I think that watching 2 accounts on demo shows nicely the difference between trading with a plan and without a plan or plan that is based on wrong information. I am going to only trend following method through trends and whipsaws which are natural part of this method as I believe I am finally mentally ready to let profits really run. I think stats do not like but as once my average winner to average loser were about same, the difference has been growing and even on 4h account before the mess started my winners were more than double than losers on full position in and out. Trend trading in my opinion also less risky than day trading and far less stressful and it is how big guys trade also down the road when I join trading firm or investors and I have no doubt I will get there it is possible to trade far bigger amount with this style of trading rather than day trading. The key here is consistency and plan following.
I am in the process of moving funds from FXPrimus and back to Oanda as it is impossible to trade small live accounts with this style on MT4 brokers platforms. $10-20K is unavailable now but with Oanda I can trade $400-500 like it is big money taking partial profits and letting trades run while making money along the way. will trade one account only and only trend following. I think $400-500 will be more than enough.
I have simple but clear plan now which I will follow through ups and downs.
closed another 10% of GBP/Aud, it is a strong support. I am waiitng if it breaks. gonna cur remaining position for another 5 take profits if it continues down. looking to take off 20% of aud/jpy position. stop on be already. news might come and everything might go to bust. no risk now.
Steve, I am in the process of learning trade management... you see take profit anywhere? I will always take profit around 1:1 pip wise closing 20% of my position and move stop either to have risk halved or to be. if trade is not performing like aud/jpy. then I will close at small increments about 10% of less. trade signals are from daily chart and along newly developing trend. I have no idea where it will go and how far. closing 50% of the trade would reduce future possible profits. also notice. I did lose 100% on usd/jpy, but I have almost already traded it back by closing less than half units I lost on usd/jpy and usd/jpy had heavy units. stop was only 75 pips. i still have 80% of positions on 3 out of my 4 trades and gbp/aud still has about 50% of position. I had to take profits at this support level as price stuck there. if it breaks the first profit I am going to take is around 550-600 pips and the watch. I have targets for anothe rpairs and all of them are about 150-200 pips from another profit taking. I am taking partials cause we do not know if it is a trend or fake and how far it can go.
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.
Past performance is not indicative of future results.