Lesson 2. Practice: How to Make Your First Successful Trade
Let's see together how you can earn by trading in financial markets.
All you will need are 5 minutes of your time, a demo account with $5,000, and two currency pairs, EUR/USD and USD/CHF.
These pairs make good examples as their exchange rates vary quite often, and you could make a profit from them in just 5 to 30 minutes. You wouldn’t have to wait to return from holiday.
Let's Get Started!
- Select EUR/USD from the asset list and open a buy trade. Let's invest $500 with a 100 multiplier as an example.
- Open another trade with USD/CHF as an asset, use the same multiplier and the same investment amount.
For each trade, the broker will charge a small fee (in the same way that a bank would charge commission for a currency exchange). You will see this fee in the trade window. However unlike the bank, broker commissions are much lower.
- Once both trades are open, wait for 5 minutes while watching your trades' result.
- When the first trade profit exceeds the second trade losses, or both trades are in the money, close both to lock in your profit.
If you have opened both trades as explained here and still can't see any profit, don’t worry. If the market is calm, you might not see a change, so leave it open a while.
In our case, USD/CHF profit exceeds the EUR/USD loss. Let's close both trades to get some income on the account.
We've just earned profit on USD/CHF in only a few minutes, with no analysis whatsoever.
In our next set of lessons we will tell you what the multiplier is and how it helps traders to increase their profits.