Forex Challenge - $2000 every month!!!

[desifxtrader]

Hi Sumit,

You will get 1000$ profit if you buy 100 lot with a profit of 10 pips. (1lot = 10000 units)

To illustrate an FX trade, consider the following two examples.

Let's say that the current bid/ask for EUR/USD is 1.4616/19, meaning you can buy 1 euro for 1.4619 or sell 1 euro for 1.4616.

Suppose you decide that the Euro is undervalued against the US dollar. To execute this strategy, you would buy Euros (simultaneously selling dollars), and then wait for the exchange rate to rise.

So you make the trade: to buy 100,000 Euros you pay 146,190 dollars (100,000 x 1.4619). Remember, at 1% margin, your initial margin deposit would be approximately $1,461 for this trade.

As you expected, Euro strengthens to 1.4623/26. Now, to realize your profits, you sell 100,000 Euros at the current rate of 1.4623, and receive $146,230

You bought 100k Euros at 1.4619, paying $146,190. Then you sold 100k Euros at 1.4623, receiving $146,230. That's a difference of 4 pips, or in dollar terms ($146,190 - 146,230 = $40).

Total profit = US $40.

Now in the example, let's say that we once again buy EUR/USD when trading at 1.4616/19. You buy 100,000 Euros you pay 146,190 dollars (100,000 x 1.4619).

However, Euro weakens to 1.4611/14. Now, to minimize your loses to sell 100,000 Euros at 1.4611 and receive $146,110.

You bought 100k Euros at 1.4619, paying $146,190. You sold 100k Euros at 1.4611, receiving $146,110. That's a difference of 8 pips, or in dollar terms ($146,190 - $146,110 = $80)

Total loss = US $80.

Well explained by srtrader.

In addition, what I wanted to hint you about the dangers of using high leverage. I would recommend leverage anything less than 1:5.

But in fact, it doesn't matter how much leverage your broker offers. Only thing what matters is how much you risk per trade. I would recommend anything from 1% to 4% of your trading capital. Say capital in your forex trading account is US$ 500 and opportunity arises to initiate a trade in a currency pair. Hence, if I want to risk 3% of my capital, I need to purchase quantity worth US$ 15 only (= $500 x 0.03). This means, if the trade goes against me in other words, if it is a loss, I would lose only US$15 or 3% of my trading capital. Before making any trade, you MUST have a clear idea of how much you could lose rather than your possible profits.

For beginners with trading capital under $1000, I recommend opening a 'Micro' account with forex broker because it you help you with effective risk management.

The secret to make profit in Forex or any other financial market is ONLY effective Risk & Money Management. It's not about any super duper trading system with 80% or 90% accuracy. <= This is a REAL secret, use it to your advantage and don't tell anybody.

cheers

 

[desifxtrader]

Hey desi fx trader first thing i cant understan the profit sytem plz explain that what i asked to find vikas i have quesstion for you also are you also a forex trader which paltefor you are using and what is the brokrage strucutre plz if you can answer this so it will be great help from your side

Hi,

You are having soo many confusions because you've never made a transaction in Forex. Listen, first obtain MetaTrader 4 from the link below, install it on your computer, run it and open a Demo account. Make 2 or 3 trades just for the purpose of understanding the operations. Don't worry, you won't be charged a single paisa for doing all these. But you'll gain the knowledge on how to operate the softwares.

"which paltefor you are using"

=> I use MetaTrader 4 for my charting. You can download and use it for free from here:

h11p://www.alpari.co.in/en/trading_platforms/trade/download.html

"what is the brokrage strucutre"

=> There is nothing called 'brokerage' in Forex trading. In share trading, brokers charge you thru "brokerage". In Forex, brokers charge you thru "spreads".

To understand spread, read this statement again and again:

"the current BID/ASK for EUR/USD is 1.4616/19, meaning you can buy 1 Euro for 1.4619 or sell 1 Euro for 1.4616."

Do you see that you are unable to buy and sell Euro at the exact same price almost immediately?

cheers :annoyed:

 

[Mangafreakz]

@srtrader
Hi srtrader. Sent you a pm few days back , you recieved it?
Thanks.

