Hey guys,
Just wanted to let you guys know that I’ve started to trade FX demo with Oanda, I’ve added a widget on the side bar to show my progress. If you actually click on it and go to myfxbook.com to see the full profile page of the demo account. You’ll notice that I have fucked up stats LOL. Because the first couple days, I was purely messing around with it. Like adding 1,000,000 or 10,000 then changing the starting balances after every trade. That’s why the profile page has huge numbers. But the widget chart shows actual performance though. I’m sticking with the $500 starting amount (that’s how much I plan to deposit). The leverage I’m using is 50:1 with 10 pip SL (stop loss). I haven’t really figured out TP (Take profit) points yet, that has to do more with my RR ratio (Risk-reward). I guess that’s my main problem right now, the newb inside me along side with greed is making me wawnt to leave trades open ended. But I would guess the nice way to make it though is 1:2 risk:reward meaning 10 pip SL: 20 pip TP.
At 50:1 leverage, I’m playing at $1/pip so given the 1:2 RR that’s risking $10 to make $20. Provided I actually win my trades instead of losing $10 each trade like I am right now.. LOL. I shouldn’t really do this, but it’s not surprising either though. But I’d suspect within the first 2 weeks to a month. Most newbs wipe their FX account because everything is so fast. I expected things to be fast but trading Binary Options vs actual FX have totally different feelings to me. I wasn’t quite in the right mentality yet. If I happen to wipe the $500 this round, I’ll just top up and try again until I’m successful. Which leads me to the conclusion of this demo account.
Oanda says that their demo accounts never expire, which I hope shouldn’t be a problem since I’ve already opened up an FX account with them, just haven’t deposited yet. So, there’s no time limit for me trying to get my skill level up. But the goal would be reach a consistency of 20 pips a day after about 2 months of doing this. I should be around $1300 in the demo account, $800 gain. But even after that time, it’ll be mid summer for me, I haven’t quite decided what courses I plan to take this summer yet but depending how the courses run (either half summer or full summer) I may or may not be able to trade properly. Because I’d rather focus on school (as seen from my recent absence).
The other option is just to fund the account now, then trade micro lots at 0.01 lots which would be 10 cents/pip given 50:1. O yes, I should get into the details properly, so I’ll summarize everything below for the newbs who don’t know how FX works. Two weeks ago, I was completely lost. But I got Geoffrey to help me out (his FX trading blog: http://gtfxtrader.blogspot.com/)
Summary of what I’m using. The independent variable is 50:1 leverage.
FX is traded in “lots” of various sizes, you can buy as many lots of whatever sizes you want with Oanda since they provide all 3 types. Just do the math based on the spec’s below.
Lot sizes: Normal (1) = $10/pip Mini (0.1) = $1/pip