Okay so a few days ago I deposited $10 into a Forex Micro account with FXOpen. This is an experiment to familiarize myself with Forex and develop a strategy to trade successfully.
For those who don't know what Forex is, it stands for Foreign Currency Exchange. It is much like stock trading except that you trade on the short term (daily, minutely, etc), you trade with leverage, and you are basically pitting one currency against another.
The fundamental idea of Forex is that it sets the value of currencies worldwide. If you think the US Dollar is going to fall in price compared to say the Euro, you would open a position (basically a share in stocks) in the EUR/USD pair. If you are correct and the Euro become worth more Dollars, then you make a profit.
So anyway, the idea is that you develop a strategy for Forex trading that allows you to consistently be right about prices. This does not mean a 100% win rate, but it does mean that you make more profit than losses.
I started with $10 USD but unfortunately thanks to an "Expert Adviser" (basically a forex robot.) I was down to $6. I have managed to get myself back up to $8 and am currently at $7 due to some really screwed up trades today. I currently have an open position in AUD/USD currency pair and am hoping for a 50 pip (which would be 50 cents on my micro level) gain.
So there it is. I will update this as much as possible to let you know my current situation and my daily Profit/Loss spread.
Thanks for looking,
Tyler
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