Hi, I started getting interested in Forex about 2 weeks ago, so I purchased IvyBot and ran it for a bit, and it sucked, so I refunded that. So yesterday I decided I would give manual trading a try. I haven’t really read anything about trading strategies or anything, just applying common sense I suppose.
But, I was wondering if what I’m doing will be ok in the long run. Is my 100:1 leverage ok? It seems to be working out, I’ll have anywhere from 5-6 trades open and still have $1600 margin open so it gives me a bit of space from margin calls. I’m also trading at 1.0 lots (for the most part) , which I seem to like, but any suggestions there?
I’m also not using SL, since I feel that if I wait long enough eventually the market will rebound and there is no reason for me to lose money.
I guess I’m not allowed to post my statement on a website, so I guess I’ll have to do it as an zip attachment? I know it’s inconvenient, but could you guys take a look at it?
yes i would advise manual trading as EA’s and bots are just a load of commercial rubbish to steal your money
although a few major mistakes here…
opening 5 -6 trades at once is waaay too much, 2 trades open at the same time MAX but try and just focus on 1 pair at a time
trading based on common sense is going to get you nowhere, you need to head over to the school of pipsology and do some reading up on support and resistance, trendlines, fibonacci retracements, chart and candlestick patterns and apply these to your trading
and as for trading with no stops you are going to do some serious damage to your account,all pairs in the forex market can move hundreds of pips within minutes at times and if this catches you without a stop you are royaly fu**ed
use stop losses and take profits for EVERY trade, always use a risk : reward ratio of at least 1: 1.5 IE a stop loss of 50 and a take profit of 75
start off trading the higher timeframes, nothing less than an hourly chart
forex is a marathopn not a sprint but it will be very financially rewarding IF you last long enough
Multiple trades is not the issue. It’s whether your money management can support that amount of open trades. When you open a position in a moving market, you should only be risking 2% or less for that move.
Meaning, if the dollar is moving strong and it’s pushing the majors at the same time, you should only be risking 2% of that entire move.
If you open up a long on USD/CAD and a short on GBP/USD, and have 2% per risk per trade, you’re essentially risking 4% for the movement of the dollar.
if you’re going to risk that much, might as well keep it controlled and under one pair. Stick to the pair that has the best set up.
So, without a doubt, you’re currently over trading. However, that is all dependent on how much money you currently have in your account.
What if the Internet fails and you can�t get out on time? Or even a blackout???
I know these sound like random events but when trading with your money, better safe than sorry�
Regards!
ok, now I’ve got a newbie question. I understand why a stop loss is important buy why would you use a take profit, I mean why limit yourself on the upside? I can understand doing that on an unattended chart like an overnight breakout that I’ve been following, but if you are sitting there watching the chart shouldn’t you let your profits run as long as possible?
You really need to read through the Babypip’s School again (or maybe for the first time). You are on a road to disaster with overtrading and bad money management…
If there is a quick spike you have no chance of getting filled unless you have an order in place.
Price moves from support to resistance. Initiate your longs around support and sell them at resistance and the opposite for shorts. Since this is the case I already know where I am going to exit and I go ahead and place my order. How it wiggles its way there no one can predict so I don’t waste my energy trying to ‘predict’ when and where it’s going to stop.
A 70 pips profit can turn into a 20 pips loss very quickly in very volatile markets.
So, a set TP locks in your gains. You can always enter the market again with a new order.
I even use a set TP and a Trailing Stop under certain conditions. Just in case my set TP is missed.
I have had instances were my set TP was missed by 2 pips and moments later my whole position turned from a 75 pips profit into a 20 pips loss. :eek:
