How do you know the momentum wont fade tomorrow?
The example you gave is very misleading. If you have $10k and you use 100:1 that’s $100 a pip. The spread alone could be 3% of your account. If you are using 50:1 that’s $50 a pip. That means 6 pips would be 3% if your balance. The leverage causes substantial losses when the trade goes against you. Avoid it at all costs unless your intention is to gamble your way through, which is a different story.
[QUOTE=“Pollar;719529”] The example you gave is very misleading. If you have $10k and you use 100:1 that’s $100 a pip. The spread alone could be 3% of your account. If you are using 50:1 that’s $50 a pip. That means 6 pips would be 3% if your balance. The leverage causes substantial losses when the trade goes against you. Avoid it at all costs unless your intention is to gamble your way through, which is a different story.[/QUOTE]
Leverage doesn’t dictate pip value, position size does.
I could use 500:1 leverage & have 1-pip equal $1000 or using exactly the same leverage, I could have it equal $25.
Leverage determines how large a position you could potentially buy so on a $10k account at 100:1, that would in theory be $1,000,000 (I say in theory as a margin call would rapidly follow if you opened such a large position). It also determines how much is kept aside & held as security against your trade so for every $1,000 in your position size, they’d hold 100th of that aside ($10).
So personally I think that as long as your money management is sound, take as big a leverage as you can get as it’ll keep your free margin comfortably away from any problems if you ended up with multiple trades open at a given time. You really do have to be disciplined with your risk though.
The reason why I withdrew the whole account was because :
1 - The main reason why I think I made such a decent gain was because there was an opportunity in the market, and I was just took advantage of it.
2 - the momentum slowed down in the market therefore my own momentum would of slowed down as a result. So I thought instead of continuing to trade, and more than likely give back a portion of my profits, it would be better to withdraw the account and wait for another opportunity to take advantage of.
3 - I was beginning to get that God like feeling for the market, and I find when I start to feel like that I change the way I trade (in a bad way) so just thought withdrawing would be the easiest cure for that.
although I have withdrawn the full amount I have placed another small sum back into my account for the upcoming week (£20)
That’s truly impressive for such a small deposit. Best of luck in growing your equity even further
You know what Buddy, I have to think this is why many fail, including myself. I just had a discussion with my wife about this very thing. When you have the swagger, and feel mighty, your quickly brought back down…
I was going to post this in my MoneyNVRSleeps thread, which Im going to update today, but just because you made referance to it, Im gooing to post it here too…
Starting Monday, Im not going to post here anymore, Im not going to brag about my wins, or my percentages, or anything for that fact. Its time to just do it, get the job done, THEN, reflect on my greatness which I worked very hard to get to.
I think that is why a few good traders disappear from here. Its not they quit, but maybe they just needed to stop boosting about progress. I dont know, but I think thats my problem…
So, starting Monday, You wont read another Post from me till I truely achieve what I set myself out to accomplish, which is wealth and security for my family, and the generation to follow.
You keep your nose to the grindstone Bro,
Thank you, and the same to you.
You are wrong. What I just did is help saving him a LOT of grief and lost money. I didn’t bring him down and I did not question his strategy. I did raise some concerns in regards to the leverage. Supermalt will realize with time how much money he saved by withdrawing everything and starting again with a small amount. Supermalt, do let us know how long it took you to receive the withdrawal. Did you deposit using a credit card? If yes, the withdrawal will probably be made via a bank transfer.
- I read your post again so I misread it. Yes, bragging about wins is a not a good idea. The psychological impact is terrible. When you do make a loss your ego will force you into taking greater risks and that usually doesn’t end well. Good luck in the market.
Thanks for the post Pollar; the deposit was made via skrill, and the withdrawal was made via skrill. Genuinely the withdrawal takes about 3-4 working days, but on this occasion the withdraw was made and processed in two working days, which I’m pretty happy with.
Supermalt please listen to pollars advise. Leveraging is indeed addicting and can easily blow your account if the market goes against you. I blew 90% of my account off of 1 big market move that went against me. Always stay at 10:1. Ever since that sour moment in my life, I swore to myself that I would keep my leverage at 10:1 and so far I have profited all a bit slowly, but profiting. I’ve made 3 pounds with that leverage in very conservative trading, but I say that wealth should be increased slowly and steadily. I remember when I used to leverage 100:1 and made £100 in a few hours, but once the market turned against me I lost it all x5. Listen to these guys.
