Not sure what your suggesting exactly you mean to withdraw profits or lower my margin so that when my account is down 50% i close the trade ?
Sort of a failsafe for you is what I have in mind.
You ran $200 up to $1000, and probably more fairly quickly.
If at that point, you were to take $500 off the table, and leave it in booked profits, and left your usable margin as only $500, you would still be up quite a bit.
So basically, only trade out of the top half of the account at any one time. Keep your balance growing, and keep your equity within half the balance. If the equity goes below half your balance, shut it down.
Compounding will keep things moving along nicely even only using half your account.
Yeah that’s what i had in mind but was waiting till i hit $2000. Next time will defiantly do it when i hit 1k
Firstoff, I don’t think extract is a market noob.
Secondly, I personally have blown more than $200 on dinner, and a night out.
I have nothing to show for it, other than a temporarily full stomach, and a hangover the next day. Didn’t even get a tax write off:D
Again, I don’t recommend trading like he is. But it’s fun to watch someone with some experience let it loose with a smaller amount.
I’m toying with the idea of taking $100, and doing somewhat the same.
Why am I sorry? Dude, I’m rootin’ for him:D
That doesn’t change anything to the better. Listen why: Letz assume he makes it again to 1k. He takes out 0.5k. Then he blows the other 0.5k. Then what? Stopping gambling or throwing in the other half what he took of the table? In the latter case it’s easier to let it in right away.
Gambling is gambling and trading is trading. Gambling is not trading and trading is not gambling. No reason to mingle that all in one pot, lol. 
Just so you know, had your account still been alive, at the rate you were compounding, you would have hit 200 k in less than 3 months.
More like 8 weeks.
You can cut some risk down, and STILL be ahead of your goal. All you need is 24% weekly to hit it.
You were at well over 200% a week.
Keep some capital protected, and you will live to play another day;)
Sure. He knows even the casino market. That is gambling, if I look at this horrible money management. Regarding spending money: If you gamble, that is fully okay. Because gamblers pay for playing. I find the idea much more comfortable to lose 200 bucks right away after a couple of weeks than at first gaining 200k of it and then bite the bullet after 7 months. Anyways, a margin call is a margin call. No matter what trillions before were in an account. 
This is interesting.
Some people gamble in a casino, others do it in the market.
We are ALL gambling every time we hit buy, or sell.
So that leaves us ALL with money management as our only ace card. Some of us just prefer much less risk per hand.
He was well over $1000 in just over a week. Had he cut his losses at $500, or thereabouts, he would have had $250 to play with right now.
He’s obviously got a very high win rate, and picks good entries.
He might as well capitalize on those assets, but with the knowledge now that he needs to keep one eye on preservation of capital, and with such high leverage, being flat on the bigger announcements.
This is nothing more than a high stakes video game. Call it what you may, the sooner one wraps their head around that fact, the better off they’ll be.
You see setups based on your chart, I see something different on mine. We make our calls based on what we feel is the lowest risk/highest probable entry.
This cat just plays harder:D
MT, there are two type of “players” in the markets: Gamblers or/and traders. Some may both be in one person. Let me recall this casino example which is often used:
The driver of the casino is not a gambler. He is a businessman, who doesn’t gamble, but makes his money out of an edge. So, he is not a gambler.
In his casino are all sort of gamblers, trying to win something quick. Those are gamblers. They might think they have an edge. But only, if they stop before the edge of the casino man would come into play. At least he would forbid anybody making money consistently coming to his casino.
As I stated above, if the op still is using this horrible overleverage and no risk control it doesn’t matter how many money is in the account. It is no artwork to have a few lucky trades in a row. Even at the casino you will find those who make 20 lucky bets in a row until it is over. But this is everything else than a consistent approach to serious trading.
Anyways, funny thread to watch. And frankly, thanks for the op to be honest with his trades. I do however not think anything will change if he doesn’t change his money management and/or risk control. I have not read the book what he mentioned, but heard it is a good one. Maybe I will add that to my list of a hundred books I read so far. If he would maybe follow the advice of this book (if it’s really that good) regarding money management, I’m pretty sure he had a chance over the long run.
