The Ugly Truth About Trading
Hi everyone! Today, I’m excited to take you through a typical day in my life as a Forex trader. If you’re new to trading or have had a rocky experience in the past, I hope my story can shed some light on what it’s really like to trade Forex.
Published by FXgram on June 11, 2024
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My name is Matt, I’m a professional trader and I have been living in Bali for almost 8 months. If you are a trader or interested in Forex please read this article until the end.
My day starts early at 6 AM. The first thing I do is grab a cup of coffee and check the latest market news. I follow several financial news websites to get a sense of the market sentiment and any overnight developments that might affect my trading strategy.
For instance, on March 1, 2024, I came across news that geopolitical tensions and ongoing robust central bank purchases provided strong foundational support for the gold rally. Central banks, including India’s Reserve Bank, continued to add to their gold reserves. Knowing this, I immediately pulled up the XAU/USD chart to analyze the potential market movements. The chart from that morning showed a consolidation pattern, indicating that traders were waiting for more information before making any major moves.
By 7 AM, I’m at my desk, reviewing these charts and analyzing trends. Here’s what I saw:
Based on these signals, I anticipated that the market would experience prevailing bullish sentiment. This analysis helped me prepare my trading strategy for the day.
By 8 AM, I’m ready to start trading. My focus is on XAU/USD. With the news on the growing geopolitical tensions in mind, I placed a few strategic long positions on gold, anticipating a rise in its price.
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Here are the trades I made throughout the day:
1.
• Position size: 10 ounces
• Entry price: $2,056 per ounce
• Exit price: $2,071 per ounce
• Profit per ounce: $15
• Total profit: $150
2.
• Position size: 5 ounces
• Entry price: $2,055 per ounce
• Exit price: $2,053 per ounce
• Loss per ounce: $2
• Total loss: $10
3.
• Position size: 15 ounces
• Entry price: $2,058 per ounce
• Exit price: $2,072 per ounce
• Profit per ounce: $14
• Total profit: $210
4.
• Position size: 10 ounces
• Entry price: $2,060 per ounce
• Exit price: $2,078 per ounce
• Profit per ounce: $18
• Total profit: $180
By the end of the day, my trades had yielded a total profit of $530.
Here’s the breakdown of the profits and losses:
Trade 1: $150 profit
Trade 2: $10 loss
Trade 3: $210 profit
Trade 4: $180 profit
Around 2 PM, I take a break to have lunch and clear my mind. Trading can be intense, so it’s essential to step away and recharge. After lunch, I reviewed the trades I had made. The broker I use provides detailed reports and analytics, which help me understand my performance and areas for improvement. This data is invaluable for refining my strategies and becoming a better trader.
By 4 PM, I start winding down my trading activities. I close out any remaining positions and review the day’s performance. This is also the time when I plan for the next day, setting up alerts and preparing for potential market movements.
Balancing Work and Life
Evenings are my time to relax and unwind. I usually spend time with family, read a book, or watch a movie. It’s important to have a balanced life, especially in the fast-paced world of Forex trading.
Choosing the right broker is one of the most critical decisions you’ll make as a Forex trader. Here are some essential factors to consider:
1. Regulation and Security
Ensure your broker is regulated by a reputable financial authority. Regulation ensures that the broker adheres to strict financial standards and practices, protecting your investments. Examples of reputable regulatory bodies include the Financial Conduct Authority (FCA) in the UK, the Commodity Futures Trading Commission (CFTC) in USA, the Australian Securities and Investments Commission (ASIC).
2. Trading Platform and Tools
A reliable trading platform is crucial for executing trades efficiently. Look for brokers that offer robust, user-friendly platforms with advanced charting tools, real-time data, and automated trading capabilities. MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are popular choices among traders.
3. Transaction Costs
Consider the transaction costs associated with trading, including spreads, commissions, and overnight fees. Lower transaction costs can significantly impact your overall profitability, especially if you trade frequently.
4. Leverage Options
Leverage allows you to control a larger position with a smaller amount of capital. While leverage can amplify profits, it also increases the potential for losses. Choose a broker that offers reasonable leverage options and provides clear information about the risks involved.
Trading is an amazing choice. I remember the day I started my journey in trading. It wasn’t great from the beginning. I had my ups and downs, but in total I’m a day trader now, and every time I ask myself what is a trader’s job the answer is simple:
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The Ugly Truth About Trading
Risk Warning: Trading Forex and Leveraged Financial Instruments involves significant risk and can result in the loss of your invested capital. You should not invest more than you can afford to lose and should ensure that you fully understand the risks involved. Trading leveraged products may not be suitable for all investors. Before trading, please take into consideration your level of experience, investment objectives, and seek independent financial advice if necessary. It is the responsibility of the Client to ascertain whether he/she is permitted to use the services of the website based on the legal requirements in his/her country of residence.