Am I trading too risky?

Discussion in 'Forex' started by peilthetraveler, Nov 15, 2009.

  1. The other day i was on a forex site looking for a new broker and I saw this option of managed accounts and i could click the link to see the past returns. I was surprised to see the returns of only about 12-17% per year. When looking at the monthly returns I see around .5 to 2% or so per month returns.

    Now I thought I was being somewhat conservative in my trading with my leverage , but my swings are so much higher than what these guys are making. Last month I returned about 55%. On any given day my account will go up or down as much as 10%. Is this the same with the rest of you guys? Or do you guys shoot for smaller returns like 2% per month like managed accounts?
     
  2. what size account are you trading? have you calculated a sharpe ratio?
     
  3. Well IMHO if you trade above 7:1 leverage then you are going to have 20%+ drawdowns...TOO HIGH

    When I see people trading 10:1+ leverage I laugh.

    Those 12% to 17% they are probalby using no leverage. smaller profits but tiny drawdowns. It's what I call professional.

    What leverage do you use? Try 4:1....concentrate on the drawdowns. Keep this less than 15%.
     
  4. At your own ignorance 'probalby'! :)
     
  5. Here we go....:)
     
  6. Yeah, I'm bored, I've made like 12 pips today. :(

    I really must remember to take Mondays off......
     
  7. Buy1Sell2

    Buy1Sell2

    Yes.

    Thank you for your time.
     
  8. I've got 2 longs AUD/USD, could be pulling back for awhile.
    I'm going out to rake some leaves....
     
  9. I've just done mine....


    [​IMG]


    "Sit quietly, doing nothing, spring comes, and the grass grows by itself."
     
  10. Leaves are wet, drier by Wednesday. Check then.
    Nice quote. Very Asian.
    On occasion I still shake the branches to get the last leaf to fall.
    There's a trading analogy in there.
    :confused:
     
    #10     Nov 16, 2009