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A mini account with GFT....Good or Bad??

  • Post #1
  • Quote
  • First Post: Dec 25, 2006 9:50pm Dec 25, 2006 9:50pm
I am thinking about opening a mini account with Global Forex Trading.
I am thinking about depositing $1000 with 200 leverage, GFT has 400 leverage but it seems a little risky.
I will only be trading a max of 100,000 (Ex. 10 lots of 10,000 each) to keep my losses to a minimum, so 200 leverage will do. But, I dont know if GFT will lower my leverage down to 200.
I wont be trading into any news because as you can see I cant afford to risk the little money I have to invest with on such a high leverage. Therefore, I dont think slippage will be a major problem.
I have been demoing their account for about 3 weeks now and I really enjoy it. Nice charting (which is my thing)!! I also like Metatrade4 but I cant get online because I dont know if they are their own broker or what brokers use that software (kinda confuse with that) so I can sign up for a demo with them......man I feel stupid...haha..

Anywayz...Could you experts please tell me if going with GFT is a good idea or a bad one?......Are there any other brokers better thatn GFT that fit my requirements?.....What brokers use MetaTrade4?

Sorry for the long post.
Thanks in advance.....and Merry Christmas to all.
Oh by the way....
Are there any stand alone pivot points software out there....
I have seen several people use pivot points on Dealbook 360 but it seems that I would have to call the tech support and tell them to send me a copy of that software.....they dont seem to have it in their download section.

But ya....any stand alone pivot softwares out there or does any one have a code for MT4 for that??

Thanks in advance....seems like I'm asking way to many questions.
I'm no expert but you probably don't want to trade minis with a deposit that small. I don't know what or how you plan on trading but more than likely you will wipe your account quickly. Open a micro account somewhere else is my adive. You only want to risk a very small amount per trade, 1% - 2%. As I said I'm no expert but thats my opinion.

MT4 has heaps of Pivot Point indicators out there. There all free and theres bound to be run to suit you. Go download an MT4 demo and see how you like it.
If you choose you use DealBook I have a pivot script in CTL (dealbooks language) you can have. It will put the pivots directly on your chart.

I sent you a PM with some more info.
gft is a very reputable company. there are 2 things to note before using them:


1) they do not offer micro accounts. You can get a mini but IMO the minimum you should start a mini account with is 2000$.

2) their system is different then everyone elses. everything is OCO (order cancel order). you can only have 1 trade on 1 pair at a time, which is bad, but it gets confusing some times. e.g. say you have 3 lots short and you are at +30. you short 6 more lots you are now at (3 pip spread) you are now at +8. or if you are short 3 lots and you go long on 6 lots you are now long on 3 lots.
Quoting witchazel
2) their system is different then everyone elses. everything is OCO (order cancel order). you can only have 1 trade on 1 pair at a time, which is bad, but it gets confusing some times. e.g. say you have 3 lots short and you are at +30. you short 6 more lots you are now at (3 pip spread) you are now at +8. or if you are short 3 lots and you go long on 6 lots you are now long on 3 lots.
Yeah... I dont like that you cannot hedge. Also every time you add to your position they average your entry point into one single large entry. I like having seperate entry levels.
ur better off getting 400:1 leverage. it makes it cheaper to enter positions and doesnt use up alot of margin. its not like leverage defines risk its you who does. it depends on how much u enter in the market. leverage isnt ur friend but it isnt ur enemy either.

ok so u have been demoing for 3 weeks? how long have u been trading for i hope its not 3 weeks only.

maybe u know maybe u dont but trading a demo is hell of a lot different than trading a real account. thats when ur emotions kick in. sure we all kick ass and make millions on demo but how many people do it on real accounts?

and i see ur talking about averaging in and hedging. be very careful about that stuff if ur a newbie and ur using this stuff ur just getting away because ur lucky. this is experts field. hedging took me a year by itself to devise a system that involves hedging and come out a winner. i dont use it because i use other things.

sorry about the harsh sounding reply but i wanna make sure that newbies dont lose their money when they start because they think trading a demo for 3 weeks is enough. and i could be wrong so im sorry if i am.
so if ur a noob then i suggest demo trading for a few months then getting a micro account. do a google search for mt4 brokers or something and u should find out who they are and itl tell u if they have micro accounts or not

take care
Mizoem:

Would you kindly send me a copy of the pivot script for Deal Book also. I am in the process of opening an account with GFT. Thank you.

