I am interested in your comment. Would you please speak on (write on) the advantages of trading as an LLC over trading as an individual? Or would you direct me to information regarding that? Now that I am consistently profitable, I am considering trading as a business entity. Thanks in advance.
I have traded with FXCM for 3 years now. Reading the fine print is important. The personal guarantee is OPTIONAL.
You know, you are asking the wrong question. Given your $300 opening account size, why would you even consider ANY forex broker whose minimum trade size is 1 mini-lot, or 10,000 units? Are you aware that if you open a 1 mini-lot position in, say, Euro, your leverage is 40:1 (10,000 x 1.20 / 300), right off the bat? 1 Euro mini-lot pip is worth $1. If your stop loss is, say, 30 pips, then you're risking 10% of your account the very first time you pull the trigger. Should you lose on that trade, you're down to $270... now forcing you into leverage of 44:1 and either an even tighter stop or per-trade risk of greater than 10%. And so on... but not for long. I am very curuios how you plan to practice anything remotely resembling reasonable risk management and position sizing, under those conditions? Conditions under which many, if not most, professionals would fail. If you must trade forex with $300, you really have only 2 options: 1. Stay with demo until you've accumulated at least $10,000 of risk capital, then pick whatever mini-lot broker you're comfortable with. 2. Open a real account with Oanda now, and move on from fooling around with demos. The minimum trade size is 1 unit and, therefore, your small opening account size is a 100% non-issue. Rather than a virtually certain guarantee of an early and rapid failure, as it WILL be with any mini-lot broker. Good luck.
I know all that man. But I have a strategy that relies on 15 to 20 pip stops and it's verry good (atleast on the demo, hopefully that behaves like the real acc). So, that said, the initial risk will be somewere like 5% margin, wich is still risky, but I'm confident it will work. I just hope that the risk won't be increased because of the brooker.
5% - 6.7% risk is on the high side, but might work for a beginner with talent, dedication, the right mindset and, last but definitely not least, luck on their side. 40:1 and higher leverage cannot work, early in your trading career. You've got no snowball's chance in hell. But, hey, I understand if you want to find out first-hand... knock yourself out. Actually, I'd love it if you could prove me wrong. How about starting a trading journal right here on ET?
Too much background noise here. How about I prove you wrong in person. Let's swap mails. I'll give you more details personaly by mail. Mine is jessieblues22@yahoo.com.
Sure, there's plenty of noise on ET, but the Journals forum is probably one of the best-managed areas here. A moderator would gladly help you keep your trading journal tight, clean and flame-free, for the most part. Seems to me the only way to make your case would be to somehow demonstrate that you've opened a $300 mini-account with FXCM and managed to trade that account higher, rather than lower, over time, without making any additional deposits, of course. Agree? In any case, sorry but I am not much into emailing with strangers. However, you're welcome to send me a PM, and we'll take it from there.
LOL. OK man, I wasn't trying to pick you up or something. The thing is this: A reliable friend on the net gave me an ebook with a strategy for fx. Now, untill two weeks ago I never heard the word forex, but I made a search on the net, long story short, I learned how to open an acc and have been trading a demo since then. The friend's strategy is really good, because even if I'm just starting to get what forex is about, I still managed to get a 10% profit from the demo acc I opened two weeks ago. What I was willing to do was to trade the book to you in exchange for some basic sincere advice from a more sesoned trader. I'm sitting on a good strategy here, but I don't even know what brooker to chose. That's why I was asking all this basic questions on the forum, but seems that some people here have hidden agendas and I get conflictive advice. This offer is extended to anybody who is an experienced trader. Give me some straight answers to some basic questions, or any begginer materials you have and I'll send you the book for free(mail: jessieblues22@yahoo.com). Anyway, what is PM?
Hope your Yahoo mailbox can hold a few dozen (a few hundred?) emails from all the highly experienced / profitable forex traders hanging out on ET. A PM is a Private Message. Most forums, including this one, offer that feature as an easy way to communicate with other members, other than email. See this for details: http://www.elitetrader.com/vb/misc.php?s=&action=faq&page=2#pm Also, go to Your Account [at the top] - Edit Options and verify that at least 1 of the last 2 options under "Messaging and Notification" is set to "Yes".
I'm quite a smart guy (if I may say so myself ) so I'm sure I can tell the experienced traders from the"experienced traders" who mail me. Ok, I now know what PM means. If I knew that sooner and I sent you a pm, you would have got the message above. If you are willing to endure a few mails from me from time to time when I have a few questions, than you can PM me. Really, i'm not a weirdo or something, just some guy who needs a few tips. I noticed you live in the US, then we live a world apart, as I am in eastern europe, so no need to worry about stalkers or something. Seriously, anybody who mails me, better bring something to the table, I need basic materials on forex, anything you can spare, and I'll give you my strategy for free. Don't expect miracles from it, but, like I said, it worked to bring me 10% in two weeks from my original demoacc, and I'm just a beginner.