It’s been two weeks since I wrote a blog post but I did this with a great reason ! The word is FOCUS, FOCUS and FOCUS. Focus also means Follow One Course Until Successful.
Besides the busy times at work, I have been focussing on my Smartphone challenge the last two weeks.
Mid february I wrote about the 3000$ Smartphone Challenge. Then I wrote a blog post about “How to earn money on a plane“, which could be life changing for many people… In the past months we have been trading in our demo account.
Today I am informing you about the progress of our demo account and real money account.
Our Learning Track
Before you dive headfirst into the world of forex trading, you should familiarise yourself with the concepts involved in foreign exchange. Of course, if you’ve ever had to travel somewhere and exchange currency, you’ve already done a bit of forex trading yourself. But most people don’t realize how much profits those currency exchange agencies make.
Millions of people trade trillions of dollars’ worth of currency every day on the global forex market, but forex doesn’t trade in centralised marketplaces like the New York Stock Exchange or London Stock Exchange. Forex trades are conducted internationally, 24 hours a day, five days a week through electronic communication networks and phone networks via the internet.
Round-the-clock trading in different time zones makes forex a relatively straightforward market to access, but that also means losing money by forex trading is not difficult. So trading forex is easy, right? Trading forex may seem simple. Anyone can trade currencies on the forex market. You’re essentially buying a certain amount of currency and holding on to it while the exchange rates fluctuate over time, around the globe. When you feel it is the right time, you trade back the currency you were holding on to, hopefully at a profit. Actually, it’s not that simple. Without a strategy and a mentor, you will fail. Last year I subscribed to a forex trading platform and community to help me master this forex trading skill.
Practising a strategy while actively consuming training materials, is the best way to prepare for live forex trading. When you have then additionally a mentor to guide you through the pitfalls, you have a framework that sets you up for success.
In our learning track we focus on following the webinars of Stevenson Lindor mainly. We focus on his strategy that made him earn 1,9 million $ in three years.
Our Key Learnings from trading in Demo Account
Studying is helpful, but experience is invaluable. Once you’ve gained some theoretical knowledge, purposeful experience is the next thing you need to become a well-rounded forex trader. They say it takes 10,000 hours to master anything, so don’t assume you’ll know all you need to know about trading forex after learning the basics. It’s recommended you place 50-75 demo trades on the platforms you’ll be using before you start trading your hard-earned money. Practising with a demo account is the best way to gain empirical knowledge without exposing yourself to any real risk.
Using a forex demo account over a set time period lets you master the specifics of market entry and exit while also showing you how frequently market changes occur.
As I have been practising on my demo account, I was determined to make ONE specific target goal. 1 Million $ !! A target refers to how much you want to spend and how much you’re prepared to lose on an investment if the market moves in an unfavourable direction. It’s easier to try your hand at an alternative, perhaps a minor or exotic forex pair, when you’re using demo money. Personally I have been trading USDTRY (turkish lira) and USDMXN (mexican peso) with lot of success.
I wanted to approach things slowly. Learning exactly how active and ever-changing the forex market is, which will in return improve my market knowledge.
The goal of my demo trading was to confidently answer these questions:
- How do I place a stop-loss order or limit order?
- Can I set these automatically, or at the time of entry?
- How do the spreads on the platform vary over time? What is a typical spread?
- What is the lot size I can trade (1000 units, 10k, 100k)?
- Can I mix and match these lot sizes?
- How do I properly apply my risk management ?
The answers became more clear while practising with a forex demo account. In order to simulate my start with a real money account, I decided to start with a demo account of 500$ in February 12th.
In March at the time of my End March blog post, this account was grown to …..an amazing amount of 373.159 $ in one month.
In May this same account has grown to an even greater amazing amount of 775.391 $. This past week the account hit 1.032.000 $
Since the 28th of May, I have been on a winning strike and didn’t lose one single trade. In the week from 3th – 7th of June, I made in total 96.800 $. See my trades below.
On Friday for example I entered a trade before breakfast. I set my Profit target and Stop loss and went to work. By noon time, I had a winning trade of 1381$. I spend 15 minutes on three winning trades last friday. No kidding !
Would this be possible with a real money account ? Are you taking any more risks as with a real money account ? Yes, it would be possible with a real money account. And no, I am still applying my risk management policies. Only 3% risk of my account per trade.
I hide the money (profit or loss) so I only look at the trade setup and not at the money gain or loss. So I did achieve my target of 1 Million $ in 5 months which is simply amazing….
Do you trade in a real money account already is your logical next question ? The answer is yes. Continue to read.
Our results in our REAL MONEY Account
So in April we started with trading in our real money account. We started with an open account balance of 500 Euro. The leverage that the broker offers is 50:1 which limits my risk taking. I like that !
Today the balance has grown to an amount of 735 Euro. I apply the same risk management practice as in my demo account. Only 3% risk per trade.
The first goal of my real money account is to grow this account to 1000 Euro. That means doubling my money !! Let’s continue our focus !
Final Words
If you have read our Financial and Travel Objectives of 2019, you know that our goal for this year is to earn 15.000$ passive income. In order to achieve this result, forex trading is one of the different strategies to reach that goal.
Now I moved on to phase 2 FOREX trader. I did hit my goal of 1.000.000 $ in my demo account and I now understand how to apply a strategy to achieve this goal !
So the goal is to reach 3000$ this year. When you compare this with the results of my demo account, this goal seems modest. Stay tuned how we progress in coming months…it is definitely an exciting journey.
This is the end of this blog post.
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