I am still learning how to trade foreign currency but I thought I’d take this opportunity to share on my blog what I’ve learned so far. Mainly because I’ve had several people ask me about how to get started and what some of the terms when they have delved into it. I want to preface the blog by saying I am in NO WAY an expert and I am not suggesting this is for everyone or without risk. With that disclaimer out of the way… here goes…
I signed up with a company through the CNBC stock/currency contest. As a side note, sign up for the contest. It’s free and good practice trading stocks and currency to see how you can do without risking your own money. FXCM is the sponsor of the currency trading for the contest and offers a $25 to sign up for a real account with no strings attached. You can play with their $25 before deciding if currency trading is for you and fund additionally with your own money. $25 doesn’t sound like much but you trade on margin and it can grow rather quickly. The advantage with this company is you can’t lose more money than you deposit. Or if you were to lose the $25, you wouldn’t owe more money. You’d only lose their initial $25 they funded for you for free!
Margin defined: “Trading on Margin,” the ability to trade a position larger than the amount of money in your account. Margin is expressed as a percentage of position size, for example 5% or 1%, or in monetary terms, such as $50 or $2,000. FXCM Micro sets margin in terms of required margin per lot. One lot of a FXCM Micro account is 1,000 units of currency. (A unit of currency could be one dollar, one euro, one pound, etc.) Therefore, $2.50 in funds allows you to trade 1,000 units. (For simplicity, FXCM Micro requires $2.50 in funds for every 1K lot traded, regardless of the currency pair you choose to trade.)
So basically, you can trade in small increments of 1,000 units of currency at a time from the $25 deposited into your account by FXCM. When I started I set out to limit the losses and gains for each trade of $5. After deciding which unit I wanted to buy, I would click on the stop order and set it to automatically close the trade if it trended to a $5 loss and clicked on the limit order to close at a $5 gain. Again, seems like small amounts but for the learning purposes it is very helpful. I was able to grow the account to about $200 within the first two weeks. It was enough time to teach me what I needed to look for on the charts.
FXCM offers a very good program with charts and trending that you can follow easily. I watch the trading on the charts and monitor for a ‘bottom’ or ‘top’ of the graph. If it appears the currency has been traded down, I would place a buy order in. If it seems it has been traded up, I place a sell order in anticipation that the chart is cyclical and the trading will move the price down and I will sell. Here is an actual example from my account: on 1/19 I bought 4 units of GBP/USD (Great Britain pound/US dollar) @ 1.45088 because the charts showed it was near a high in the recent trades. Seven minutes later the price went up to 1.45320 and I sold for a profit of $5.68. Again, it isn’t enough to make a huge difference in lifestyle but if you can average a $5 profit every 15 minutes, $20 an hour isn’t a bad part time job!
Foreign currency trading is a 24 hr a day business from Sunday afternoon through Friday afternoon. It allows you to log in when you feel like it or have time. One thing I have learned is to be consistent with my goal I set forth in trading in foreign currency. My intention is to trade and make at least a couple hundred a month in this venture. Like anything, don’t get greedy and think you’re going to hit a home run. Several singles strung together still scores runs and can win the game. By keeping this simple approach, I limit my risk and still have a tangible reward. The more time I spend trading, the more I learn and the more money can potentially be made. However, who wants to sit on top of the charts non-stop. There are so many other things to do!
I don’t know if anyone will find this useful or will actually venture into the world of currency trading but if you do, be smart. Set your goals, do your homework and GOOD LUCK!
Monday, January 19, 2009
Tuesday, January 13, 2009
Crime and the Media in America
The rising level of crime in Jacksonville is a constant topic in the news with everyone wondering what can be done to improve the situation. Societal woes impact everyone, in every town. It seems there is a whole generation that has a very low importance placed on life, property and their fellow human beings. I don’t think there is any one answer. Parenting, music, sports role models, the media… there is enough blame to go around. However, media is my pet peeve… for this blog anyway.
I opened the paper around Thanksgiving to see a ¾ front page picture with teasers of the Jaguars poor performance on the football field. Yet tucked away on B-5 is a small article and picture of a wanted suspect in an aggravated battery on a police officer. Perhaps sports should be left in the sports section and more importance placed on getting the bad guys off the streets. At the very least share the front page and allow the public a fighting chance to help the police. We all knew the Jags sucked this year. It wouldn’t have hurt me to wait until I got to the sports section to be reminded, AGAIN.
Yesterday on the radio I heard a question from the station on a survey they wanted listeners to reply to… the burning question? With the rash of recent police shootings, who is to blame? You could have knocked me over with a feather. Why is this even a question? Hmmm, could it be the CRIMINAL is to blame? Instead the “media” perpetuates the feeling that the police may be out of control, shooting Joe the Plumber or Joe Six pack as they walk down the street. Give the cops the benefit of the doubt. It seems to me the media assumes the police are guilty until proven innocent and the criminal is somehow a victim. Shame on them. Shame on us for buying into it. I refuse to buy the Times Union everyday anymore. I’ll get it on the weekends still, maybe… ads, comics and crossword puzzle they can’t screw up too much.
In my opinion, sensationalized journalism needs to change. Media should report the facts, period.
