To use chat, please login.
Back to contacts

Can forex trading make you rich ?

ffee
Jul 25 2018 at 13:39
11 posts
I thought that grid trading was high risk, like martingale systems? (Not being offensive just wondering)

BluePanther (BluePanther)
Jul 26 2018 at 06:31
1344 posts
ffee posted:
I thought that grid trading was high risk, like martingale systems? (Not being offensive just wondering)


Grid trading can be high risk, but it depends upon how you use it. Examples include:
- martingale (multiplying starting lot size) will increase risk exponentially and is extremely risky;
- small grid size (distance between orders) will increase risk quickly in sustained market movements;
- starting with a large lotsize relative to your balance (self-explanatory);
- unfiltered market entry: orders will be opened counter-trend at the beginning of a trend, sooner, thus increasing risk.

Like any tool, it can be effective if used correctly. Risk management is indispensable, especially with grid trading. If you keep the above points in mind, the only time you should suffer account loss is during black swan events such as Swiss Central Bank depeg decision (2015), Brexit Referendum (2016), or the 'Flash GBP Crash' (aka Fat Finger Error) (2016).

Happy trading! 😎

Szabolcs1985
Jul 26 2018 at 11:40
9 posts
I like that you are trying this strategy and I may try such a strategy on a cent account. I would be too worried about black swan for anything larger

togr (togr)
Jul 26 2018 at 12:17
4862 posts
BluePanther posted:
ffee posted:
I thought that grid trading was high risk, like martingale systems? (Not being offensive just wondering)


Grid trading can be high risk, but it depends upon how you use it. Examples include:
- martingale (multiplying starting lot size) will increase risk exponentially and is extremely risky;
- small grid size (distance between orders) will increase risk quickly in sustained market movements;
- starting with a large lotsize relative to your balance (self-explanatory);
- unfiltered market entry: orders will be opened counter-trend at the beginning of a trend, sooner, thus increasing risk.

Like any tool, it can be effective if used correctly. Risk management is indispensable, especially with grid trading. If you keep the above points in mind, the only time you should suffer account loss is during black swan events such as Swiss Central Bank depeg decision (2015), Brexit Referendum (2016), or the 'Flash GBP Crash' (aka Fat Finger Error) (2016).

Happy trading! 😎


And Trumph triumph...

LongVision
Jul 27 2018 at 06:55
254 posts
BluePanther posted:
ffee posted:
I thought that grid trading was high risk, like martingale systems? (Not being offensive just wondering)


Grid trading can be high risk, but it depends upon how you use it. Examples include:
- martingale (multiplying starting lot size) will increase risk exponentially and is extremely risky;
- small grid size (distance between orders) will increase risk quickly in sustained market movements;
- starting with a large lotsize relative to your balance (self-explanatory);
- unfiltered market entry: orders will be opened counter-trend at the beginning of a trend, sooner, thus increasing risk.

Like any tool, it can be effective if used correctly. Risk management is indispensable, especially with grid trading. If you keep the above points in mind, the only time you should suffer account loss is during black swan events such as Swiss Central Bank depeg decision (2015), Brexit Referendum (2016), or the 'Flash GBP Crash' (aka Fat Finger Error) (2016).

Happy trading! 😎

Personally I am against any martingale ,grid or averaging strategy and not using anyone but if you keep your drawdown below 10% of all your open trade then it is fine to use such strategies but mostly people who are using these strategies are not displine and risk more then 50% of there equity at risk. So you should know when to stop your trade to save you from complete meltdown of your account.

The market will trade through it’s path of least resistance .
davidwatson
Jul 29 2018 at 05:50
16 posts
It should make you rich but comes with the right mindset and sound knowledge. And yes, good in management as well. Not cunning to become rich as it won't help at all like I did at first. Sigh

My7book
Aug 06 2018 at 12:54
13 posts
There might be right and wrong perspective to look at. Correct me if I'm wrong.
Although you can get rich, but if you have this 'getting rich' in your mindset, then no matter what, you will not rich. Probably you will blow the account. It's obvious because this kind of expectation can hurt your patience, and patience is way too serious part to grow your account.

robbie22 (robbie22)
Aug 09 2018 at 09:54
2 posts
BluePanther (BluePanther)
Aug 19 2018 at 07:04
1344 posts
togr posted:
While I am glad you made the breakout and be successful I see the account started last month.
Such fresh systems often stop working after 3-6 months [own experience]


You were right! 😁
But I ain't stopping now.
I just need to tweak it.
And watch my greed.
And be more patient.
And not be so lazy (same pairs, same settings, all accounts = LAZY!!!)
I'm still in the game!

'It's a long hard road, but I'm gonna get there!'




Attachments:


CarlosMZ (CarlosMZ)
Aug 21 2018 at 06:01
55 posts
FX trading can and will make you rich...
… especially if you're the broker ;)

Please login to comment .