So, here I am, a newly registered Forex trader, and I'm anxious to make my first million (in any currency, I'm not picky). First things first, I need the trading platform. This particular broker has two trading platforms, one is Java based, and the other is downloadable. Now, I'm all for Java, but only in a cup with lots of cream and sugar - so I opted for the downloadable version. A few minutes later, it's installed and I'm now the proud owner of a Forex trading platform!
From what I've heard, trading Forex is all about decision making, and my very first decision will be to decide whether I want the demo platform or the "?real" one. Now, I'm a "?toe in the water" kind of girl, so the decision is easy. But, if you're a "?Geronimo" type of person (i.e., the kind who cannonballs into the water regardless of the water's frigidity), you might want to bypass the demo.
Not me, thank you very much; I'll just wade around a bit while I adjust. I double-click and get the demo application started; could be my internet connection, but it takes forever to load. (Note to self: Don't ever have a preconceived notion of the "?perfect trade" because in the minute or so it took the application to open, the market changed.)
Finally, the platform opens. If you've ever seen Willie Wonka and the Chocolate Factory (the original movie) – when Mr. Wonka opens the doors to the factory and the ticket winners stand there with their mouths open – well, I'm like that. I don't know what to indulge in first. I need some java (the liquid kind) so I can sit back for a few minutes and analyze the situation. Nope. Still overwhelmed. I can see I'll have to move in baby steps here.
My demo platform gives me a $100,000 to play with. I'm thinking, heck, it's play money – why be so stingy? But I've never had $100,000 in my life, play money or otherwise – not even Monopoly money now that I think on it.
In keeping with my "?toe in the water" strategy, I decide to go with the minimum amount for my Forex trading venture. How low can I go? In this case the minimum is $5,000 and that's what I use for my first unofficial/official trade. I decide that I'm going to buy EUR/USD. Not for any particularly astute or logical reason, but just cause it's first currency pair on the drop down list. I now know that this is the most popular currency pair, but I didn't know that then.
I get a pop-up box that tells me I'm "?buying", and directs me to choose my pair. Okay.
Then, select my trade amount. Okay. Then I have an option to let the trade go as is or to set my stop and/or limit. Why not? I try to set my own stop and limit rather than take the "?house hint" and all I get for my effort is an error box. Apparently, I'm too close to the actual trading price so I can't use that limit or stop. I'm directed to set a different limit and stop; and I do it and hit the enter button.
Oops!
All of the parameters reset with the error box (very tricky, that house). So instead of the minimum trade I wanted, I discover (with horror) I'm trading the maximum $100,000!
I'm searching like a fiend to cancel the trade, and 15 seconds or so later, it's done. My first trade – a total bust, and I'm out $27 play money.
First lesson learned – trading Forex is definitely not as easy it looks.