Hey FF Traders,
Ive been trading now for couple of years and one of my former co workers has been demo trading from September through December to practice. I helped him out on a trading method by trading chart patterns (Wedges, Triangle Breaks etc) Also recommended him the book Encyclopedia of chart patterns. Anyway, he went live in January and followed his progress on an excel spread sheet. I saw his results and IMO they were pretty good (He says he used 10K - 20K lots) here is where we disagreed. he feels he can use 60K - 100K lot size on a starting capital of $2,750, IMO he will get a Margin Call in no time. He has that mentality of, "Yeah but at $10 a pip i can make $1,000 quick" of course we all have been there when we started but i suggested this lot size plan with careful and patent entries,
$2,000 - 10k
$3,000 - 20k
$4,000 - 30k
$5,000 - 40k
$6,000 - 50k
$7,000 - 60k
$8,000 - 70k
$9,000 - 80k
$10,000 - 90k
$20,000 - 100k
$30,000 - 200k
Etc.... Is this too risky? According to his excel sheet he started with $2,750 and now has $3,398
This was his results for the month,
45 Winning trades
58 Losing trades
Winning % 44%
Return of 23.6%
He has a load of losing trades, however ALL his losses were between 0.05% - 2% risk. Anyway overall i think he did well using 10K lot size even though he had alot of losses. What are your thoughts?
Ive been trading now for couple of years and one of my former co workers has been demo trading from September through December to practice. I helped him out on a trading method by trading chart patterns (Wedges, Triangle Breaks etc) Also recommended him the book Encyclopedia of chart patterns. Anyway, he went live in January and followed his progress on an excel spread sheet. I saw his results and IMO they were pretty good (He says he used 10K - 20K lots) here is where we disagreed. he feels he can use 60K - 100K lot size on a starting capital of $2,750, IMO he will get a Margin Call in no time. He has that mentality of, "Yeah but at $10 a pip i can make $1,000 quick" of course we all have been there when we started but i suggested this lot size plan with careful and patent entries,
$2,000 - 10k
$3,000 - 20k
$4,000 - 30k
$5,000 - 40k
$6,000 - 50k
$7,000 - 60k
$8,000 - 70k
$9,000 - 80k
$10,000 - 90k
$20,000 - 100k
$30,000 - 200k
Etc.... Is this too risky? According to his excel sheet he started with $2,750 and now has $3,398
This was his results for the month,
45 Winning trades
58 Losing trades
Winning % 44%
Return of 23.6%
He has a load of losing trades, however ALL his losses were between 0.05% - 2% risk. Anyway overall i think he did well using 10K lot size even though he had alot of losses. What are your thoughts?
"The market doesn't beat them, they beat themselves" - J. Livermore