Hodnotenie: Empty Star Empty Star Empty Star Empty Star Empty Star
What kind of a trader am I?
Migz

Členom od Aug 27, 2011  12 príspevkov Migz Sep 14 2011 at 23:21
Hi all,

Im new to myfxbook and new to the world of trading currency and was hoping someone could look at my system and let me know if it has any major flaws.

I'm practicing with a demo account and plan to keep doing so for a while but was wondering if my lot sizes are too big? if i set trailing stops and they are executed in a short period of time am i scalping and will i have problems with brokers due to this?

would appreciate if you guys could find my demo account vgdemo1 as im not sure how to link it here.

Any advice would be great!

Many Thanks,

Migz


myfxpt

Členom od Aug 06, 2011  231 príspevkov Gary Sharp (myfxpt) Sep 16 2011 at 04:15
Hello Migz,

Lot size is a bit steep and exposes you to high risk. At 25 lots you are putting up 25% of account capital on each trade, and whilst your results to date show that you are doing well, these are extremely short-term trades. A single sizeable move against you could wipe out your account in a single trade. Take the recent move in the CHF for instance. Had you been short, fantastic, but had you been long it's GOODNIGHT!

Prudent money management suggests that you risk no more than 2% of account funds on any one trade. This is not the amount you put up, but the amount you allow for your stop-loss.

Where abouts in Oz are you? I am in Melbourne.

James_Bond

Členom od Jan 14, 2010  555 príspevkov James_Bond Sep 26 2011 at 12:54
Yes, I agree with sharpforex - you're over leveraging your account which will probably get you a margin call sooner than later. Are you doubling your lot sizes after losing trades? If so, then that's a very dangerous way to go.

Besides the above, you have a 81% of winners and a positive expectancy of 5 pips per trade, so you obviously have a working trading system, so great work.

mbirrell

Členom od Sep 27, 2011  22 príspevkov Martin Birrell (mbirrell) Sep 27 2011 at 10:08
Looks like you are doing pretty good to me...

Who dares wins
Migz

Členom od Aug 27, 2011  12 príspevkov Migz Sep 30 2011 at 08:56
Hey All,

Thanks for the tips and support, what you have said makes alot of sense.

So i think i'll try to use a smaller lot size allowing for a more comfortable stop and possible longer time frame.

@Sharp I'm in Canberra.

Many Thanks - Migz

mbirrell

Členom od Sep 27, 2011  22 príspevkov Martin Birrell (mbirrell) Sep 30 2011 at 10:41
Be very carful using stops - it is a better stratery to watch your indicators and chart - know what they are tellling you - i.e. when they alert you to close the order. If you practice this instead of just guessing by using stops you will become a much smarter trader. Remember no-one knows for sure what the market is going to do next, all you can be sure of what it has done in the past and what is doing presently.

Who dares wins
hasanmumtaz

Členom od May 20, 2011  6 príspevkov hasanmumtaz Sep 30 2011 at 17:32
Things look great so far, I would recommend you to apply and practice your strategy on $1000 demo account. That will give you a far better idea of money management. Moreover be firm when choosing currency pair as trading on too many pairs will develop a sense of gambling rather than trading in your early career. Never risk more than 2-3% of your account because we never know about next move that market takes. Hope that will help you.

myfxpt

Členom od Aug 06, 2011  231 príspevkov Gary Sharp (myfxpt) Sep 30 2011 at 22:55

   mbirrell posted:
   Be very carful using stops - it is a better stratery to watch your indicators and chart - know what they are tellling you - i.e. when they alert you to close the order. If you practice this instead of just guessing by using stops you will become a much smarter trader. Remember no-one knows for sure what the market is going to do next, all you can be sure of what it has done in the past and what is doing presently.


The problem with this is that it does not protect against sudden and unexpected factors, i.e. recent Swiss devaluation. By the same token I agree with Birrell in that abitrary stops are quite meaningless, and in fact they can be dangerous. Stops should ideally be set slightly beyond nearest support/resistance, or just beyond a system signal (just in case you are not watching the indicators), so that your stops actively support your trading system. The stop value should, ideally, be no more than 2% of the account balance.

myfxpt

Členom od Aug 06, 2011  231 príspevkov Gary Sharp (myfxpt) Sep 30 2011 at 22:58

   hasanmumtaz posted:
   Things look great so far, I would recommend you to apply and practice your strategy on $1000 demo account. That will give you a far better idea of money management. Moreover be firm when choosing currency pair as trading on too many pairs will develop a sense of gambling rather than trading in your early career. Never risk more than 2-3% of your account because we never know about next move that market takes. Hope that will help you.


Good advice!

Migz

Členom od Aug 27, 2011  12 príspevkov Migz Oct 01 2011 at 00:16
Thanks, that's very helpful.

I think i'll take your advice and open a new demo with a lower starting capital as this would be much better practice for when i do go live i think $100,000 is probably not the amout i'd be looking to start withroll, as you guys said the money management will be the big issue. if the first few trades went against me the account would be in serious trouble and my confidence would be shot.

So maybe i'll focus on the euro/us and do some math before opening positions to limit risking too much on each trade.

        Also - trailing Take profits - do they only kick in when mt4 is opened ?

Thanks Again for all the great advice!

Migz

Pre zaslanie komentára sa musíte najskôr prihlásiť.
ECB President Draghi's Speech (1 min)
Potential for further upside in EUR/USD?...(10 min ago)
EURUSD 1.38327 GBPUSD 1.67881
USDJPY 102.377 USDCAD 1.10328
FxPro
Nástroje Spoločenstvo Recenzie Platforma Spoločnosť Podpora
Ekonomický kalendár Spoločenstvo Makléri Widgety O FAQ
Forex Market Systémy EA Funkcie Blog Pomoc
Forex Volatility Most Popular Systems Poskytovatelia signálov API Twitter Kontaktujte nás
Forex Correlation Stratégie VPS Services Mobile Facebook Nahlásiť chybu!
Forex Broker Spreads Súťaže EA Programming Preklady    
Forex Broker Quotes Forex Charts PAMM Brokers RSS    
Forex Broker Swaps Výhľad komunity Rebate Programs      
Streaming Forex News   Trading Platforms      
Forex Broker Volume          
COT Data New          
Liquidity New          

Mapa stránky  |   Terms & Conditions  |   Privacy Policy
©2014 Myfxbook Ltd. All Rights Reserved.
HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all of your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions. Any data and information is provided 'as is' solely for informational purposes, and is not intended for trading purposes or advice.