[QUOTE=“VladWulf;741114”] This is a very good advice on how to blow your account fast 
Plus trading big=risking more, this is redondant. I really don’t recomment to scalp the markets except from small caps considering the amount of HFT down there.[/QUOTE] I didnt mean stay short time in that way i meant trade less time and not scalp Risk reward 1.1/ 1.2 But the idea of 1 % or 2% is not always true
I think i said it abit wrong
The idea of 1% is not true yes but it really depends on your strategy and how much you are trading.
If you trade more than 1 times per day it might be wise to have a really good money management.
And honestly because I have RR of 20/1 usually I don’t care. Risking 1% is yielding me 20% per trade.
I think this is crucial for psychology. But it’s personnal. If you are okay risking 10% and not being emotionally attached to your money then so be it. That’s why trading stuff is very personnal. I could give my strategy to people, most of them would still lose.
By the way just made a little script in python.
You start with 500 euros.
You use a strategy that has a risk reward of 1:20. Stop loss of 5 pips. Reward 100 pips.
You have 3 trials a day risking 1% of your account. If you are right you get 20% of profit and the day is over, if you are not you lose 1% for each trial. If the 3 trials are over you don’t trade until tomorrow.
Each week you have between 1 and 5 days-opportunities.
The matrix of numbers you see is there to avoid statistical errors. So I iterate 40 times and then make an average of those numbers to have a representative number. And you can see that at the end of the month you are never in negative.
So as you see I am not lying.
I can provide code if you want but it’s easy to check statistics on your own.
Now your next question should be.
How can I have a 1:20 risk reward strategy 
And this is up to you to find.
And believe me it exists. I trade it.
(However I don’t compound risk. I don’t want to attract too much attention of tax regulators because I am still a student. And my country is a tax sucker country.)
You are right, I update my contents in page one.
For small capital, the first thing is to earn money,
the second thing is to earn big money with small capital.
Do not consider one order gain 100 pips, 300 pips with small capital.
For example:
Total Capital: 3750$,
Risk: 10%, 375$ per order,
if expect to win 100, 300 pips, the during time is several days,
the stop loss is big, some time the stop loss need 100 pips, or 150 pips.
Once meet max dropdown, got 10 times stoploss, your all capital is gone, became zero.
So risk more, target less pips, less stop loss, more orders, short time on market is better for small capital.
Hi VladWulf,
Could your strategy apply for forex market? or just work well on some stock, index, future produce?
Could you show some pictures which include real trade?
My strat is optimized for Dax market.
It can be used in forex if forex can trend with clear retracements but most of the time it has a lot of swings.
I was not on time today, needed to get my passport in the city, but the yellow line is where i would have bought.
From there i just move my sl at break even when the price has 20-30 pips of profit and go out. But now i need to sleep so won’t be able to trade today.
I trade retracements and what I call touch’n go’s. On this picture it is a touch’n go.
Here for instance it is a retracement based trade.
All the action is during the 2 hours of the day. Then I don’t care because I don’t want to be emotionally involved. I limit myself to 3 losses per day. And let the winner run as soon as I have one.
I will however not expose the strategies in detail because people need to learn structure reading first. I am considering making a course about it but It’s not sure. It takes a lot of times and I have law and computer science to manage.
But if you want to learn about structure I advise Jason Stapleton free stuff on youtube. Learned everything from there. However harmonic patterns and fx is not for me. I prefer stocks and indices. Because I live in europe i have the privilege to trade CFD instead of futures. But if you are in the US you can trade fututres (dow jones, sp500 and dax30 if your borker provides it). FxPro, my broker does provide both.
However if you are from england you’d better do spreadbetting with IgMarket.
Cheers
That may be true, however still unlikely in my opinion. And we are not talking about futures if you read the original question posted.
Yes very possible to treat forex as main source income, I have several frined on facebook which they already beome full time trader more than five year, and they can trading for living , but will better also if we have another source of income so if get fail in forex stil get another source of money as income for daily purposes.
It is possible to live from forex trading. However, not everyone can do it. Only a trader with a good consistent strategy and enough trading capital can do it.
Thing is, most people don’t know how to trade forex specifically. Actually it is the best market to trade, if you know how. I won’t go into details about how to see this what I try to explain, but here is the thing. I never articulated this before, so bear with me.
