Last year I had a go at trading currency, with mixed results. Its a potentially volatile area, so the experience was both good and bad.
It is very easy to make up to 10% on your investment in one day, however the converse is also true if you arent too careful, or have no stop loss in place.
The way I used it, if you currency increased by 3 pips (which is around .03 of a cent, or $.0003) then that would be about 1% return on your investment. To put things into perspective, the range of trading of USD/EUR on 29/12/2009 was from 1.4285 to 1.3930 then back up to 1.4179 towards the end of that day. Using the Start of day to the bottom of trade that day is a change of $.0355, which if you picked the high and low right would get you is a very good return. Days vary in volatility, this was a volatile day. ( Bear in mind no one picks the tops and bottoms perfectly)
My experience with this was that I doubled my money in the space of a few months, then got too aggressive and basically saw most of it go away. Thankfully I only invested $150 at the time so I could experiment, it was no great loss.
I would be really interested to hear if anyone else has tried currency trading and would like to hear their experience. If you had trading experience in another field I would be interested as well, but I would like to focus on currency in this thread.
Points to think about re- currency trading.
- You can make money both in an upward direction and downward direction so you arent locked into upward movements only.
- There is massive amounts of liquidity in the system so you wont ever be caught trying to sell with no buyers available.
- Currency trading works day and night, round the clock. You can trade any time ( although it closes for some time over weekends).
- There are stop losses available to help with money management.
- It is extremely volatile depending on the leverage you selected for your account.
- If you are not careful, money will be lost very quickly.
I have included a graph of the USD/EUR trading range to show you the potential.
It is very easy to make up to 10% on your investment in one day, however the converse is also true if you arent too careful, or have no stop loss in place.
The way I used it, if you currency increased by 3 pips (which is around .03 of a cent, or $.0003) then that would be about 1% return on your investment. To put things into perspective, the range of trading of USD/EUR on 29/12/2009 was from 1.4285 to 1.3930 then back up to 1.4179 towards the end of that day. Using the Start of day to the bottom of trade that day is a change of $.0355, which if you picked the high and low right would get you is a very good return. Days vary in volatility, this was a volatile day. ( Bear in mind no one picks the tops and bottoms perfectly)
My experience with this was that I doubled my money in the space of a few months, then got too aggressive and basically saw most of it go away. Thankfully I only invested $150 at the time so I could experiment, it was no great loss.
I would be really interested to hear if anyone else has tried currency trading and would like to hear their experience. If you had trading experience in another field I would be interested as well, but I would like to focus on currency in this thread.
Points to think about re- currency trading.
- You can make money both in an upward direction and downward direction so you arent locked into upward movements only.
- There is massive amounts of liquidity in the system so you wont ever be caught trying to sell with no buyers available.
- Currency trading works day and night, round the clock. You can trade any time ( although it closes for some time over weekends).
- There are stop losses available to help with money management.
- It is extremely volatile depending on the leverage you selected for your account.
- If you are not careful, money will be lost very quickly.
I have included a graph of the USD/EUR trading range to show you the potential.
Last edited by Burwhale the Avenger (2008-12-30 21:04:14)
