Honest truth about forex.....
Oct 09, 2015 at 20:07
Like most traders I entered the Forex world with piss and vinegar hoping to cash in on quick profits. THIS IS NOT THE CASE.
After 2 blown accounts and a blow to my ego, I sat back and reevaluated my trades. Turns out I was doing a few things wrong.
1. Over leveraged. I know the appeal of trading 1:500 or even 1:1000, but DON'T do it. You will blow you account. My max now is 1:100 and that carries a significant amount of risk.
2. Money management. Do not risk more than 1% of your account. Some say 2% is fine, but 1% is better. set your stop losses at 2% of capital.
3. Worry about entries less and focus on how you're going to exit the trade that makes the most sense. Once you're in the market manage that position.
I hope this helps someone, please feel free to comment.
After 2 blown accounts and a blow to my ego, I sat back and reevaluated my trades. Turns out I was doing a few things wrong.
1. Over leveraged. I know the appeal of trading 1:500 or even 1:1000, but DON'T do it. You will blow you account. My max now is 1:100 and that carries a significant amount of risk.
2. Money management. Do not risk more than 1% of your account. Some say 2% is fine, but 1% is better. set your stop losses at 2% of capital.
3. Worry about entries less and focus on how you're going to exit the trade that makes the most sense. Once you're in the market manage that position.
I hope this helps someone, please feel free to comment.
Membro Desde May 18, 2015
118 posts
Oct 10, 2015 at 07:26
kmartyn posted:
Like most traders I entered the Forex world with piss and vinegar hoping to cash in on quick profits. THIS IS NOT THE CASE.
After 2 blown accounts and a blow to my ego, I sat back and reevaluated my trades. Turns out I was doing a few things wrong.
1. Over leveraged. I know the appeal of trading 1:500 or even 1:1000, but DON'T do it. You will blow you account. My max now is 1:100 and that carries a significant amount of risk.
2. Money management. Do not risk more than 1% of your account. Some say 2% is fine, but 1% is better. set your stop losses at 2% of capital.
3. Worry about entries less and focus on how you're going to exit the trade that makes the most sense. Once you're in the market manage that position.
I hope this helps someone, please feel free to comment.
I would have to say that excuses 1 - 3 are all B.S. Leverage isn´t your enemy... The system you are using is your enemy. A person doesn´t understand that the higher the leverage, the less money is required to open a position. Using low leverage will increase your chances of marrying to the position.
My avatar explains "social trading" perfectly.
Membro Desde Nov 01, 2011
41 posts
Oct 10, 2015 at 11:50
I don't think there's any need to call 'his rules' BS. For many that are just starting off it is sound advice by removing the temptations that can easily blow an account.
Keep working it kmartyn because the pot of gold is truly at the end of the hard work and experience 'Rainbow'!
Keep working it kmartyn because the pot of gold is truly at the end of the hard work and experience 'Rainbow'!
Membro Desde Oct 08, 2015
8 posts
Oct 11, 2015 at 06:14
Study study study....Practice practice practice...Unless your iverson
Membro Desde May 20, 2011
724 posts
Oct 11, 2015 at 15:44
kmartyn posted:
Like most traders I entered the Forex world with piss and vinegar hoping to cash in on quick profits. THIS IS NOT THE CASE.
After 2 blown accounts and a blow to my ego, I sat back and reevaluated my trades. Turns out I was doing a few things wrong.
1. Over leveraged. I know the appeal of trading 1:500 or even 1:1000, but DON'T do it. You will blow you account. My max now is 1:100 and that carries a significant amount of risk.
2. Money management. Do not risk more than 1% of your account. Some say 2% is fine, but 1% is better. set your stop losses at 2% of capital.
3. Worry about entries less and focus on how you're going to exit the trade that makes the most sense. Once you're in the market manage that position.
I hope this helps someone, please feel free to comment.
If this is all, you still have a long way to go. Keep learning, there is more to come!
forex_trader_25447
Membro Desde Dec 21, 2010
131 posts
Oct 12, 2015 at 08:35
(editado Oct 12, 2015 at 08:37)
Hi Account_Leverage is not danger, it is the Used_Leverage.
