My thoughts

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?

So what do YOU think?

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.

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    

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.

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...

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...

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.

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...

Agreed! Handling too much at once can always create issues, even for experience ones at times.

Betty_60 posted:

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...

Agreed! Handling too much at once can always create issues, even for experience ones at times.

Well you need to free yourself from being glued to monitor and from trading stress
By using expert advisors.

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.

SebastianPawl posted:
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.

Yeah that true. trader need knowledge of the market to make profit. I recommend first invest small. Then think later about big amount.

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.

I wish to reach that point in my life where I can leave my current job and concentrate on trading full time.