This will be my new trading journal, i am about to embark on a trade with your balls out mission, some may call it a suicide mission, in any case please do not follow my trades as it is highly suicidal.
About myself
I’ve have been trading/learning/failing FX for 3 years unlike most people who are lucky or unlucky who had their first hand success at FX before going bust, i never had any sorta of success even temporary.
I read thru most systems/theory/schools here at babypips/forex factory and have seen people fail over and over again, i look thru the live trades and statistics of others and realize most profitable traders are usually scalpers using high leverage.
About The Theory
Contrary to what most people think and learn, they are always told " if you want things to work, have a high risk to reward ratio, use only 2 % of your account". What i am going to do is totally against whatever “proper” lessons you have learnt. Risk/Reward/Success rate is a triangle relationship and any one of the 3 component adjusted will affect the other 2, if you have a small account and you wanna have a chance to make it big, u gonna be extreme not balanced.
About the Trades
No stop loss ( you didn’t hear it wrong, i will open the position till either i get a margin call or perhaps before the swap rate kicks in )
Profit target
12 pips a day so that i can get 10pips after taking off comms and spreads
Tools
Simple moving average 100 and 200
Slow Sto
Price action
Leverage ( 1% per pip)
Balls
I am going to start this account with $180 and my target is either i go bust or i reach $5000, my goal is not to have a beautiful trading record but to make money. Therefore i am not bothered about how many times i will go bust or whether it will work for the long term. ( no strategy work long term anyway period)
A friend had traded this sort of style (no stop loss) with success for a couple of years, if the trade goes the wrong way, he looks to re-enter at a worse price, to lower his break-even price. I think he did very well (Millions of Pounds) when the Euro trended strongly, but as of last September, he sold at around 1.3200 and now we’re up at 1.3800 and he’s leverage is maxed out at 30% (weekend leverage for most brokers is lower).
Will the Euro ever come back down to 1.3200? Who knows!
From what I have seen, scalpers make up the smallest percent of profitable retail traders.
I think the 2% risk per trade is a bit misleading. If you have a system with an 80% or higher win rate, it would be silly to not risk more. I risk 5-10% of my total capital per trade.
Plenty of strategies work long term. Just look at the free trading systems forum here. They’re not going to make you a millionaire overnight but in 3-10 years it’s totally possible to turn a few thousand into a million.
The thing is, you’re probably not going to stop. If you succeed in turning $180 into $5k, you’re going to say “Well why not $5k to $140k?” Eventually the flaws in your strategy are going to catch up to you. You only need to be margin called once to erase all of your progress; it’s just a matter of when.
I tried a lot of similar schemes when I first started out. I found out that there is no replacement for an understanding of the market and risk management. Being a successful trader should never be about luck.
It would always be good to have some luck in everything, but the major factor shouden’t be it that’s all. To me a successful trader is one who makes money. i must say i am not a lucky type of person so if this strategy I’m trading with is about luck then i woulden’t bother to try.
Every strategy is flawed imo cause market is not static in the first place. And yes you are correct, this type of strategy is gonna take u down sooner or later and the question is when? after 100 trades? 1000 trades? or 1 trade?
If i reach 5 k imma take out 4k and repeat everything from 1k again. If i lose the 1k , i will just redo the process. the only luck factor here is i will have to gain enough to cover my cost before losing everything which i have purposely adjust lot size/stop loss to extremes to have a very high winning chance. if i had a 100k why would i be doing this in the first place anyway =)
Ultimately it’s your mindcept that makes you a winner or a loser
Ok, so, you mentioned you’ve never had any sort of success yet are about to embark on a suicide mission with $180 which you hope to turn into $5,000?
Why don’t you just take the $180, walk into a casino, and put it all on Red on the roulette table. You’ll save yourself the time and emotion of having to live out your suicide mission to $5,000.
C’mon- do you think this is the right mindset to have to becoming consistent and profitable? Recklessness doesn’t equal bravado.
You obviously haven got the point then if you still think this is gambling
Yes i have the right mindcept so thanks for the concern and just sit back and enjoy the show bro.
Btw this is just a journal to just record my trades, not a thread to debate on the theory if it will work, i have definitely done my homework on this before i decided to try out this strategy.
I really appreciate the kind folks here to trying to dissuade me from doing it, but let the journey BEGIN!
My 2nd trade is pending now, if it close after lower than the low of the doji without touching my pending order, i will try to get in on the another entry.
I enjoy looking for oversold/overbought zones and wait for the price to show strong signs resistance before entering.
The only down side is you don’t have the capital to use on trades, BUT, as all us noobs know, it is sooo easy to break your risk management rule and enter a “dream trade” only to see it bust your account
There is no such thing as a dream trade.
Even in times of of a financial crisis, trading is trading.
This terminology is more suited for gambling on sporting events…like, a really favored 20-0 boxer going up against a brand new fighter to the circuit and the odds are so heavily stacked against the dog, that there’s literally almost no way you can lose money.
This type of mentality does not lead to long term sustainability.
