Forex trading €100 to €1500 in 10months

freeze4real

Hello guys I have just started trading recently and I thought I should Have my portfolio here.
I am using Avafx as my broker and I am I think there service is good. Commission fees are low, in my case it's just below 40cent.

I opened my account on the 20 of December 2010 and I funded €100.

Initially I had th intention if trDing contract for difference but I realized that that €100 is not enough to do that.

So I've started trading forex.

1st Week of trading I made this mistake ehh h is going into foreign water basically I bought eur/usd instead of selling it and I was down by 25%.
I learnt my lesson and I've done a but if reseach into how the ford markets works and also keep being update with news and everything.

Right now I've made 50% if my initial deposit.
My plan is to make €5 a day x 30 = €150 a month. Lol.

I'm trading now not as a mean of income but as a hobby.

I'll update this thread every 2weeks to see where am at.


Thanks.

Mr_Roger_Bongos

I'd recommend spending some time on the demo account avafx offer, maybe with a bigger float to let you make a few mistakes while getting more familiar with the platform.

I'd also recommend a visit here;
Babypips

Newbie Island.

Read as much recommended literature as you can get your hands on.

Your target of a 1500% return is quite ambitious by alot of standards, but best of luck!

freeze4real

I've already done all of that.

The demo account had loads of flaws. It having $100,000. With €100 I haleays had the sense of urgency it of being alert that I could loose almost all ly money because of the fact that my margin was low.

With a demo account it's not the case. You could purchase over 100000 of what you're buying and you could make your money back by leaving it in a day or two till the price Is in your favor.

Thanks for the advice

Timmaay

What ya do is blow most the 100,000 in the demo account till you are down to 100! Then try work your way up. I've done that once or twice, good way to learn!

freeze4real

Timmaay wrote: »

What ya do is blow most the 100,000 in the demo account till you are down to 100! Then try work your way up. I've done that once or twice, good way to learn!

i did that actually... i played with 10,000 which i lost then made it back.

At the moment i am reading babypips and aussiestock forum.

DC09

Good luck with it, would like to hear how that turns out!
Heard good things about the Canadian $ if it helps;)

freeze4real

DC09 wrote: »

Good luck with it, would like to hear how that turns out!
Heard good things about the Canadian $ if it helps;)

Thanks for the tip.

I'll keep you posted.

Timmaay

freeze4real wrote: »

My plan is to make €5 a day x 30 = €150 a month. Lol.

5euro on average? Do you start out trading until you make the 5quid every day and stop then? What do you set your stop loss at, and say if you have a bad day and loose 20quid, do you have to make 30quid the following day to keep up with your target?

freeze4real

Timmaay wrote: »

5euro on average? Do you start out trading until you make the 5quid every day and stop then? What do you set your stop loss at, and say if you have a bad day and loose 20quid, do you have to make 30quid the following day to keep up with your target?

Nice questions.

Like I said I am not trading to make a living or that's not my purpose for trading.

If I'm at a position that I'm making over €5 at a trade I cab do whatever I would like but greed wont dominate my thinking.

Yes I've had a bad day infact it was my 3rd trade and I lost 21.45. I did loose that because I'd set my stop lose at the wrong place. I use stop losses only when I'm trading at high volumes e.g. 5000 remember I have only €100.

Yes I will have a bad day but I won't lose focus.

Lost trades to me are what economists call sunk costs and I view them that way.

I have more than 30quid to keep me going right now the balance in my account is €213.25.

I'm in not in a race my target is 10months and if it takes a little longer than 10months so be it.

Thanks for the question.

Timmaay

Yeh, thats what I found, and to be honest its nearly impossible to have a set target of the likes of 5euro a day. The age old saying is cut your looses, and let your winners run! I think its more important to have a definitive stoploss for the day, where if you go below this, simple as is you stop trading for the day and look at your trades and why they went wrong. And then whatever you do don't go in bullish the next day saying right I'm going to make all that back, you will make irrational trades to try and make back more then you can.

