I wanted to see what all the fuss was about forex.
So I opened 6 demo accounts. With 2000 dollar on each and using, 200:1 leverage on every one.
My criteria was to only buy currency pairs that are volatile, and then I added together all positive price trend increases for 1 month (using 1 hour interval), and then I divided the sum of all pips made by the number of positive price trends, to get the average increase every time it increases, so I know when I should liquidate my position, before the price trend levels off and begin to decrease.
I lost all my money on 4 of the accounts.
the remaining two accounts, one of the accounts currency pairs(aud/euro) increased from 0.622 to 0.625, before i liquidated, which is a 0.48% increase, but since i used 200 in leverage, it is a 96% increase.
however, the profit I made when it had reached 10%(with leverage) is 200 dollar, which i then reinvested into it, and using 200:1 leverage on, so I bought yet again currency worth 400 0dollar. And on the next 10 percent increase I made it resulted in a 220 dollar profit.
2000,2200,2420,2662,2928,3221,3543+3897+4714 and then 6% on 4714= 4996, however, I got 7852 because reinvested more frequently.
The other one, was nzd/gbp and it increased from 0.393 to 0.398= 1.27% and with 200 leverage=254%, and by reinvesting I got 46360 dollar.
4 loser, with 2000= 8000 losses, and one winners 7852+46360=54212
Net profit= 54212-8000=46212
Which is 461212/12000=3.851 And Iâm quite happy getting that during 40 hours.
No, idea, but I might just, have been lucky. However, I will try this with 10 000 dollar soon and see, because I donât want to stay awake for 40 hours again, with just virtual money.
However the strategy that I employed is not sustainable in the long run, since I exposed more than 2% of my money,and everyone know that a string of losses would wipe me out. However, I think this is a good way to get a good headstart, and as you increase your account value, you will expose yourself less.
Another queston one should ask oneself, is if I would benefit from concentrating on one currency pair instead, and learn insideout, and thus make better predictions, and trade 1250 dollar, after one another, rather than trading everything at one time like I did. However, using just one pair, would decrease my asset effeciency ratio dramatically, and I think a lot of people cant comprehend the importance being efficient with your assets, and reduce the timecycle.
If the time cycle takes half the time, your profit will be twice as much. Just something to think about =)
Where did you open demo accounts ?
How long do they let you practice?