It's not too difficult to have smooth sailing over a short period of time. It's after several years, and several massive hurricanes that determines whether you will be there or not in the end. When your first storm comes, you will see whether you're worth your mettle.
I also started trading EURUSD with a $300 mini-account, but on May 1, 2006. Since then I have turned that account into $500,000. I now trade in 50 lot size, and have never had a losing trade since I started. Please tell me, why am I so good?
Evidence that the market ranges or trends? ie. moves north 400 pips in a week or sits there in a 80pip range for a week? open up a long term chart. I wouldn't use the same approach for both. And to my understanding FX isn't a zero sum game like futures. I'd also stay away from leverage unless you know what you are doing. It'll come as quickly as it will go. People mention losing their shirt as well. Most Retail brokers will close you out at zero. But really if this happens you haven't managed tha moollarrrrrrrrr very well. Edit: more evidence... people claim 90% lose and from what i've seen 90% of people want to look at the chart and sell when one line crosses another or some other form of "black art" and wait for pay day. Co-incidence? i think not.
Thanks for the insights. Warren (not Buffet) Forex: LOL! What are you selling exactly? NO SALE! I'd sooner be broke on my own than be your (or someone else's) client. JackJones: My strategy is a single one: statistical advantage trading (SAT). It is a term I coined and no I'm not selling anything. What I am trying to do with the market is to pick some dimes and lose less than what I earn. For this I am running massive statistical tests on the forex data. In theory, I could select random entry points end manage the position with my system afterwards. In practice, it helps to pick entry points... So I use RSI because it is an indicator directly proportional to the ration of winning to loosing bars. I could use anything else but this works for me. So you see that what I do is, like you said "Don't predict, adapt" RoughTrader: I notice a little pessimism. Is it with newbies or with the market? Anyway, I can very well afford to lose the shirt I'm betting. And it will be done by small bets, each of under 1% of the shirt's value. I'm not a rough trader. I picture myself like an insurance company. They know that some misfortunes will happen and even so they continue to make money. Notice that I know that even with a familiar system, a backtested statistical advantage and rigid money management I can still lose my shirt. I'm willing to give it a shot. Anyone here also playing for the small pips instead of the large ones? It's all in the odds
pr0fit, so how is it going...you only posted here and in this thread....don't let the oldtimers intimidate you... Michael B.