hehe, I love these replies, they're a real insight into the minds of other participants So fluttrader and milktruck, what leverage would you advise people to use, or not exceed? (It's ok, I'm not really expecting an answer )
As I stated in the pip poll, more or less: I look for a spot where I can be proved wrong on direction in 20 or so ticks. Figure out what 1.5% of my equity is in relation to the distance between my price and my stop, and from there derive size. Once Im in the money I pyramid up on retracements and new breakouts, so leverage will go up but risk new risk is less than original risk due to smaller size of add ons and the fact that I lock in ticks by moving my stop. I never avg down because then my losers would be too big, since all losers would be added to. viola! I dont trade any x:1 leverage, per se, and agree with much of what you have written. It is just a statistical fact youre going to need to have instant winners if you trade huge leverage, no matter how good your hunch is, due to spread and market noise. And if you are arbing news releases or price lags its all fun and games until your market order gets executed at the market!
Ok, that all sounds very reasonable......in effect leverage used means diddly. Now think aggressive compounding while at the same time keeping risk limited. At some point you will use >150:1, and more if it's available, but without taking any excessive risk. This market really is an unlimited cash cow (liquidity allowing), why not take full advantage?
thanks..but...hmmm...they are out of Russia and I live in the USA...I do not think they wold give me a W-9 for my taxes...would anyone in the USA trade with them?...is that legal?
Just checking that. Not totally sure a rookie like me should go on 1:500 but this broker has a US site here : http://www.alpari-us.com/en/services/mini-and-micro-forex.html Leverage there is 1:100 for micro accounts, maybe more for others (have not checked that)