finance

Foray into Forex

Before you begin: this is for entertainment purposes, Forex is a risky market and if you loose any amount of money based on something you read here,you are on your own.

I had been playing around with the fxcm practice forex account for about a month, they give you 5,000 in fake money and in that month I made 15,000 in profit so I thought it was time to take the plunge and start investing real money. So yesterday I opened a mini account with the minimum $300. I didn’t want to put too much into it since this was my first time and that was both a blessing and a curse.

I short sold usd/jpy and bought eur/usd and got knocked around big time. You could make some good money starting with only 300 in your account but it is really hard because one you have to trade small amounts to not risk a margin call when a large unpredictable change happens so forget long term trading with only 300 dollars. Based off my trading so far, I would say to have a minimum 100 dollars for every 10 dollars you trade. Otherwise you are going to be annihalated by one erratic shift in the short term market.

I f you are interested in trading forex, before you start an account definitely go through the entire “school” at babypips.com and trade with a practice account for at least a month before opening a real account. Also be sure to have a large amount of disposable cash you can commit before beginning otherwise you are just going to be throwing away money.