Emotion in Forex trading
Участник с Nov 07, 2018
17 комментариев
Dec 26, 2018 at 11:39
DonaldB posted:
I would say no more than 2-5% depending on the market activity.
You meant this percentage for 1 trade? Does it not too high risk value if you will trade 3 trades one time?
I'm sorry for the question if you mean 2-5% for all trades.
Участник с Sep 12, 2015
1948 комментариев
Dec 26, 2018 at 12:30
Depending on the size of your account but 1-2% of your balance max on Forex ,2% is aggressive ,it depends on the trade like if its broke the 200 daily moving average you might risk 3-5%.
"They mistook leverage with genius".
Участник с Aug 27, 2017
994 комментариев
Dec 26, 2018 at 14:54
snapdragon1970 posted:
Depending on the size of your account but 1-2% of your balance max on Forex ,2% is aggressive ,it depends on the trade like if its broke the 200 daily moving average you might risk 3-5%.
Forex is all about probability, there is no guarantee! So, using 3-5% risk is not a good decision; whatever the situation is it.
keeping patience.......
Участник с Jan 03, 2018
162 комментариев
Dec 27, 2018 at 07:24
nick3232 posted:
a good way to clear emotions is to have a low risk money management
when i start worying i adust the risk accordinly in order to feel confortable even if i have a sound trading plan,,,
nick123427@
Участник с Dec 24, 2018
42 комментариев
Dec 27, 2018 at 07:43
5% when you know where the market is going not bad, but you must be sure you know the direction, otherwise, im using 1 percent when not sure, stoploss always important
Move along with the Market
Участник с Aug 27, 2017
994 комментариев
Dec 27, 2018 at 14:00
Trader4hire posted:
5% when you know where the market is going not bad, but you must be sure you know the direction, otherwise, im using 1 percent when not sure, stoploss always important
5%? It’s really too much mate. Because, consistent 2 SLs means 10% loss, a huge damage.
keeping patience.......
Участник с Jan 05, 2016
1189 комментариев
Dec 27, 2018 at 17:36
nick3232 posted:
when i start worying i adust the risk accordinly in order to feel confortable even if i have a sound trading plan,,,
If you adjust your trading activities based upon your emotional state, then you are trading with emotions and not using a solid investment strategy.
If it looks too good to be true, it's probably a scam! Let the buyer beware.
Участник с Sep 12, 2015
1948 комментариев
Dec 27, 2018 at 22:58
Adribaasmet posted:snapdragon1970 posted:
Depending on the size of your account but 1-2% of your balance max on Forex ,2% is aggressive ,it depends on the trade like if its broke the 200 daily moving average you might risk 3-5%.
Forex is all about probability, there is no guarantee! So, using 3-5% risk is not a good decision; whatever the situation is it.
It depends how experienced you are and how well you know what your trading , on a swing trade near the 200 DMA it can be your trade of the month ,like our last trade on eur/usd from 1280 Long we knew it was nearing a bottom to go bullish just needed some space to finally bottom at 1269-1390.
"They mistook leverage with genius".
Участник с Nov 28, 2016
14 комментариев
Dec 28, 2018 at 07:37
Professional4X posted:nick3232 posted:
when i start worying i adust the risk accordinly in order to feel confortable even if i have a sound trading plan,,,
If you adjust your trading activities based upon your emotional state, then you are trading with emotions and not using a solid investment strategy.
Agree
Участник с Apr 18, 2017
920 комментариев
Dec 28, 2018 at 07:45
snapdragon1970 posted:Adribaasmet posted:snapdragon1970 posted:
Depending on the size of your account but 1-2% of your balance max on Forex ,2% is aggressive ,it depends on the trade like if its broke the 200 daily moving average you might risk 3-5%.
Forex is all about probability, there is no guarantee! So, using 3-5% risk is not a good decision; whatever the situation is it.
It depends how experienced you are and how well you know what your trading , on a swing trade near the 200 DMA it can be your trade of the month ,like our last trade on eur/usd from 1280 Long we knew it was nearing a bottom to go bullish just needed some space to finally bottom at 1269-1390.
As I see, you are very much serious on moving average trading tool; may I know the key point of your trading system?
