After reading a few threads about brokers who offer insane leverage of 1000:1 and 3000:1 I have decided to conduct a test and see what comes of it. Going into this I will only be risking $100-200 and I am fully prepared to lose it all if this experiment goes awry. So no need for the gut wrenching margin call feelings, mentally and physically prepared.
The first step is to open up and fund one of these crazy foreign brokers ( probably unregulated) and test out what they have. After reading in the forums, I have decided to go with FXGlory. For some reason ( lol ) I feel more nervous about putting my money into an account with these high leverage brokers then actually placing a "do or die" trade. But we shall see, I have already started the account opening process in preparation for the next upcoming NFP.
I have traded the NFP via forex for many years and I would say 9 out of 12 months I do very well, 2 out of 12 months I end at break even and 1 month I will end the day with a negative. It is a great strategy, and when applied correctly and I dont deviate from it, it can be "wildly" profitable all the while minimizing risk. and eventually most trades my stop gets placed to break even shortly after the announcement.
Now here is 2 things I want to mention for myself and others if anyone care to read this.
1. Just imagine, that 1 hour or 30 minutes before NFP release you buy the gbp/usd using 3000:1 leverage. Usually during this time the markets wil get a little quiet before the inevitable storm. Then shortly before the release, they start moving a little bit, and at the release the gbp/usd takes off like a rocket going up. 30 pips in less than 5 seconds, and 50 pips in the next 30 seconds, then a pause, 1 minute in it does a little retrace of 15 pips, then it goes up amd up and up, and within the first 5 minutes you are up 80-100 pips. then the market breathes for a minute and it slowly ( somewhat) keeps going up, ignoring all indicators and oscillators. 130-150 pips within 10 minutes. So this sounds somewhat like a normal NFP release for the gbp/usd. What could you do, if you took $200 put in into an account that has 3000:1 leverage. buy a few micro lots and let it run up 130 pips @ 3000:1 leverage. how much money would you make? ... in less than 5-15 minutes. ... the possibilities. Now the truth of this Possibility is (A) the gbp/usd will move 50-150 pips within minutes of the NFP release. (B)if you blindly buy or sell this pair while the market is quiet, you have THEORETICALLY a 50/50 % chance of it going up 50-150 or down 50-150. So what would you risk on a 50% chance of winning it big?
2. The above statement is nothing even close to what I am about to do and has nothing to do with my strategy, but it does get my mind excited to trade the most chaotic craziest day in all of trading for each month with an absolutely absurd amount of leverage. My trades will only be placed 2-5 minutes after NFP has been released and I usually have somewhere between a 20-50 pip stop depending on the currency pair.
3. I am well aware that this is down right stupid. But at the end of the day, im using risk capital. Sure I could go buy lobsters and marinated steak tips and grill up a feast with this money instead of risking it in the markets. OR if it works, I could put it as a down payment on a new vehicle. Steaks.... or new vehicle... steaks or new vehicle... hmmm. risk $200 or take no risk... risk $200 which makes no difference in my life at all or just eat really good NFP weekend... hmmm. lol
4. I am thinking that, at minimum I double my money, My initial deposit will stay in the account for the following month for a second testing and withdraw the profits.
- so as of right now, I am working on the opening and funding of my FXGlory account. Will post an update once that is funded.
The first step is to open up and fund one of these crazy foreign brokers ( probably unregulated) and test out what they have. After reading in the forums, I have decided to go with FXGlory. For some reason ( lol ) I feel more nervous about putting my money into an account with these high leverage brokers then actually placing a "do or die" trade. But we shall see, I have already started the account opening process in preparation for the next upcoming NFP.
I have traded the NFP via forex for many years and I would say 9 out of 12 months I do very well, 2 out of 12 months I end at break even and 1 month I will end the day with a negative. It is a great strategy, and when applied correctly and I dont deviate from it, it can be "wildly" profitable all the while minimizing risk. and eventually most trades my stop gets placed to break even shortly after the announcement.
Now here is 2 things I want to mention for myself and others if anyone care to read this.
1. Just imagine, that 1 hour or 30 minutes before NFP release you buy the gbp/usd using 3000:1 leverage. Usually during this time the markets wil get a little quiet before the inevitable storm. Then shortly before the release, they start moving a little bit, and at the release the gbp/usd takes off like a rocket going up. 30 pips in less than 5 seconds, and 50 pips in the next 30 seconds, then a pause, 1 minute in it does a little retrace of 15 pips, then it goes up amd up and up, and within the first 5 minutes you are up 80-100 pips. then the market breathes for a minute and it slowly ( somewhat) keeps going up, ignoring all indicators and oscillators. 130-150 pips within 10 minutes. So this sounds somewhat like a normal NFP release for the gbp/usd. What could you do, if you took $200 put in into an account that has 3000:1 leverage. buy a few micro lots and let it run up 130 pips @ 3000:1 leverage. how much money would you make? ... in less than 5-15 minutes. ... the possibilities. Now the truth of this Possibility is (A) the gbp/usd will move 50-150 pips within minutes of the NFP release. (B)if you blindly buy or sell this pair while the market is quiet, you have THEORETICALLY a 50/50 % chance of it going up 50-150 or down 50-150. So what would you risk on a 50% chance of winning it big?
2. The above statement is nothing even close to what I am about to do and has nothing to do with my strategy, but it does get my mind excited to trade the most chaotic craziest day in all of trading for each month with an absolutely absurd amount of leverage. My trades will only be placed 2-5 minutes after NFP has been released and I usually have somewhere between a 20-50 pip stop depending on the currency pair.
3. I am well aware that this is down right stupid. But at the end of the day, im using risk capital. Sure I could go buy lobsters and marinated steak tips and grill up a feast with this money instead of risking it in the markets. OR if it works, I could put it as a down payment on a new vehicle. Steaks.... or new vehicle... steaks or new vehicle... hmmm. risk $200 or take no risk... risk $200 which makes no difference in my life at all or just eat really good NFP weekend... hmmm. lol
4. I am thinking that, at minimum I double my money, My initial deposit will stay in the account for the following month for a second testing and withdraw the profits.
- so as of right now, I am working on the opening and funding of my FXGlory account. Will post an update once that is funded.