GREEN JULY 19 2023 (WIN) + 12.38% or 1582.61 Pesos

 

Buy Price : .51 (July 19 2023)

Sell Price: .58 (July 21 2023)

Number of Shares: 25000

Gain/Loss: +1582.61 or +12.38%

Catalyst: I enter this trade using the STC in the 4H time frame (see chart below). When the STC turns into Green (look at the pointing arrow to the left) that is my signal to enter the trade. Luckily I ended up enter the trade in the lowest price at .51. The price went up to .61 but I didn't sell it quickly because I thought it could go up more but I was wrong. When the price goes up to .61 I decided to go out to .58 if the price will go down to .57. So when the price goes back to .57 then thats the time I decided to close my position, so I sold all the shares (25,000) at .58.  I decided to buy back shares at .50.

PCOR JUNE 7 2023 (BREAKEVEN)

 

Buy Price : 3.60 (June 7 2023)

Sell Price:  3.65 (July 12 2023)

Number of Shares: 3000

Gain/Loss: +20 or +0.19%

Catalyst: My last trade was this stock which allow me to gain 0.69% OR 76 pesos only but it was not a bad trade because I bought it at 3.68 and sell it immediately at 3.75 which I missed a fraction of gain because that time the price went up to 3.89 and fall back to 3.55 which I can say is a good trade. Now this is my plan to be able to buy back shares at 3.60sh and now I get in at 3.60 and the today the price fall down to 3.52 as the lowest price in the morning trading hours. I just hope that the price will never back down to the lowest of 3.50 which is my cutloss price.

The price went down to 3.30(June 15 2023) but I never sold my shares which is pretty idiot of me. And I was lucky that the price went back to 3.60sh and today July 12 2023 I sold my shares at 3.65 and the price even went farther at 3.70. OMG

15. What is Free Margin?

FREE MARGIN, in its simplest definition, is the money in your trading account that is available for trading.

 It is calculated by using this basic formula:

Remember that EQUITY is the BALANCE, plus or minus any profit or loss from open positions. Let's take a look at this example. Say that someone enters a trade with the following conditions: Decides to buy 2 lots of EURUSD (Euro to U.S Dollar) at the exchange rate of 1.2000.

So, the transaction will amount to 240,000 U.S Dollars. 

The required MARGIN for this position is calculated as follows: 240,000 / 50.

If after entering this trade, the price of EURUSD (Euro to U.S Dollar) fell to 1.19050, he incurred a loss of 0.00950 pips. 

Which is equivalent to:

In this case, the trader's FREE MARGIN would be: 

10,000 (BALANCE) - 2280 (LOSS) = 7720

7720 (TOTAL EQUITY) - 4800 (MARGIN) = 2,920 (FREE MARGIN)

In the next blog, I will tell you about  MARGIN LEVEL. So see you at the next blog. God Speed :)

14. What Is your Equity?

 

Now that we covered BALANCE in our previous blog, its time to understand what EQUITY means. Many traders get these two amounts mixed up.

 Remember that EQUITY in forex refers to your BALANCE plus any PROFIT or LOSS from OPEN POSITIONS. 

But, if you don't have any open positions, then your BALANCE equals your EQUITY.

The EQUITY amount is displayed in the Terminal Window under the Trade Tab on your MT4 Client Terminal.

If your using the MT5 trading platform, then the EQUITY amount is located in the Toolbox under the Trade Tab.

So now you know the difference between BALANCE and EQUITY! In the next blog, we will learn exactly what is a FREE MARGIN. Stay Blessed :-)

13. What is your Balance?

 

BALANCE in forex refers to the amount of money you have in your trading account. It's important to remember that your BALANCE doesn't include any profits of losses you might have from any positions. If you have open positions, your BALANCE might change depending on the losses or gains you've made once the trade is closed.

The BALANCE amount is displayed in the Terminal Window under the Trade Tab on your MT4 Client Terminal. 

If you are using the MT5 trading platform, then the BALANCE is located in the Toolbox under the Trade Tab.