JSHAV
  • Post #9
  • Quote
  • Last Post: Jan 3, 2007 1:48pm Jan 3, 2007 1:48pm
Quote
ur better off getting 400:1 leverage. it makes it cheaper to enter positions and doesnt use up alot of margin.

Thinking 400:1 is a good thing because it doesn't require a lot of margin is a rather slippery slope. This is very dangerous advice to give and IMHO poor money mangement.

Read: http://www.forexfactory.com/forexfor...d+losing+money

I say this to make it very clear that because you have a small margin requirement you might get the idea that your risk is lower. This is not so. You pay on the backend for such low margin requirements. Your ROI is magnified whether it is negative or positive.

All things considered equal, you would be able to withstand twice as many losses for a 200:1 account than a 400:1 account. 200:1 is way too high for me. I am still learning myself and I keep my leverage at 5:1 effectively. My broker allows for low leverage and variable lot sizes. I can withstand successive losses without a major impact to my account. Yes, this limits my profit but I also stay in the game. My belief is longevity is key....the longer I play the game the more I learn. The more I learn is directly proportional to what I earn. I am in this to learn A LOT.

I use Oanda and I am quite happy with them. The charting is not stellar but I use MT4 for my TA. The additional benefit (I cannot say for other brokers) but my margin account earns interest by the second. This is very nice - it compounds my profits.

Here is an example by Dirk du Toit....
Quote
<TABLE width="90%" border=0><TBODY><TR><TD>Say broker A's requirement is 1% (100:1), Broker B = 0.5% (200:1).





Trader decides to do a maximum trade (for him, following his MM) (10% of margin) at both brokers.

Broker A = buy $5,000 X 10% = $500 = at 1% of 10K (lot size) = 5 lots. Notional transactional value = EUR 50,000 and value per pip $5.00.

Broker B = buy $5,000 X 10% = $500 = at 0.5% of 10K (lot size) = 10 lots. Notional transactional value = EUR 100,000 and value per pip $10.00.

Let's say the trade was not such a good idea. the eurusd moves 50 points in the wrong direction. With broker A he loses $250, with broker B, $500.

So, if he knows this and decides to address the matter by putting a "money management" stop on the higher leveraged transaction (Broker B) to exit the transaction at 25 pip loss, then he really starts cascading down the slippery slope of trading like a person bound on losing his money.

The solution is that you must calculate your risk not by using your margin required percentage but by looking at your leverage or gearing ratio:

I.e. Broker A = EUR50,000 (5 10K lots)/ $5,000 (total capital) = gearing of 10:1. I.e. you take your capital, wish wish it is EUR50,000 (for which you give the broker some measily security of 1%) and off you go. Risking not 10% of what you have but risking wat you have 10 times.

Broker B = EUR100,000 (5 10K lots)/ $5,000 (total capital) = gearing of 20:1. I.e. you take your capital, wish wish it is EUR100,000 (for which you give the broker some measily security of 0.5%) and off you go. Risking not 10% of what you have but risking wat you have 20 times.

Because margin required is a variable it can not be used to judge the risk where the other properties of the transaction are all fixed (non-variable): Margin = $5000, lot size = EUR10,000 and pip value = $1.00/ per 10K.

That is why you should look at the transaction from the notional value angle and not the variable margin requirement angle like most do.




</TD></TR><TR><TD align=right></TD></TR></TBODY></TABLE>

Hope this helps...

Cheers.
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