You can open account at any HIGH Leverage,
but if You (your system/EA) use LOW Leverage, there is No Problem.
.... And You really will have more Free Money (Margin),
.... but You do NOT have to use it !!! (that is difficult)
At LOW Leverage , You are limited automatically,
at HIGH Leverage, You have do it by Yourself.
You can open account at any HIGH Leverage,
but if You (your system/EA) use LOW Leverage, there is No Problem.
.... And You really will have more Free Money (Margin),
.... but You do NOT have to use it !!! (that is difficult)
At LOW Leverage , You are limited automatically,
at HIGH Leverage, You have do it by Yourself.
forex_trader_264513
Membro Desde Jul 23, 2015
6 posts
Oct 12, 2015 at 13:38
I agree with 1% rule.
Everyone watch this video to know how to correctly calculate it.
Good luck with your attempts.
Everyone watch this video to know how to correctly calculate it.
Good luck with your attempts.
Membro Desde Oct 02, 2014
909 posts
Oct 12, 2015 at 19:06
Noone is forcing you to use your max leverage.
Positivity
forex_trader_29148
Membro Desde Feb 11, 2011
1916 posts
Oct 13, 2015 at 05:57
StoneHeart posted:
Hi Account_Leverage is not danger, it is the Used_Leverage.
You can open account at any HIGH Leverage,
but if You (your system/EA) use LOW Leverage, there is No Problem.
.... And You really will have more Free Money (Margin),
.... but You do NOT have to use it !!! (that is difficult)
At LOW Leverage , You are limited automatically,
at HIGH Leverage, You have do it by Yourself.
aggree with that statement
forex_trader_29148
Membro Desde Feb 11, 2011
1916 posts
Oct 13, 2015 at 05:57
it's all about trading skill and mm ,when you get those you are within the 5% successfull traders but it takes long time before having a really good grasp on those
Membro Desde May 18, 2015
118 posts
Oct 13, 2015 at 06:08
arigoldman posted:
Noone is forcing you to use your max leverage.
That is the truth. The reality is no one is forcing you to max out your leverage, as if you know your entries aren't accurate then you shouldn't be using max leverage anyway! People like to blame everything other then themselves for their failures in forex.
My avatar explains "social trading" perfectly.
Membro Desde Sep 12, 2015
1948 posts
Oct 20, 2015 at 06:21
kmartyn posted:
Like most traders I entered the Forex world with piss and vinegar hoping to cash in on quick profits. THIS IS NOT THE CASE.
After 2 blown accounts and a blow to my ego, I sat back and reevaluated my trades. Turns out I was doing a few things wrong.
1. Over leveraged. I know the appeal of trading 1:500 or even 1:1000, but DON'T do it. You will blow you account. My max now is 1:100 and that carries a significant amount of risk.
2. Money management. Do not risk more than 1% of your account. Some say 2% is fine, but 1% is better. set your stop losses at 2% of capital.
3. Worry about entries less and focus on how you're going to exit the trade that makes the most sense. Once you're in the market manage that position.
I hope this helps someone, please feel free to comment.
You have good leverage ,1:500 is nuts for any trader,good tight stop loss,your entry is paramount to your risk.
1% is really tight,1.5 -2% is max for pros .
Be lucky!
"They mistook leverage with genius".
Membro Desde Oct 29, 2015
10 posts
Oct 29, 2015 at 07:10
kmartyn posted:
Like most traders I entered the Forex world with piss and vinegar hoping to cash in on quick profits. THIS IS NOT THE CASE.
After 2 blown accounts and a blow to my ego, I sat back and reevaluated my trades. Turns out I was doing a few things wrong.
To be honest, this is the rare things that every new traders have done.
I have nothing to say about your points, just want to say that your biggest enemy is your own ego. I always cancel my order when I started to feel unsure about my analyze.
Membro Desde Sep 06, 2013
137 posts
Oct 29, 2015 at 11:02
This is a good post! It highlights another point, most people enter fx thinking they can make a fortune... they can... but not on a 10k account! You need about 100k at least to trade for a living while not risking too much in my experience, and aim for 1-2% per month gains
kmartyn posted:
Like most traders I entered the Forex world with piss and vinegar hoping to cash in on quick profits. THIS IS NOT THE CASE.
