When something moves 19 pips, yet you bump up your lot size to 10 instead of 1, does this "count" as 190 pips of movement? If you were to post a chart with a +190 pips or any other amount and in actuality only captured 19 pips of movement does your increased lot size actually count for increased movement? I would agree it is a VASTLY increased risk, however it definitely isn't capturing that many pips in actual price. With a vastly increased risk also comes a possibility of the trade going against you, and depending on your equity, would or could be devastating to your margin.
Why would anyone post a 1,137 pip gain on a chart with 1 EP and really only captured 113 pips of actual movement? They are just increasing the lot size tenfold? In my opinion this is a gross misunderstanding, and today I was ridiculed for stating this in a thread where this is the norm. Not only is this type of thinking technically incorrect, it can also lead others (newbies especially) into this same type of improper conduct.
Yes, I know I haven't been here for very long, however, this is not important. I know I have been trading for over a decade. Just I am "newer" to forex and forexfactory. To me, a fundamental mechanic of forex trading is just that, and shouldn't be a rule bent or skewed for someones or a threads own popularity.
RISK IS RISK!
Discuss....
Why would anyone post a 1,137 pip gain on a chart with 1 EP and really only captured 113 pips of actual movement? They are just increasing the lot size tenfold? In my opinion this is a gross misunderstanding, and today I was ridiculed for stating this in a thread where this is the norm. Not only is this type of thinking technically incorrect, it can also lead others (newbies especially) into this same type of improper conduct.
Yes, I know I haven't been here for very long, however, this is not important. I know I have been trading for over a decade. Just I am "newer" to forex and forexfactory. To me, a fundamental mechanic of forex trading is just that, and shouldn't be a rule bent or skewed for someones or a threads own popularity.
RISK IS RISK!
Discuss....