I’m not one to criticise, if its not broken don’t fix it.
You said that your not under any illusion that this level of return is sustainable over a longer period, is there anything that you might be able to change in terms of reducing the risk, for example, with gold especially, the market can move very quickly and without a stop loss your risk is potentially higher than 4%?
If you are to be criticised for anything it will be for not setting an SL. To do this is just stupid ! What if your PC packs in? What if your broadband drops out? What if you get a voltage spike at your local sub station? What if you have a heart attack? What if , what if? Get my point?
An emergency SL should ALWAYS be set if not a trade SL.
As for turning 200 odd quid into a few grand doesn’t say anything. That can be done on one 10 pip trade so anyone new to FX reading that should be asking a host of questions first before being impressed.
Good advice to at least put an emergency SL in place. Will do so in the future.
Has anybody traded the Double in a Day technique where you double your account in a Day by adding lots to a winning position in a risk free basis?
There are over 60 examples submitted by over 40 independent traders of this happening in November on their free forum – looks very impressive. I would love to hear if anybody has any actual independent experience trading this risk management technique – it is really worth looking at.
There is one trader on their forum that made 198% risking only 3% of his account on one trade. Most traders have made a 90% return on 1 trade – not bad for a free system.
Your feedback will be appreciated 
Nope, and the the text highlighted above is enough reason to not to.
What utter rubbish !!!
Anyone believing or stating that any aspect of trading is “risk free” should be shot at dawn !!!
Just google forex double in a day, thats where I saw it. There were 60 examples of it
Nautilus1968,
I don’t Like stop losses either. I feel the market moves then retraces sooo if you wait for where your stop loss is, you could, most of the time, wait for a retracement and get a better price. I know people don’t like this but its been working.
Erm…
Pick up the phone?
In all seriousness though for the most part a stop should be implemented. However there are times when a stop is not ideal. E.G. You may be trading an inter/intramarket spread. Our you may hedge a winning position with another trade using a highly correlated instrument.
On occasion you may not want to disclose your exit position to you broker. Especially if you are trading a large size position.
In general a stop should generally be used. But don’t always jump to the conclusion that it is idiotic not to.
I’m not trying to have a go at you but am asking you to think a little more outside of the box.
the only criticism you should ever take seriously is constructive criticism. Any other kind is people ranting and not really looking to help.
I think in general according to the classic rules of forex as laid down by the ancients is meant for people who move huge capital over a prolongued period of time. In case you’re doing small trades at higher frequency (not necessarily scalping) it might not always be the best idea to put up a very tight sl since we all know (whoever has been at it for a few months should see) that no wave ever goes straight up or down, it oscillates.
Theres no set rules, you have to go with what works. You need a lot of self-confidence but also a lot of self-control to prevent from falling into the pit where you think it will go your way. You follow the market. It does not follow you.
When on an swap-free account you can replace a stop loss with an opposite trade the same lot so you ‘lock’ a part of the funds until you either close both of them on a friday night or you wait until it goes down deep or high enough to close only one and wait for it to go back. In terms of probability this gives you an extra chance while the money you would lose on a stop loss is not immediately gone but just as well not available for the time its locked between the two orders.
Thats not for people running millions on high-value accounts. Thats for micro and nano-lot swap-free users.
Theres no set rules
There is NO one system-fits-all rule
there is NO way in seven hells you can take a chart analysis and predict the future for sure if you dont take the real events that happened when happened what happened into account. It’s like evolution at work and requires constant adapting. To make money while sleeping is something you do after you make your first billion, not before.
You can trust me on that one, or put it to the test since i havent made my first billion i dont sleep a lot
[QUOTE=“dafttrader;578864”]
Erm…
Pick up the phone?
In all seriousness though for the most part a stop should be implemented. However there are times when a stop is not ideal. E.G. You may be trading an inter/intramarket spread. Our you may hedge a winning position with another trade using a highly correlated instrument.
On occasion you may not want to disclose your exit position to you broker. Especially if you are trading a large size position.
In general a stop should generally be used. But don’t always jump to the conclusion that it is idiotic not to.
I’m not trying to have a go at you but am asking you to think a little more outside of the box.[/QUOTE]
… And I would say that you should be a little more responsible in your comments. To trade without any SL quite clearly shows that there is NO R:R being considered on the trade and is more of a gamble that a trade. To be successful you need to have a trading plan which has R:R deeply rooted at its foundation. I have yet to see any examples of a successful trader (bearing in mind that there is only 1 in 10 who are) who trades without any consideration to a SL.
You mention that idea of not wanting your broker to know your SL. I can understand that. But there is a difference between an emergency SL and a trade SL. Placing an emergency SL protects your account and has no bearing on the trade itself. Understanding the concept of an emergency SL IS thinking out of the box and I stand by my comment to say that it is idiotic to expose your capital by not trading with an SL.
So… I imagine forex has worked out for you!
OK…
So let me take two comments from my post
- “for the most part a stop should be implemented.”
- “In general a stop should generally be used.”
I clearly fully advocate using a stop loss. period. Especially if you are at the beginnings of your trading career.
