My thoughts
Jun 18, 2020 at 12:21
Vues 561
12 Replies
Membre depuis Feb 22, 2011
posts 4862
Jun 18, 2020 at 12:21
Hi there,
I would like to share some of my ideas with you. You are welcome to post your opinion to any topics.
#1 Idea:
You are never able to achive the same profit as the size of position.
For example when you open buy 1 lot of EURUSD, you are trading 100,000 EUR.
When EURUSD move lets say 100 pips from 1.10000 to 1.11000 you made $111000 - $110000 = $1000 profit.
Without leverage it goes exactlly as described so you need 100,000 EUR to make $1,000 profit.
With leverage of 1:500 you are able to open the same trade with same profit with just 1,000 balance.
So if you have 100,000 balance isn't it better to split it to more accounts, pairs, strategies and use leverage to trade it?
I would like to share some of my ideas with you. You are welcome to post your opinion to any topics.
#1 Idea:
You are never able to achive the same profit as the size of position.
For example when you open buy 1 lot of EURUSD, you are trading 100,000 EUR.
When EURUSD move lets say 100 pips from 1.10000 to 1.11000 you made $111000 - $110000 = $1000 profit.
Without leverage it goes exactlly as described so you need 100,000 EUR to make $1,000 profit.
With leverage of 1:500 you are able to open the same trade with same profit with just 1,000 balance.
So if you have 100,000 balance isn't it better to split it to more accounts, pairs, strategies and use leverage to trade it?
Membre depuis Feb 22, 2011
posts 4862
Jun 18, 2020 at 13:45
So what do YOU think?
Membre depuis Dec 15, 2019
posts 20
Jun 19, 2020 at 19:30
You know, a lot depends on a trader's experience and preferences, I think it's no secret for you that even with a small capital you can make a stable and good income, but if the leverage helped every trader to earn millions - the market would have collapsed long ago.
Jun 20, 2020 at 05:49
generally the target we select is not realistic, this is the main problem we have and for that reason we cant fill up our target completely, we have to make sure the target according to our knowledge and experience , over targeting make make us always greedy and emotional. so be careful
Jun 21, 2020 at 14:25
In fact, many traders do this by distributing their investments into several trading accounts, or using part of the capital in active work and part - in passive work. A lot depends on your trading style, amount of investments and personal wishes.
Membre depuis Feb 22, 2011
posts 4862
Jun 22, 2020 at 07:32
Well my point is that having some substantial amount of money
It would be great to diversify the risk to more accounts and trade with smart level of leverage on different trading pairs, trading system and even different brokers.
That way you should be protected from suddent move on
one trading pair,
failure of one trading system,
problem with one broker...
It would be great to diversify the risk to more accounts and trade with smart level of leverage on different trading pairs, trading system and even different brokers.
That way you should be protected from suddent move on
one trading pair,
failure of one trading system,
problem with one broker...
Membre depuis Feb 22, 2011
posts 4862
Jun 29, 2020 at 08:09
Cordardred posted:
And I think that it's very difficult to lead several directions at once, because you should have too much information under your control, and it's difficult, especially if you are trading only periodically or have the main job...
That is of course achieved by using own, preciselly created expert advisors.
You exaxtly know what to expect from these.
Membre depuis Feb 22, 2011
posts 4862
Jun 30, 2020 at 08:52
Betty_60 posted:Cordardred posted:Agreed! Handling too much at once can always create issues, even for experience ones at times.
And I think that it's very difficult to lead several directions at once, because you should have too much information under your control, and it's difficult, especially if you are trading only periodically or have the main job...
Well you need to free yourself from being glued to monitor and from trading stress
By using expert advisors.
Membre depuis Jul 20, 2019
posts 373
Jun 30, 2020 at 09:56
With 100k extra € in my pocket I'd spread 20k to 3 different trading accounts (which I already have) but would trade with the exact same strategy on all 3 ones (maybe only with 1 or 2 currency pairs), and then would just live from the 40k left, for a starter. Should be fine to do it like that, you won't need a main job anymore. But this goes only for good traders who can make let's say a monthly consistent profit of 5-10% on all the trading accounts they use. A 5-10% profit from a 20k account can be an income of 1-2k/month (e.g. in Germany the minimal cost of living is around 1-2k€/month, depending on where you live).
With EAs it can be more difficult though because different brokers/trading accounts can be totally different at the end.
With EAs it can be more difficult though because different brokers/trading accounts can be totally different at the end.
patience is the key
Membre depuis Jul 23, 2020
posts 759
Sep 06, 2020 at 16:45
SebastianPawl posted:Yeah that true. trader need knowledge of the market to make profit. I recommend first invest small. Then think later about big amount.
You know, a lot depends on a trader's experience and preferences, I think it's no secret for you that even with a small capital you can make a stable and good income, but if the leverage helped every trader to earn millions - the market would have collapsed long ago.
Membre depuis Jul 09, 2020
posts 39
Oct 16, 2020 at 09:30
That is a great insight. It is true that the traders who are professionals by now can afford to use and implement this strategy to make more money and live a comfortable life.
Membre depuis Jun 30, 2020
posts 47
Oct 16, 2020 at 12:39
I wish to reach that point in my life where I can leave my current job and concentrate on trading full time.
Membre depuis Jun 10, 2020
posts 37
Oct 19, 2020 at 11:12
I’ve always wondered if having many different accounts is better than 1. I’m still demo trading on 1, just need opinions.
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