Online Trading - How to Make a Million

Nowadays many people are jumping on the forex bandwagon and contemplating getting into on-line trading. Not on-line options trading, or online futures trading, or even trying out the new futures trading platforms. No everyone seems to have fallen in love with the dreamy thought of trading foreign currencies on-line so that they can earn extra cash in these times of economic crisis with no commuting. They are attracted by the small capital investment, sometimes as little as $25 and the prospect of a myriad of free forex currency training tools and trading platforms. Not only that, currently all gains made from forex trading are tax free.

The beauty of all this for a new trader is that with a low risk capital of $25 mistakes are not expensive when online trading and you lcan earn the ropes of trading with a more realistic mindset than if you were trading using a practice or demo account with virtual money. As you become more comfortable and better at trading you can increase your risk capital to suit your pocket.

If you decide to trade in the foreign exchange market and participate in the biggest financial market ($4 trillion a day volume) in the world I would recommend that you first try a micro trading platform. If you're scoffing at the small starting risk capital well think on this. If you have the discipline to exponentially increase your capital by 2 percent per day, in 26 months your $25 will be a million dollars and you will be a dollar millionaire. Now that's what I call a target worth aiming for. The micro trading platforms I have found easiest to use are FXCMs' Meta Trader 4 platform and OANDAs' platform. OANDA can be funded from a Paypal account or a Visa or Mastercard credit card and you can start with a risk capital of $1. FXCMs' platform is also very easy to use and can be funded using a credit card. The initial deposit for their micro account is $25. The FXCM platform has all the technical analysis indicators you could wish for as well as live streaming fundamental analysis economic news including the weekly economic calendar. OANDA on the other hand does not have all the sophisticated technical analysis tools, however, it is a very nice trading platform to use. As with FXCMs' platform it also has live economic news and statistics.

Well I have just completed my 12th day trading forex online and have increased my initial capital of $25 to $80 in only 25 trading sessions. That's over a 300% increase in my risk capital in just 13 days. You put $25 into your bank account and then take it out after 13 days and see how much interest you have earned. You can count the increase in capital in cents not dollars. So I am on target for that elusive million dollars. For me a trading session is in either the European, North American or Asian forex markets. I trade on-line in London and then after London closes I trade on-line in New York. I don't trade in Asia as yet.

I will keep you updated on my progress every week on this hub.

Well I have just completed my 12th day trading forex online and have increased my initial capital of $25 to $80 in 25 trading sessions. That's over a 300% increase in my risk capital in just a few days. So I am on target for that elusive million dollars. For me a trading session is in either the European, North American or Asian forex markets. I trade in London and then after London closes I trade in New York. I don't trade in Asia as yet.

It's the end of the week and although I don't like trading on Fridays due to the markets closing early and no Asian market to follow. I did some trading and increased my capital by 2.5% which is 0.5% more than my daily target. So I was pleased and it wasn't an easy market in the EUR/USD as it moved in a tight range from a low of 1.3851 to a high of 1.3971. As you can see above the 50 period moving average on the 3 hour chart is slap on todays prices and my 9 period moving average is still above my 14 period moving average indicating a bullish sentiment. My instinct however for next week is bearish on the euro. We shall see.

As the days go by I will give you more and more insights into the technical analysis indicators I use and the economic news (fundamental analysis) that affects my trading strategy.

Another successful week has gone by and although in the middle of the week I took a big hit I managed to recover and meet my 2% increase in capital per day target. I started the week with a risk capital of $80 and manged to increase it to $90 and increase of 11.25% on the week.

The beginning of the week the EUR/USD opened at 1.3924. As you can see from the chart below there was a sharp rise on Monday and after a high of 1.4075 on Tuesday is Asia the price dropped through the rest of Tuesday and Wednesday mid-session before recovering again to 1.3945 on Thursday and closing at 1.3918 on Friday.

On Wednesday I modified my technical indicators and went for a simple moving average of 10 periods and 20 periods as my earlier try with exponential moving averages of 9 and 14 periods was giving me a false trading signal. I found the slight lag on the 10 MA crossing the 20 MA ironed out the noise and gave me a good signal. I also changed strategy on my timings and used 2 hour and 4 hour charts instead of 5 and 15 minute charts. This together with the SAR indicator improved my entry points and I found that instead of doing 30 trades a day I could now reduce that to 5 or 6 a day with the same return on my capital.

t looks like the coming weeks could be interesting as the Fed this week will announce its quantative easing plans part 2. A slow easing could see a bullish dollar but a sudden easing of say $500 billion or more could see a weaker dollar. Probably whatever happens this week will set up a trend till the New Year.