Hi everyone, I am Sophia, from China, living in Australia. I’ve taken a lot of classes from school and different trading companies when I was in uni ten years ago. But had no opportunity to do online trading only after my daughter arrived, could not go back to work, so just pick up what I was fansinated when I was teenagers. So far everything goes well, being traded for one week, invested 10,000 and made 7000 profit. Don’t what going to happen next time when I enter the market. But I really Like it.
hehe
Hello Mate, I"m from Sydney
it’s good that you made $7,000
Now. , don’t get too excited, because you can just as easily lose it.
since you are in the position of being a few grand in profit, you should protect that profit and use it to trade with
Make sure you have your risk management and money management under control,
it would be a shame for you to lose that head start that you have there
Yeah, it would be a shame to loose this good start, but I am ready to loose all my investment before I enter the forex trading. And ready to loose all investment anytime. Thank you for remind me about loss control, I did this for 90 percent of transactions, another 10 was the tuition I paid. Let’s see what going to happen in future!
I understand what you’re saying
but this is not a good attitude to have.
what i mean is…
it’s good to have budgeted so that IF YOU LOSE you can afford to lose that money,
in saying that, it DOES NOT MEAN, do your best to throw the money away as quickly as possible, even if you can afford to lose it.
I’ve read some of your other posts, it appears that you have a $10,000 Account
and you are trading 5.0 Standard Lots
Let me bring this to your attention
5.0 Lots is $50 per pip
Now. you have been profiting approx 1 - 5 pips per trade, hence Scalping.
that’s fine, if it works for you… do it.
Now, what would you do if the market moved 40 pips the wrong way ???
aka, You’d lose $2,000
you’d blow 20%of your account
now… what if the market moved 80 pips
Please consider this
80%of your account would be gone.
I now understand why you have $7,000 Profit
My advice is
Take your original investment out, Trade with the remainder $7,000
and Lower your lot size to around 0.5 Lots maybe 0.3 Lots
You’ll make more money in the long run if you are patient.
what you did is fortunate, but if you continue on this path, it’s HIGHLY LIKELY you will lose all your money (Whether you can afford to lose it or not)
I’m just giving you a heads up… ok
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Haha,already withdraw my initial investment the day before! Thank you. I am more careful than you think maybe because of my character, was a cpa accountant before, struggling with one or two cents to reach a balance for Balance sheets. I am considering to reduce under 5, maybe 2-3. I feel I can see what is happening behind each k line. For example, I get out at a loss immediately after I saw this. And avoided lose all my money in time.what I want to express I am not a blind trader, you worried too much.
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Hi mate
-
No i don’t worry, i was just concerned for you because so many newbies make this mistake.
but there was no stress from my end, Just wishing you the best, that’s all -
OH… Your a CPA, excellent, i also love spreadsheets HEHE
Well then i don’t have to tell you money management
but, i have these questions
- Do you understand how MARGIN Works in trading
- Do you also Understand MARGIN LEVEL %
- Do you understand how LEVERAGE Works
because being a CPA is one thing, but you could still get taken for a ride
beyond that, you need to consider the volatility of the instrument
but at least it’s good to know you have a sound Mathematical background
let me know if i can help in any other way
take care
and re
Good Girl. Very smart of you
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It’s not a good idea to sit and watch your loss increasing, better to get out when the loss reaches 500-1000, when the judgement about trend is wrong, why do I sit till loss reaches 2000, never. If you get out, have the opportunity to make earn more, if stay, market gives a lesson soon.
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Thank you, I understand fully all your listed questions because I got trading license in China in 2004, participated CFA test in 2007, teaching investment tools subject in a uni for one year. So, a big thanks. Hope you all the best.
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Excellent, no problem.
well then, Happy new year and Merry Xmas
Thank you for your advice though. Happy new year and merry Christmas.
You too, Merry Xmas and Happy New Year
Hey Sophia, I am just now getting through babypips and it is going well. I am learning the different tools I can use and hope to be in high school as far as babypips by the summer. I have not done any trading as yet and do not even have a demo account, but would like to know if you followed the babypips program to the letter in order to be so successful? Thanks Annie
Hi, I think the quickest and easiest way to learn forex trading is to open a demon account and do some practice before start reading others posts or subscribe any lectures. Unfortunately, I don’t follow any program stuff but select to read topics I am interested. But i think it is necessary to study finance systematically from macro economics, finance market to basic investment tools and its derivatives. As I don’t know what babypip program is about, cannot say good to follow or not. But if you personally interested in it, go ahead won’t be wrong.