P.S. This blog is dedicated to my grandfather who was a newspaper proofreader for years. Unfortunately, he’d be ashamed to admit that now.
I opened the paper around Thanksgiving to see a ¾ front page picture with teasers of the Jaguars poor performance on the football field. Yet tucked away on B-5 is a small article and picture of a wanted suspect in an aggravated battery on a police officer. Perhaps sports should be left in the sports section and more importance placed on getting the bad guys off the streets. At the very least share the front page and allow the public a fighting chance to help the police. We all knew the Jags sucked this year. It wouldn’t have hurt me to wait until I got to the sports section to be reminded, AGAIN.
Yesterday on the radio I heard a question from the station on a survey they wanted listeners to reply to… the burning question? With the rash of recent police shootings, who is to blame? You could have knocked me over with a feather. Why is this even a question? Hmmm, could it be the CRIMINAL is to blame? Instead the “media” perpetuates the feeling that the police may be out of control, shooting Joe the Plumber or Joe Six pack as they walk down the street. Give the cops the benefit of the doubt. It seems to me the media assumes the police are guilty until proven innocent and the criminal is somehow a victim. Shame on them. Shame on us for buying into it. I refuse to buy the Times Union everyday anymore. I’ll get it on the weekends still, maybe… ads, comics and crossword puzzle they can’t screw up too much.
In my opinion, sensationalized journalism needs to change. Media should report the facts, period.
P.S. This blog is dedicated to my grandfather who was a newspaper proofreader for years. Unfortunately, he’d be ashamed to admit that now.
Friday, January 2, 2009
Business plan
I thought I’d create this blog as a way to share with my friends one idea I have about a business. I have a few ideas about starting a business but the one that I seem to be leaning towards the most is an Irish pub. I have always liked the atmosphere of an Irish pub. With the rich dark wood, Irish music and glimpses of the Emerald Isle all about. I may only be about 30% Irish by heritage but when I’m sitting on a stool in a real Irish pub, I start talking with a brogue. My father’s side of the family is from Ireland. My great grandmother came from Ireland when she was 2 in 1849. Her name was Margaret Murphy and my dream pub would be named for her. Maggie Murphy’s Irish Pub!
Food would be typical Irish and American pub fare. Bangers & Mash, Sheppard’s pie, burgers and all that too. When Maggie was in her 90’s the Albany Knickerbocker News published a story about her life in Albany and her memories with a great picture of her. The article made me feel closer to a woman I never had the chance to meet. She talked about remembering when Abraham Lincoln came through Albany and how the house she lived in was built over an old horse race track. Guess that might explain why betting on the horses is in my blood! I want to use that article and picture as the front of the menu. What a great way to pay tribute to the first generation from Ireland that brought their dream of a better life to America. I’d like to have on VIP table dedicated to my Irish heritage and call it Maggie’s table. Family and friends only seated here! I have a logo that I’m working on as well. Maggie Murphy in script with the Murphy crest on one side and Coffey crest on the other side. In the back of the name, Irish and USA flags.
I’m still working on my business plan and now that the holidays are over, I am going to focus on specifics. I’ve looked at a couple of locations in Jacksonville and St. Augustine. Much of my decision will be based on the economy. Small business loans may be harder to come by for the immediate future. I thought about forming a private corporation and selling shares. If anyone is interested in investing and being a part owner in Maggie’s , feel free to let me know! I didn’t create the blog looking for investors but it came to my while typing so maybe just maybe, it would be a way to go and share the dream. If anyone has ideas for the venture that want to share from their experiences about a pub they have been in that left a lasting memory, please share that as well!
Faith and Begorah (Irish: Faith and by God)! Wishing everyone a great, healthy and profitable 2009!
Food would be typical Irish and American pub fare. Bangers & Mash, Sheppard’s pie, burgers and all that too. When Maggie was in her 90’s the Albany Knickerbocker News published a story about her life in Albany and her memories with a great picture of her. The article made me feel closer to a woman I never had the chance to meet. She talked about remembering when Abraham Lincoln came through Albany and how the house she lived in was built over an old horse race track. Guess that might explain why betting on the horses is in my blood! I want to use that article and picture as the front of the menu. What a great way to pay tribute to the first generation from Ireland that brought their dream of a better life to America. I’d like to have on VIP table dedicated to my Irish heritage and call it Maggie’s table. Family and friends only seated here! I have a logo that I’m working on as well. Maggie Murphy in script with the Murphy crest on one side and Coffey crest on the other side. In the back of the name, Irish and USA flags.
I’m still working on my business plan and now that the holidays are over, I am going to focus on specifics. I’ve looked at a couple of locations in Jacksonville and St. Augustine. Much of my decision will be based on the economy. Small business loans may be harder to come by for the immediate future. I thought about forming a private corporation and selling shares. If anyone is interested in investing and being a part owner in Maggie’s , feel free to let me know! I didn’t create the blog looking for investors but it came to my while typing so maybe just maybe, it would be a way to go and share the dream. If anyone has ideas for the venture that want to share from their experiences about a pub they have been in that left a lasting memory, please share that as well!
Faith and Begorah (Irish: Faith and by God)! Wishing everyone a great, healthy and profitable 2009!
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