Hi @GreatieM, I’m in Australia and we still have unregulated leverage available (until Mar 2021). The demonstration was run on a 1:400? (maybe 1:500) leveraged account, so 0.01 lot used about $3- $5 of margin which enabled me to open positions under a $10 account.
In 2020, my Broker, XAUUSD requires approx $128 margin (1:20) just to open a 0.01 lot trade…
These days, globally the retail CFD Markets has had it’s hands tied with 1:20 or 1:30 leverage requirements, which requires about $80 of margin per 0.01 lot position. Pathetic turn of events in reality!
Wow… has been so long since I have looked at that thread… What a shite fight it was with some of the “bozo know it all” and influencer members of the day… constantly trying to shoot the concept down… They started to evaporate at about the halfway point when the reality of the strategy slapped them in the face…
I even had FOREX_COM preaching scripture to me as if the whole thing was evil… FFS
Possibly a great advert for why newbie traders should stay right out of Financial Forums…
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Hello @Trendswithbenefits starting with the last point you made, I might just stay out of the Forex Forum and the Forex trading as a whole since it seems as though it is not working.
As for my $20 trading account though I am using a 1:1000 leverage. It has been amazing thus far but I have certainly over stepped my boundaries hoping I don’t get a call from my brokers anytime soon.
And with your experience on trading I would indulge you a little if you don’t mind to lend me an advice. I am currently holding on to the EURGBP in which I activated a buy order after making a few analysis (which turned out to be dumb afterall) since yesterday, but the market has gone against me since. The H4 chart and D1 chart insists I should hold on but I do not fancy keeping trades for a day not to mention for DAYS.
So, what would you advice a newbie as myself to do in this scenario?
Hey @GreatieM, If you look at the LT trend it’s been weakening for the last 2 months… So going long was not the prudent approach… Hindsight is 20/20 Vision!
My read of the EURGBP is… Open a 4 Hour Chart and have a look at the repetitive patterns since Sept 2020… It usually moves approx 120 pips down each leg… So, it’s only half way down on this leg…
75% it will sink another 60 - 70 pips, to say 0.8880 before changing to an uptrend…
25% A reversal is possible at this level… back to say 0.9000…
Go Short… Close the position around the 0.8880
@Trendswithbenefits Oh I can actually see now. I have gone short already and closed one of the previous buy positions leaving my account to hang on a thin thread. I am not sure how long this downward dive is going take but I might just stay put and wait for both trades to lock in the profits before opening any other.
I hope it all ends well though.
And thanks for the help!!
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@GreatieM, If you held your nerve over the last 4 days… you should have a 60+ pip profit…
Price went straight to the projected price… Once the LP’s had finished playing around…
Oh no!!! I was not patient enough.
I am yet to master the act of patience because I am scared of holding unto a trade for too long and then it probably goes against me and I loose all of my profit and end up blowing up my still fragile account. Which is why I try to lock in my profits once it gets to a certain amount.
