LOL! Isn't this situation same with all futures for example? You rarely have a chance to buy on bid sell on ask in say ES yet I know people who are very successfull trading it with average of just 1 handle stop (which is 4 ticks, you probably don't know it). According to your words it is not possible to trade futures as well and all futures markets are scam and not worth trading them....
... and the point of your posting this is ... what? An average of $100 (10 pips) per day, per contract, is actually very easy based purely on the mechanics of trading ... it is the psychology of the trader that screws up the system. The above statement is predicated on one actually knowing how to do so, and it is obvious from your posts that you do not. Bye, I
I think you completely misunderstand the situation. In order to be a successful trader you must have a strategy that will provide you with consistent returns? A strategy that is sustainable agree? So with this in mind you must have something in place that will over time provide you with a profit. If this strategy is constantly changing you are in effect gambling on this market. You make money today, next week, next month over the whole year of 2008 if you can not sustain this what good is it? So you need a consistent strategy in which you stick to, now if you are in a situation where for every 10 good trades you have 1 loss that will wipe them all out, this is clearly not sustainable. Would it not make more economic sense for every 10 incorrect trades to only need 1 trade to break even? Now you have probability on your side. If your strategy relies on getting it right more then getting it wrong you are destined to fail. There is no chance to succeed in the longer term
You can make it for work for 30 days sure, but i come back to my point of a strategy that is sustainable. As you say that you do not use stops what happens in the next 30 days? or weeks or even years when you take a loss of 300 pips? completely wiped out in 1 trade 30 trades. How can you be sure never to take a loss like this? or even 3 losses of 100 pips? If you do not have a consistantly stop placed at a consistant distance from your entry you can not. It is not sustainable!
Yawn.. Acs you are boring. LOL. Just be honest and tell us you failed... and move on.... Keeping it conservative.. You a re saying a Good trader couldn't make 26K/ year from the FOREX markets... Remember, I scream on the compounding because you will hit the ceiling of getting your order filled and not moving the market when you do.... Or you will wind up over-leveraging yourself and blowing out your account.
Hi Icarus, Sure I agree with you completely. It is very easy to make 10 pips day but this allows the market to move away from you by much more then 10 pips. It is near impossible to make 10 pips and not have the market move more then 10 pips from when you enter. So why is this important? because if the market does ever move more then 10 pips from you, unless you plan on being correct 100% of the time you will inevitably take losses of more then 10 pips. So now your losses are greater then your returns and I would like to see someone come out on top with a strategy like this.
Where did I say that one trade is going to wipe out 10 good trades? It's you said this, not me. What I did say in one of my earlier posts in this thread is having a money management which employs preferably at least 1:3 risk/reward! And most good traders I know do just opposite to your example: they cut losses short (very short - often 5 pips in FOREX and 1 handle in ES or even such extremes as 20-30 points in HSI) and let profits run well. So I don't even understand why you post here stupid samples of trades where one loss is going to wipe out 10 or so wins... Neither me nor any of successfull traders I know would ever do such a stupid strategy... Maybe it's you who trades like you wrote?
I dont think you completely understand what i am trying to say. Or maybe it is just you choose not to. I really dont know what the 26k/year has to do with anything but ok. If you take losses greater then your profits you lose money. not difficult to understand. The strategy that you suggest means you take losses greater then profits. So you must be correct over 80% of the time to suceed. Thats an impressive feat.
Only a fool would manually let a loss wipe out 10 trades... If you can't read market action go watch TV. 26K = 10 pips per day at $10 per pip * aabout 250-260 Trading days (which is not accurate, but for the sake of argument.)
Painful..., Again you completely misunderstand. Kind of explained this in my first post. So you risk 5 pips in the forex. Which means you must set a stop of 5 pips from your entry. Now you have a spread of 1 pip so thatâs 6 pips. So the market moves more then 6 pips from your entry before making your 10 pips and you will lose 6 pips. How are you going to enter the market and not let it move more then 6 pips against you? How do you have a risk reward of 1:3 when aiming to make 10 pips? This means you risk 3.3 pips to make your 10 pips, with a spread of 1 pip you have a stop of 2.3 pip? this is ridiculous and you by your own money management rules this strategy is impossible. So let the market move more then your agreed money management rules and now you stand to lose more then 10 pips if you make a bad trade hence wiping out many good trades in just 1 loss.