but keep in mind a micro account is 10 cents a pip, as compared to $10 a pip many play. So that is actually a 120 pip gain and that ain’t too shabby. If using $10 pips, would be one nice gain!
I had taken my $25 Forex micro account down to $11. The indicators I was using just were not doing the job and I also have to accept some of the blame for not being disciplined. The I had a few trades where the indicators made a few pips gain. I had almost exclusively been [...]
Kind of a pun there, huh? Yesterday was a disastor for me as I lost over 40 pips. That’s the bad news. The good news is, since it is a Forex Micro Account, it was about a $4 loss.
I noticed something I was doing that was a serious flaw.
I signed up for a micro account and today was the first day I made the plunge into trading forex live. What a whirlwind.
The micro account means for each lot I trade, the value of each pip is 10 cents. I opened my account for $25. I set up automatic one click trading and set my stop loss at 15 pips and my limit at 20 pips. So the worst I can do on a trade is lose $1.50 and I am trying for $2.00 profit.
Yes I will harp on this. Get a demo account and use it. Make your mistakes now or lose money later.
Yesterday I clicked to put in a trade. I am using a 1-click trade site. Nothing happened, at least I thought nothing happened. So I clicked again. And again. And again. 4 times. I thought my program was locked up.
Wrong. I was looking at a summary window and not my open trade window.
When you open a trade, you do want to immediately add a stop loss. That way if the market moves against you, you limit your losses. From what I’m seeing, not doing this is why so many people lose a lot of money in forex trading.
Most experts recommend never risking more than 5% to 10% on a trade. That makes sense. This week, for instance, I had a tremendous week Monday thru Thursday.
Immediately after you make a forex trade, whether you are selling or buying, add your stop loss. Do not hesitate for a minute. The forex market can make dramatic swings and you can lose your account in no time if you neglect to do this.
A stop loss is what you are willing to risk on your trade.
I tried to learn forex a long time back, unsuccessfully. I would take some tutorials but just couldn’t put my finger on what they were saying. I figured once I understood it better, I’d get a demo trading account and test it.
Wrong. Get a demo account right away. It costs nothing and when you start practice trading, you will learn. I picked up a forex trading system and that was the first thing the guy said, so I opened an account.
First trade, I couldn’t figure out how to put a stop loss in.
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