What's the catch?

Discussion in 'Newbie Questions' started by FX-Trader, Mar 15, 2018.

  1. FX-Trader

    FX-Trader Newbie

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    Hello everyone.

    I have been interested in trading for a while and decided to give myself about a year to learn before I put any real money in it.

    While I am buying books and courses online to study, I came across few apps which let you try trading with virtual money. I started with $1000 and 2 day later it stands at $1136.

    So I thought, assuming that on a real account, the spread will be deduced, this still is a a good amount for someone who isnt even using any analysis for making trades. All I did was, checked the average EUR-USD rate(1.23-1.25) and when it reaches towards either of spectrum, I buy/sell. I was able to make anywhere from $1 - $17 per trade. This looks too simple. Also you may say that this is just a fluke and you may lose in the long run but I think the rates at which I buy or sell is within the normal range, so when the market goes the other way, it will still come to the rate I buy/sell in few hours/days.

    So what's the catch here? Does tax or spread eats into our profits? Or something wrong with the app(it says it uses live data)?
    Because about $150 for spending few minutes on my phone for 2 days sounds too good for me.

    Personally, I have a business going on and I only want this to be a part time and I'm ready to study the various aspect of it for about a year or two even before a start earning anything. I would be very happy if I am able to make $300 - $400 per month or even $200 on a investment of $1000 - $2000.

    That aside, is there any site or app which allows to use demo trading account without asking for bank details or any other verification and it as close to real trading as possible? Maybe they cut the spread too and so on so that I know exactly what I'm making.

    PS: Please excuse me if for being a newbie in this field.
     
  2. Enivid

    Enivid Administrator Staff Member

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    There is your mistake - the market will not always return to your open rate. Sometimes, it will return, but only after months in time and thousands of pips in adverse excursion (which would probably trigger a margin call on your account).

    So no, it is not that simple.
     
  3. profitwithpips

    profitwithpips Trader

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    If I was you I would try a demo account that allows you to trade under real market conditions. I like tradersway but there are plenty of brokers that allows you to trade using a demo account so you can get used to spreads, swaps, commissions etc. You will not know if your strategy really is legit until you open at the very least a demo account and trade with it for a few months to 1 yr. But I agree with Enivid Forex trading is not as simple you have outlined above you really need to recognize real entries and exits based off of what the market is doing... I mean what if something happens that really moves the market that day and you are expecting the price to hit a certain level but due to whatever event it moves the market another way what will you do then? Remember: Plan a trade and trade a plan
     
  4. DRFXTRADING12

    DRFXTRADING12 Active Trader

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    Screenshot_20180329-160001.png 20180202_021753.png


    Yep..thats basically what FX is all about.

    Trading within the Ranges of Currency Pair Prices.

    In the FX world its called trading within Consolidation ( Ranges and Pennants ) by buying and selling between the boundaries of Resistance and Support.

    The first graph is the Daily Chart of the EURO USD which has formed Consolidation within that price range you traded. As you can see I got a part of that recent movement - also from trading from my phone.

    Also, that type of return is what I aim for and help traders to achieve as well.


    20180331_100013.png

    Its realistic and strong while not requiring trading everyday.

    All the best

    Duane

    DRFXTRADING
     
    Last edited: Apr 2, 2018
  5. DRFXTRADING12

    DRFXTRADING12 Active Trader

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    Oh..the catch?

    1. Knowing how much to Risk Per Trade so that losses dont affect you too much.

    2. Where to Place your Stop Losses so that temporary moves against you dont Stop you out too early.

    Duane
    DRFXTRADING
     
  6. Ann

    Ann Active Trader

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    You did the right thing, found the patterns and played them. And you're in luck. You guessed the market. The next time you are unlucky, you will lose all invested funds, along with the profit.
     
    Mauk likes this.
  7. Mauk

    Mauk Trader

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    If it will be only as easy as you say like devote few thousands and then make few hundreds of that and monthly each month. And you played with virtual money. Try to open real one and try it for like one week or so. Then report here. You will be suprised;)
     
  8. Ann

    Ann Active Trader

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    What's the difference between a live account and a demo? I often read that it is easy to win on demo, but not on live account. But it is equally difficult for me to get profit from both demo and live accounts. Maybe I don't know anything about the demo? Are there any cheat codes?
     

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