Hey Mike, I have a question about my math. and some others!
On the EUR/USD (.00001)
100:1 leverage
By trading 1 MINI lot (10,000 units?)
I would be trading at $7.50 USD/ pip? Is this correct?
So 1 Micro lot (1,000 units) would be $.75/pip?
Also, If i open an account with an even balance of $2,500 USD. Would I open a micro account or a mini account? and Does the account size directly effect lot sizes traded? Like if i have a micro account can i only trade micro lots?
I use GFT if that makes a difference?
Last question; Would you recommend i open a micro account with a balance of $100 USD to gain more experience with live trading? I would still open my account at $2,500 in January, 2011. I have read a few times that it is recommended to open a small account first, in case i lost it all, then open my goal account. A have also heard that spreads, etc. are different in demo trading and. I have already written my goals and such, but would this be a good idea for practice?
Thanks for the info! I have almost turned to this thread and your info as a mentoring device for my learning!
Also check out my reevaluated goals on the last page if you havenât already!
You must always plan your trades out. I know many new traders like to look at the bright side of things looking to snag pips and run away. Always take into consideration how much you are willing to risk. There is nothing wrong with knowing your risk because in any business you must always know the amount of risk you are taking with each business move. Try looking to trade with 2:1 and greater risk reward management. That way you will be able to stay in profite
And youâll tell us all how to do it for only $149.99
But wait thereâs more! for a limited time only we can have your trade signals for only $100.00 more!
Mike, I just want to ask for your opinion on the EA software FapTurbo. All it does is enter the market when it finds a suitable entrance point through using a whole bunch of indicators and lets you fill in the spreads, SL, TP and other money management options inorder for the robot to essentially get involved.
Out of all the EAâs available, theirs seems to be the most legitimate but then again, why would they sell it??? good samaritans?? it boggles the mind
Well what about an EA that you can create. Lets say the Cowabunga is working for you and I dont see many errors in it. Its a sensible indicator, when you backtest it, it works.
So what if you can automate that? What do you guys think?
Did you have it in default config? What do you normally think about when you make a trade? personally I only go by the candle formation and 2-3 indicators (MACD, BB) then enter a trade after checking my Forex calender to see the currency news for the day. An EA has the capability to calculate a gazillion indicators and higher your probability and leaving you to deal with your money and risk management. So unless you are working for a large finance coop in which you trade with insider information other normal people like us donât get, I think our best bet is to trade with probability on our side and the EAs do the best job for that. If we lose trades doesnât mean the EA didnât work, it just means you didnât highlight your spreads, SL, TP etc. properly ie bad money and risk management.
BTW i donât endorse any EA or FapTurbo, infact I use the free version too
Mike, you had mentioned STPâs so I was wondering if you could share your thoughts on this post about STPâs? Is it really true what he says?
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STP Brokers:
STP Broker is a type of a Market Making broker. This broker, most of the time, displays its own quotes (which are correlated to the actual inter-banking quotes).
Now here is the real complexity: sometimes this broker routes your orders to the market (acts as an STP broker) but sometimes it doesn�t (acts as a Market Maker).
For instance, successful traders or successful trading algorithms will be automatically routed to the market while small or losing clients will not. This way the broker profits twice: once by clientsďż˝ losses and another by not losing money to successful traders (of course this never works 100% but it does most of the time).
This way the STP broker�s commission comes from two sources: unsuccessful clients� losses and commission arbitrage on routed orders � when you trade at 2 pips with this broker for example, it routes your orders to another broker or the inter-banking market thus making 1 pip without assuming any risk.
This model is also responsible for all the re-quotes and order rejections. When you open a large order the broker routes it to the market, but the prices there might have already changed (the market does move very fast sometimes) ďż˝ so the broker is faced with two options: either rejecting the order asking for you to adjust prices or completing the order by taking the risk that it might end up a successful trade meaning the broker will have to pay you from its pockets (Nostro).
An EA for a big group of people simply canât work. Why? Because all want to buy or sell at nearly the same time and that drives the price. It looks like a spike on charts. Well, in detail, the few guys with the fastest connection get the bone. All others pay the expensive price. Itâs exactly like a pyramid system. And think about it: Why would anybody sell his robot, if that could make himself rich? I guess some ppl selling robots have the same robot running, with the fastest connection and slightly quicker ordering. Then they just have to wait for the crowd to drive the price.
An EA fuer a single entity might work, because that is like trading manually. It depends on the system then. At least, every consistent profitable system has to be mechanical. If you donât know when to buy or not after rules to the point, then this would not be a system. The advantage of a manual trader however is, that after years of experience, he can trade several systems at once. You would have to code an EA for every system then to compare that. Very complicated, I guess.
