So today I woke up, ate some food, turned on the computer, and nearly fell out of my chair. For those people that don’t know, yesterday I stated that I was Diving into Forex, and well.. I dove in pretty deep. At least I think I did. I am still a little unsure about what I am doing and how much money I actually used to get my results (I think I used the whole $50,000).
Just as a little reminder, the demo account started me with $50,000 and from there you can just see what the change as been less then a day. I made nearly $9,000, which is pretty crazy including the fact that I had no idea what I was doing when I made these purchases. I basically just made about 4 or 5 trades betting against the dollar, and in sight, with the current situation the US is in, it actually seems understandable. The trading platform (FXCM.com) I use has a pretty cool mode that spits out some nifty reports (Click here for a larger version of the following image)
Some of my first day thoughts include:
- Trading is pretty easy. You really only have a couple options; however, it is picking which options to follow which is hard to do.
- You can really make tons of money pretty quick, but unless you are 100% sure of what you are doing, then you can lose tons of money pretty fast.
- FXCM Trading Station II makes everything pretty easy, although it is the only one I have used.
So far I have made out that each option compares two currencies. For example, there is EUR/USD, which compares the Euro to the value of a US dollar. If you think the Euro’s value will becomes weaker compared to the USD, then you will choose the sell option; however, if you think the Euro will become stronger, then you will choose to buy the currency. That is pretty much the most simplest form of Forex. Next I will try to learn ways that determine changes in a currency.
Anybody else starting Forex or have any opinions about it?