errmmm okay, i started trading forex with a demo account about a few days ago, and i must say that the fact that it’s a demo account has given me liberty to be carefree. however, yesterday, i placed an order to sell EUR/USD with the expectation that USD would make a rally, and actually it did, but not after my available margin hit zero.
my question: in a live account when trading with real money, would i have lost all my money on that trade as i did not put a stop loss order? even with the expectation that the USD would rally at some point. but if my margin available hits zero before that rally occurs, does that mean that i would have lost all my money?
when the USD rallied my margin started increasing again until i closed the trade and made some profit. is this the way it actually works assuming it’s a real money account?
please, please, pretty please, i would appreciate if somebody can help me out here as i would want to know if i could take such risks when eventually i start trading with real money. thanks in advance y’all:)
Yes you would have lost all your money and rightly so. Have you not read about money management and the 2% rule. If you have you clearly do not understand it
Everyone seems to have missed what is an important qualifier. He said [B]available[/B] margin, not just margin. You can have your available margin drop to zero without getting automatically closed out. It just means you can’t open any other positions. So long as you don’t go below your [B]required[/B] maintainence margin level, you’ll be OK - not that this sort of activity is recommended.
okay, thanks guys, i really appreciate y’all, and john thanks especially. i guess i’ll have to be more conservative in applying the rules as i was trading massively. probably i was carried away by my still operating a demo account.
still on my novice status, i would want to ask another question, i hope you more accomplished traders don’t get too pissed. i started my demo account with a balance of about 100,000, and now it’s about +4,529.32, that’s a total of about 104,529.32. what would that translate to in real money terms?
I’m not entirely sure how to answer this. If you did the exact trade(s) the exact same way in real trading then it would provide the exact same result.
When people say its different in real trading they mean the pressures tend to alter the way one trades.
okay, thanksalot. i think i’m gonna enjoy trading. can’t wait to have a live account, but first let me get the hang of the demo thingy. thanks john:cool:
hello there, for example now. if someone has decided to enter a trade, how long can he remain in that position before closing the trade? as in can i buy today and sell tomorrow or like two days after i entered the position whether long or short?
Carry interest is the interest you recieve on the currency which you are long and which you pay on the currency you are short. If the former is larger than the latter, it’s a net positive. If it’s the other way around, it’s net negative.
ermmm, thanks a lot you guys for helping a newbie to start his trading on the best footing. i must say that i’ve missed you guys quite a bit, but i’ve been trying to study at my trading techniques with a demo account all these while, trying to build my confidence level. hopefully, i should commence my live account trade soon and i hope that with what i’ve garnered, i would be able to make myself a good trader.
however, just some few days ago, i stumbled upon this elliot wave theory, i wonder how i managed to skip that aspect of my tutorials all these while. i must say i was fascinated to know that market movements could be predicted to the exactness as suggested by this theory. but i would like to a few things more about this:
1: i would like to know if this phenomenon has a time space that it occurs i.e. does each impulse wave and corresponding corrective wave have a time frame in which they occur?
2: can one identify the commencement and decline of a wave within a day’s trade i.e. can an impulse and a correction occur during an intra day trading
there are quite a few more clarifications i woulda required, but if i could get answers to these two, i would be very grateful. thanks y’all:)