So in other markets, you have one instrument (so one thing is traded), if its value goes up, the market rises, if its value decreases, market goes down, very simple.
Now with forex, you have two currencies against each other, like EURUSD, and you see the changes in their relative value to each other. But the banks, and the big guys on the interbank market, and I don’t even know who else, who has significance to move the markets, they trade in actual money, they sell real euros or dollars and buy something else. Which can be another currency, or anything else.
They don’t buy or sell the EURUSD quote price. These currency pairs what we see if you open MT4 or something else, is just like a betting parlor.
Okay, so there is the base currency (the first) and the quote currency (the second). If the base gets sold (so for example actual euros), the chart wants to move down, if it gets bought, the chart wants to go up. Also, if the quote get sold (actual US dollars), the chart want to go up, and if it gets bought, it wants to go down.
Now see the trick is with forex, that even if the euro gets sold, it might be not sold for US dollars, in other words they don’t buy dollars with the euros. In fact, other players simultaneously can also sell the US dollars, for example to Japanese yen. This scenario (if both the euro and the dollar is sold) will cause the chart to go crazy and spiking all around the place, because of the supply, both currencies want to pull the chart on the opposite direction. So the chart becomes untradeable.
Of course, if the base currency gets sold, and the quote is left alone, the chart will move downwards slowly, it will be lazy.
Now what you have to figure out is how to see, when the base currency gets bought with the highest effort (so to which has the highest demand), and when its pair, its quote currency gets sold (which has the highest supply). This will make the chart to shoot up, and this is when you get those very clean, long, continous trending days. If course the opposite is true, when the base gets sold, and quote gets bought, the chart will plummet heavily.
This is why forex is a bit different from other markets. Otherwise it has the best opportunities, but you have to know, which currency pairs you have to watch for at that day or week or month. Most people’s strategy is not suited for this scenario, where there are 2 things relative to each other, in that case trade when there is one hing traded.
Very good comment. Agreed.
I won’t say that it’s the best market (mainly because of commissions. Yes we have no commissions and a tight spread with indexes CFD).
I will just say one thing. People have issues trading one instrument alone so how could they possibly trade two instruments at the same time?
I am even wondering if the big majority of the 90% of losers doesn’t come from forex. Statistically they should be. Forex is a market dominated by amateurs in terms of number of participants while other onces are more dominated by novices and pro’s.
This is possible the only thing that we need is the required trading knowledge and experience so that we will be manage to make a good entry point. Forex market demands strong mentality level that enables us achieve our targets.
It is very possible with starting capital of $4,000
capital: $4,000
Contract size: 1 lot
Daily pip goal: 20+ pips ($200+ daily)
Risk: 2.5% per trade
20 trading days per month: $4,000 per month
You should aim for trades that will give you 7 to 10 pip profit per trade. you will probably get about at least 2-5 good opportunities during 7am-12pm EST where U.S and London session overlaps. Key here is to WAIT for those good ones to come along and not forcing any low probability trades. If the market momentum seem to move strongly in your favor, 10 to 15+ pip trades are definitely possible.
With a small capital, it will be very hard to live from it, because a bad downsiwng (and it will happen) will leave you in a very bad shape. Not to mention the psychological pressure to make money.
My advice is to start with a small capital: like 5,000$-10,000$ and let it grow for 3-4 years to 50,000$.
If I have no opportunity to hoard 5000$ ? I have about 2000$, but no way to get the other money. I’m college student therefore I want to build up my account by trading.
My very first goal is: Make about 3000$ until Sept.-Oct. I will also take some internship somewhere during the summer, therefore I won’t have time for intraday trading.
Well, not big difference. For a 2,000 usd trade microlots 0.02. It would probably take you 1 year longer to grow the account, but no big deal. The important thing to keep in mind is to keep growing your account and avoid withdraw any money until you have a big account.
I updated my post. 
Is it possible to live from forex trading? Yes. Does it work exactly as on your example? Not pretty sure.
One example: The most successful traders are making 20-35% profits on a annual level, so go from here, do your math and see what is the initial capital needed in order to have $3000 profits per month, IF YOU CAN MAKE 20-30% PROFITS.
and you are reacting to? …
This is the best thing that could happen to you. It will force you to learn to trade daily, weekly and monthly charts, which for me are the best timeframes regarding trend following strategies.
