Several weeks ago, I resumed my interest in currency trading. I am currently actively trading (albeit on demo account) and is contemplating to trade live before the end of this year. I have a $50,000 demo account though to simulate real money (that I can commit and afford to lose), I only trade 1 lot at $1,000 per session. My favorite currency pair is the US Dollar and Japanese Yen, and is trading at 100:1 leverage.
Currency trading is not suitable to those with weak heart, the risks and rewards are high. The first two weeks, I was able to grow my (demo) funds from $50,000 to $52,779 (the $2,779 is the realized gain). This week however, as of this posting I am losing about $900 (yet still unrealized loss — this may increase further or hopefully I can recover and still reflect profit).
Call me a nerd or a geek, but I find beauty on the ticks of the chart — and it is equally interesting wondering if the trend is upwards or downwards, thus you need feel the pulse to choose between buying (low) and selling (high), in order to gain profit. Unfortunately this is not an exact science and there is no single method of predicting the spikes, even sound indicators fail.
I must admit this is akin to gambling, where the risk is very high. You can earn huge amount on a short period of time or lose all your funds in a matter of hours.
That is why I keep on conditioning my self that I will trade only money that I can afford to lose. That once I fund a real live account, it is synonymous to the high possibility of losing it. Yet I want to have good fight in maintaining that amount and even earning profit from it.
It is said that only 90% of currency traders are succeeding in this kind ‘business’. I wish to belong to the successful 10%, ha ha — but I know it will take me a long way to learn the skill.
Currency trading is a huge business with more than $3 trillion average daily turnover volume. I will be glad to earn a tiny share of $100 per day out of it as a ‘day trader’ or even as a ‘tsupitero’.
I fancy myself being both a farmer and currency trader during retirement. And hopefully by that time, I have enough experience (and available “to lose” funds), as if I am simply playing a computer game. I would always want to win of course.