But yeh, believe me its a long road, and if you end up loosing all the 100euro, but learning alot about what trades you placed, why you placed them, what went wrong, etc etc, then it will have been 100quid well spent! So keep up the blog disregardless of how you are doing please!

freeze4real

Timmaay wrote: »

Yeh, thats what I found, and to be honest its nearly impossible to have a set target of the likes of 5euro a day. The age old saying is cut your looses, and let your winners run! I think its more important to have a definitive stoploss for the day, where if you go below this, simple as is you stop trading for the day and look at your trades and why they went wrong. And then whatever you do don't go in bullish the next day saying right I'm going to make all that back, you will make irrational trades to try and make back more then you can.

But yeh, believe me its a long road, and if you end up loosing all the 100euro, but learning alot about what trades you placed, why you placed them, what went wrong, etc etc, then it will have been 100quid well spent! So keep up the blog disregardless of how you are doing please!

Thanks for the advice. I'll post my mistakes profits and losses and I'll be 100% honest.

rugbyman

enjoying this thread.
to me the UK/EU exchange rate is my concern.

About a year ago i asked on another forex thread on Boards, what were the world shaking events that caused such a movement on Uk/EU on that week.
Nobody answered.


Over the last ten days the rate of 1.18 which had been steadyish for a few months dipped to 1.165 and has now shot to 1.12+ within seven days.

thats a difference of 400 euro on 10k stg.

can anyone show me what major events this week caused this sharp movement, either the approx 2% fall or the subsequent approx 4 % rise.

many commentators .in the media have predicted that the Euro will fall this year, and some on these pages today have echoed this, but the last three days rise ?

Regards, Rugbyman

digitally-yours

best wishes to you op.
I would be very careful with stop losses.

what Risk reward ratio are you using ? 1:1
also what's your leverage ?

loss of 21.45 for 100 euro account sounds big to me.
as long as you know what you are doing that's fine . its your money at the end of the day.


Rugbyman

I think Euro has more downside its not oversold yet.as in relation to news.... most pro traders I know don't give a damn about news.

all they know is technical and price movement.

arrowloopboy

Freeze,

You should never ever loose 25% of your acc on 1 trade,2%max,(if not your title could read from 100 to 0 in 4 trades)you need to learn some m/m.
Visit the forexfactory.com ,its a forex forum,the best one out there,head for the rookies section for any questions you have.

To be successfull forex trader,you need a system,an edge,a system that leaves nothing to you ,except pulling the trigger.

You need a pre defined entry ,s/l and t/p when your system tells you to trade.

If you have tested your system enough ,you should know wheather it has an edge or not,if it has,plan your trade and trade your plan.leave nothing to your emotions.

Read Trading in the Zone by Mark Douglas.

If you continue to experience 25% drawdowns on single trades you wont have much to report on in a fortnight;).

The fact that most traders cant consistantly make 1 pip a week over time ,should tell ya something.

I was you 3 years ago,youll probably blow this acc,then another.then give up......................or go back to the drawing board,realise how dumb you were,educate yourself,define a system that works for you,trade like an emotional robot,and consistently bag them pipps.

I started trading a new system a month ago(a modified old system of mine) i've bagged 1100 pipps since then,last week being my worst ,with a late sell friday evening on cable bagging me 70 pipps.I'm happy:D.

Good luck,youll need it.

ViDuchie

I keep on hearing about using demo accounts. Really they are not worth a huge amount of time and effort, mainly because there is no emotion involved in trading with demo funds. There are some advantages, as in, if you can't successfully trade a demo then there is no point on moving onto a real account. But a successful demo trader does not equate to a successful real money trader.

Also what you are trying to achieve is quite difficult. A 150% ROI month on month would make you a legend amongst traders. It is of course possible, but difficult.

