Ok, so im new to the whole stock market/forex trading deal. I was shown this post by my wing man and he explained enthusiastically about how much money you, Rodehard, were able to make with little as $300 dollars investment (the post where your daughter was able to turn $300 into thousands). Right now Im currently a 21yr old, unemployed college junior with about $300 to my name. So im looking for anything to help out my finacial position

So i started to do a little research of my own. I bought two books already, Forex made Easy and Currency Trading for Dummies, and have read into both of them a little bit. I have also already opened a trial account on Forex.com. Which i spent a little bit of time on there with the EUR/USD and made a $29 profit of a $200,000 position(Im still a little overwhelmed by the amount of information on there). I think I've been able to come up with a pretty basic understanding of how this works with the few hours I spent on it this morning (about an hour and a half reading plus a little under two hours with the trial account). But i have a few questions that i would like to clarify before I invest any of my own money into this. (and i do realize it takes months, if not years to get a good understanding and feeling for how the market works)

1. Leverage - I see the leverage ratios on Forex.com are 50:1, 100:1, and 200:1. Keeping it simple, i will invest $25 at 100:1, that means i control a position size of $2500, say for example in EUR/USD, which is what i invested in this morning (around the time period of 9:50am to 11:45am). That being said, with leverage, if i invest $25 at 100:1, do I make the profit off of the $2500 position if the exchange rate increases or does the profit reflect back to the $25 initial investment? Ill use what happened this morning. I bought in when the exchange of the EUR/USD was 1.39775. I watch until it increased to 1.40430, so that would be a move of +65.5pips. I tried to close out, but i think i made a mistake by switching the position from buy to sell. If this is the case, can you explain how to get out of or "close out" of the deal? Also, on the flip side, If I made a wrong move and the exchange starts to drop, will i lose a possible $2500 off of a $25 investment if there is no stop loss in place since i control a $2500 position?

2 Stop Loss - I get the basic idea that this function is to stop you from losing money just by the name. But my question is, Do you place the stop loss at a percentage of your initial investment($25), or place the stop loss at a certain percentage of the position size($2500)? Also, if the exchange rate is dropping drastically, will the stop loss still pull me out at the given value, or will i not be pulled out until the rate stabilizes to pull me out no matter the amount lost?

Thank you for your time, Valinn

So i started to do a little research of my own. I bought two books already, Forex made Easy and Currency Trading for Dummies, and have read into both of them a little bit. I have also already opened a trial account on Forex.com. Which i spent a little bit of time on there with the EUR/USD and made a $29 profit of a $200,000 position(Im still a little overwhelmed by the amount of information on there). I think I've been able to come up with a pretty basic understanding of how this works with the few hours I spent on it this morning (about an hour and a half reading plus a little under two hours with the trial account). But i have a few questions that i would like to clarify before I invest any of my own money into this. (and i do realize it takes months, if not years to get a good understanding and feeling for how the market works)

1. Leverage - I see the leverage ratios on Forex.com are 50:1, 100:1, and 200:1. Keeping it simple, i will invest $25 at 100:1, that means i control a position size of $2500, say for example in EUR/USD, which is what i invested in this morning (around the time period of 9:50am to 11:45am). That being said, with leverage, if i invest $25 at 100:1, do I make the profit off of the $2500 position if the exchange rate increases or does the profit reflect back to the $25 initial investment? Ill use what happened this morning. I bought in when the exchange of the EUR/USD was 1.39775. I watch until it increased to 1.40430, so that would be a move of +65.5pips. I tried to close out, but i think i made a mistake by switching the position from buy to sell. If this is the case, can you explain how to get out of or "close out" of the deal? Also, on the flip side, If I made a wrong move and the exchange starts to drop, will i lose a possible $2500 off of a $25 investment if there is no stop loss in place since i control a $2500 position?

2 Stop Loss - I get the basic idea that this function is to stop you from losing money just by the name. But my question is, Do you place the stop loss at a percentage of your initial investment($25), or place the stop loss at a certain percentage of the position size($2500)? Also, if the exchange rate is dropping drastically, will the stop loss still pull me out at the given value, or will i not be pulled out until the rate stabilizes to pull me out no matter the amount lost?

Thank you for your time, Valinn

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