100% newbie to Forex. Puzzled.

[not gandhi]

Hi, nice to "meet" you all.

As per thread's title, I am a complete newbie to forex trading.

Now.. I had this normal saving account - not a trading account - and for an emergecny, I had to change a considerable amount of money from EUR to USD. I placed an order, and bought USD at the rate the bank offered, I can't remember but let's say 1.16. Done.

However, that emergency dissipated, and now I had USD to change back to EUR. I noticed my bank had a tool to place an order that would be executed only meeting a given rate requirement, so I set it to 1.17, just for the sake of it. The requirement was met within the next 7 days, and boom - I made 1k EUR from... a mistake of sorts.

So I am wondering - Can I just go back and forth setting such orders and selling and buying as certain rates are met, and maybe make something a week, then skip one, then make a bit more 10 days later, and on and on? Or am I missing something? Seems to good to be true.

Thanks for any insight you have to share.

 

[Enivid]

Yes, you can certainly do that. Things to consider:

1. Trading in such a way, you do not use any leverage, you just trade with your funds.
2. You get the actual delivery of currency (unlike spot Forex trading).
3. Depending on how your bank operates, you might miss your sell/buy point if your bank happens to be closed at the time the ordered price level is reached.
4. The biggest catch: your commission/spread is probably exorbitant compared to what retail traders pay normally when trading via online brokers.

Good luck with your trading!

 

[jellyeb]

Hi, nice to "meet" you all.

As per thread's title, I am a complete newbie to forex trading.

Now.. I had this normal saving account - not a trading account - and for an emergecny, I had to change a considerable amount of money from EUR to USD. I placed an order, and bought USD at the rate the bank offered, I can't remember but let's say 1.16. Done.

However, that emergency dissipated, and now I had USD to change back to EUR. I noticed my bank had a tool to place an order that would be executed only meeting a given rate requirement, so I set it to 1.17, just for the sake of it. The requirement was met within the next 7 days, and boom - I made 1k EUR from... a mistake of sorts.

So I am wondering - Can I just go back and forth setting such orders and selling and buying as certain rates are met, and maybe make something a week, then skip one, then make a bit more 10 days later, and on and on? Or am I missing something? Seems to good to be true.

Thanks for any insight you have to share.

Unless you don't trade with leverage its completely safe since you don't bear any losses until you complete an exchange (two rounds EUR-USD and then USD-EUR). As Enivid mentioned bank spreads can be predatory like one or two cents (not pips) so I'd advice you to try brokers on your local exchange which also offer currency trading with actual delivery.

 

[Lesiro]

Very interesting! One problem with this is, if the rate doesn’t go to what you have set, it may go even below your purchase rate. Then, you would simply lose the entire amount you gained. The other point is, traders operate and try to gain from the smallest of swing. So, swing from 1.16 to 1.162 would be a great profit, 1.158 could trigger a stop loss.

 

[KASHIF 007]

Hi, nice to "meet" you all.

As per thread's title, I am a complete newbie to forex trading.

Now.. I had this normal saving account - not a trading account - and for an emergecny, I had to change a considerable amount of money from EUR to USD. I placed an order, and bought USD at the rate the bank offered, I can't remember but let's say 1.16. Done.

However, that emergency dissipated, and now I had USD to change back to EUR. I noticed my bank had a tool to place an order that would be executed only meeting a given rate requirement, so I set it to 1.17, just for the sake of it. The requirement was met within the next 7 days, and boom - I made 1k EUR from... a mistake of sorts.

So I am wondering - Can I just go back and forth setting such orders and selling and buying as certain rates are met, and maybe make something a week, then skip one, then make a bit more 10 days later, and on and on? Or am I missing something? Seems to good to be true.

Thanks for any insight you have to share.

Right

Hi, nice to "meet" you all.

As per thread's title, I am a complete newbie to forex trading.