Bernie Madoff was generating a return of ~1% per month for his clients and people were flocking to give him money. i.e. 1% is good, but boring

You could also take on board that if you were looking to make €5 Euro a day with your initial equity of €100 (5% ROI p/d). Then at the end of month 1 you could have doubled your money. I'm considering that you would be trading mon-fri when most liquidity is in the markets, about 20 days a month.

Now if everything went very well on month 1 and you did double to €200. Then you can increase your Lot size to take into account the new balance and look to make €10p/d. Compounding your returns.

This all looks grand in theory.


One thing that is glaringly obvious is that you are risking too much per trade already. A 25% loss on a single trade should ring major alarm bells for any investment strategy. You should be looking at a MAX loss on any trade of 2.5% - 3% of your balance. Anything more and it is to me more like gambling.

My feeling is that most new traders see this and then cringe because it suddenly takes what they thought was an exciting way to make money and dampens that down where risk/reward ratio limits profits. It will however save your account from burning out.


My Best tips:

• Always use money management ( 2-3% loss per trade )
• Always use STOPS & NEVER EVER EVER Move them where you can increase loss
• Decide on your entry/exit strategy and stick to this
• Don't let boredom force you into a trade
• Leave your emotions at the door and don't let it influence your trading decisions.
• NEVER MOVE YOUR STOPS

Oh. 1 more thing. Sign up to myfxbook.com and have your metatrader publish your results there. It generates lots of interesting stats. Including Risk of Ruin

V

Mr_Roger_Bongos

ViDuchie wrote: »

My Best tips:

• NEVER MOVE YOUR STOPS

Oh. 1 more thing. Sign up to myfxbook.com and have your metatrader publish your results there. It generates lots of interesting stats. Including Risk of Ruin

Gonna check out myfxbook, thanks for the tip!

Just on the stops, surely you move a stop to lock some profit in while letting a trade run?

ViDuchie

Yep, trailing stops are fine. I think I said never move a stop to a position where you can increase your risk/loss.

freeze4real

Thanks for the suggestions guys,

I will try to Sign up to myfxbook.com asap.

ViDuchie

When you do sign up, add your widget to your signature. See widgets on the top Right of the screen in myfx. Or let us know how you are getting on. You can publish your full account history on myfxbook or lock down certain aspects. Great site and you can add multiple brokers accounts.

Sure any questions drop em here.

V

freeze4real

ViDuchie wrote: »

When you do sign up, add your widget to your signature. See widgets on the top Right of the screen in myfx. Or let us know how you are getting on. You can publish your full account history on myfxbook or lock down certain aspects. Great site and you can add multiple brokers accounts.

Sure any questions drop em here.

V

how do I use myfxbook.
I have already registered but it seems my trading account has been linked.
it has been saying pending for the past day or two .

ViDuchie

There must be something wrong with the setup.

Check all your steps here. Make sure you have correct account numbers etc.

http://www.myfxbook.com/help/connect-metatrader-publisher

Also you will have to have Metatrader 4 open in order for it to report.

freeze4real

I don't use metatrader.

ViDuchie

oh

You should. It's very good. Download it from AVA and you can connect using your account # & password if your account allows.

ViDuchie

actually, how do you trade without it?

Do AVA have a web interface?

freeze4real

ViDuchie wrote: »

actually, how do you trade without it?

Do AVA have a web interface?

I use avatrader on my pc and iavatrader on my iPhone.

freeze4real

It has been a hell of a week.

It seems I haven't been listening to alot of the advice given to me about stop losses money management etc.

The balance on my account reached 307.45 ( not sure about the cents). I w t ling selling eur/aud but it moved over 120 pips against my favor.
Emotions got the better of me this is a mistake traders always fall into, so I left it open. I could have closed it at a loss of €20. But instead at a loss of €54.

leaving this position open lead to more losses. I had 3 other positions open at a loss if €33. altogether but I was forced to close all of them because of the reduced balance in my account.

Right now the balance in my account is €220. €307 - €220 = €87

What a loss!!!!

So this is were I'm at..

