Thanks for the heads up. Why dont you show us the right way?
Well, yes, that’s a drum that I keep banging. Many new traders think that the people who know most make the most money. This is something which I suppose is still being pushed at then by school systems which demand only high test scores, nothing more, from their pupils.
More important in life and in trading to have the right skill, the right abilities, a stronger work ethic, plus a winning spirit, driving ambition and at some point willingness to take a risk.
Ok I wish I had the time to but curemtly have a 1 year old driving me insane.
the computers algos will ruin any short term trading system you try to use think longer term ,1-3 months
Don’t base your trade on chart patterns indicators signals or any other get rich quick ideas.
80% fundamentals(( 20% technical (only used to time entry into trade ))
You need a repeatable template / system that you can use in any market not just forex a money management system and risk management system in case your wrong not just a stop loss.
I was also nieve when I first stumbled upon trading but since then I learned there is a professional way of doing it.
I cannot imagine making trading decisions based 80% on fundamentals.
Unless you mean fundamental effects but as deomstrated by charts, such as in to Dennis’s Strong/Weak approach to the currencies: I use a similar S/W method to make sure I am never long weak currencies.
The shorter the time frame the algos have the upper hand the longer time frame the variables are more unpredictable which gives a trader more chance if he / she has a grasp of the fundamentals macro economics of the instruments they wish to trade
Also volatility at the right time is a traders best friend / or worst enemy if they are wrong.
Honestly, I think the issue here is that some people have the opinion that there is only one way to trade correctly and that’s the way they do it. Nothing can be further from the truth, there is multiple ways to trade and make a profit. What works for one trader may not work for another, that doesn’t mean its wrong.
As way of an analogy, if you give 100 people the exact same set of painting equipment and asked them to paint the exact same mountain, you’ll get 100 different pictures of that mountain. All the pictures are correct, but all are different.
If I was to find 100 different successful profitable traders and gave them all $100,000 and asked them to trade EURUSD for the exact same 6 hour period of the same day. All of them will use different strategies and all of them will end up with a different account balance at the end.
Also, people need to take into account that traders on this platform are both here to help and also to learn. So rather than criticise someone, it may be more beneficial to offer help and guidance.
no indeed - and least of all a retail forex-trader: that’s either deliberate trolling or just plain nonsense, hopefully nobody will take it seriously, anyway
You should get some type of reward for that response. I couldnt have said it any better.
They both go together - the ECB said in a nutshell yesterday we are pretty much done now with the rate rises - guys sold the Euro on that and Euro/Usd fell like the proverbial stone.
Then this morning early European time the FT was reporting a few ECB hawks were saying ‘hold on a minute, it will be down to the numbers, we can raise some more’ - and in came the bargain hunters on that report - up goes the Euro.
That’s the FA 100%
Then in comes the TA algos - where does the selling stop - previous daily lowest (May 31st) - they figure there must be unmatched buy order left behind at that level - think they call it ‘support’. - anyways good place for bargain hunters.
So then this morning UK time price was already curving up (on back of the FT report) and then given wind in the sail by Lagarde “we will set rates for as long as needed” and Kazaks “not a dovish hike” - so where to get out?
Simple - at the halfway mark from yesterday’s drop - bargain hunters like a quick bargain.
What is the range of a small account to begin with? $100 may be big or small…and so is $1000.
A very small account is one from which which your percent risk per trade is forced to be more than 2 percent because the position size is so small.
My experience wasn’t that good actually because I got three of my initial balances crashed within the span of a few months.
to start with small ac ,it helps to bring you back to the real world of trading ,experience your greed and fear,so you can move to next phase.
i first start with $200,lose $100 in 3 months ,stop and cash out ,carry on my study and cash in 11 years later,when i think im fully ready.
Don’t risk a large portion of your capital on a single trade. Begin with a small position size, typically 1-2% of your total account balance per trade. This helps protect your account from significant losses.
How small - some people think $10k is small. I assume forex. Broker and leverage have a strong impact. I have done small account challenges and can tell you that you have to be 85-90% correct or you can get margin called. Spreads can destroy you if the account is small. I would say that for most situations $1000 and up the model is the same if you are doing a 1-3% risk. I doubled a small demo account in 2 weeks starting at 7% risk and working my way down to 2%. So the idea typically is that when the account is really small then you are trying to get it to where it’s making enough money to count. If your lot sizes are in the 1% risk range it will take you a very long time to get there - that is the normal model. Again, the broker could be a major factor depending on spreads and leverage. Especially if you trade a style that requires big SL. In fact, a big SL is probably not feasible. I prefer scalping. I trade on the 2 - 5 pip Renko charts in cTrader.
I definitely start with a small account, it helps me to learn forex. This could take months or even years. I found this insightful article on trading with limited capital for trading:
My first account was funded with only $100 and it went vanished within two months.
I would say just limit your risk exposure and don’t go for revenge trading.
I sent this to someone I’m helping.
20% per quarter on $200k is $160k per year
20% per month on $80k is $160k per year
20% per week on $20k is $160k per year
20% per day on $5k is $160k per year
Per day and per week you need to have invested $30k to $40k in algos, methodologies, processes (which work and few do) to have a chance of creating those return numbers after one year.
Plus per day is not sustainable for more than weeks or months, you need to progress to higher levels, do trading losses count towards that $30k to $40k, sometimes yes but mostly not, anyone saying differently is leading you off the fiscal cliff
I’ve been doing per day 20% compounded and made 200% the past week on a small account I’m building up, to show it’s possible and validate the numbers above, they’re correct, but I have access to that fintech.
Everyone I know is used to those return numbers as a baseline, you won’t find anyone else here with that because you need to have come from high end consulting, wealthy families, created your own high end business.
If you spend $200 on a course you can expect to generate $1k per year profits, while being told you can make $50k or more, it doesn’t work that way but apparently the sheeple know no bounds in trying