The trouble I have with that idea is that a broker will not allow a 100% loss on the account. A 50% loss will trigger a margin liquidation. So if he is trading with 1000 dollars, his actual trading power is only 500.
I trade in a similar fashion- first decide what my 'full load' is and the max pip loss I will take with that. From there that full load is divided down into as many times as possible. From there you start trading, full of ammo.
Depends on one's personal preferences. From longer-term investment in stocks maybe using some highly reliable account with someone like IB to real-estate or some business venture to savings account.
Not too much to look there as I don't have plans of making money off that. Rather just bits of stuff and rants when I'm in the mood.
apples and oranges, people are using the same words to talk about totally different things excess cash? Like the cash you will need at a moments notice if you get a margin call? or excess cash, like the cash you no longer want to commit to trading? the bucket shop trader opens an account and says, "I will trade it until it is all gone." I'm a little more serious than that.
Oh Blah! No you just keep averaging down and throwing away your money! I leave as much money in my trading account as I need to trade the trades I want to trade. Everything else is in longer term investments.
Nice! Good motivation for people to not give up. I think the question has been answered several times - yes, there are real full-time retail fx traders! I asked the question because in the Trader P/L threads you never see a FX blotter...