I'll tell you why...Because most people are stupid and gullible. They bought into all these scam web sites selling E.A.'s and systems promising to turn $2,000 into $2Million in one year.....SCAM I can't believe people fall for this and how these sites have not been closed down by the F.T.C. is beyond me! So the majority rush in having no experience about trading, risk,money management, trade an the biggest leverage their broker willl allow them. Lose their whole account in less than 1 month. Then go on a crusade about how fx trading is ascam (sounds like you...) Why do you not learn to trade (same for all time frames) then come back? ----------------------------------------------- If majority of the world's populace were not involved in the foreign exchange market, why is it the BIGGEST MARKET IN THE WORLD?
Google "Forex Confidante" This guy knows his stuff and is a real forex trader..... To say it can'r be done is simply wrong. End of. If you have failed then step back and ask why YOU are failing! Stop blaming the markets.
Hey Dr. Death....if I pay you $100 will you promise to turn me into a Dr. who creams $150,000 for sucker patients? This sums it up....but as for a Dr. Why not simply move on and stop wasting our time? --------------------------------------------------- mayflip- I agree. I lost a few hundred a quickly stopped. I would like other beginners to stay far away from FOREX. -------------------------------------------------- So you can't trade for toffee....and everyone esle whould avoid it as well? Right that seems fair. so what was your system? What risk was you taking? Did you even have a system? How was it performing 6 months ago? Max drawdown, most losses, etc? I doubt you are even aware of the above!
1% risk is fine, there's nothing wrong with that. Of course it's calculated, it's 1% of capital. It can be adjusted depending on market conditions, whereas your fixed leverage can't be, the only thing you can adjust is your stop to fit in with your maximum risk which is just about the worst thing you can do! Stops should reflect the market and not the maximum dollar amount you're prepared to lose, that's a very novice mistake. hehe, you still don't get it. Ok look, this is really simple..... Take 1% of your account, divide it by your stop, and that will give you a value per pip - and therefore a trade size. If you think it's necessary then add your ECB 100 pip gap scenario into the equation. Nowhere did you need to calculate the leverage you used, it's irrelevant. Your fixed leverage can be very misleading because with a 25 pip stop your risk would be 0.5% and with a 250 pip stop it would be 5%. Now if you use a risk of 1% then no matter what size your stop you will still maintain the same risk, 1%, it doesn't fluctuate with the size of your stop. Bottom line is that using a fixed leverage is pointless as it's an irrelevant calculation. Here's some examples for you using a 5k account trading Eur/Usd: Your way using fixed leverage 10k trades: 25 pip stop = 0.5% risk, underleveraged. 75 pip stop = 1.5% risk, aggressive. 250 pip stop = 5% risk, overleveraged. The 'normal' way: 25 pip stop - 1% risk 75 pip stop - 1% risk 250 pip stop - 1% risk Add in your 'ECB scenario' to taste
....here you are, I'll even give you your 'ECB scenario' calculations to save you the bother... Your way using fixed leverage 10k trades: 25 pip stop + 100 pips 'ECB risk' = 2.5% risk, overleveraged. 75 pip stop + 100 pips 'ECB risk'= 3.5% risk, overleveraged. 250 pip stop + 100 pips 'ECB risk'= 7% risk, overleveraged. The 'normal' way: 25 pip stop + 100 pips 'ECB risk' - 1% risk 75 pip stop + 100 pips 'ECB risk' - 1% risk 250 pip stop + 100 pips 'ECB risk' - 1% risk etc etc etc
We are talking real trading here not paper trading. Given your attitude and ignorance of the markets any real 9% you will make will be followed by a -30%. I will still be around trading, not making a killing but 15% is good enough for me given that my capital is over 1M. OK, micro-lot paper trader?
Misinformed and naive? LOL So fund managers who could generate larger returns (for themselves and clients), choose not to. In favor of a paltry 3% management fee??? Yea, okay. 75% of managers don't beat the index because they can't. There's a difference.
When has the Euro Ever gaped down 100 pips, in non-news conditions? Let alone, 8 times over the course of a year? Black Swans are rare. You're trading as if they lurk around every corner. Protective OTM puts/calls are probably cheaper than super wide stops = better returns @ higher leverage.