I live entirely from the growth of my personal trading account
- | Membership Revoked | Joined Nov 2012 | 3,392 Posts
GUYS BE AWARE FROM HUNTING YOUR STOP LOSSES BY YOUR BROKER & BY "GHOSTS"
The Really Really Boring Forex System 97 replies
You know why fund managers can't beat the s&p 500? 3 replies
can Black or White guess trading system beat bank interest rate? 3 replies
Disliked{quote} Yes, but... My total commissions plus swaps are -$473.66 My total gross for the year is $1,564.30 (This is from an excel spreadsheet I use. I wasn't trading my current approach last year so factoring that out) -$473.66 / $1,564.30 = -30%Ignored
DislikedI think you have mixed up a great deal of numbers and have confused me quite a bit. First you pay $7 to do transactions, which sounds like an equity trade cost. Then you are trading 0.2 lots for $1.40 of transaction costs? WOW! That is pretty cheap. Unfortunately none of your math makes sense, so here is my knowledge on the matter. If the current spread on EURUSD for a "Forex" broker is 1.3 pips, then if you entered and immediately exited, with 0.02 lots, it would cost you $0.26 (20 cents a pip). After price moves 1.3 pips in your favor, the rest...Ignored
Disliked{quote} If your only cost is spread then you are not using an ECN broker. With an ECN, the spread on EUR/USD is virtually non-existent (at this moment it is 0.1 pip). When you trade the approach I do, trading M5 charts and using very tight stops, this is extremely important. To get this benefitIgnored
DislikedEvery broker that I've seen seems to offer a commission-free account. Obviously your spread would be wider but if the wider spread doesn't make a significant difference in your strategy then that'll be a way to go.Ignored
DislikedSummary Each time you complete a trade cycle( open and close) for a symbol, you are paying twice the spread of the symbol to the broker.Ignored
Disliked{quote} Yeah, but not for me in the US. And I'm yet to find one ECN for US traders that is commission-free.Ignored
Disliked{quote} MOST OF THE NEW TRADERS DO NOT CALCULATE THIS, AND ONCE HE SEES A VALUE OF 2.5 USD IN HIS PROFIT, THEN HE WILL CLOSE THE TRADE AND THIS IS THE BIGGEST MISTAKE, AS YOU WILL LOOSE 0.5 USD FROM YOUR EQUITY AS YOU DID NOT EVEN RETURN THE PRICE OF THE TRADE.Ignored
Disliked{quote} How is that? If you see 2,5 as profit, you have already made 3+2,5.. so you are on profit 2,5... comission MAY not be calculated in this, but usually it is as well... Profit is profit. Sure, if you are only looking at the bid price moving 2,5 pips etc to your favor, and closing trade because of that, you will lose, but even then one could not "see a value of 2,5 usd in profit"....Ignored
DislikedYes! You buy at ask price, but you may only sell at bid... One spread. If you choose to use hedge position to free your equity, then you pay spread twice, but then you as well have two positions open.. TradeGraph sure put sentence you are referring to by accident, since spread is not calculated double even in his example. Sure you pay commission twice, but that is not spread, and usually commissions are calculated as round turn anyway...Ignored
Disliked{quote} ofcourse hedging you pay 2 times. many brokers have "close by" option to avoid it and close one with other. but hedging is in 99,99% of the cases because of no plan in math and beginner style, no more advanced trader will use it, or at least he is then no advanced trader. good traders dont waste money for nothing.Ignored