45 Ways to Avoid Losing Money Trading FOREX, by Jimmy Young | Page 3 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

How to avoid losing more money than you put into your account in MT4? 6 replies

45 Ways to avoid losing money trading forex by Jimmy Young 7 replies

Making Sense of FX Broker Stop Loss Policy, By Jimmy Young 4 replies

Essential Elements of a Successful Trader, by Jimmy Young 0 replies

45 Ways to Avoid Losing Money Trading FOREX, by Jimmy Young

  • #41
  • Aug 6, 2012 6:56am Aug 6, 2012 6:56am
LOL, BS artists .. that's so true actually. That's why your mentor told you to stay away from internet forums, eh?
BTW, can it be anything most people cannot? Like, I can cook a lovely stew, basically anything off Noah's ark, I can cook something finger-lickin' good, definitely most people cannot do that.

Quoting Hilar
Stop trading until you can do what most cannot.
forget about tomorrow, just steal away into the night
  • #42
  • Edited 7:40am Aug 6, 2012 7:13am | Edited 7:40am
Quoting spekitox
LOL, BS artists .. that's so true actually. That's why .
Nuff said then''

Oh yeah I have my shawshank redemption coat on and strolling through.. zzzzz;\BS

Do you need a hug?
H.D
  • #43
  • Aug 12, 2012 6:44pm Aug 12, 2012 6:44pm
Quoting FX Articles
2) Overtrading - Trading often with tight stops and tiny profit targets will only make the broker rich. The desire to “just” make a few hundred dollars a day by locking in tiny profits whenever possible is a losing strategy.
What does this mean? My understanding is that the way scalpers operate is the very deffinition of what was posted here in point #2.

It seems so arbitrary. What is a "tight" stop? What is a "tiny" profit margin?

Is taking a series of trades with a 5-pip stop paired with a 10-pip take profit considered overtrading? How about a 10-pip stop and a 20-pip take profit?

Where is the line where you are no longer overtrading? And doesn't this depend on the broker too? I know that Pepperstone Razor account has very tight spreads and the commission on the open and close is pretty small overall....at least relative to the size of the position you don't find yourself getting ripped off. Would working tight stops and small take profits be okay with such a broker setup?
  • #44
  • Aug 13, 2012 2:28pm Aug 13, 2012 2:28pm
Mathematically speaking, scalping sucks. Massively. The spread just kills your profits. Longer timeframes allow bigger spreads to have less of an impact due to bigger SLs which means you can trade the most liquid pairs as opposed to only 1.

Of course it's possible, but for retail traders the odds are stacked against you so badly that I don't think it's a very smart decision to scalp intraday.

To determine what SL is bad or good, you should calculate money lost due to spread with various SL levels and expected volatility on the individual pairs. 10 pips on EURUSD is not the same as 10 pips on USDJPY.
  • #45
  • Apr 26, 2013 3:23am Apr 26, 2013 3:23am
The man himself
  • #46
  • May 29, 2013 5:02am May 29, 2013 5:02am
cannot agree more.
but better to lose some money and get lessons so that we can remember deep.
thanks for sharing.
  • #47
  • Last Post: Mar 13, 2015 8:30am Mar 13, 2015 8:30am
Very good and clarifying article.
I can definitely relate myself with it lol.
0 traders viewing now