Forex Trading Update
Earlier this week I had a bit of a blow out on the Oanda account. I lost $6500 (6.5%) in one day and then another $1500 (1.5%) the next. I also lost about 5% more on the NF account. I realized that the one thing missing from my Oanda BoxOptions strategy was real research and mathematical pricing. While I understand how the system works I wasn’t looking at the underlying math used to calculate the price and how to calculate if I was taking a low risk trade.
I received some Barnes & Noble gift cards for Chirstmas and headed down to the store. I picked up a book about the math behind options (Options and Options Trading by Robert W. Ward
Education is the key to success. Hopefully I’ll be able to educate myself well enough to make money. I’m also learning about normal stock options and have been playing with a virtual account on OptionsXpress. Since stocks are much less volatile I will not be posting daily updates as with my Forex demos but may post monthly results.
I’ve changed my NF demo account strategy as well. I tried the SuperWoodie CCI before and liked it a lot, but didn’t stick with it on the demo I tried. I’ve decided to try that again. Today on my first trade I made 51 pips ($504 after swap)! I actually exited early. The market slowed a lot so I exited, however it continued up and is currently 15 pips higher. I’m still happy with the trade. We’ll see how it works out.
on January 5, 2006 at 4:30 pm
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I’m thinking of opening an account with Oanda and the only feedback I got was from a Woodies trader who didn’t like Oanda. He said he traded a sim account for awhile and did well. He then opened up a real account and then experienced sniping. His stops got hit when the price was well away from them. He felt the trading climate changed when he went real. Have you been with Oanda long and what has your experience been like?
Bob
on January 6, 2006 at 5:30 am
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I’m still waiting on my deposit to my live account so I can’t comment on his complaints. His is the first negative comment I’ve ever heard about them. I’ve heard nothing but good things about Oanda. I’ll post my results as they occure.