Hey guys .
First of all am so sorry about my bad English , it is not my native language
i really hope i posted this topic on the right section , so ,my challenge here is as follows. I met someone claiming that he has a good scalping strategy and he made about 5503.85% from his initial deposit, yah .he literally made a 380$ account to 20981$ in one single month .of course i didnāt believe him on the first time so i asked for his fxbook or statement , well he was nice enough to share with me his details , so i fired up my mt4 and started to trace him back and look at every single trade he opened.
And i concluded as follows :
1-Heās looking at daily chart to see the major trend (i saw it in the statement he start trading only when he is near a daily support level or resistance).
2-then he change the time frame to 1min an scalp there using only price action and trend lines. (He told me that)
3-he donāt use stoploss and he let his position open until they are on profit then he closes.( I noticed it on the statement too, he has opening trades for about 14 days just to grab 7 pips then he close it and i asked him about the stoploss he told me that he is not professional enough to use a stoploss).
4-he trades only 5 gbp crosses , with small lot size starting with (0.01) .
5-i noticed something pretty cool when a trade or many trades go against him itās as if that heās racing with the margin , so he makes a consistent profit so that the margin donāt kick him out from the market .
I know this it is so exhausting but it worth it
Here is the statement please read it, trace it ,letās share his plan and how he did it ?
This is what learned from this
"The most important thing to succeed in Forex is not the strategy , but a good plan"
i believe there is some tricks and hacks successful traders make to maximize their profit besides the strategy and looking at the charts , if you have a trick you make or found something on the statement please share it .
some professional traders donāt use stop loss not because theyāre reckless maybe because they are using a mental stop loss or theyāre not using leverage you see he trades only with 0.01lot for position to take the minimum amount of pips if the trade went against him at the beginning ,If you size your position small enough you can get away without a stop loss and instead exit trades according to your rules.
I dont believe hes a professional trader. Hes a scalper with a mental stop loss? Hes a scalpers using no leverage so if market goes against him he keeps the trade open forever, scalper trader to investor all in one trade.
Well alright. Iāve no clue whatās going on here on this thread. Just the words ānot using leverageā caught my eye is all (and alright I use mental stops but thatās of no importance here).
what about the bigger time frames analysis? , as i mentioned above he starts trading only when the price is near a support/resistance level donāt you think he will be confidence enough that the price will at least comeback once in while to the entry price? , not to mention that the fifth rule witch is making a consistent profit along to protect his margin level
firstly , i think leverage is the biggest enemy of the traders(All of them) , higher leverage meaning higher probability to loss.
secondly, the 1 min chart is chaotic and there is a large of events that could make it more noisy (Risk_Events , geopolitical_news,Stop_Hunting,consolidations,large_hedge_funds entering the market ā¦etc) so placing a stop loss meaning that you are challenging all of this risky events wish is kinda impossible.
You seem to understand things so Iāll tell you a little secret (hope nobody else see this though!!! LOL!!!):
Because my leverage is so low (and alright: I donāt trade FOREX as Iām sure you know so the instruments I trade use a lot of margin per single position): Iām able to margin almost my entire account out at any one time without even having to break a sweat or start feeling uncomfortable or worried. I would even go so far as to say that I could PROBABLY EVEN use a margin call as a forced stop (not that Iād put it to the test of course) (and it does help that I trade with a broker thatās properly regulated and isnāt trying to rip me a new one and will close me out at 100%). So thereās a bit of useless information. Sure it limits trades sizes hence my needing more capital than most. But I tell you: in my opinion it is the only way to trade. You cannot begin to imagine the sheer peace that it brings to your trading (well mine anyway).
But for everybody else: ādonāt try this at homeā (and especially not with high leverage).
Intraday trading Iām only ever trading the Dow, S&P, and NASDAQ Futures (usually at the same time but not necessarily). Lot sizes are usually based on my risk based position sizing (but intraday thatās not a hard and fast rule i.e. Iāll just start with those lot sizes calculated for the trading day and then it all depends on where things go).
Sure: sometimes itās frustrating when you know youāre in a good position and it COULD have been bigger. But I can tell you: itās for sure transformed my trading and not to mention my stress levels. And Iām just sorry that the ESMA didnāt impose these rules YEARS ago. Fact of the matter is that as much as I preach: I AM one of those traders that has a propensity to over trade an account. So when I make comments about it then itās not just me pointing fingers at others and preaching. I am one of them. And I can tell that with very low leverage: youād have to be a total idiot to wipe out an account. I think youād actually have to TRY to wipe it out.
But alright: Iām talking about intraday trading and I sit and watch the trades (with mental stops and TP is discretionary). Not something I could do swing trading or longer term.