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.
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.
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