My Trading Experience... a story of my route of infamous foreign exchange trader.

My Trading Experience 

I started trading foreign exchange about four years ago. I was introduce by my brother in law. He helped me with the installation and registering a demo account. The next day I registered a real account with a broker and deposited $100 into the account. Start trade without the knowledge of leverage, margins or any basics of foreign exchange trading.

“It is easy, just BUY when I think the price would go up and SELL when I think that the price would go up”.

Well, sorry to say… It is not as easy as it looks… 

I did not have any clue whatsoever about forex market. I used to visit different trading forums and financial news websites in search of a profitable system, installed Currency Strength Meter on my phone to make it easier to me to detect which currency is strong and which one is weak. Easier for me to spot which pair to trade. 

Lost $100, then I deposited another $500 it last for a few days growing that account, but ended up losing all of my money. What makes it so difficult just to pick a particular pair and choose whether to order BUY when I predicted the price would go up and to order SELL when I predicted that the price would go down? Then I realised that I need to learn from someone. So I started google and find a teacher to learn forex trading system.

I went back and forth to learn from one system to another. I installed numerous numbers of indicators to filter my entries. Still I was back to square one.

So I decided to dig deep and do some research and find the one idea that above all is what drives the market and is displayed on our charts. Read SND’s forums and sites through googl, and It did not took me long to realise that all these price movements whether up or down, I see on currency charts are result of supply and demand imbalance. If price is moving up it means there are more willing buyers for that currency at that point in time and if it is moving down it means there are more willing sellers for that particular currency. Price is simply moving from one zone to another zone to fill these orders. It is that simple.

Now after I have found SUPPLY AND DEMAND, I manage to make profits. Naked chart, no indicators. Just the Meta Quotes, some lines and boxes.

So here I am, sharing my small experience and knowledge to us to profit from foreign exchange trading. 

The information I am sharing with all of you in this blog postings about Supply & Demand is learned and attained from numerous sources. I will try my level best to explain it in the simplest of form using layman’s term. The trading itself is very subjective, as my point of view and others’ point of view might differs. But all these is a typical experience that all of us when through in order to learn through knowledge based sources like websites and forums. 

So let's get started:

Definition:

Q. What is Supply [Ss]A. Supply is the quantity of an item available for buyers at a certain price.

Q. What is Demand [Dd]?A. Demand is the quantity of an item which is wanted by buyers at a certain price.

Q. What is imbalance of Supply & Demand?A. (I) If the available Supply of an item exceeds the demand for it then prices tend to fall.
     (II) If demand for a certain item exceeds the available supply then prices tend to rise.

Q. What is Price equilibrium?A. The market price at which the supply of an item equals the quantity demanded.

The important keywords are 

[1] Supply and demand, [2] Quantity of certain [3] Price.

I would like to conclude that the definitions of SUPPLY and DEMAND the quantity offered by seller and buyer at a certain price. The price will be imbalance when supply is higher than demand or demand is higher than supply. While price equilibrium is the quantity of supply and demand are equal.

We now understand the meaning of supply, demand, imbalance of supply & demand and price equilibrium.