Wednesday, May 03, 2006
The AUDNZD Trial Trade
I saw a buy indicator on the AUDNZD on both the 4-hour and 30-minute charts. Bought it at 1.1964 and immediately lost 14 pips from the broker's spread. I just learned that some currency pairs have huge spreads. EURUSD, being heavily traded, have only 2-pip spread.
Anyhow, as AUDNZD was on an upward trend, I managed to sell it off at 1.1998 for a 34-pip gain or a cool USD218 profit.
With a real account starting with only USD500, I'll be trading on a mini-account and the profit per lot will be 10 times smaller. To increase the profit, I'll be throwing in 10 lots per trade. I guess that the spread cost would increase 10 times also. I need to check this out on the demo account.
Anyhow, as AUDNZD was on an upward trend, I managed to sell it off at 1.1998 for a 34-pip gain or a cool USD218 profit.
With a real account starting with only USD500, I'll be trading on a mini-account and the profit per lot will be 10 times smaller. To increase the profit, I'll be throwing in 10 lots per trade. I guess that the spread cost would increase 10 times also. I need to check this out on the demo account.
# posted by Camus @ 9:12 AM 