Now.. I had this normal saving account - not a trading account - and for an emergecny, I had to change a considerable amount of money from EUR to USD. I placed an order, and bought USD at the rate the bank offered, I can't remember but let's say 1.16. Done.

However, that emergency dissipated, and now I had USD to change back to EUR. I noticed my bank had a tool to place an order that would be executed only meeting a given rate requirement, so I set it to 1.17, just for the sake of it. The requirement was met within the next 7 days, and boom - I made 1k EUR from... a mistake of sorts.

So I am wondering - Can I just go back and forth setting such orders and selling and buying as certain rates are met, and maybe make something a week, then skip one, then make a bit more 10 days later, and on and on? Or am I missing something? Seems to good to be true.

Thanks for any insight you have to share.

 

[KASHIF 007]

Thanks

Hi, nice to "meet" you all.

As per thread's title, I am a complete newbie to forex trading.

Now.. I had this normal saving account - not a trading account - and for an emergecny, I had to change a considerable amount of money from EUR to USD. I placed an order, and bought USD at the rate the bank offered, I can't remember but let's say 1.16. Done.

However, that emergency dissipated, and now I had USD to change back to EUR. I noticed my bank had a tool to place an order that would be executed only meeting a given rate requirement, so I set it to 1.17, just for the sake of it. The requirement was met within the next 7 days, and boom - I made 1k EUR from... a mistake of sorts.

So I am wondering - Can I just go back and forth setting such orders and selling and buying as certain rates are met, and maybe make something a week, then skip one, then make a bit more 10 days later, and on and on? Or am I missing something? Seems to good to be true.

Thanks for any insight you have to share.

Very interesting! One problem with this is, if the rate doesn’t go to what you have set, it may go even below your purchase rate. Then, you would simply lose the entire amount you gained. The other point is, traders operate and try to gain from the smallest of swing. So, swing from 1.16 to 1.162 would be a great profit, 1.158 could trigger a stop loss.[/QUOT thanks

 

[jellyeb]

Hi, nice to "meet" you all.

As per thread's title, I am a complete newbie to forex trading.

Now.. I had this normal saving account - not a trading account - and for an emergecny, I had to change a considerable amount of money from EUR to USD. I placed an order, and bought USD at the rate the bank offered, I can't remember but let's say 1.16. Done.

However, that emergency dissipated, and now I had USD to change back to EUR. I noticed my bank had a tool to place an order that would be executed only meeting a given rate requirement, so I set it to 1.17, just for the sake of it. The requirement was met within the next 7 days, and boom - I made 1k EUR from... a mistake of sorts.

So I am wondering - Can I just go back and forth setting such orders and selling and buying as certain rates are met, and maybe make something a week, then skip one, then make a bit more 10 days later, and on and on? Or am I missing something? Seems to good to be true.

Thanks for any insight you have to share.

Long term investments are best strategy to beat the market. In this case psychological pressure is something you can easily avoid since you set long term targets and don't pay attention to wild intraday swings

 

[Ary Barroso]

Hi, nice to "meet" you all.

As per thread's title, I am a complete newbie to forex trading.

Now.. I had this normal saving account - not a trading account - and for an emergecny, I had to change a considerable amount of money from EUR to USD. I placed an order, and bought USD at the rate the bank offered, I can't remember but let's say 1.16. Done.

However, that emergency dissipated, and now I had USD to change back to EUR. I noticed my bank had a tool to place an order that would be executed only meeting a given rate requirement, so I set it to 1.17, just for the sake of it. The requirement was met within the next 7 days, and boom - I made 1k EUR from... a mistake of sorts.

So I am wondering - Can I just go back and forth setting such orders and selling and buying as certain rates are met, and maybe make something a week, then skip one, then make a bit more 10 days later, and on and on? Or am I missing something? Seems to good to be true.

Thanks for any insight you have to share.

Hello, what’s your current status of trading? Till now demo or already started your live?