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Honest truth about forex.....

kmartyn
Oct 09 2015 at 20:07
posts 10
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
Oct 10 2015 at 07:26
posts 118
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.
Stephen Nelson (sbnelson2005)
Oct 10 2015 at 11:50
posts 41
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
Oct 11 2015 at 06:14
posts 8
Study study study....Practice practice practice...Unless your iverson

FXtrader2010
Oct 11 2015 at 15:44
posts 724
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
Oct 12 2015 at 06:00
posts 10
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.

Ivan (StoneHeart)
Oct 12 2015 at 08:35
posts 131
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
TopMasterTrader
forex_trader_[264513]
Oct 12 2015 at 13:38
posts 6
I agree with 1% rule.

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

Good luck with your attempts.

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

rob559
Oct 13 2015 at 05:57
posts 1916
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

rob559
Oct 13 2015 at 05:57
posts 1916
it's all about trading skill and mm ,when you get those you are within the 5% successfull traders but it takes long time before having a really good grasp on those

goyankees85
Oct 13 2015 at 06:08
posts 118
arigoldman posted:
Noone is forcing you to use your max leverage.


 That is the truth. The reality is no one is forcing you to max out your leverage, as if you know your entries aren't accurate then you shouldn't be using max leverage anyway! People like to blame everything other then themselves for their failures in forex.

My avatar explains "social trading" perfectly.
kieran (snapdragon1970)
Oct 20 2015 at 06:21
posts 1945
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.


You have good leverage ,1:500 is nuts for any trader,good tight stop loss,your entry is paramount to your risk.
1% is really tight,1.5 -2% is max for pros .

Be lucky!

"They mistook leverage with genius".
Andika_anjani
Oct 29 2015 at 07:10
posts 10
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.

 


To be honest, this is the rare things that every new traders have done.

I have nothing to say about your points, just want to say that your biggest enemy is your own ego. I always cancel my order when I started to feel unsure about my analyze.

Ben Nathan (BenNathanFX)
Oct 29 2015 at 11:02
posts 137
This is a good post! It highlights another point, most people enter fx thinking they can make a fortune... they can... but not on a 10k account! You need about 100k at least to trade for a living while not risking too much in my experience, and aim for 1-2% per month gains

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.

HOLY GRAIL: Fundamental Analysis to chose your pairs/direction, Technical Entry/SL/TP for consistent Management of those decisions
vontogr (togr)
Oct 29 2015 at 11:53
posts 4862
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.


Leverage has nothing to do with risk.
If you want to trade 1 lot without leverage your account has to be deposited with like $120,000 USD. (to trade 100,000 EUR)
With leverage you need just $1000 to trade such position.
Both risk and profit is determined by SL and TP.
So in both cases with 10.0 pips SL and TP you made either $100 profit or loss.
But with leverage it is 10% profit without leverage it is 0.1% profit:)

Now if you have system with lets say 60% profitability you make at least 10% profit
If you dont have profitable trade system than DO NOT trade:)
As I said low leverage is not ANY advantage.

FXtrader2010
Oct 29 2015 at 12:20
posts 724
BenNathanFX posted:
This is a good post! It highlights another point, most people enter fx thinking they can make a fortune... they can... but not on a 10k account! You need about 100k at least to trade for a living while not risking too much in my experience, and aim for 1-2% per month gains

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.
that really depends on what your goals are and you can turn 10k into 1 mil easy! just patience and compounding

FXtrader2010
Oct 29 2015 at 12:53
posts 724
Here is 10k compounded at 5% a month for 8 years

Fichiers joints:


vontogr (togr)
Oct 29 2015 at 13:17
posts 4862
FXtrader2010 posted:
Here is 10k compounded at 5% a month for 8 years

1.06 aka 6% a mo is much better as it double your account each year.
Anyway first you have to posses such system:)

kieran (snapdragon1970)
Oct 29 2015 at 13:23
posts 1945
FXtrader2010 posted:
Here is 10k compounded at 5% a month for 8 years


You need to run that through a random generator to get a realistic outcome.

"They mistook leverage with genius".
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