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FXCM Practice Report
Name:Zhuo Tingting ID:126150121 Course:Financial Market
Teacher:Wu Chen Institute:Busine
1.Trading account and paword: D102095734001 / 6112
2.Trade period: June 2015
3.Theme: Forex Trading Simulated Practice
In simulated trading, the initial fund amount of each person is $ 50,000, using the T + 0 settlement way.By combination of the macro-economic situation, market conditions and personal analysis, one can determine the direction of investments and which object to trade, finally managing the funds in our hands well.4.Correlation Analysis
4.1 Fundamental Analysis The first half of 2015, the United States has a nearly opposite direction with Europe and Japan and other major economies in monetary policy.Among developed countries, the US economic fundamentals are better.Stock market has achieved a so-called “Long Line Break”, and American economy is gradually entering a new round of rapid growth cycle.But for high government debt and Fed's “low interest rates tendencies”, the United States does not allow dollars to appreciate grow too fast.At the same time, European area still has large systemic risks, struggling to grow.And Japanese yen is keeping weak overall.4.2 Technical Analysis
Forex trading in foreign exchange is different from Chinese stock market.The biggest difference is that the delivery model is T + 0, and that is the day to buy can also be the day to sell.Moreover, long and short option can both be applied.Compared to T + 1 system, it can be more speculative and with more operability.At the technical level, I have to admit I was a full rookie.But in forex market, technical analysis seems more important.K line graph is the factor I concern most in a deal.I mainly refer to minute lines and day lines.The key is that the trend of small trading period should be subordinated to the trend of big time period.Another important indicator is the average line, from different levels of average line I can roughly determine the future trend with various resistance levels.And price changes in key resistance level always give me some inspiration.4.3 Personal Case
In fact, before I get started with this account, I have already requested an account to get familiar to foreign exchange market.With too severe lo, I began to renew this account.Overall, my approach is to focus on related news and then combine with K-line trend, and finally decide the point to buy or sell.The paper I print out is of my ten transactions records.First, I deal with euro and dollar.Following is the tendency of different periods K line of euro against the dollar.In my transaction second record, I predicted the euro was weaker, while dollar was strong.But unfortunately I directly sold at a price of 1.09849, actually the selling price was very low already, so the following days I witneed an increase of euro against the US dollar.But I kept optimistic to hold, and I suffered from bigger lo.Finally, I chose a relative low price to close the position in last trading day.Similar to the record of euro against yen, I used the same method.I paid too much attention in the long-term direction while ignoring my own practice period.While in first, fifth, eighth, ninth, tenth transactions, I mainly focused on the news and information in Forex, the looking at five minutes K line to determine the very short-term trend.Then choosing a relative suitable price to trade.And in few minutes later I closed my position to hold little profit by more transaction and big trading amount.5.Personal Thought Overall in the practice, I did not succeed.But I learned a lot.One one hand, I find out my own shortcomings.Firstly, I don’t really understand the market, not predicting correct movements of a currency.I haven’t apply technical indicators such as MACD, RSI, DFI well.Secondly, only relying on feeling to judge, and didn’t do any lo calculation.On the other hand, I will talk about experience I got from this practice.Firstly, we should pay more attention to foreign exchange movements as well as technical indicators.At the same time the level of a country's interest rates also has a direct impact on its currency exchange rate.High-yielding currencies with high return will attract its investing demand, therefore the exchange rate may appreciate.During my practice, once I heard the news of increasing US dollar interest rate, I didn’t capture a good price to trade, wasting the opportunity.Secondly, mastering the time to trade is also important.Chinese mornings are not good time to make transactions, because countries of main foreign currency still remain in the evening.As Richard said 14:00 to 18:00 in China is the morning of Europe, and some date related to European currency will be published.So investors should pay attention to.As for the period o 20:00 to 24 o'clock in the morning the America, so investors should better make full use of information of US dollars in this time.Thirdly, it’s important to maintain a good attitude.The feelings of anxiety in a transaction should be adjusted especially when we are losing money.We should stay calm when trading and control our feelings when trading.Not follow public’s opinion or chase increasing price without thinking.Deciding by own analysis is always much more reliable then follow others.
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