Wow… when you put it that way no you can’t put monitary value on a relationship
New balance : 510.24$
Today�s Approximate gain : 5.44
Today�s pips averaged : 60.4
Over all pips : 113.7
ROI : 2.0%
New balance : 526.02$
Today’s Approximate gain : 15.78
Today’s pips averaged : 175.3
Over all pips : 289.0
ROI : 5.2%
I must humbly and with chagrin mention that I was margined called on my real $500.00 account with North Finance. Of the $500.00 I started out with on Monday, I now have $.44, I lasted one week.
It was a real learning experience, let me tell you. I have learned the difference between a demo account and a real acount. At least it only cost me $500.00.
My four months of doing demos did not prepare me for a real account. I turned two $500.00 demo accounts into 20,000.00+ and 2000.00+ in less than a month, by trading the news. That is, by placing entry orders 10-15 pips short and long to either side of a currency pair prior to a news event, and then riding the winner to 10-50 pip instant moves.
This might not seem like alot, but it is on a 500:1 leverage ratio. At this amount of leverage you double your margin every 25 pips. Double your money 13 times and you are a millioniarre, (at least that is what my newbie mind was telling me…)
What I learned was that one cannot do this on a real account because you cannot get out of your position fast enough. Twice this past week, I rode a news event to over double my margin, then would immediately submit a close order, only to wait over a full minute for the dealing desk to process my order. In the case of NZD/USD this past week in particular, the spike retraced itself fully within that minute and went negative before they processed my close order, by which time I had gone from a $300.00 profit to a $300.00 loss.:mad:
The demo didn’t have this problem, but processed my orders almost immediately, mabey a 1-2 second delay.
So now I am looking into FXCM because they have a no dealing desk option. But I already discovered from their demo that the problem without a dealing desk is that during the initial moments of a news event the bank widens the spread and swallows up all entry orders within about 30 pips space, making my original strategy impossible.
Anybody have any advice?:o
Not to be their tool, but Forex.com doesn’t seem to be to bad for this. It is mostly what you see what you get by using their application based client. Trading the news is pretty tough to do though… You can always take a position some time ahead of the “news”. Trading is usually pretty quite an hour or two before the event. I would say that it is very difficult to just put stops above and below for a “number” to come out. The market just moves too fast and your fill will be in question. Think about it, if it worked wouldn’t everyone do it, and if everyone did it how can it work?
Oh yeah - Maybe you should look at you money mgt strategy. For a $2000 account you should really only be trading 1 or 2 $10,000 lots. Stay in the game. If your full margining your account you only have to get boned hard one time.
dkbwarrior,
I’m feel’n ya man.
I tried the news trading thing. I couldn’t get it either.
Good luck.
The geezer is 500% coorect.
Have you went through the Pip School?
5000 male deers will not get you any wherre much less 500. Take my advise use that money to open an account with Oanda, they are the only one i know will allow you to even trade a dollar. From that experience then proceed.
Do not look at fxcm ot gain capital. they will trade against you and make you squeeze oooozzy stuff in your diapers.
Muuummmy@@
I am serious
I new to the thread. Let tell you something, I wouldnt trade with only $500.00. The name of the game is to stay as long as you can. If you ask me, just to be on the safe side, I would have, at minimum, $5000.000 on the account. By doing so, that maybe trading 2 to 3 lots maximum. Oh yeah, dont trade the 100,000 lots, trade the 10,000 lots instead, otherwise you’ll lose it alot faster.
here is why…
I bought one lot of gbp/jpy at 137.00 but I witnessed a bit downfall to 1.22(lowest point) before rebounding. Yes, I know I should of set stop loss, but I since it paid interest, and I had enough cushion, I decided to buy another lot at the bottom. I was down at least 1500 bucks. Had I had 1000.00 in the account i would have been wiped out, but since I had alot of cushion, I was able to weather the storm, buy another lot or two, I was able to come ahead of it.
take my word for it. forex is for noone with little bit of money. put in alot more before trading.
…and make you squeeze oooozzy stuff in your diapers. …I am serious
LOL,
I have no experiece with FXCM, but a freind left them.
He didn’t tell, and I didn’t ask.
yes,
I agree and under stand.
Most people shuldn’t trade with $500. The trade style that my son learned makes this possible.
Most peopl do not trade the way we trade. If your style is not successful on a demo then do not use it on a live account.
.
If all you have is $500 to trade with, it should just take you a little longer to build up your account. If you still use your money management rules and stick to 10% to 20% of you total account, then you will be using only $50 to $100 of actual trading money. With a 400:1 leverage, you can still make good money … you just start at a slightly worse handicap.
Just make sure your strategy is sound, and your money management is solid, and I don’t see why you couldn’t trade with just $500 to begin with.
It does take longer.
If a modest 10% is where your comfort is, 10% of $500 is very different from 10% of $2,000.
Good post!
That is about right, a handicap!
As thepipkid said “This is going to take forever”.
Fact is hardly any of us, who are trying to make it big in the forex, has $50k to hold proper leverage in this market. When I started last year, I was able to double my demo account from $2000 to $4000 in a couple of weeks. So I felt confident and traded on a live mini account at $250. Its impossible to how a long position with a mini account unless you deal right 99 percent of the time. I lost $200 buck and it was back to the drawing board. Little did I know that it wasnt that I was making the wrong decisions, but I didnt have the leverage to hold the position to see profits.
So for those who feel great about demo account I’d be carefull. What you should do the deliberately run a loss on your demo account to a realistic figure which you think you may start your live account with. I’d say about $500-$1000 is a good start. Once you get the system going, making about $50 to $100 per week (after losses), then get the live account, you WILL loose some money but it takes time to learn when you actually using real cash.
Great advice!
Post more wisdom.
the pair im in didnt move much on friday so no gain yet,
but i hope there will be one tomorow when i get off of school
the pair im in didnt move much on friday so no gain yet,
but i hope there will be one tomorow when i get off of school
Yes, you bet.
With only $500 you can’t do much until the market makes some type of significant move. If you had more margin you would have more room for mistakes.
Hang in there you only have to get to $1,000.
its going really slow but i think ill take it to 2000$ to seal the deal
I didn’t know you had it in ya.
Go for it!
After all the thread says [I][B][U]is it possible to be successful with only $500[/U][/B][/I] (edited version) not [U][I][B]is it possible to double $500[/B][/I][/U].
Hey man, you know me. I’ll be watching. 