Today I watched a youttube video. I have watched between 5 - 10.000 hours of youtube videos during the last 10 years. This present video was from a trading millionair who was teaching newbies. I accept, that this man REALLY IS a trading millionaire. No question about it, we know him in my country. A bright example for all us traders. But he said things that are not correct. And it is essential things.
There are things anoying me. Experts that don't know what they are talking about. A common problem is experts that do not understand the difference between pips and points! Jesus - that happens often and how can they call themself experts??? Pips and points are NOT the same. 100 Points are 10 pips. This millionaire made that fault.
Another problem is that when these very well knowing guides tell you "Not to risk more that 1 or 2% of your account" and it is understood from their saying, that "you should not invest more that 1 or 2% of your account".
The problem is, that those guys talks blindly. They don't understand what they are saying. This is what they have read form other "experts". In books or on Youtube.
Lets do the math:
If you invest 1 % of your account, and you set a stop loss at 5% of your investment, then your risk is 0.05% of your account. NOT 1% of the account!!! Why is this so hard to understand???
Example.
You have an account of 10,000 $.
You invest 1% = 100 $.
Let us say that you lose 25% of the investment because of a stoploss. That is 25 $! (Ohh, please see a psychiatrist before hanging your self)
Is this insane? You have an account of 10.000$ and you are afraid of investing more than 1 % of the account, because you could lose 25 $ !!!!!
If you instead invested 10% of the account, then your loss would be 250$. That is bearable. Your win would of cause be 10 times as big as well!
You can lose 250 $ 40 times before you get broke on a 10,000 $ account. And if you do - then you surely deserve it ;-)
I don't know what I want with this thread. Other than try to get people to think about it them self and to point out, that there are way to many "gurus" out there, who really don't know much about what they are saying. They have watched the youtubes form other "gurus" and faults are spreading.
There are things anoying me. Experts that don't know what they are talking about. A common problem is experts that do not understand the difference between pips and points! Jesus - that happens often and how can they call themself experts??? Pips and points are NOT the same. 100 Points are 10 pips. This millionaire made that fault.
Another problem is that when these very well knowing guides tell you "Not to risk more that 1 or 2% of your account" and it is understood from their saying, that "you should not invest more that 1 or 2% of your account".
The problem is, that those guys talks blindly. They don't understand what they are saying. This is what they have read form other "experts". In books or on Youtube.
Lets do the math:
If you invest 1 % of your account, and you set a stop loss at 5% of your investment, then your risk is 0.05% of your account. NOT 1% of the account!!! Why is this so hard to understand???
Example.
You have an account of 10,000 $.
You invest 1% = 100 $.
Let us say that you lose 25% of the investment because of a stoploss. That is 25 $! (Ohh, please see a psychiatrist before hanging your self)
Is this insane? You have an account of 10.000$ and you are afraid of investing more than 1 % of the account, because you could lose 25 $ !!!!!
If you instead invested 10% of the account, then your loss would be 250$. That is bearable. Your win would of cause be 10 times as big as well!
You can lose 250 $ 40 times before you get broke on a 10,000 $ account. And if you do - then you surely deserve it ;-)
I don't know what I want with this thread. Other than try to get people to think about it them self and to point out, that there are way to many "gurus" out there, who really don't know much about what they are saying. They have watched the youtubes form other "gurus" and faults are spreading.
Read post #1 !! Then read it again 10 more times before you ask.