Hi this is my first post as a fxnewby. I have traded other markets for 10yrs now, and have had a demo account for several months which is showing consistent profits.
My approach has been to specialise in Cable, and limit all my trades to the pair. I am trying to develop the disciplin to only trade in high probability situations and plan not to trade every day, week or even month if I am not happy with the data. It seems from looking on the web a lot of the 90% losing retail traders come a cropper from lack of disciplin, overtrading, and having small accounts.
I plan to let my positions run with wide stops but trade with a $1m + account over the medium term using up to 10% of my margin. Is this likely to improve my trading chances?
Thoughts appreciated
TP
It sounds you’re on the right track. If you’re just starting to trade live, I’d recommend sticking with the wide stops but decreasing your margin risk.
Before dropping a cool mill, why not try dropping a $100k or $50k in a mini account and see how that goes. If you’ve got a system with a positive expectancy and use sound money management and risk control, you’ll definitely be properly capitalized to survive and profit from this market and learn enough to know what to do.
You have another option as well. If you’re gonna trade with 10% then LOWER YOUR LEVERAGE…I recommend 10:1 or lower. Trading on that kind of margin at 100:1 or even 20:1 will only bleed your account. At 4:1, you can really load up and still benefit from the rollovers, if you want to. This is something some stock traders struggle with at first…but since you’ve been around for 10 years you prolly already know…
Cheers