Never Ever Give Up!
I don't get how 10 pips a day can make you rich? 71 replies
Let's all get obscenely rich with... The New Commodity Boom! 27 replies
Cowboyfx live calls for free, get rich or go broke trying 445 replies
need a programmer to program an alert for double tops and double bottoms 10 replies
DislikedCobra, you could be more wrong, but you're still way off base. I'm comfortable with the possibility of losing 10 trades in a row precisely because I know I trade decently, and that if and when that day comes, it will only be a bump in the road.
I've spent enough time developing a reasonably objective outlook that I won't enjoy the day it turns positive. I don't need a positive outlook on forex to be a successful trader, nor a negative one to be an unsuccessful trader. Together they allow for a balanced outlook, and I think that is healthy.
If...Ignored
DislikedWith a 100K account, you can cap your risk each year to 10% of the entire account. Your upside is 2000%, or actually a 200K increase on your 10K. So the entire account will grow to 300K in a great year. In a losing year, your account could shrink as low as 90K.
After a 10% losing year, your risk shrinks to 9K (10% of 90K.) So a great year (2000%) moves the account up to 270K (90K + 180K.)
The example paints broad strokes, but conveys that a high risk/high reward system can be very profitable over the long term.Ignored
DislikedThis is a complete fallacy. Simply capping equity drawdowns during an arbitrary time period (a year, in the above example) can not provide a long term edge in a random game. It won't work with roulette, for example.
Many will say "Ah, but trading is different to roulette". Yes it is, but only in the sense that it's (potentially) possible to gain an edge from entries and exits. Here's the bottom line: Provided that the outcome of any given sequence of trades is random, attempting to gain an advantage by using equity-based MM strategies...Ignored
Dislikedmaybe i didn t made myself clear. This specific part you quote was quoted by me from another thread, the money management thread.Ignored
DislikedRe the debate between Mr J and Cobra........
The table attached to this post gives the probability of a losing X consecutive trades within a 50 trade sequence, for a given win rate.Ignored
DislikedWell the other way to see this is to have a large amount of cash available say account A which you keep in low interest overnight deposit. ......Ignored
DislikedYes, that's an excellent point. There's no need to have all of one's funds in the forex account (the minimum requirement is enough to avoid a margin call); it's easy, and relatively inexpensive, to wire money around these days, should the need arise. Another good reason is that it protects your money against the possibility of broker fraud, or broker insolvency. I've read stories of brokers who won't let their clients withdraw their funds, for example.
The only problem I have personally is that, however many variables and (apparent) safeguards...Ignored