I also think that more than leverage or lot size profit is based on your risk management . Just lot size or high leverage will not make profit. You have to learn all fields as market analysis . usage of different tools , risk taking decisions etc. Traders have to make money slowly no need to be hurry in trading. slow but sure performance is better than loosing.
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Interesting opinions here. As for me, getting into forex is like living life - you take the risk. You lose or you win.
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Forex traders when learn trading they know how to react market. slowly they are able to face market situations. one day they are bale to make profits. Profits are not easy as people think . They have to get knowledge all about this business . after making good plan applying their good strategy they will make sure profits.
The fundamental aspect of the market is extremely complex and it can take years to master them. First, having an excellent understanding of the fundamentals and how the various releases impact the market. Secondly, knowing how to execute the trades with precision and without hesitation.
I have everything to agree with you, beginners think Forex is a means to become rich quickly. they do not know that it takes time to become a successful trader, it takes a lot of work, time, and having a mind. I think forex should be considered a real job.
Sorry , not agree with you. Beginner knows the reality of this market. But they cannot control the emotions when trading live , as a result they trade with no analysis and strategies ultimately become a loser. so the traders who are newcomers first of all have to control emotions .
Not only beginners, there is no one successful or loser which has no emotions. But the different is experienced traders always able to control their emotions by proper trading discipline that cannot the beginner. That’s why they have to be disciplined and experienced by passing long times in here with great survive.
When I was a newbie lost my valuable $500 within very short time, after some losses I tried to recover that by revenge trading and ultimately became loser. it was my emotions now I understand. Still sometimes I attacked by this nature but never do the same mistake. Emotions must be can removes just keep a cool mind when trading and don’t think the immediate and past losses at all. That’s all.
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Hadden , you lost very little than me. By the way, I not agree with you cooling mind attitude for controlling emotions. Sorry. That’s not possible to keep relax mood when trading, because every faction of Forex market make traders hyper always. If you have a trading regulation with live experience then you could control the emotions you have in spite of having excitement. Otherwise not.
Chris, I know the volatile nature of this market. The market moves at random for sometimes not for at all times. Mostly this market follows its own trends. Have it. So, of course it is possible to keep cool mind when trading.
I have explained my point and not willing to contradict again. It’s okay and thank you much for reply.
Those who have a small deposit don’t make much money. Then again there are some traders who are good at boosting their deposits. But you need to be really good at it cause it’s super risky.
Actually all about depends on trading experience. There is a very minor possibility to make much money by small deposit but sometimes advanced level trader can do that easily. And some traders who have much deposit but not capable to earn consistent profit. at the end of the day we can suppose Forex as a much volatile trading platform where is everything is possible as well impossible.
All is depend on knowledge and experience. If you have most powerful analyzing trading knowledge with long time experience then of course it is possible to get maximal result by small deposit. But knowledge and good experience cannot buy from anywhere. It has to be achieved by practicing more and more with great patience.
If you have most powerful trading strategy with accurate money management then of course it is possible to make sure more profit by small deposit. But practically most of the traders don’t know how to manage money accurately when using a strategy.
Your message is more appropriate for the traders who are particularly professional , they can to achieve it by long term experience . but I am a beginner and for me it’s no possible.
You did wrong .some inevitable rules of trading is suitable for all kinds of traders even newcomers but its true senior trader can achieve their target very rapidly that beginners cant.
Money management is the foremost key to success in every profession even forex trading. there is nobody who can predict the real faction of this market with certainly. So, without money management we can’t survive for a long time. Actually managing money is a great skill to avoid potential and unfortunate risk. It’s a prediction when you calculate the market with certainly , but for that of course we have to practice more and more in demo. Otherwise our MM will not works when using trading strategy.
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Money managing is needed all time in particularly when using high leverage that always contains huge risk. if there is money management with accurate plan in spite of having much volatile situation it is possible to earn money rapidly by leverage. on the other hand , due to lack of MM you can lost your whole equity when trade with high leverage.
A fair comment in hindsight, but certainly not a bold rule to follow?
3 to 1 is common on paper and much much rarer in your P&L in reality, we both know that, at least concerning regular occurrences.
So to caveat your answer I’d certainly suggest that following the pencil rule of not risking more than you intend to end in profit with is a sound approach. The rest clearly comes with experience and totally depends on your own trading mentality and approach.