Участник с Dec 24, 2018
42 комментариев
Dec 28, 2018 at 07:47
If you are a professional trader, and knows what you are doing , you can risk 10% but i love 1 to 2%, depending on capital balance , if you are trading with millions, 10% is a no go area, you do not want you investors look down on you
Move along with the Market
Участник с Sep 12, 2015
1948 комментариев
Dec 28, 2018 at 12:34
AniLorak posted:snapdragon1970 posted:Adribaasmet posted:snapdragon1970 posted:
Depending on the size of your account but 1-2% of your balance max on Forex ,2% is aggressive ,it depends on the trade like if its broke the 200 daily moving average you might risk 3-5%.
Forex is all about probability, there is no guarantee! So, using 3-5% risk is not a good decision; whatever the situation is it.
It depends how experienced you are and how well you know what your trading , on a swing trade near the 200 DMA it can be your trade of the month ,like our last trade on eur/usd from 1280 Long we knew it was nearing a bottom to go bullish just needed some space to finally bottom at 1269-1390.
As I see, you are very much serious on moving average trading tool; may I know the key point of your trading system?
Its what pattern and price action forms around DMA not DMA it's self,other factors like time of day ,what retail think will happen and what professional side do ,its one tool of many ,it's a place of interest for trading so we watch it, price and pattern is always changing so you adapt to what is happening and look for the hints of changes ,know your pairs behavior ,get professional training is key.
"They mistook leverage with genius".
Участник с Sep 12, 2015
1948 комментариев
Dec 28, 2018 at 12:43
.75 to 1% for trading with other peoples money ,mostly .75 ,larger % with clients who want to risk more for higher returns and own private account ,if you have 20 clients put half long and half short someone has to win ,not a practice I suggest but I've seen others doing it.
"They mistook leverage with genius".
Участник с Nov 29, 2018
8 комментариев
Dec 30, 2018 at 07:35
snapdragon1970 posted:
if you have 20 clients put half long and half short someone has to win ,not a practice I suggest but I've seen others doing it.
Wow that is an eye opener. I had not thought that some companies would do that. I hope it is only the real bad ones that do that. That kind of practice is just dishonest
Участник с Mar 02, 2017
50 комментариев
Dec 30, 2018 at 08:00
There is something interesting in retail traders. When they start in Forex Market, the majority of their education comes from Brokers!
There is a conflict of interest here - brokers need you trading often and trading big lots. For every full lot you trade in EURUSD, brokers get 18 USD in spreads. Even ECN/STP... Imagine what brokers prefer to teach and how much money they spend in Forums, spec sites and even developing EAs? Many Forex gurus in Market are Brokers' employees or partners.
Imagine 2 traders with 1.000 USD account
Trader 1 - 0.1 lot, Stop loss 100 pips, Take Profit 300 pips - winning ratio 40% - 12 trades monthly
12 x 40% × 300 - 12 x 60% x 100 - 720 USD in profit or 72%. Risk per trade is 100 USD or 10%. Spreads are 12 x 0.1 x 18 = 21.6 USD
Trader 2 - 0.5 lot, Stop loss 30 pips, Take profit 30 pips - winning ratio 53% - 50 trades monthly
50 × 53% x 150 - 50 x 47% x 150 = 450 USD in profit or 45%. Risk per trade is 150 USD or 15%. Spreads are 50 x 0.5 x 18 = 450 USD
Which trader do brokers prefer? High risk, more often trades and lower profit... trader 2.
I will not talk about brokers betting against customers, inducing throw emails, phone calls, whatever... to take positions that they know are losing ones. Why? Because they keep these trades inside their desks, not transfering it to liquidity providers... your balace is their profit.
In Europe, leverages were reduced to avoid this, partnerships contracts through indications and bonuses were banned. What brokers are doing now... yes, getting out from Europe.
Brokers are casinos in Forex and CFDs markets. The best way to control your emotions?
1) understand who really is the broker. It isn't your friend... Don't accept any education from them, specially about money management.
2) educate yourself. Sites that sell 10 different strategies, indicators, robots... just want to take your money too. Forex gurus will try to make you open account in selected brokers, and teach you to earn revenues for them and their brokers.
3) study money management, waves patterns (higher highs, higher lows...), moving averages, support and resistance, trendlines and candlestick patterns. Use higher TF to find trades, and smaller ones to enter them
4) avoid overtrading
5) understand market behaviour and mood
There is a conflict of interest here - brokers need you trading often and trading big lots. For every full lot you trade in EURUSD, brokers get 18 USD in spreads. Even ECN/STP... Imagine what brokers prefer to teach and how much money they spend in Forums, spec sites and even developing EAs? Many Forex gurus in Market are Brokers' employees or partners.
