Reply from Question

Beginner Questions
1

i was ask in a privte msg the following and thought it would be better so share my thought with all and maybe in the future it make help some one

[B]Hey Billyboy. Thanks for your input my thread. For years, I have been wanting to invest in this market and I am getting the chance now. How long have you been trading for? And what are your thoughts on Forex personally? Also, I am confused between closing a trade. When I lose a trade, do I keep profits or do I have to sell the currency I had initially bought? I am seeing a rise in my balance when I close, but I m not sure what that means. Thank you man[/B]

i first made a illegal trade when i was 17 on my brother Comsec account (18 min age to buy share in Australia)

my first forex trade was at a young age 10 year old i think

My dad had $100 USD NOTE from when he went over to USA for holidays , i thought it was cool looking and ask if i could have it … ( yes $100 to a kid is alot ) so he said i could have it if i swap him a $100 AUDfrom my piggy bank … 10 years later i found it in a old box , cash it in the Sydney CBD for $150

2007 first heard about forex at a “learn to trade” seminar… i was very interested

but i storm out after they ask me to join up for 12 months for $12,000 or what ever it was at the time

start out trading $50 account - i lost alot when i started , to much Risk and huge lots to get rich
reload the $50 about 10 time before i manage to build it up to $500 and have never looked back

[B]thoughts on Forex personally[/B]
i like it , i like how you can start with $50 to learn , while trading stock you need $50 just for the brokerage.
i love it how i could guess the predictions the trade will go , and not have to worry about a huge bank dropping all there stock … and making me lose ( no insider trading) for no reason

[B] Also, I am confused between closing a trade. When I lose a trade, do I keep profits or do I have to sell the currency I had initially bought? I am seeing a rise in my balance when I close, but I m not sure what that means. Thank you man[/B]

sorry mate , i don’t understand the question your asking
you kinda on the right path …

look at Forex as your betting which way the mark will go … UP (sell)or Down (buy)

then every time it move a pip ( the smallest number) you will make or lose $X amount of money

that the easy way to look at it .
so if you were making a profit when you close ur trade , mean you were correct and made money

2

Don’t think of trading Forex as buying and selling a currency, although this sounds misleading due to FX currency being quoted in pairs. You are in fact never buying or selling anything as FX trading is a derivative. Rather you are simply speculating on a currency pair moving upwards or downwards with respect to your entry level.

So when you lose a trade due to it being closed out in the opposite direction to which you speculated it would move, your account balance is automatically reduced by the monetary risk chosen for this trade prior to it being placed.

The only time you will see a rise in your balance after closing a trade is simply because you have closed gaining favorable ticks to your entry price. Hence, you have been correct… although sometimes debatable!