Back to the demo account again, one more time, will it never end? Now I have four screens up, if you can believe it. I have the two software systems based on trends and signals, the Reuters RSS feed and the demo account. I have so much information coming at me constantly I am starting to feel like a computer myself. After a while I get used to it and it is really not that tough.
My trend software is telling me which way a currency has been moving and my signal software is telling me every time something starts to change. I quickly find out I need to adjust the signal software down, because it is sending out so many signals with every little change in the market that it is driving me crazy. After I make that adjustment the signals slow down and I am getting fewer of them. As soon as I get a new signal from the software on a currency I check Reuters to see if they have news feed for that particular country.
At this point I realize I can't concentrate on every currency that is traded and I need to narrow it down. I adjust the software to only process information on the US Dollar, the EURO, the Pound and the Yen. My information overload is decreasing as is my tension level. But, I am still not where I want to be. Now is when I start making a little money, but not enough. I am so close and of course I can't sleep, it is driving me crazy.
What else can I do? Next I start playing around with my Stop-Loss (SL) and Take-Profit (TP) percentages when I enter a trade. I might want a profit of 100% (your never going to get 100%, don't even think about it, this is just an example,) so I would put my SL at 50%. Or if I set my TP at 20% I might set the SL at 10%, 12% or 5%, whatever, you get the idea. Don't worry if you don't know what I am talking about, when you set up your demo account you will understand. This was finally the turning point; I am really starting to make good money with the demo account. Tomorrow the BIG TIME BABY, the real money account.
I don't even want to tell you what I do next, I really could not be this stupid, but I am. I search the internet for a brokerage firm that has really low Pip's which is how the brokerage firms make's money. In stead of paying them a commission on each trade you pay them a percentage of your trade. The higher the Pip rate the higher the commission. My demo account worked great, I have no idea why I changed. I set up my account with the new broker and fund it with $10,000. After a week I am up $3,000, not so bad. And then the big bang hits, where their stinking server crashes for fifteen minutes while I am trying to get out of a losing trade. I was only down $200 when I wanted out. By the time the blasted server gets rebooted I am down $5,000. What an expensive lesson, I really could not be that dumb and head back to my broker where I had the demo account. I never once had the server crash on me and after I returned I never looked back from there.
That's my story. The end! This is how I did it. I have never been able to make $50,000 a month like the first advertisement said I could. But, I have made enough to tell my boss to shove it and trade Forex for a living. Of course I learned a few other things along the way, like only trading when the markets at the most active and a few other little tricks. But, if you do what I did and refuse to give up, anybody with a reasonable intelligence can do it.
One really important suggestion to part you with and that is if you noticed I did not start trying to trade with real money until I was successful with the demo account. I think this is one of the most important factors of why I made it. It allowed to practice, learn and develop my own trading style until I really felt there was no way I was not going to make and did not feel the pressure of losing money that I would of felt had it been my own money.
William R. Alheim, Jr., CPA, MA - For More Forex Trading Secrets - Visit http://www.tradingforexreviews.com/ to learn more about this Forex brokers, systems and courses. Good Luck! I look forward to seeing you on the trading floor making money! |
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