How much one makes on average/month with investment of 1000$

[pipgod]

That's a good question. I have never had a problem in this area. I have never had a reason to research it.

dpaterso, a had replied to the post before I read your request for me to reply. Sorry for the short answer.

[pipgod]

The cool thing is now I trade based pretty much on logic. I have a lot less poblems, I guess none. My daughter is demo trading my trade style on a $1000 account. She looks at no charts and no indicators. Her balance is up $294 and some change. She has had the demo for about 30 days.

Hang in there, you will get it.

[bnob99]

Originally Posted by pipgod

bnob99,

You go buddy!

I was getting a little frustrated that other people were not posting other results. People need to know that the forex market is not all hype.

Will other people please post?

Thanks in advance!

At one point I bought into the fact that the FOREX market is real difficult and you will lose alot of money. Fortunately I changed my viewpoint and now I am very consistent at making money. I only trade the EUR/USD and have yet to take a loss. Where I did lose some money was when I was trading the USD/JPY. Obviously I am still way up, but could have been even further if I hadn't been involved in that pair. I promised myself I will only focus on one currency pair and the one for me is the EUR/USD. I also don't get too deep in charting. I do use the system posted by another user in for this currency and how you can make 45 pips per day. I also watch the news constantly. People may think I'm crazy but I think alot of people put to much thought in some of these systems and then are at a loss when they don't make any money or are on the sidelines not making any money because they didn't get a "signal" from the trade. Just my opinion. Keep posting your statistics. I am definitely interested to see how you do. Good luck and if you ever have any questions, let me know.

[colin]

Originally Posted by bidplace

Second, I had always wondered when I click on the buy button... Who am I EXACTLY buying FROM? Am I buying this currency from the central banks? From the actual countries I.e. USD/CAD from the US and Canada directly?

Or like you mentioned, am I buying this pair from someone who is willing to sell it?

The forex market is similar in most ways to other financial markets. For each buyer there has to be a seller. It is the decentralized nature of the forex market that makes things complicated. Instead of one central exchange where all the trade transactions are processed, you have a loose conglomerate of banks around the world performing the same function (the inter-bank market).

Your small-time forex trader doesn't have the capital to interact directly with a large bank, so instead they have two options: a retail forex deal-desk broker, or an ECN broker.

In both cases, your broker is the counter-party to all of your trades. When you buy or sell your broker is taking the opposite side of your trade.

The difference between the two is how your broker handles bundling together all its clients orders and passing them through to the inter-bank market.

Both types of brokers will automatically try to match your trade with that of another client of that broker. If you decide to buy and another client sells the broker can just match the trades up straight away and everything is squared away.

What about trades the broker can't offset against another of its clients?

A deal-desk broker will bundle all the trades together and offset its exposure in the interbank market.

An ECN broker offsets each and every trade it can't match internally with the inter-bark market. The ECN broker is simply a pass through to allow the trader to access the prices being offered by the banks that are part of the ECN's price feed.

[pipgod]

Colin, Awesome post!

I had no idea.

[dpaterso]

I agree - thanks Colin.

Just to back it up I found this interesting article on how orders are executed:

Understanding Order Execution

It relates mostly to share trading (I think) but having said that it does explain why there are delays in orders being filled, why you may wait for limit orders to be executed, and why stop orders are sometimes (mostly) not executed at the price that you initiated them at.

This article sure goes a long way to answering some of my other posts as they relate to 'Limit' orders not being executed instantly as one would expect.

Regards,

Dale.

[pipgod]

dpaterso,

That was an excellent read as well, Thanks!

[pipgod]

Closed positions gaining $21.79.

After opening new positions the demo used margin is 4.3%
( still a little to high, but still ok. )


021.79
009.83
008.78
035.84
013.97
018.42
0+5.21
113.84

Divide by 7(days) for an average of $16.26/day.

11.38% ROI to date.

[pipgod]

WOW, today was pretty good.
Thank you USD/CAD.

Closed positions gaining $94.27 .

After opening new positions the demo used margin is 6.5%
( I think that's to high. I don't like it. )


094.27
021.79
009.83
008.78
035.84
013.97
018.42
0+5.21
208.11

Divide by 8(days) for an average of $26.00/day.

20.81% ROI to date.

[pipgod]

This is earlier than normal because the kid's grandpa (on thier mother's side) passed and I have limited time on a very slow computer.

Today was good.

Closed positions gaining $43.23 .

After opening new positions the demo used margin is 5.2%
( I guess I'll deal with it. )


043.23
094.27
021.79
009.83
008.78
035.84
013.97
018.42
0+5.21
251.34

Divide by 9(days) for an average of $27.92/day.

25.1% ROI to date.