After 2 blown accounts and a blow to my ego, I sat back and reevaluated my trades. Turns out I was doing a few things wrong.
1. Over leveraged. I know the appeal of trading 1:500 or even 1:1000, but DON'T do it. You will blow you account. My max now is 1:100 and that carries a significant amount of risk.
2. Money management. Do not risk more than 1% of your account. Some say 2% is fine, but 1% is better. set your stop losses at 2% of capital.
3. Worry about entries less and focus on how you're going to exit the trade that makes the most sense. Once you're in the market manage that position.
I hope this helps someone, please feel free to comment.
HOLY GRAIL: Fundamental Analysis to chose your pairs/direction, Technical Entry/SL/TP for consistent Management of those decisions
Membro Desde Feb 22, 2011
4862 posts
Oct 29, 2015 at 11:53
kmartyn posted:
Like most traders I entered the Forex world with piss and vinegar hoping to cash in on quick profits. THIS IS NOT THE CASE.
After 2 blown accounts and a blow to my ego, I sat back and reevaluated my trades. Turns out I was doing a few things wrong.
1. Over leveraged. I know the appeal of trading 1:500 or even 1:1000, but DON'T do it. You will blow you account. My max now is 1:100 and that carries a significant amount of risk.
2. Money management. Do not risk more than 1% of your account. Some say 2% is fine, but 1% is better. set your stop losses at 2% of capital.
3. Worry about entries less and focus on how you're going to exit the trade that makes the most sense. Once you're in the market manage that position.
I hope this helps someone, please feel free to comment.
Leverage has nothing to do with risk.
If you want to trade 1 lot without leverage your account has to be deposited with like $120,000 USD. (to trade 100,000 EUR)
With leverage you need just $1000 to trade such position.
Both risk and profit is determined by SL and TP.
So in both cases with 10.0 pips SL and TP you made either $100 profit or loss.
But with leverage it is 10% profit without leverage it is 0.1% profit:)
Now if you have system with lets say 60% profitability you make at least 10% profit
If you dont have profitable trade system than DO NOT trade:)
As I said low leverage is not ANY advantage.
Membro Desde May 20, 2011
724 posts
Oct 29, 2015 at 12:20
BenNathanFX posted:that really depends on what your goals are and you can turn 10k into 1 mil easy! just patience and compounding
This is a good post! It highlights another point, most people enter fx thinking they can make a fortune... they can... but not on a 10k account! You need about 100k at least to trade for a living while not risking too much in my experience, and aim for 1-2% per month gainskmartyn posted:
Like most traders I entered the Forex world with piss and vinegar hoping to cash in on quick profits. THIS IS NOT THE CASE.
After 2 blown accounts and a blow to my ego, I sat back and reevaluated my trades. Turns out I was doing a few things wrong.
1. Over leveraged. I know the appeal of trading 1:500 or even 1:1000, but DON'T do it. You will blow you account. My max now is 1:100 and that carries a significant amount of risk.
2. Money management. Do not risk more than 1% of your account. Some say 2% is fine, but 1% is better. set your stop losses at 2% of capital.
3. Worry about entries less and focus on how you're going to exit the trade that makes the most sense. Once you're in the market manage that position.
I hope this helps someone, please feel free to comment.
Membro Desde May 20, 2011
724 posts
Oct 29, 2015 at 12:53
Here is 10k compounded at 5% a month for 8 years
Anexos:
Membro Desde Feb 22, 2011
4862 posts
Oct 29, 2015 at 13:17
FXtrader2010 posted:1.06 aka 6% a mo is much better as it double your account each year.
Here is 10k compounded at 5% a month for 8 years
Anyway first you have to posses such system:)
Membro Desde Sep 12, 2015
1948 posts
Oct 29, 2015 at 13:23
FXtrader2010 posted:
Here is 10k compounded at 5% a month for 8 years
You need to run that through a random generator to get a realistic outcome.
"They mistook leverage with genius".