Imagine 2 traders with 1.000 USD account
Trader 1 - 0.1 lot, Stop loss 100 pips, Take Profit 300 pips - winning ratio 40% - 12 trades monthly
12 x 40% × 300 - 12 x 60% x 100 - 720 USD in profit or 72%. Risk per trade is 100 USD or 10%. Spreads are 12 x 0.1 x 18 = 21.6 USD
Trader 2 - 0.5 lot, Stop loss 30 pips, Take profit 30 pips - winning ratio 53% - 50 trades monthly
50 × 53% x 150 - 50 x 47% x 150 = 450 USD in profit or 45%. Risk per trade is 150 USD or 15%. Spreads are 50 x 0.5 x 18 = 450 USD
Which trader do brokers prefer? High risk, more often trades and lower profit... trader 2.
I will not talk about brokers betting against customers, inducing throw emails, phone calls, whatever... to take positions that they know are losing ones. Why? Because they keep these trades inside their desks, not transfering it to liquidity providers... your balace is their profit.
In Europe, leverages were reduced to avoid this, partnerships contracts through indications and bonuses were banned. What brokers are doing now... yes, getting out from Europe.
Brokers are casinos in Forex and CFDs markets. The best way to control your emotions?
1) understand who really is the broker. It isn't your friend... Don't accept any education from them, specially about money management.
2) educate yourself. Sites that sell 10 different strategies, indicators, robots... just want to take your money too. Forex gurus will try to make you open account in selected brokers, and teach you to earn revenues for them and their brokers.
3) study money management, waves patterns (higher highs, higher lows...), moving averages, support and resistance, trendlines and candlestick patterns. Use higher TF to find trades, and smaller ones to enter them
4) avoid overtrading
5) understand market behaviour and mood
Trade safely... Remember, a high Drawdown means a high risk!
Участник с May 13, 2018
8 комментариев
Dec 30, 2018 at 08:08
I do not understand what you mean by 'you have 20 clients put half long and half short someone has to win'. So would you be giving different advice to each client? How would this mean that someone has to win?
Участник с Sep 12, 2015
1948 комментариев
Dec 30, 2018 at 14:03
PinkPanther2000 posted:
I do not understand what you mean by 'you have 20 clients put half long and half short someone has to win'. So would you be giving different advice to each client? How would this mean that someone has to win?
10 Long and 10 short ,there is only two directions up or down ,your trading client money you do not advise clients on every position your taking or you would be on the phone all day.Some people have more money than they know what to do with and liked to gamble ,some it's there life savings .keep churning clients was the norm ,that's why so many bucket shops have closed,I remember when I first found out sitting in the office one day it was shocking ,that was my last day in that place ,a year later they moved to an even more expensive area, eventually they were closed down.That's why I tell people to get educated it's an eye opener.
"They mistook leverage with genius".
Участник с Dec 28, 2018
9 комментариев
Dec 31, 2018 at 13:32
It is often overlooked or completely ignored, but it is something that every Forex trader should become good at. It is the skill of managing your own emotions and is a part of Forex trading psychology. “The key to trading success is emotional discipline.
Участник с Apr 18, 2017
718 комментариев
Jan 01, 2019 at 10:49
thinkpad954 posted:
It is often overlooked or completely ignored, but it is something that every Forex trader should become good at. It is the skill of managing your own emotions and is a part of Forex trading psychology. “The key to trading success is emotional discipline.
Of course, discipline is very much important! This is why, for all time I take a decent break & always comeback with the full of energy.
Участник с Mar 02, 2017
50 комментариев
Jan 02, 2019 at 10:48
There is a big difference between a retail trader and a hedge fund trader. This difference is called market depht. A small retail trader can open a 1 lot trade and ihe will not be noticed by market, because 1 lot is nothing. But a hedge fund can't open 10.000 lots in just one trade. This trade will cause a huge move in market, and his order will be filled in different levels. The other difference is the acceptable volatility. For a retail trader, 25% drawdown is acceptable. For a hedge fund, less than 10%.
Different things... A retail can trade for 10% monthly, an hedge fund for 3%.
Different things... A retail can trade for 10% monthly, an hedge fund for 3%.
Trade safely... Remember, a high Drawdown means a high risk!
