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- FXTerminator replied Mar 23, 2007
"blown him out" simply means he lost another $100, not that he is totally out of the forex trading business. Ok, let's suppose they both have a decent trading system and that the MAXIMUM drawdown is 1000 pips. Let's imagine the worst trading ...
- FXTerminator replied Mar 22, 2007
I understand, but when you are saying that a mini forex trader needs $10,000 to trade you are saying that a 10,000 pip drawdown is possible!! Sure it is possible, but my friend, if your trading system or any trading system ever experiences a 10,000 ...
- FXTerminator replied Mar 22, 2007
Incomeideas, I would like your opinion on this please: Take two traders, trader A and trader B. Trader A deposits $50,000 immediately in his forex account. Trader B deposits only $100 but he has a good job and could easily send up to $50,000 to his ...
- FXTerminator replied Mar 22, 2007
Yes I know, we both understand each other correctly but the other member and yourself need to add this to your posts: a 400:1 account will generate 4 times more losses than a 100:1 account... if and only if both accounts are trading the SAME exact ...
- FXTerminator replied Mar 22, 2007
You are sure about that Aicccia? So if they are both trading 1 standard 100k eur/usd lot and the market goes 50 pips against them, trader A (100:1 leverage) will lose $500 and trader B (400:1) will lose $2000?
- FXTerminator replied Mar 22, 2007
So if the market moves 50 pips against two traders, trader A (100:1 leverage account) will only lose 50 pips but trader B (400:1 leverage) will lose 200 pips (4 times 50), is that it?
- FXTerminator replied Mar 22, 2007
Well if both accounts are making the same profits even though one account is using a very "conservative" leverage and the other account is using a "scary" 400:1 leverage then we must conclude that this "high leverage is bad" idea is simply a myth. ...
- FXTerminator replied Mar 22, 2007
With the usual TA tools: moving averages, DMI and ADX.
- FXTerminator replied Mar 22, 2007
Your system won't work for two simple reasons: 1:You are constantly fighting the trend so right there you have a problem. The trend now becomes your worst enemy. 2: You are trying to get an edge with a martingale. This is of course an utopia, only ...
- FXTerminator replied Mar 22, 2007
Why is that? Remember, a pip is a pip, no matter what leverage you are using. But hey, don't even take my word for it, just try the experiment for a week and see for yourself Don Perry.
- FXTerminator replied Mar 22, 2007
No, all I said was that those 2 accounts would end up making the same amount of money, even though in the second account it would appear we are using "too much leverage" and in the first account we are using "safe" leverage. This "safe" leverage is ...
- FXTerminator replied Mar 22, 2007
This post is NOT (NOT!) about how to trade or not to trade on the FX. I am simply exposing my views about this high leverage myth, period. How traders use their money or intend to use their money is not my problem and has nothing to do with this ...
- FXTerminator replied Mar 22, 2007
It all depends on your take profit and your stop, not your winning percentage. Also please keep in mind that I would not have to deposit $100 forever in my FX account, at the second or third deposit the profits would start to grow by themselves and ...
- FXTerminator replied Mar 22, 2007
Well we don't know for sure if "more opportunities translates to better returns" in the long run Hilmy83. What is true however is that it will certainly decrease the maximum drawdown and give you a much smoother equity curve. But MORE profits I am ...
- FXTerminator replied Mar 22, 2007
I used the 15min frame, stop at -33 pips and take profit at 155 pips (or whatever the market is giving me at the end of the day) and 40 pips trailing stop. You wouldn't believe how many "brilliant" trading ideas fail the minute you start the ...
- FXTerminator replied Mar 22, 2007
I know all about that already BRXXT, please see my comments in the thread "Is high leverage really bad for you". The problem with your logic is that you are AUTOMATICALLY assuming that I will lose my $100 if I open a 100:1 leverage trade. You could ...
- FXTerminator replied Mar 22, 2007
Did I say that Hidethereal? : By the way, funding/depositing money (to your FX account) by credit card costs nothing, zero, there are no fees involved.
- FXTerminator replied Mar 22, 2007
It should be extremely obvious by now darkstart: this so called "high-leverage-is-bad" myth is simply that, a myth, as the preceding examples show.
- FXTerminator replied Mar 22, 2007
How do you define "entire account" exactly? If a trader is poor and has only $100 to risk on FX (and ONLY $100 and no more) and he risks the whole thing on one trade now that's gambling not trading and it's extremely bad, I agree 100%. Now if the ...
- FXTerminator replied Mar 22, 2007
You don't have to worry about that, if the currency is near zero, the OTHER currency (remember, we trade with currency pair) will now be worth millions