I have made the decision that I am going to set myself a challenge for the remainder of 2019. I am going to teach myself to become a Forex trader, and document every step of the way!
Not only am I doing this without any experience, I am going to do it with a really small budget so that people can see what is possible. I will start this first journey with only £100 in my Forex trading account. I am sure many people think this is ridiculous, but I’m not aiming to make huge amounts of money. I am going to try and utilise Forex to cover my small expenses. My weekly food bills etc.
The goal is to increase my account by 5% per day. I may increase this goal slowly over time depending on how my success goes.
I am a complete beginner at this, so I will show you everything I have learnt along the way.
From playing around the past few days, I have managed to grow my account from £100 to £143. However, from now on I will document my trades, and what I’ve learnt from them to display in a weekly update.
I am currently running my Forex journey with an account with XM. There’s no significant reason for it other than they offer accounts to people in the UK, and they are regulated and recommended by many people.
So far so good, and I’m utilising their MetaTrader 4 XM platform, which I am using on both my desktop and my mobile device.
As I have a day-job, I will mostly be monitoring my trades on my mobile phone during the day. Then I may do some trading on my computer at night time. At least, that is the plan for now.
In terms of risk management of my Forex account, my current plan is to only risk and gain a maximum of 5% per trade. So, with my starting balance of £100, I would close a trade if I was up £5, and close a trade if I was down £5. Generally I have only increased this amount once my account has increased by £20.
The reason for this is I have read too many stories of the root of failed Forex accounts being down to poor risk management. Therefore, I am not going to put any emotion into my decisions, it is a simple checkbox answer of “should I close this trade? yes, or no” based on the 5% rule.
This isn’t a specific rule I have read anywhere, I have just made it up as that is the risk level I wish to take. I’m sure I could make more money if I risked going higher with my gains, but I could also lose a lot more too.
Once my balance on my account gets higher, I may decide to increase the lot sized I am dealing with. Currently, I am trading on a 0.05 lot per trade. Obviously due to the small amount in my account, this is all that is possible right now.
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