It's a completed disaster which I could have prevented and it could have gotten much more worse.

ViDuchie

Sure it's the same in everything and I'd be guilty of it too.

Even if someone tells you the pitfalls, you tend to ignore them until you make the same mistakes yourself

Start off fresh, and don't chase your losses. Don't let it be a pure gamble.

Timmaay

freeze4real wrote: »

It's a completed disaster which I could have prevented and it could have gotten much more worse.

Nay, keep your chin up, think it as an 87euros well spend on a real life lession of the importance of keeping your money management and emotions in check! As Viduchie said, don't let it both you too much, you are still up 120euros from when you started, and once you don't go chasing your losses you can bounce back from this.

arrowloopboy

freeze4real wrote: »

Hello guys I have just started trading recently and I thought I should Have my portfolio here.
I am using Avafx as my broker and I am I think there service is good. Commission fees are low, in my case it's just below 40cent.

I opened my account on the 20 of December 2010 and I funded €100.

Initially I had th intention if trDing contract for difference but I realized that that €100 is not enough to do that.

So I've started trading forex.

1st Week of trading I made this mistake ehh h is going into foreign water basically I bought eur/usd instead of selling it and I was down by 25%.
I learnt my lesson and I've done a but if reseach into how the ford markets works and also keep being update with news and everything.

Right now I've made 50% if my initial deposit.
My plan is to make €5 a day x 30 = €150 a month. Lol.

I'm trading now not as a mean of income but as a hobby.

I'll update this thread every 2weeks to see where am at.


Thanks.

I take it you didn't take the m/m advice you were given,and subsequently got raped ?

freeze4real

arrowloopboy wrote: »

I take it you didn't take the m/m advice you were given,and subsequently got raped ?

you're absolutely right mate and I'm not going to deny it.
I had a good 2 weeks but it didn't go my the third week. I made some mistakes, plus i got more greedier:o then as a bonus got surprise from my broker.

I still have some of my money but not 100% have stoppedv trading for 2weeks now but I'll start soon enough.


Yea I got raped, but it was a good experience.

Timmaay

Well done for coming back and admitting your mistakes, I had thought this was another thread where the OP had lost all and ran away with his tail between his legs never to be seen again :P

I'll restate what I said before, everyone makes these mistakes and the big thing is to learn from them and stay positive, if you learn from your mistakes then small losses are only money well spend on real life lessons in trading!

I am certainly still learning also at the minute. I only started day trading again after a long break 3wks ago and am down about 3% of my capital, some of from bad trades that I should not have got into and others from me not understanding my trading platform, and like you I have stopped and am reviewing what I did and how to correct those mistakes.

Munkybutler

Hi, I am just getting into fx trading, I've been studying for 3 months on babypips.com and have been tinkering with the demo account. Do AVAFX allow you to trade custom lots, i.e. 10cents per pip etc.

My plan is to deposit 1000 euro when I am ready and risk no more than 2% of my capital per trade.

So I just wanted to know if AVAtrader allows custom lots.

Thanks!:D

ViDuchie

Yes they do.

What you are referring to is Micro lots or 1000 units of the base currency.

So for example 5pip gain at 1 Micro lot on EUR/USD will be $0.50 in your bank.

Thargor

Does anyone here do FOREX trading for a living?

digitally-yours

I trade for living and have been since last 2 years and know lots of other people who also earn a living from forex

I think the op got wiped because of money management as I said on the first page. Always remember LOOSING is the part of the game in forex . No trader wins 100% of the trades. Just learn from mistakes and move on . Trading is can be very difficult because some times it's hard to challange your own opinion and see what the Market is telling you.

I know people who make serious serious money trading forex and they have spent years mastering the method.


At the end of the day what counts is the following

>screen time You got to allow your eyes get used to watching the price action

>never second guess the Market

> there is no holy grail indicator out there which will give u keys to riches. It all rests in your head how you read charts and pick trades and it's not something that can be transferred easily.