 

[Mangafreakz]

@sumitdasjoshi
The trading platorm for FX depends on your broker , MT4 being the most popular platform. There are other platforms too , like you will see Vikas using a different one , which is Oanda's own platform , etc.
There is no fixed structure in FX , even the spread concept which has been explained by desifxtrader , that varies from currency pair to pair.
All fx brokers allow you the option to open demo accounts , try it before going live to get a feel of the thing.

 

[sumitdasjoshi]

hi,

you are having soo many confusions because you've never made a transaction in forex. Listen, first obtain metatrader 4 from the link below, install it on your computer, run it and open a demo account. Make 2 or 3 trades just for the purpose of understanding the operations. Don't worry, you won't be charged a single paisa for doing all these. But you'll gain the knowledge on how to operate the softwares.

"which paltefor you are using"

=> i use metatrader 4 for my charting. You can download and use it for free from here:

H11p://www.alpari.co.in/en/trading_platforms/trade/download.html

"what is the brokrage strucutre"

=> there is nothing called 'brokerage' in forex trading. In share trading, brokers charge you thru "brokerage". In forex, brokers charge you thru "spreads".

To understand spread, read this statement again and again:

"the current bid/ask for eur/usd is 1.4616/19, meaning you can buy 1 euro for 1.4619 or sell 1 euro for 1.4616."

do you see that you are unable to buy and sell euro at the exact same price almost immediately?

cheers :annoyed:

hello desifx trader i alredy have a demo account in mt4 look you are right i get it what you are saying but what i feal i some thing difrent when i sell i got a prize below 3 pip and when i sell i got pri below 3 pips if it is showing the 7 then i got in4 and when i buy
i got it lesss than 3 pip is this whey they charge am i right and thank for the information and one more question supose i bought 100 pair of eur/usd i got a profit of 10 pip than what will be my profit plz tell plz this is the only confusion i have .

 

[desifxtrader]

... and one more question supose i bought 100 pair of eur/usd i got a profit of 10 pip than what will be my profit plz tell plz this is the only confusion i have .

Hi sumit,

hmmm, you want to you how much is your profit? :yahoo:

Look, in share trading, when you buy 1 Nifty Future, you get in "LOT" which has 50 units. Similar in Forex:

Currencies in Forex are traded in Lots. The standard unit size of a transaction. Typically, one standard lot is equal to 100,000 units of the base currency, 10,000 units if it's a mini, or 1,000 units if it's a micro. Some dealers offer the ability to trade in any unit size, down to as little as 1 unit.

Standard Account

Trading with standard lot sizes, generally 100,000 units of the base currency. e.g. The pip value is $10 for EUR/USD.

Mini Account

Trading with mini lot sizes, generally 10,000 units of the base currency. e.g. The pip value is $1 for EUR/USD.

Micro Account

Trading with micro lot sizes, generally 1,000 units of the base currency. e.g. The pip value is $0.10 for EUR/USD.

So, when you contact the broker (information given in post #72), you would tell them to open a 'Micro Account'.

You see the chart in MetaTrader 4 and see that an opportunity is there that EURUSD pair would move higher.

So, you buy 1 Lot of EURUSD at 1.3686. In other words, you've purchased 1,000 units of of EURUSD at 1.3686.

After sometime, you see that EURUSD at 1.3696. So, your profit would be:

(1.3696 - 1.3686) x 1000 = Euro 1 or US$ 1.37

You may use the calculators here to know your profit:

http://fxtrade.oanda.com/tools/fxcalculators/profit_calculator

You'll also find the VDO in this link helpful:


How to determine your Lot Size


cheers :clap:

 

[findvikas]

Guys... I request... please use another thread... just trying to keep this thread for the sole purpose... thanks.

 

[desifxtrader]

Guys... I request... please use another thread... just trying to keep this thread for the sole purpose... thanks.

Hi Vikas,

Sorry for answering couple of questions here, as I understand that you're keeping a record here.

Sumit, please post your further doubts in here:

http://www.traderji.com/forex/39158-vdo-forex-mystery-tf.html

Mods, could you plz move my posts from here to the thread above?

Thanks

 

[srtrader]

@srtrader
Hi srtrader. Sent you a pm few days back , you recieved it?
Thanks.

Hi Mangafreakz,

I din't receive it.

 

[Mangafreakz]

Hi Mangafreakz,

I din't receive it.

ok, sent again.
Thank you.