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Compound Interest rate. Comparison between FX and Banks.
på
Allmänt
Aug 02, 2014 at 14:32
+1.The notion of making 30, 40, or even 100% a month typically comes from folks who are new to trading and are incredibly underfunded.When more experienced traders try to explain how 5% a month is very challenging to pull down! they become discouraged because 5% of $300 isn't "worth their time". Thus, they over leverage themselves and try to secure much larger profits, rather than focusing on the process, not the results.It would be more wise if newer folks simply stuck with low levels of leverage, traded to their best of ability and saved up money to really fund their account in...
Don't kid with leverage..
på
Allmänt
Aug 02, 2014 at 14:32
I've always felt that newer folks fall under the spell of being provided 500:1 leverage and thinking they need to use it all simply because "it's there".My trading really turned around when I realized that leveraging yourself out over 10:1 for the majority of the times you interact with the market is difficult to manage in the long run (in terms of managing risk and capital exposure over time).Jake
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