“If 95% of traders fail, why would you listen to what 95% of them have to say? When does the rhetoric go from helpful to hurtful? What’s the difference between holy water and poison?”.
It will need time to make $10 to $100 because it is 10 times from your current capital. If you want to make it happen so it’s possible to realize it with consistent profit but some traders prefer to risk high in order to gain high profit in short time because the amount of capital which is risked, it is not too high amount of dollars. I ever read some traders who could gain thousands percentage of profit in short time but it is not suggested for mostly traders. I prefer to try gaining consistent profit although it’s not big amount of dollars instantly.
That is very true, I’m sure that the large majority of people posting on this forum would not class themselves as a “full time trader” (just an assumption); therefore they are battling with there own trading demons. And I suppose a lot of trader don’t even know what their demons are, in all honesty I think 95% (haha) of how people learn to trade are wrong and misleading.
The basic trading doctrine I guess would be:
don’t over trade your account .
You will only get rich or build wealth by trading very very slow.
the trend is your friend.
only risk a small portion or your account
trade well know patterns are use strategies that everyone else has access too.
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I’m going to chime in here. I DO USE a 50:1 leverage on my LIVE account. I trade .01 lot right now and its about 10 cents to the pip. I’ve had 3000$ account with 200:1 leverage and could have traded 10 cents to the pip or 100 $ to the pip. The only thing leverage ever did for me is, let me open positions that are large if i want to. I totally control how much my pip value is worth. You can ABUSE leverage, have a account and use the leverage to its max and run like 30% account risk per a trade. BUT if you’re going to DO that go to a casino and test your luck instead.
I’m not saying anyone is wrong or right here and I’m not looking for any trouble. I put this post up with respect, this is my personal opinion and experiance.
Traders only learn that after they lose, trust me on this. If this guy withdrew everything and was not tempted to keep trading with the 200 he is a rare exception.
Well in that case I must be rare exception, as I have written about 3pages ago; I have withdrawn all the profits, and then placed another £20 into the account ( which I have made about 600% profit) and I have also withdrawn that account.
I will continue to do so until I get a signal on my main account, then ill stop trading these small account and carry on trading my main account.
I will not be posting any more about making X% profit from a small account, due to this thread now boring me, due to the constant reminder of how I’m trading wrong, and how I should listen to some random guy/girl called Pollar, no hard feeling Pollar, but if you wish for me to listen to you, show me some proof of how your own over trading has ruined you and then how trading well has helped you
Yes Dear, as Pollar stated below, the worst thing happened to you, just like it happened to me once when I made 1.430 USD with my 123 USD deposit, only within 40 minutes.
Now, you poor guy started thinking that it is such easy to make 1000% profit in minutes, right ?
Well, here is the rest of my glorious story: within the next 5 hours, my account was down to 150 USD, the point where I finally managed to suppress my urge and quit trading.
I hope it doesn’t happen to you. But if it does, don’t be terribly disappointed. It happens to all of us.
Best regards and good luck.
supermalt,
Irregardless of what everyone else is concerned about, I would be interested in knowing what your strategy is. If your willing to share? Thanks… PipsPirate
Sure ill give you a brief summary as to how I trade.
I’m a discretionary trader, which means I do not comply to any set of rules for entry and exits; so to speak.
I do not use any indicators on my chart apart from the occasional trend-line that I might use to identify weakness in the current “trend”.
Entry:
My entries are based on instinct (I don’t place much emphasis on); for example if I get into a trade and it goes in my favour I will then get into another trade (depending on how I feel), and move my stop for the first trade to a more comfortable position to accommodate for the two trades; eventually moving both to break even (if I feel like it).
Exit:
1, If the market moves against me to a degree I start feeling uncomfortable I just close the position (if the ship starts to sink, don’t wait, jump).
2, If the market goes in my favour, I exit my positions when my heart beat increases some what, or my hands start to tremble slightly.
3, I also exit the market if I start to lose interest in my position.
4, If I’m feeling greedy I get out.
Money management:
this topic is to long to go into, but it is the heart of my the whole plan. I use ratios when planning my risk out, and percentages when setting soft profit targets.