This is an update to my earlier blog post regarding trading Forex. The post could be found: here. The trading was done using a demo account. When trading a new forex strategy, always use a demo account first. There are people who feels that trading a demo account is unlike the real thing as it doesn't take the human trading psychology into consideration. No real money is at stake here. However, think about it. If you are not successful trading a demo account, what's the chance of making money trading live? A demo account could actually boost your confidence in the trading strategy before going live. The difference between a demo account and live account is no real money is involved. Of course the broker may offer you $100k of play money to trade with. Always choose the amount that is closer to the amount you would trade with in real live. Take at least 100 demo trades following your trading plan before trading real money. Your trading plan should consist of your trading strategy and money management rules. You could also include stuff such as the time you would dedicate to trading per day/week, the currency pairs to trade etc.
My Trading Results
My Forex Trading results for the month of June is as follows. My account was up by $415.69. That's an increase of 3.95% for the month of June. Of course, that's not a stellar performance compared to what some gurus would like to tell you. I could trade higher lot size to boost my account faster. However, that would also mean larger draw downs if several trades go against me consecutively. Traders will need to mentally deal with losing trades and the feeling is different when the amount involved differs. I was only risking 0.5 - 0.7% of my account per trade.
I did a total of 25 closing trades during June. I have 2 open trades currently which should close next week. I trade 15 min charts and my trades are usually less than 1 day. I trade during US and London market opening hours. I do not stare at the charts whole day. When there's valid setup, I would place trades with stop loss and take profit price. If the entry price hasn't been reached, I would set price alert on my mobile to inform me when the price is hit. I may also set pending order. As could be seen from the screencap, not all my trades turn into winners. However, with the proper money management rules in place, my account still turn out to be profitable at the end of the month. I blogged about Money Management in an earlier post which could be found: here.
The table below is taken from Myfxbook which shows how risky is the way I trade. There is less than a 0.01% than my account size would take a 10% loss. It would take 24 consecutive losses to achieve that. I would continue to trade demo until 100 trades are reached. A sample size of 25 trades and 1 month's result is still insufficient to go live in my opinion.
P.S - Advertisers/Marketeers, please don't advertise your products/services on my blog without my permission. I will delete your posts.
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