By the way: I have two robots now. One is highly successful with real money, but unique. Not for sale! The other is in test mode right now. If that is as successful with real money as in backtest, it makes a million out of 1k in a couple of months. But we will see ⌠If it is not successful, I may give it away. Else I keep it and it will be not for sale.
Great thread by the way. I am lurking and reading.
It doesnt really matter its just going to affect what each lot size equals, depending on your broker you wont get any fancy things like phone calls or live chat with YOUR specific account manager. Id do mini though.
I wouldnt open an account with just $100 ever your gonna trade at what .01cent a pip. You would have to be extremely patient to make it worthwileâŚhonestly, its a waste of time. Demo with 2500 and then open with 2500.
Ive tried to shut down Charles and Marcus Leary several years ago for selling their scam. If you like wasting money it will be perfect for you the charts they show for progress and 99% accuracy is completely made up and Marcus Leary isnt even a real person check this out
they took him off but the guy is a model named doug, total bull****.
Same with Andres Kirtchberger hes a modle on there too they are just internet marketers trying to play with your heart to get you to buy a product to chase a dream. Then a few weeks later since you are already on their email list they will continue to sell you things that you âneedâ to be profitable. Neither of these guys are even traders
There are no shortcuts. Just learn to trade like a bank would.
Iâm not trying to be mean but enjoy your $3 profit for the month. Ill continue to trade like real trader and make myself 1000pips a month. Trading one pair at that. I didnt become a trader to work I became a trader to make money to NOT work. That doesnt mean you dont have to put in effort though. If you are using an EA to trade it means that you want an easy way out and you should read my post on page 2,3,or 4 wherever it is about these companies selling you the âdream.â Keep dreaming and the rest of us winners will continue to make our money off you âEAâ users. Yay for zero-sum game!
I will be covering banks, brokers, and different trading options as well how banks operate very soon. The next post will help you understand WHY the market moves the way it moves.
Hey mike, loving everything so far! I have a question about time frames if you donât mind? If youâre going to explain this in a future lesson, no worries, sorry for jumping the gun!
The problem I am having is that I usually have 4 or 5 time frames open at a time! When I first started playing around with a demo account (about 4 days ago haha) I only really focused on the 1 minute time frame, and this led to me getting faked out a lot and falling for trends that were merely small retracements.
To give an example of what Iâm facing now, is that I am looking at the AUDUSD pair. I have m1, m5, h1 and h4 all open, and using a variety of indicators (BB, RSI, MACD, and stochastic). I know thatâs probably too many but I like having a lot of indicators to tell me when to enter/exit a trade!
Anyway back to the point, when I am looking at the m1 timeframe, the BB and stochastic indicators are showing that the pair is currently overbought and also is running along the top of the standard 20 BB. So I zoom out and look at the m5 time frame. This shows the complete opposite, it shows on the stochastic indicator that the pair is transitioning from underbought to overbought, and on the BB it had just broken through the bottom, and now is retracing back up. This confuses me more so I take a look at the h1 to get a feel for the long term trend that the pair have been following. In this frame I see that the pair is falling to the bottom BB and that it is clearly underbought on the stochastic indicator!
To sum up (âŚbeen dribbling a bit, sorry!), I never know which time frame to believe! The m1 makes me think I should go short, then I zoom out and the m5 makes me think that would just be terrible, and I should instead go long. Then I go out to the h4 and it makes me think I should go short again!
Any advice you can give me to handle this would be awesome!
What I would think is the higher your time frame is, the stronger your trends are going to be, so if you go short on the 1m because the 4h is your largest time frame and it agrees with going short, you may have to be patient and watch a lot of volatility on your 1m chart, but in the end you would be profitable, given the short trade was right in te first place. I would trust the largest time frame. I trade strictly 4h but I manage trades on the 15m because if things go againt me I can get out before I lose too much.
I appreciate what you mean, really but we have to be realistic as well. I mean you are a CFA holder and have years of real hard experience in the FOREX business sector and finance in general. No amount of hard work can substitute for what you have learnt as an insider in the FOREX market. I donât see myself or the vast majority of forumers here managing to trade 100s of thousands of dollars over the next couple of years without being exposed to what you have been exposed to. Telling us about it is good and I really appreciate your time as your knowledge is very relevant to us. However, being told about something and experiencing it are two completely different things. This is why most newbies like me resort to EAs as even though it is a cowards way out, no denying it, we have little option and the EAs are the closest to anything substantial and real we have to actually studying the market.