Even I am overleveraged, you know that? Some of my bots are betting 5% a trade. But this is still conservative to that what the op does and they have a proper risk control. Meaning, they are out to the pip if the trade goes the wrong way. No matter if the connection is there or not. Anyways, they have an edge over the long term, because they don’t gamble. Them bots have knowledge about setups which have a probability and show profits over the long term, without any time risking the whole account.
Oh yes, regarding that book. It is about Jesse Livermore:
Jesse Lauriston Livermore - Wikipedia, the free encyclopedia
“Cause of death [B]Suicide[/B]”
Not to say he left no money. Anyways, fit’s in the puzzle, doesn’t it? What is the reason why people go for quick rich schemes? What is so badly wished with quick money by some, when it can be a nice easy walk about consistently managing a trading business and enjoying the steady results?
I think this is the one of the greatest mind setup and is exactly what I really need! (I’m currently trying to achieve this :D) Anyway, but I have one [B]disagreement on #13[/B] and I want anyone who can answer this to respond.
I’m confused about this part “look for Reversal entry” since I have made losses for believing that the price’s trend will reverse; in fact, for me, staying the same direction and wait for ending its retracement has been making pips [B]although I attempt to distinguish[/B] between reversal (takes more time w/ ranging) and retracement (quick and often on fib.). I’m talking in general.
Or, do I disagree with the statement because I’m using a short-term chart like 15-min rather than using 4-hour or day-chart?
I really appreciate if anyone could answer this! And by the way, dear extract, I don’t prefer to trade like you do [B]BUT[/B] I’m enjoying how you’re gonna do though! Good luck 
Reverse entry would depend of your system. So, backtest your system with reverse entries and then look how it does change your roi, drawdown, etc. etc.
Just to comment on that before the weekend. I do not feel joy, nor do I feel sorry. You have been warned by some it would happen and what you do is on your own responsibility then. I just try to comment based on my experience and knowledge and that’s it. What you got there is a lesson from Mr. Market. If you learn from it or try it again without applying proper risk and money management now is open to your very own decision. I just guess there will not be much change the next time if you do not change anything. Maybe you will make it longer and higher until the next margin call, depending on luck. However, if you trade every trade without risk control, you risk your whole account (and as I said before, even more, if you have bad luck and an ugly spike) on every single trade. That was the lesson what Mr. Market gave you. I guess you were really lucky that it happened now and without something really really bad like those spikes.
So, be happy that the lesson was that cheap and have a nice weekend!
This is when I loose faith in people when they trust their money to bots So when it comes to your bots sitting somewhere there is no problem with connection. You know as IT savvy person currently eating bread and butter from it I can say **** happens Also while speaking about sound MM techniques you trust 5% to a bot. Seems that people are just getting afraid of other people. They rather trust their money to Quants, or some combination of indicators which are working today rather than do it themselves.
Also due to author of the book mentioned, you are always looking for suicides in trading, Depression may or may not be a part of trading, also if in 1940 5 millions worth of equities were nothing, you are so wrong.
So in the end I would say no one is perfect, everyone chooses it’s own risk tolerance level, clear mind included. But if person wants to blow or get some money by trying not to blow his account it’s his choice, there is no need to stop him, It’s his responsibility, he is an adult.
Master Tang, you’re right. I think we all agree of his potential as a trader. I mentioned I think he is a good trader.
This is why I used the very conservative number of 10%. He does not need to risk his account on every trade to become a millionaire.
The points along those lines have already been made, so it was not my intention to rehash them.
BTW, I think he started at $200, so with him sitting at $800, that would be 300% growth. From 200 to 400 is 100%, 200 to 600 is 200%, etc.
- Don’t use very high leverage above 100:1 unless it’s an A+ setup
[B]You flunked here. This is what you keep getting warned about.[/B] - Don’t treat trading as gambling
[B]That’s what you are doing with your high risk and no stops.[/B] - Don’t trade during low volatile market hours unless a good trade setup has formed
[B]No comment. That should be a personal matter.[/B] - Don’t trade more than 1 currency pair at the same time
[B]Read number comment in number 3. [/B] - Don’t enter on spikes
[B]Why not? I got a very profitable trade when I traded a pike last week on cable.[/B] - Don’t short at support or go long at resistance areas unless market gives confirmation.
