Only if you are a succesfull trader

Here is a link to another thread where I answer Malaka's questions. The answer to your question is near the end. Welcome to forex. http://elitetrader.com/vb/showthread.php?s=&threadid=58501

 

You took the words out of my mouth

 

I find nothing wrong with drasfs's question. 100 pips per month is not difficult. Good luck drasfs.

 

Yes, it is important to be very particular and blunt when demanding free help and the kindness of strangers.

 

You should raise the requirement to 1000+ pips per month.

 

Yea...I made almost 100pips today alone

 

I see that you didn’t read that I said someone who is able to get 5pips with 100:1. Of course, the same strategy that someone has that is using 20:1 wouldn’t work with a higher leverage, as it leaves with less room for error.

It is actually much harder to design your strategy with 100:1 leverage, but also much more profitable if you manage to do it and if you can get a net pip every day of 5 pip, than someone who get it with 20:1

And yes, if you use 50 pip loss and stop order, it would be asymmetrical, but not if you use a 10 pip stop order, and 40 pip sell order. In that case it will be positively skewed.

 

I saw that some people here thought I was arrogant. It was not my intention to send out such signals. I’ve lately stopped developing myself, and I thought I could get some influences, getting advice from people who are moderately profitable and arent you arrogant if you think you know everything and therefore not asking for help?

I hope you understand that I don’t want some advice from someone who is not making money and I know part of your assumption of me being arrogant, is that I didn’t contribute with something myself. Well if I get good responses I will. Please be open minded and don’t make any assumptions before giving me a chance.

However I will provide you with my advice now :


Using a higher leverage doesn’t necessarily mean that you risk more money on the trade if you only use 5% of your capital on each trade and simultaneously you use all your capital, which means you would have to have 20 trades. In this case you will be more effective with your capital. Not using ones capital is stupid, you would do better putting them in a savings account.

One argument here would however be that one should not place an order if he can’t recognize any opportunities. Well, if you want to be really profitable, you will have to devote a lot of time, and have an eye on at least 20 currency pairs, and then you will recognize more opportunities than you can place, however it depends on how strict your criteria is. If you feel you get too many opportunities, get stricter and therefore more quality opportunities. The more currencies you can keep an eye on, the more profitable you will become.

Its very important that you design your trading strategy so that you can use higher leverage and be more profitable, since that is what you want. If you know that you can get the same amount of pips with 30:1 with your strategy utilizing 20:1, but you have to change a couple of things, do that immediately.

30:1 leverage would make every pip 50% more worth than if you are using 20:1 which basically means that you would still benefit of getting an average of 4 three pip with 30:1 than 5 pip with 20:1 Try and find the best possible leverage, that will allow you to be most profitable, and make changes to your system if necessary without being stubborn. Remember, without being open minded, you will never develop yourself as a trader.

You have to use stop orders that are only a fraction of your sell stop, so you get a win ratio of at least 2:1. In that scenario there is only two possible outcomes, either losing or win double the amount. You would however have to buy volatile currencies and calculate your chance of winning, and maximum drawdown. If you invest 50% of your profit in another strategy taking less risk, you will decrease your drawdown tremendously. If you are good at math, you can calculate the best take off between the two.

It is of utter importance to get out, and get in, and scale your position if a certain risk barrier has been reached. You can increase your order if you believe the chance of it going up is higher.

Being efficient with ones assets is a rule you should keep to your heart. Always try to use 100% of your capital, because you can always make money with money. Thus, hedging by buying the opposite of your currency pair is stupid.

Not only is there any difference to just sell your currency pair if you are unsure, and then buy it again when you have arrived upon a conclusion, but it requires twice as much money.

 

Agree. You can see how much info I posted here.

 

I just wrote two A4 but still getting shit like this :/

But I do however agree that it looks a bit arrogant requesting such information without providing any information. But I dont want to see shit like this anymore when I have devoted a lot of time writing that huge post on page 3 just recently.

Now I want to see some similiar responses and if it is good, I will give som serios input of course.