Hi everyone:
A few weeks back I posted a thread here on the board titled "Setting Goals". Once again, I appreciate all who responded and respect the views and opinions which were conveyed.
I am still in "Demo mode", operating on a part-time basis when not at work, and not trading equities on the U.S. stock markets. Thus far this month, I've have earned a net profit of $1,654.00 USD, which I feel is quite commendable, considering the small amount of time which I have had available to trade and study this market.
I am still using the Trade Station platform from RefcoFX, which by the way seems great. You are given $50,000 in "demo cash" when the
demo account is initiated. Out of this $50,000, I have only held a maximum of $3,000 used margin, attempting to keep my risk as low as possible. I used stops and limits, structured a plan of attack, and stuck with it. In the end, my results were favorable.
Over the past six months or so I've been watching and studying the FOREX market. I've noticed a trend in the USD/XXX currency pairs. Generally speaking, most of the U.S. economic reports are released at either 08:30, 10:00, or 14:15 ET. Trading activity becomes very volatile during these times when reports are released, and in many cases, I've seen swings of 50, sometimes even 100 PIPS.
I have yet to focus just on these methods while trading, but it would seem to me, that a great deal of profit could be earned trading within these swings and spikes, presumably if you properly understand the news and how it could potentially impact the currency.
I'm interested in hearing your thoughts and views on this methodology, the goods, and bads.
Thanks very much in advance!
flyer