The Adventures of a Trader in the Forex Land (2)

currencies-doitinvest.comWelcome back to my forex trading blog. Or, as one famous trader named his investing book, welcome back to my trading room:))
A few words on the yesterday’s forex blog trade placed. I mentioned that I placed a trade on GBP/JPY by purchasing 0.5 lots at 146.56 on the Nov 25th. Since I bought 0.5 lots, I was expecting the currencies cross exchange rate to increase. The take profit order was placed at 147. Unfortunately for me, I did not place any stop loss. Fortunately for me, the trade was placed on a demo account, which made me bear no losses.
Fortunately again, I had enough leverage to cover the losses. In real life, I would have probably been forced out at 143…but the quotation dropped much lower, to 140, which shows how wild the swings in forex trading can be. So I could do nothing but wait… and the yen paid me back. Three working days later, the trading course reversed and the yen increased to above 150, which brought me a nice profit of roughly 500 USD.
The swing was huge and exceptional. To be honest, I don’t know how I would have coped if I was trading with real money. MY money. Probably not very well, I would have taken the losses and got out of the trade. This was an important lesson for me – be patient and try to stay cool in the heat of the market, otherwise you tend to act irrational. And make losses…

Share your investing thoughts from www.doitinvest.com

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    *