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Honest truth about forex.....
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kmartyn

Member Since Sep 23, 2015  10 posts kmartyn Oct 09 2015 at 20:07
Like most traders I entered the Forex world with piss and vinegar hoping to cash in on quick profits. THIS IS NOT THE CASE.
After 2 blown accounts and a blow to my ego, I sat back and reevaluated my trades. Turns out I was doing a few things wrong.

1. Over leveraged. I know the appeal of trading 1:500 or even 1:1000, but DON'T do it. You will blow you account. My max now is 1:100 and that carries a significant amount of risk.

2. Money management. Do not risk more than 1% of your account. Some say 2% is fine, but 1% is better. set your stop losses at 2% of capital.

3. Worry about entries less and focus on how you're going to exit the trade that makes the most sense. Once you're in the market manage that position.

I hope this helps someone, please feel free to comment.

goyankees85

Member Since May 18, 2015  118 posts goyankees85 Oct 10 2015 at 07:26
kmartyn posted:
Like most traders I entered the Forex world with piss and vinegar hoping to cash in on quick profits. THIS IS NOT THE CASE.
After 2 blown accounts and a blow to my ego, I sat back and reevaluated my trades. Turns out I was doing a few things wrong.

1. Over leveraged. I know the appeal of trading 1:500 or even 1:1000, but DON'T do it. You will blow you account. My max now is 1:100 and that carries a significant amount of risk.

2. Money management. Do not risk more than 1% of your account. Some say 2% is fine, but 1% is better. set your stop losses at 2% of capital.

3. Worry about entries less and focus on how you're going to exit the trade that makes the most sense. Once you're in the market manage that position.

I hope this helps someone, please feel free to comment.


 I would have to say that excuses 1 - 3 are all B.S. Leverage isn´t your enemy... The system you are using is your enemy. A person doesn´t understand that the higher the leverage, the less money is required to open a position. Using low leverage will increase your chances of marrying to the position.

My avatar explains "social trading" perfectly.
sbnelson2005

Member Since Nov 01, 2011  41 posts Stephen Nelson (sbnelson2005) Oct 10 2015 at 11:50
I don't think there's any need to call 'his rules' BS. For many that are just starting off it is sound advice by removing the temptations that can easily blow an account.

Keep working it kmartyn because the pot of gold is truly at the end of the hard work and experience 'Rainbow'!

rstaton1430

Member Since Oct 08, 2015  8 posts rstaton1430 Oct 11 2015 at 06:14
Study study study....Practice practice practice...Unless your iverson

FXtrader2010

Member Since May 20, 2011  724 posts FXtrader2010 Oct 11 2015 at 15:44
kmartyn posted:
Like most traders I entered the Forex world with piss and vinegar hoping to cash in on quick profits. THIS IS NOT THE CASE.
After 2 blown accounts and a blow to my ego, I sat back and reevaluated my trades. Turns out I was doing a few things wrong.

1. Over leveraged. I know the appeal of trading 1:500 or even 1:1000, but DON'T do it. You will blow you account. My max now is 1:100 and that carries a significant amount of risk.

2. Money management. Do not risk more than 1% of your account. Some say 2% is fine, but 1% is better. set your stop losses at 2% of capital.

3. Worry about entries less and focus on how you're going to exit the trade that makes the most sense. Once you're in the market manage that position.

I hope this helps someone, please feel free to comment.


If this is all, you still have a long way to go. Keep learning, there is more to come!

kmartyn

Member Since Sep 23, 2015  10 posts kmartyn Oct 12 2015 at 06:00
I'm in a constant state of learning, I hope it continues.
I have been investing in stocks and bonds for 13 years. Forex is completely different, but I enjoy it a lot.

StoneHeart

Member Since Dec 21, 2010  131 posts Ivan (StoneHeart) Oct 12 2015 at 08:35 (edited Oct 12 2015 at 08:37 )
Hi Account_Leverage is not danger, it is the Used_Leverage.
You can open account at any HIGH Leverage,
but if You (your system/EA) use LOW Leverage, there is No Problem.
.... And You really will have more Free Money (Margin),
.... but You do NOT have to use it !!! (that is difficult)
At LOW Leverage , You are limited automatically,
at HIGH Leverage, You have do it by Yourself.

Small GAIN, big WIN
ChannelTrader

Member Since Jul 23, 2015  6 posts TopMasterTrader (ChannelTrader) Oct 12 2015 at 13:38
I agree with 1% rule.

Everyone watch this video to know how to correctly calculate it.

Good luck with your attempts.

arigoldman

Member Since Oct 02, 2014  907 posts Ari Goldman (arigoldman) Oct 12 2015 at 19:06
Noone is forcing you to use your max leverage.

Positivity
rob559

Member Since Feb 11, 2011  1916 posts rob559 Oct 13 2015 at 05:57
StoneHeart posted:
Hi Account_Leverage is not danger, it is the Used_Leverage.
You can open account at any HIGH Leverage,
but if You (your system/EA) use LOW Leverage, there is No Problem.
.... And You really will have more Free Money (Margin),
.... but You do NOT have to use it !!! (that is difficult)
At LOW Leverage , You are limited automatically,
at HIGH Leverage, You have do it by Yourself.


aggree with that statement

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