G'day everyone,
I have always been interested in the Exchange Market and I first got into Forex about a year ago. I used a demo for a little while and read up on a lot of pages, sifting through all the hype and crap, I used the 1-5min TF and found it was way too fast, screw this scalping business, I turned to the daily time frame and saw I could get a much clearer picture.
I then opened a tiny live account with $200 and a leverage of 100, which I managed to keep that account for about 2-3 months before blowing it. Now, I thought that was pretty good as I got to experience the fear, greed and all the emotions I hear about that I never got with the demo account. I took it as a lesson. So I did a little more reading and shortly after I opened another $200 account, this one did not last as long, I feel I was a little impatient as well as I was trying to trade Xau.
Since then I have been in between moving and I have not been able to set up properly or have the internet available. I still followed the price on the news though. Now I am ready to start again, although this time I would like to do it differently. I know I have a better understanding now and I have a lot more patience instead of just seeing dollar signs in my eyes. I still have a lot to learn though.
Anyhow, I was thinking about not using any leverage this time and I will only be sticking to the AUD. Gold will be the far future once I have more money.
I was never the best at math, my strong suit was art and music. So I would like a little help with something..
Say I deposit $1000 using no leverage and I buy AUD/USD at 1.00 that would give me 1000 units of the currency, the AUD then rises to 1.05 over the next week or so.
would the correct formula be:
1000x1.05
= 1050
I make $50 profit?
And in order to lose all my money the dollar would have to drop to 0. meaning if it goes down I can hold onto it until it comes back up because I wouldn't get a margin call?
Am I on the right track? I feel as if leverage, even 25 or 50 is for someone with a much higher capital to withstand all the drops.
I have always been interested in the Exchange Market and I first got into Forex about a year ago. I used a demo for a little while and read up on a lot of pages, sifting through all the hype and crap, I used the 1-5min TF and found it was way too fast, screw this scalping business, I turned to the daily time frame and saw I could get a much clearer picture.
I then opened a tiny live account with $200 and a leverage of 100, which I managed to keep that account for about 2-3 months before blowing it. Now, I thought that was pretty good as I got to experience the fear, greed and all the emotions I hear about that I never got with the demo account. I took it as a lesson. So I did a little more reading and shortly after I opened another $200 account, this one did not last as long, I feel I was a little impatient as well as I was trying to trade Xau.
Since then I have been in between moving and I have not been able to set up properly or have the internet available. I still followed the price on the news though. Now I am ready to start again, although this time I would like to do it differently. I know I have a better understanding now and I have a lot more patience instead of just seeing dollar signs in my eyes. I still have a lot to learn though.
Anyhow, I was thinking about not using any leverage this time and I will only be sticking to the AUD. Gold will be the far future once I have more money.
I was never the best at math, my strong suit was art and music. So I would like a little help with something..
Say I deposit $1000 using no leverage and I buy AUD/USD at 1.00 that would give me 1000 units of the currency, the AUD then rises to 1.05 over the next week or so.
would the correct formula be:
1000x1.05
= 1050
I make $50 profit?
And in order to lose all my money the dollar would have to drop to 0. meaning if it goes down I can hold onto it until it comes back up because I wouldn't get a margin call?
Am I on the right track? I feel as if leverage, even 25 or 50 is for someone with a much higher capital to withstand all the drops.