Question about FOREX ?

Question

This is my 2nd day practicing in forex (using virtual cash) at forex.com.

I went for contract size 10,000 w/ min. deposit $ 250.

First I started at lowest lot size (1) then went on to 25 (lot).

In the last 2 hours, from .18 cents I was able to accumulate $ 400 (realized gain) by trading EUR/USD. I don't know if this is considered good or too small ??. I went in & out of trade 5-6 times during that time. BUT, when I printed out account summary, the highest amount gained shows $ 130 that I gained, and the latest realized P/L is only $ 67. did I do something wrong ?

also would you suggest to trade a couple of times a day?

Answer 1

I suggest calling their help desk.

Trade only what you can comfortably lose.

You can always wait until Saturday and put your money on the Triple Crown.

Answer 2

Ok first of all whenever you are trading there is slippage, meaning a difference between the price it shows when you hit the button and the price you actually get filled at. Sometimes that difference can be quite large. Second of all there trading costs for executing your order. (Typically they are very small or nonexistant in FX). Look over your statement and the exact execution prices, to make 400 dollars on EURUSD on 10,000 you need to make around 325 pips which is a big move. On 25 lots its like 2 pips so thats quite little.

To trade FX effectively you should you need a minimum of 5000 in an account to trade well and be able to weather drawdowns, it is difficult, but can be quite rewarding once you get over the learning curve. Good luck and happy trading.