For over 20 years I have been fascinated and interested in the exciting events on the stock exchange. Already as a student I took part in various stock exchange games and won one or the other prize. In my early 20s I began to invest my savings in individual stocks. At that time trading was still completely offline, mostly I phoned my advisor at the bank to place an order. I followed the prices in teletext. Step by step I developed my knowledge of the stock market, reading specialist literature from stock exchange gurus such as André Kostolany and Peter Lynch. In the process, I became more and more willing to take risks with my investments. I realized that good money can be made on the stock market with solid expertise and the right strategy. I switched from equities to warrants and certificates and it was only a matter of time before I was attracted to trading on the global currency markets. After all, the foreign exchange market is the largest trading place in the world and is always on the move.

I opened my account for Forex trading with the online broker Flatex. The favorable fees and positive test reports gave the decision for the offerer. I also liked the fact that no minimum deposit is required. In addition, many currency pairs can be traded there. Like it belongs for a reasonable beginner, I started with the demo account. The trading runs on the popular platform Meta Trader 4, where a change will probably take place soon.

After setting up the appropriate account for me, I intensively dealt with different strategies in forex trading. First I wanted to test them with my demo account. Basically, forex trading is very speculative. I was looking for a more conservative strategy that seemed suitable for beginners. This should be easy to implement and not too time-consuming. Trading takes place alongside my actual work and can be described as a hobby. I had gained my first stock market experience, but I had more basic knowledge in things like chart analysis, risk management and fundamental analysis.

During my research I often came across the term “KISS strategy”, which stands for “Keep it simple and stupid”. I also liked that. My head was already smoking anyway, because I had read a lot of new things about trading systems, what had to be processed. A complicated trading strategy is more of a deterrent to me than a curiosity. I quickly got to know a real classic among the strategies, which immediately found logical and comprehensible: the strategy to follow a trend. If there is an intact upward trend for a currency, the probability of a further price increase is higher than that of a reversal of the trend. I have had this experience with equities and certificates on indices in the past. The path of least resistance is not so wrong. In addition, the trend is your friend.

It is only important to recognize a stable trend. A trend line helps here. Trend lines can be easily tracked using a tool. This contains higher high points as well as higher low points. If the low points are connected by a straight line, the trend line is created, which points upwards. A slight correction of the upward trend is ideal for entry. A short-term correction in the meantime is very common for every trend. Especially in a volatile market like Forex. As a result, the trend continues. It is extremely important to work with tight stops in every trade.

At the start I invested 1000 Euro. Not much but sufficient, because I trade with leverage and can make bigger profits with relatively small stakes. The excitement was naturally very large, when I changed from the demo account to real money. First I bet on the currency pair Euro to Dollar. In front of the computer, I fevered along and followed the price movements in real time. The exchange rate changes almost every second and even the second digit after the decimal point was observed by me. Practically speaking, the applications at Flatex are also easy to use via the smartphone. Courses can also be tracked on the go using various apps.

I found the regular exchange with other Forex traders in forums very useful. There was a lot of talking shop and I got competent answers to my questions. For example, Wallstreet online offers a decent platform with a large forum.

 

Experience report written by Tom, 46 years, from Cloppenburg