Now, you maybe wondering what is the difference between your BALANCE and your EQUITY? Look out for my next blog which will be explaining about EQUITY! Thank you for being here. Stay safe :D

12. What Is Margin?

 

Now that we have understood the concept of LEVERAGE in forex, let's talk about MARGIN. Since the trader is allowed to use more capital than the amount he or she deposited, the broker requires an amount of funds to cover any potential losses. This amount is what we call MARGIN. 

See it as a good faith deposit, represented as a percentage. It is the amount you need to have in your account in order to keep a position open. Let's look at this example:

 

A trader deposits $20,000 in an account in with LEVERAGE of 1:25. The broker set the MARGIN at 4%. 

What does this mean? If the trader buys 2 LOTS of EURUSD (Euro to U.S Dollar) at 1.2000,

you can calculate the MARGIN like this.

He must have $9,600 in his account in order to keep his open position. Simple right? Stay with me in the next blog. God Bless you ^_^ 

11. What Is Leverage?

LEVERAGE is a "loan" provided to the investor by the broker and is expressed in the form of ratio. Here are some levels of LEVERAGE provided by most brokers depending on the Client's knowledge and experience.

But what do these ratios mean exactly? Lets look at some examples! Say a trader has a capital of 10,000 and is trading with 1:100 LEVERAGE.

Since his LEVERAGE is 1:100, he has a trading capital of 1 million Euros.

If he decides to buy the EURUSD (Euro to U.S Dollar) at 1.3055 and closes his position at 1.3155

 

he will almost double his capital!

Here's another example of the same trader, but with a different outcome. This time, the trader buys the EURUSD (Euro to U.S Dollar) 1.3055 but closes his position at 1.3005

and almost loses half his capital! 

So it's important to remember that LEVERAGE increases your trading capital, proving opportunities for multiplied profits. But it can also multiply your losses too! So use LEVERAGE wisely! Thank you for continuing learning forex in my blog. God Bless you ^_^

10. What is a Pip’s Worth?

Now that we have discussed what a LOT is, it's time to discuss what a PIP is worth. 

You will remember from our second educational blog (see here), that a PIP is the measure of the change in the exchange rate of a currency pair. 

But, how do we calculate the value of a PIP in terms of its monetary worth? The amount of the BASE CURRENCY (in LOTS) times the number of PIPS, equals the amount in QUOTE CURRENCY. 

If you want to find out how much 1 PIP is worth in EURUSD (Euro to U.S Dollar) per LOT (or 100,000 units) of the BASE CURRENCY, it would look like this:

For Yen-based currency pairs, the result is a little bit different because the pip corresponds to the second decimal digit.

Let's take a look at a practical example using a trade. A trader buys 1.5 LOTS of GBPUSD (British Pound to U.S Dollar) at 1.3030. Once the price rises, for example to 1.3043, he decides to close his position. His made a profits of 13 PIPS. 

But how much did he make it in Dollars? The formula in the case of GBPUSD (British Pound to U.S Dollar) here, would look like this:

That's how you calculate the monetary value of a PIP! Thank you for visiting my blog to learn the basics of forex. See you on the next blog. Stay Blessed :-)

09. What is a Lot in Forex?

Now that we understand a little more about currency pairs and how their value is derived, lets talk about how they are traded! Currency pairs are traded in what we call "LOTS". 

A LOT is the amount of the currency pair that you're buying or selling. 

The three most common types of LOTS are the STANDARD LOT, the MINI LOT, and the MICRO LOT. 

One STANDARD LOT is equal to 100,000 units of the BASE CURRENCY. 

Here are a few examples. 

The other two types of lots are the "MINI" and the "MICRO". One MINI LOT is equal to 10,000 units of the BASE CURRENCY. 

Here are some examples.

One MICRO LOT is equal to 1,000 units of the BASE CURRENCY. 

Here are a few examples. 

Now you know what a FOREX LOT is! Stay with me as we go further to learn the basics of forex. See you in the next blog. God Speed ^_^