Case Study: My Adventures in Forex Trading (Update: 10/09)

Posted by Dustin 18 October, 2009

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My last Forex update was in April. I had recently transferred our account from a US based branch of FXCM to the UK office. The US government changed the laws and that basically took away a lot of the advantages of Forex. If you’d like a more detailed explanation, I please e-mail me and I can direct you to a more knowledgeable person.

Given the interruptions, we (my wife and I) have been actively Forex trading for a little under 5 months, but we’ve been very happy with the results.

Please take a look at past Forex updates to get an idea of the beginning of our journey.

· 1/15/09: Balance: 15,485.80 Equity: 13,530.00

· 2/16/09: Balance: 16,768.40 Equity: 13,981.30

· 3/16/09: Balance: 17,971.20 Equity: 15,116.20

· 4/16/09: Balance: 20,341.88 Equity: 18,171.08

When you look at the past articles, you will see that there is mention of a demo account. Unfortunately, the transfer of our account from the US to the UK resulted in the demo account evaporating so I will not be reporting on those results going forward.

My strategy - correction - my mentor’s strategy, is that I read the charts before I go to bed, when I wake up, and when I get home from work. I read the charts at those times and put trades in from what I see. I’m not an active trader, per se, because I simply choose entry and exit points based on the charts. Basically, I make my money when I’m asleep or when I’m at work. I put in as much as 10 minutes and as little as a few minutes into Forex trading each day. The key for me is to be consistent and not greedy. Instead of going for the home run trade, I go for lots of base hits.

In the last month, my wife and I started to become serious about Forex trading and decided to put more money into our account because of past performance success.

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If you look at the beginning balance and deposit, you can see that we made a significant addition to our account. This addition is what enabled us to do as well as we started doing in terms of profit this month: $1,375.80 ($2,974.40 in total earnings).

Forex is a great market because you trade based on margin, however that same margin can also get you into trouble very quickly. It’s really important to have a good margin percentage. I know it’s difficult to get a perspective on what I’m talking about, but basically you want a really high margin percentage. My current margin percentage is at 98.85%. You want to make sure it’s above 90%. We were able to make more money this month than in any previous month because we have more money in our account. This gave us a higher margin percentage given our trading level, giving us the ability to trade more units. Yes, I know this may seem very confusing, but stay with me. The more money I have available to keep my margin percentage, the more units that I can trade which means I can essentially make more money and take on the same amount of or less risk if I choose.

Photo by: Kevin Dooley


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Comments
November 19, 2009

Hey Dustin, I’m am so glad that I came over tonight to read your post. I have been reading a little bit of info. here and there about Forex and want to know more about it, and maybe even invest a little into an acct. But I would like to have an mentor like you have. I’m going to check out your mentor post a little later and see if you give an info on finding a good mentor. I do have a financial adviser so maybe I can get in touch w/her. You have a great blog here. Thanks for the info. jj

Posted by jj-momscashblog
January 7, 2011

Nice account collect about forex
trading.Amazing information about it in this post.Thanks……..
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