3240 USD on a 800 USD Forex account in few hours

Increased Forex account

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$3240 on a $800 in a few hours – That is a 400% return in a few hours – amazing trading

First post

“I just happened to log on to the BBC website 2 minutes after they posted the Chinese Interest Rate cut.
I immediately sold AUD against the JPY, USD and CHF – large orders 1 lot each in a 800 USD Forex account
40 minutes later sitting on 500 usd profit and rising. AUD has breached or is threatening a number of recent support levels so need to babysit the trade but very exciting”.

 

Later

“Stayed up to play the Sydney open – total profit since Yuan devaluation = $3240”

 

Good fundamental trading. China is Australia’s biggest trading partner for exports and imports. The economies are dependent on each other. If one goes down the other will be impacted.

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 Fundamental Analysis & Fundamentals Trading Strategies

In the equities market, fundamental analysis looks to measure a company’s true value and to base investments upon this type of calculation. To some extent, the same is done in the retail forex market, where Forex fundamental traders evaluate currencies, and their countries, like companies and use economic announcements to gain an idea of the currency’s true value.

All of the news reports, economic data and political events that come out about a country are similar to news that comes out about a stock in that it is used by investors to gain an idea of value. This value changes over time due to many factors, including economic growth and financial strength. Fundamental traders look at all of this information to evaluate a country’s currency.

Given that there are practically unlimited Forex fundamentals trading strategies based on fundamental data, one could write a book on this subject. To give you a better idea of a tangible trading opportunity, let’s go over one of the most well-known situations, the Forex carry trade. (To read some frequently asked questions about currency trading, see Common Questions About Currency Trading.)

A Breakdown of the Forex Carry Trade

The currency carry trade is a strategy in which a trader sells a currency that is offering lower interest rates and purchases a currency that offers a higher interest rate. In other words, you borrow at a low rate, and then lend at a higher rate. The trader using the strategy captures the difference between the two rates. When highly leveraging the trade, even a small difference between two rates can make the trade highly profitable. Along with capturing the rate difference, investors also will often see the value of the higher currency rise as money flows into the higher-yielding currency, which bids up its value.

Real-life examples of a yen carry trade can be found starting in 1999, when Japan decreased its interest rates to almost zero. Investors would capitalize upon these lower interest rates and borrow a large sum of Japanese yen. The borrowed yen is then converted into U.S. dollars, which are used to buy U.S. Treasury bonds with yields and coupons at around 4.5-5%. Since the Japanese interest rate was essentially zero, the investor would be paying next to nothing to borrow the Japanese yen and earn almost all the yield on his or her U.S. Treasury bonds. But with leverage, you can greatly increase the return.

To read more: http://www.investopedia.com/university/forexmarket/forex6.asp

 

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