Forex
Online Trading - an example of my trading
Displayed
below is a screen grab of my MT4 online trading platform showing
a typical days trading in gold (AU = gold verses the US dollar)
with the window set at five minute intervals (M5)
At
the moment, the price of gold is at a high so I tend to start
a trade when the price is high because there is usually some
profit taking during the day and the price will drop. So I
sell when it is high and buy when the price drops and earn
the margin.
However,
the graph below shows that I bought at $1428.31 at about 9am
(purple line) and then went out to do some gardening. I put
a limit on the trade to take a profit (T/P) when the price
rose to $1436.60 which was a pure guess on my part. At just
before 2pm (13:58) the traded price matched my limit and the
trade was automatically closed to give me a profit of $51.23
- nice! It was also satisfying to see that the trade was concluded
at close to the highest price - a rare event. Usually I could
have made more money if I had held out for a better price
but it is important not to be greedy and to be satified with
a profit.
About
4pm, profit taking had dropped the price well below the starting
price of the day so I guessed it would go up again as the
big traders balanced their books at the end of the trading
day.
So
I bought at $1424.30 and at the lowest size of 0.05 (in case
my reasoning was wrong) and after a few dips lower, sure enough,
the price started to rise and half an hour later sold at $1428.40
for a modest profit of $12.68. The price continued to rise,
then dip, then rise again so I could have made more but again,
you must not be greedy.
I
am a small player and risked $300 to start with. That was
doubled in the first month and the investment paid back so
all trading now is using profits. By trading well within my
limits it does allow for bad trades to be absorbed, which
everyone will experience sooner or later, and also allow for
trades to span over a few days while waiting for the market
to recover in your favour. A maximum trade size of 0.10 seems
to be well within my limited resources when I feel confident
about how the market will move and 0.05 or less at normal
times.
My
trading broker is Go Markets Pty. Ltd. of Melbourne which
complies with the strict Australian banking laws and has proved
to be most helpful and an excellent company to work with.
They use the MT4 trading platform which works well as a front
end.
For
Forex news and analysis I use FX
Street.com which provides more information than I can
possibly absorb with my amateur brain.
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hill of cash