[B]Now we’re making sense.[/B] - Don’t REVENGE trade
[B]Two in a row.[/B] - Don’t listen to people on forums saying you can’t achieve this or that. You are capable of doing anything you put your mind to.
[B]Part 1–you are very good at. Part 2–Why don’t you set your mind to leaping over your house and let me know how you come out?[/B] - Don’t OVERTRADE
[B]Who are you to tell us that?[/B] - Wait for the Market to confirm the price move before i enter
[B]Alright![/B] - When in doubt stay out!
- When in doubt get out!
[B]The last 2 points are probably the stronger of indications of why you are a decent trader.[/B] - When you Exit a winning trade forget about the money you made and concentrate on the market because the chances are that pair will start heading in the opposite direction so look for Reversal entry
[B]Why look for a reversal entry? If it is obviated, then okay. But if not, then look elsewhere. [/B] - Never Average down
[B]Whoa! That makes sense the way you play.[/B] - Be patient and wait for the market to show some signs of life before i enter a reversal
[B]Yeah, this makes sense. [/B] - Stop thinking that every trade i enter is gonna give me 100+ pips, and look for the next support or resistance level for exit
[B]I am sure most of your trades don’t. With the way you risk, you could not handle staying in that long[/B] - It’s not the quantity of trades that matter but the quality
[B]Good point.[/B] - Don’t trade announcements
[B]That’s your opinion. But then with your position size, you could not handle any spike against you. [/B]
Read more: 301 Moved Permanently
Most of us have a couple 100 to blow, whether it be dinner of buring it in the markets.
I tihnk it is a negative repercussion, regardless of what happens:
- The least of the points is Extract has all his money extracted (had to throw some pun in.) by a margin call. That would be the preferred scenario to show newbies this is not the way you trade.
- Let’s say he makes the money he says he is going to make and it goes unnoticed by the broker. Newbies are going to start thinking this is the way it is supposed to be done.
What can also happen is that leverage would be lowered for smaller accounts if this continues, because the trader has nothing to lose and the broker has everything to lose, and it would all be accredited not to trading skill, but DUMB LUCK.
I missed this one.
Oh well, along with being a decent trader who has no clue of money management, I can also throw in you are honest in your reporting.
Hey extract I like your approach and totally agree with what your trying to do. If your starting with a couple hundred (or even a couple thousand) bucks you SHOULD be aiming for the fences. All this stuff about risking max 1% per trade and capital preservation is nonsense in the context of most retail traders account sizes. Capital preservation only has meaning if you actually HAVE capital to preserve. A couple hundred or thousand bucks?? Try to actually turn it into something in a reasonable amount of time, your not risking much to begin with. If you have an edge, leverage is a great way to maximize that edge, yeah you’ll probly blow a few accounts but again, your not risking a whole lot and you just MIGHT elevate yourself to the next level with a few really good runs of leveraged trades. Pyramiding combined with leverage can do some amazing things. I know this because I’ve done it myself. Extract ALMOST did it just this time except for that last gold trade(Shame on you:) jk)
The critical point here is whether or not you have an edge, and how good it is. If you dont have an edge, none of this matters and you will lose whether you use max leverage or no leverage. Maybe extracts edge isn’t QUITE good enough to go all in on every trade, but it seems pretty good and he should definitely be using leverage to maximize his edge. How MUCH you should use relative to the strength of your edge is something each person has to figure out for themselves but this really is how I think leverage should be used. The strength of your edge should determine your risk on each trade.
Good Luck Man
It’s not supposed to be done as that, but why you say if you get unnoticed by the broker. If you read carefully the contract with broker you are responsible for losses taken, even if it’s negative account balance. So if it’s not a bucket shop the broker should not complain about trader profiting at skyrocketing rates, or loosing at speed of sound. That why they have a pile of legal documents you should read before starting to trade. If I’m missing something in the unnoticed by the broker part please let me know. Because as I know they even encourage this activity with various demo/real money competitions, as it’s easier for clients to blow up account.