Tuesday, April 18, 2006
The First Paper Trading Hit
On paper, I entered the market at 1.2272. EUR/USD continued to rally up as expected and it hit our target of 1.2348 4.5 hours later.
On paper, it was a 77-pip gain, which on a mini-account leveraged trading of USD10k, it would have been a USD77 profit. Not too bad for a day's work. And if it was on a proper account leveraging USD100k, it would have been a USD770 profit.
Most importantly, the technical analysis helped tonnes. Coupled with strong fundamentals, the market behaved exactly how we predicted it to be.
Eventhough it was only a paper trade, I gained a valuable experience through the practice. I went through a bit of the predicted emotional turmoil or fear, uncertainty and doubt (FUD) but I was able to see things as they are and not let emotions get in the way. Upon hitting the target, there was the usual euphoria, and I quickly calmed myself down. The varying emotions would have been magnified tenfold with a real trading account, and the ability to keep oneself calm and collected going through the emotional rollercoaster ride would be the determining factor to separate the successful traders from the novice.
As I have reminded myself hundreds of times, life is a game and it is all in the mind. Play it well and play it joyfully. With that, I would like to thank Abg Hashim for introducing me to forex and for his inspiration, support and education. Forex trading is one exciting game.
On paper, it was a 77-pip gain, which on a mini-account leveraged trading of USD10k, it would have been a USD77 profit. Not too bad for a day's work. And if it was on a proper account leveraging USD100k, it would have been a USD770 profit.
Most importantly, the technical analysis helped tonnes. Coupled with strong fundamentals, the market behaved exactly how we predicted it to be.
Eventhough it was only a paper trade, I gained a valuable experience through the practice. I went through a bit of the predicted emotional turmoil or fear, uncertainty and doubt (FUD) but I was able to see things as they are and not let emotions get in the way. Upon hitting the target, there was the usual euphoria, and I quickly calmed myself down. The varying emotions would have been magnified tenfold with a real trading account, and the ability to keep oneself calm and collected going through the emotional rollercoaster ride would be the determining factor to separate the successful traders from the novice.
As I have reminded myself hundreds of times, life is a game and it is all in the mind. Play it well and play it joyfully. With that, I would like to thank Abg Hashim for introducing me to forex and for his inspiration, support and education. Forex trading is one exciting game.
# posted by Camus @ 5:10 PM 