If I had only $500 to trade, I would open the account, and work with 20% of my money at a 400:1 leverage. I would buy EUR/USD and USD/CHF, hedging them against each other. They mirror each other well enough that you should not get too drastic of a loss while holding them. When you see a 10% increase (which is only $50 to begin with), sell both and collect your profits. Rinse and repeat …
If you were able to sell once a week beginning in May 2007, which means a 10% growth per week, then you would break $1 million somewhere in early to middle 2010.
Again, it’s just my opinion, and I have not been trading very long, so take it with a grain of salt.
I tried this type of system (with more money). If you have patients, you will make a little. For me the growth just was not what I was looking for. Of course with $500 it just might be what the average person is looking for.
I started a demo of $5000 doing exactly what I posted above, last week. Monday I bought EURUSD and USDCHF, using 20%. I would think it would scale down just as easy … but that the end of the week (last Friday) I was at a 35.8% growth ($6790). All I did was sell everything when I saw a 10% profit, then I respurchased the two sets of currencies.
I have no idea if this is a typical or average weekly average. It is very high, so I suspect that is not typical (I’m used to seeing 35% . We will see in the next few weeks. Again, as I stated before, I am a noob at forex trading, though when I get interested in something, I dive right in! Forex trading is exciting!
I am now refining the strategy to squeeze as much profit as possible. The next two steps are to take profits when one is high, but keep the down currencies, and rebuy the other to keep the hedge. Unfortunately, this increases risk, but if I stay true to my 10-20% it shouldn’t be a problem. I am also using standard deviation calculations to set up small buys and sells on either side of the currencies to get a little more profit. I have yet to try the second method, but I am waiting to clear my orders probably tonight to restart and experiement.
When I was at lunch today I checked my account and it was up to $7700 … so it’s going well so far!
If you were able to sell once a week beginning in May 2007, which means a 10% growth per week, then you would break $1 million somewhere in early to middle 2010.
Can’t help grinning when I see one of these.
I’m not being unkind. I am a big fan of expectational realism.
On my live account which I opened 3 weeks ago I’ve turned $657 up to $833, then down to $457, and now back up to $961
It is possible to double your account but sticking to one type of analysis won’t work. I trade with both the news and technical studies, and have been doing well so far. Also look at the pip margins required to hold a position. When I first started this, everyone was saying trade on the EUR/USD, which for me requires $69 to hold 1 lot (I use forex.com) .
This made me loose a lot of money.
Now I trade AUD/USD or any asian or japan currencies. Most requires only $41to hold a lot but larger bid/ask spreads to make profits, but if I do make a bad decision, I will have enough margin to hold of the short term swings and make profits in the long term.Last week I actually rode out a $200 loss and converted into a $400 profit. I use limits to keep profits rather than stop losses, because stops always make me loss money.People who use stops normally have a gazillion dollars in trade and it just may not work for those with tiny mini accounts. I’d say once you get to $1000, my account will shoot up from there.
Forget what people say and go with what works for you.
Girls will have that effect on you.