Thanks giles, it was hard work and I wouldn't like to repeat it that's for sure! The market was very accommodating fortunately, as was the bucketshop marketmaker, I think the week was over before he realized what was happening and that was great fun In hindsight I wish I had added a couple more zeros when I funded the account!
I Like the old adage, slow and steady wins the race.... Great trades always present themselves. Just be ready when they do.
My sentiments exactly! That's what I love about trading, if you miss one opportunity there's always another one just around the corner.
Lets say I make 10 pips with 6 standard lots = $600. Next trade I scale back and make 10 pips with 2.5 standard lots = $250 Next trade I'm not real sure on so I go with 5 minis and make another 10 pips = $50. I'm now up $900 for the day on 3 trades for 30 pips. Now I decide on the next trade I'm going to ride it out with a 30 pip stop since the NY session has wrapped up and things are moving at a snail pace. Since I'm going to risk 30 pips, I'm going in with only 5 mini lots. I take a hit and and get stopped out for -$150. I'm still up $750. But I'm damn mad I lost 30 pips so I double up on the next trade and place a 1 lot trade with another 30 pip stop and get stopped out again for -$300. Holy bungholio! I've just lost 60 pips, leaving me with a net -30 pips for the day with a $450 profit.
Ok thanks for the explanation. What do you do if that first trade for $600 is a loss instead of a gain?
Another idiotic comment from Acs, your credibility is completely shot as far as I'm concerned! Anyone with an ounce of intelligence or trading savvy would need to know the details first, but not you, you just shoot in the dark and repeat the same thing over and over, you can't even support your opinion with reasoned argument or logic. Let's have a look at the definition of the word 'gamble': 1. (2) gamble, chance, risk, hazard, take chances, adventure, run a risk, take a chance -- (take a risk in the hope of a favorable outcome; "When you buy these stocks you are gambling") 2. gamble -- (play games for money) It could be argued we are all gamblers but that's another debate, I'll assume you're using the term in a derogatory way. There are smart gamblers and there are suckers or mug punters. A sucker relies on luck and a hope and a prayer. He hasn't analysed the statistical probabilities of winning overall, he just has a punt and hopes he wins. A smart gambler on the other hand makes sure he has an edge and that the probabilities of winning overall are in his favor. He doesn't rely on the outcome of one bet but instead looks to make money on a series of bets, overall he looks to be profitable regardless of the outcome of one individual bet. He manages his money and limits his risk while at the same time maximising his reward. He develops the discipline necessary to follow his strategy and avoid impulse or revenge betting. In essence that is trading. Now let's look at the 1200% returns that you say were gambling (in the derogatory sense). 113 trades 110 wins 3 losses A win rate of 97% over 113 trades Risk:reward on average greater than 1:4 Maximum Risk per trade 5% Probability of winning overall was clear. Risk was limited, reward was maximized. Money management was more than acceptable. Now you explain to me, if you can, how that is gambling in the sense you mean it. You can't. Can gains like that be sustained in the long term? Theoretically yes, practically no, for all sorts of reasons but nothing to do with whether it's gambling or not. Would anyone advise a novice to trade that way? Well of course not, they're a novice!