However… and I will quite happily repeat myself here… There are certain times when a stop loss is not ideal… please note that I am not necessarily saying that you should not have a stop loss I’m saying that it can, on occasion, be a disadvantage.
Now lets tackle your points in your post.
-
Not being responsible - As reiterated above I advocate using stop losses. If you are learning to trade then use them 100% of the time. However there are times when you have other options open to you if you employ the right strategy.
-
No consideration to R:R - Again you need to expand your horizons somewhat here. do you realise that mathematically having a risk:reward ratio of 1:2 with 50% winners is as profitable as having a risk:reward of 8:1 with 90% winners? most traders who are learning simply try and have their take profit level twice as far away from entry as their stop level and claim that they have a r:r of 2:1 however this 2:1 number means absolutely nothing unless you have the winning % to back it up. I have a massive view on r:r but I also have a massive focus on trade success probability as well. and that is where a lot of traders lack the understanding of r:r. I’m not saying to just let your losing trades run. That is a sure fire way to blow up an account. However there are ways where you can trade without a stop loss being implemented.
In my opinion having an emergency stop loss (to use your words) is idiotic. A stop loss should only be placed at a price level where if price gets to a certain point it proves that the reason for entering the trade in the first place was incorrect. Just having a stop loss placed at a random point as an emergency is, in my opinion a waste of money should it be hit.
As an investor I have many vehicles that I can use to trade. I can trade spot, short term futures, longer term futures, call options, put options, and I can also combine investment vehicles to create synthetic positions of the above and I can use these vehicles to either speculate or hedge current positions.
Here is an example: I am long EUR/USD I do not have a stop in place. Price is moving against me. What do I do?
(1) I can close out the position which I don’t want to do because I am happy with the price that I got and believe that it will go in my favour.
(2) I can enter a stop and risk getting stopped out and losing my position.
(3) I could do nothing and risk exposing myself to large downside.
(4) I could buy a put option which combined with my long position would create a synthetic call. Which in effect would allow me to keep my long position and profit from any upward movement in price while limiting my downside for as long as the option is held or until the option expiry.
(5) If I thought that there was a discrepancy between the current interest rates in the countries pairs and the price of the futures contract of the pair and that the cost of carry was overpriced (the difference between the spot price and the futures price) I could sell the future thus creating an intramarket spread trade which would hedge my long position and also, depending at what price the spot was when I sold the future I could make a profit based on to the narrowing of the spread as the future nears it’s expiration date.
(6)If I notice a discrepancy in put/call parity (call premium - put premium = spot price - strike price) if the c-p was greater than the s-k then there may be an opportunity to carry out an arbitrage trade by keeping my long spot position and the selling a call and buying a put. this creates a synthetic short position in the market using options and thus hedges my long position but allows a profit to be made over time from the discrepancy in the parity formula. As the options approach expiry this return will be realised.
Now I have got a little technical above however my main point is there is. In essence, more than one way to skin a cat. And for you to naively say that it is idiotic to not always have a stop loss shows a lack of understanding on your part and I would urge you to educate yourself some more in the markets and the instruments available to you.
And before anyone says that babypips is all about trading spot then I would suggest that in actual fact this website is about learning to trade forex and as such your learning should not stop with learning about a few indicators or learning to trade price action. You should always continue to develop your knowledge and skills and this should go beyond just the spot markets. Believe me the big boys don’t only trade spot alone but have a view on all the options available to them.
I would also suggest that perhaps next time you see a post that you don’t agree with, instead of questioning the responsibility and calling them an idiot you perhaps enter a more constructive conversation with them as to why they have an opinion or view on something that is different to yours. You never know, what they come up with may just be the edge that you have been looking for.
DT.
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I think it is up to every trader how he plan and handle his trade. How he can get a good money management system? I think Forex is reasonable easy for those traders have good knowldge and skills about Forex. So they can handle their Forex job well and can make good money in Forex.
Yes Josef, I agree with you. He really needs to spend more time doing this real thing.
This is a very subjective topic. It depends on a lot of factors how much a trader makes. It depends on the size of the account and leverage that each trader uses. Also, there are traders that take more risks than others and will show higher profits, but who knows how long can they last in the markets.
An average trader do not make high profits regularly, his trading is sometimes good otherwise he makes loss. Frankly speaking average trader makes 10% to 15% profit from his capital. High profits are possible but rare for him. he had to be contented on low profits.
10% of what?
Of the capital in his trading account.
Trading profits are usually discussed (rather than in terms of “pips”) in terms of the average monthly percentage profit made on trading capital in the account.
(Take no notice at all of Marginfx’s delusional belief that the average trader is making 10-15% per month. That’s total nonsense. The [I]average[/I] trader is actually [U]losing[/U] money, not making anything at all, and the proportion of people steadily achieving anything like 10-15% per month is absolutely tiny, to put it mildly!).
You’re asking a question about an 8 year old post, by someone who hasn’t been posting since 2008, and who has been banned.
Don’t hold your breath waiting for an answer
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Lol Carlos thats cold man cold. :46: