By: Tony Dragovic
Submitted: 2010-08-13 04:36:38 | Word Count: 613
This piece is record of my journey in forex day trading of forex pair EUR JPY in the forex market. Forex is short for foreign exchange. Trading of currency is usually traded in pairs. The pair of currencies traded are exchanged on FOREX. In this journey of forecasting the EUR/JPY pair will be looked at in detail. EUR/JPY pair is Euro vs Japanese Yen.
I am testing scalping method to determine the profit (I expect a profit) that is available to be made at end of 12 months. Scalping is a method of taking small profits along the way of trading. The target is to make 20 pip profit each trading day. This equates to approx. $ 200 US dollars. The price varies as the exchange rates of each currency vary. The post will be updated to show profit and or loss.
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My projected target is to make 20 pips each trading day. The expectation is we will have 3 trades a week. This equates to weekly earnings of 60 pips. Over 50 weeks the profit expectation is 3000 pips. This is approx. $ 30,000 US.
In this blog I will be updating the blog every trading day (5 days a week) and forecasting the trades. There will be days when there will be no trades. This occurs when the signals are mixed. This is the time to stay out of the market.
My grounds for this article is to record my forex day trading journey with EUR/JPY pair. I have chosen EUR/JPY pair because it has good volatility and good ability to be traded often. My rules for trading will be explained in later posts.
Forex Background
Forex was originally traded by banks who had to have minimum account balance of $1,000,000. For banks this is small amount of money but for traders it meant they had to have at least $ 2,000,000 spare ($ 1,000,000 in balance and $ 1,000,000 to trade with).
Change was possible with availability of internet and now anyone can trade. Normal trade is $1,000 but is possible to trade with $ 10 if you wish to start small. This change has enabled people to trade forex who would not otherwise be able to do.
Forex market is more than 2 trillion dollars a day market. This is the largest market of all. It is so large that 9/11 incident in United States cannot be located as having impact on forex. Local market in United States suspended trading for a week due to 9/11 incident. The forex market did not stop.
Why Trade?
Because I think this is relatively easy way to make part time income with little or no risk. Once the initial investment is doubled you are able to withdraw your initial investment and trade with the winnings.
Trading can be carried out with as little as 15 minutes per day thus giving the trader more time to work on other aspects of life. The part time income can be used to pay for holidays, pay off mortgage, or any purpose you want. It can provide real independence and pleasure in life of traders particularly if you are struggling.
I am looking forward to your feedback.
The trading will commence soon.
Keep an eye on it on http://www.myforexdaytrading.com/
