My first post ever, so hello guys and thanks for sharing all the knowledge for newbie like me. I have been learning forex for the past few weeks here and learn great deal of stuff for me to start. I have been playing with demo account as well to understand more about how this thing works (enclosed is my trading log for the past several days, dont laugh at it, i know its rubbish, but that gives me something to start… :D),…
Now the question, how do i calculate profit (not that im greedy or anything like that…). For example, today, i managed to get 22.9 profit over a 10.000 unit. If i were in 1:100 leverage, i would need to have capital of 100 (provided i am using all of my money). Back on the profit, so if i got 22.9, does that mean i profit more than 20% of my capital?.
I only ask because i need to have a clear information of what would be the average earning (safely) in forex. I’ve heard that achieving 5% a week is found to be a mission,…
you didn’t give your account balance, but let’s calculate based on a balance of $1000, and a profit of $23:
($23/$1000)*100 = 2.3% Gain
For your first year of forex trading, I’d recommend focusing on consistent gains of ANY value (even something as modest as 1% gain/month). If you get to the end of the year with a net profit, and bonus points if you did it without any drawdown months, then I think it’s safe to say you’d have beaten 95/100 of your 1st year competitors
Why are you factoring leverage into any sort of profit/loss calculation?
As akeakamai pointed out, the percentage of account increase/decrease is only factored off of initial deposit.
As for the amount, if you had $100 in your account, and tried to place a $10k trade, you would not be able to place the trade. You would need the $100 to place on margin, leaving you no usable margin.
ok, i get you guys. The account, since it is a demo, is 50K, but i always try to trade on 10K unit.
Master Tang, the reason i brought the leverage in, is to determine what would be the required capital in order me to conduct the trade. For my understanding in order us to trade 10K, we could either use our money or we could utilise the leverage, am i correct?.
If i have 500usd, i take it i could use my 100usd and utilise the 1:100 to trade 10K, and if i gain 23usd, my profit would be (23/500)*100 = 4.6%…yes?
akeakamai; i am benefeting the virtual ammount to trade as much as i can and learn from my mistake,…
