Why only 1 % or 2 %

Beginner Questions
12

Dont make me laugh money because this has to be a joke. Risk is risk its what breaks you. If you dont allow yourself to be injured then you cant be broken. Its not all about a single trade that is the mentality of losers or gamblers. Its a collective amount of trades that matter as she stated. A single trade is not going to pay my house note but if could cost me my house if I let it. Its about a portfolio where you lose you gain. Thats what makes losses irrelevant. I can show after I shorted the Aussie into extinction I have since then consistently lost money in forex. So what do I do man keep risking my house on a single trade? If I would have had high risks on the shorting of the Aussie I would be homeless today. No instead I moved money to slower but steady investments. Those investments grow with low risk and as they grow I can move funds to other maybe riskier investments maybe not depends on what turns up. But to toss all your eggs in one basket is just insane because eventually you going to drop that basket and the eggs will break. Then what you starve to death because you dont have anything else to fall back on.

Its all about a portfolio and if you want to have your entire portfolio all in forex thats fine (you have bigger balls than me) but to have your entire basket in a single trade is a rookie mistake. You maybe ok for now but just how long you think you are going to milk that cow till she dries up then what?

For me I have no problem milking a cash cow but I am also going to make sure I have backup in case my cash cow dries up I can still get my milk and I can slaughter this cow and eat my steak.

However please explain how high risk on a single trade is the way to wild riches man I need the entertainment.

With the above said I had to come back and edit this as no matter where your money sits I do believe Lexy, Money and I can all agree risk is your exposure to the market and unless you have the holy grail or more money than soros or the rothchilds thinking that you can live a great life on a small account with 1-2% exposure to the market is wishful thinking at best. However I can say that you can grow it to something decent and one day make a living but you are still going to need more than 1-2% exposure at any given time. There is no exact number to what you need exposed at a given time its all up to the opportunities if and when they present themselves.

13

I do agree Bob, without a doubt. All im saying is, have faith in your system, if its working, make it work more efficiatntly, and not so much harder.

How many people you run into that have $50,000 to throw in to ANY investment,

Im in the USA, where 65% are on foodstamps, and everyone is broke. Heck, my entire circle is pay check to pay check,…

At the end of the day, its about knowing how, where, and what to trade, and doing it correctly as often as possible, and make it as fruitfull as possible.

Everyone is differnet, as we have seen in the many years to this point.

Its like that diet, what works for 1, doesn’t work for all. add restraints of life, it gets worse, or unattainable.

We just see entirely different, nothing wrong about that.

Hope everyone has a great week, be safe, Im actually done for the day again, so Im Oouuuttaaa here,

5% in 45 minutes, got to love the short work days. These are the days you charish, be gratefull for quick days,

the Hundreds cuts to bleed out are over for me.

14

Because you can have a very long losing streak and it can last very long and hence your account would last longer than that.

15

Some traders who operate larger capital using even 0,25-0,5% per trade, its all about drawdown.

16

As maryjane88 says, it is all about drawdown. For real investors Forex trading is about capital preservation / hedging / and the possibility of a bit of growth. This is why you only risk a small amount per trade. Trading is a game of probabilities and you can easily have 10 losing trades in a row. If you risk 10% of your account you could lose it all very quickly. not cool. But with 1 or 2% the losses are small. The gains are also not great but with a good strategy they can accumulate

17

1% to 2% is advised to trade because you should keep in mind this amount can bring profit or loss for you . If you risk more than that as 10% you can loose so fast too. One should think both sides of the picture. If one loose even 2% in one trade he will suffer a lot.

18

That’s really true; institutional Forex traders go for low monthly percentage! Actually they focus on consistent monthly profit, like if a trader makes 2% monthly profit that means, around the year he or she will get 24% yearly profit, it’s not bad yearly feedback actually! On the other hand, institutional Forex traders trade with huge trading equity, so 1% or 2% is really enough for them!

19

I don’t know where any of this “information” comes from, but it bears absolutely no resemblance at all to any kind of institutional trading that I’ve ever seen. :rolleyes:

20

I’ll get shot down for this - but making 15% to 20% a month on a retail account is very doable while using controlled risk. The key word there being ‘controlled risk’ - all comes down to your risk appetite…I’m always hungry though

21

My God, you’ve cracked it!
Well done sir, well done!
I am in awe of your prowess.

Now I realize that your methods to achieve this guaranteed road to financial nirvana must remain a closely guarded secret.

But if you could be so kind as to post your actual, live account trades for September, October, and November 2016. With simply your entry and exit points and percentage of your account used. I am not looking for anything more, nothing from from some other intrusive website.

I understand that you could simply select trades that you never actually made, but I believe you to be a gentleman and a man of honour. Just your word, on your honour, that what you post is the true and accurate trades that you actually made.

Grant me the indulgence of seeing how a superior human, in every way, actually performs this feat.

22

its funny how every once in a while some wannabe guru comes around has no answares to anything and loves to post useless posts and then starts asking people for account prove.

hmm… mr. truth, you had a big talk about your background and profession. why dont you show some prove before you continue talking endlessly arrogant (without any fundament to be arrogant the way you are) and talking big?

23

Just let him have his moment…


24

My goodness, such nasty comments. I can saw with complete candour that I do not make 20% a month, nothing even remotely close.

If you have a specific question, please ask, I may decline to answer, but I shall be respectful to you.

I take it from the response of Mr. Jezzode, that his claim to 20% a month profit is not based on his personal trading history.

25

Hello Mr. Truth

Please excuse my ignorance, I’m still learning how to trade and also how to fit into society.

Have a wonderful day full of happiness

26

nasty gets answared with nasty. no questions, no interest, thou thank you for your kind offer.

27

Truth was not the person making the claim: he was the person (implicitly) questioning it. The burden of proof falls on those [I]making[/I] claims, not on those asking about them. I’m “just saying”. :wink:

28

This is very true - however I have not claimed to do this, I have simply provided a statement of opinion rather than fact (if it was a fact then I would have to back it up with evidence).

I also said while using ‘controlled risk’ - this could vary from 0.1% to 100% of a bank roll. The term ‘controlled risk’ is down to ones opinion, again not fact :slight_smile:

just saying :59:

29

my comment was not about the claim. it was rather about an arrogant attitude and demands that are hipocracy itself of asking for prove of statements while himself giving out statements (in other threads, i have to admit) and stories without any prove just aswell. hipocracy.

reread :slight_smile:

anyways. what jezzode said has ground. if professionals can do 25% annually unleveraged then they can do exactly the same leveraged by 1:10 and have their 20% monthly. simple math, just the truth is that those people who can do that are not on this forum and even those that are will not raise their voice in this forum. simply because trading is not a hobby to them, and we are on a hobby website, where people threat serious business as hobby (and occationally very often as gambling) and not on a pro-traders website where people threat serious business as serious business…

30

Fair enough … sorry, Turbo - I probably shouldn’t have posted (and I do take your other points). :8:

31

It’s all my fault - Stirring up trouble again, just like the good old days :slight_smile: