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Going live with 10k: Advice/insights please!

  • #1
  • First Post: Apr 2, 2008 5:05pm Apr 2, 2008 5:05pm
I realise I am under-capitalised, and wondered what money management methods work for you with small margins? What dangers should I be wary of going live for the first time?

Anything that might help me and others like me profit, survive and flourish in the markets would be gratefully acknowledged.

Thanks

Best reads in my learning to date:

Murphy's "Technical Analysis of the financial markets"
Nisson's "Japanese Candlesticks Charting Techniques"
Lefevre's "Reminiscences of a stock operator"
Money & Pain Respect the market, protect your capital, be patient
  • #2
  • Apr 2, 2008 5:07pm Apr 2, 2008 5:07pm
1. Criteria for entering a trade (are you a scalper, swing trader, position trader?)

- Price action, candlestick set ups, indicator signals entry and agree with short/mid/long term trend, and support/resistance confluence.

2. Criteria for exiting a trade (including if you make a mistake)

- The market does not behave as predicted.
- Stop loss triggered.
- Target profit gained.

3. How much to trade (and when to increase or decrease)

- Test the set up with 2-3 small amounts, if the market continues to behave as predicted, go big!

4. When to trade (or not trade)

When price action, S/R, fibs, confer.

5. Your daily, weekly, monthly, yearly goals (I suggest quiting when you've reached your goal; more could be said about this)

- To make a living from trading

6. How much can you lose each day, week, month before you stop ( ie. if you lose 2% in one day, quit for the day)

I agree.
--

The system i have been demo trading works and I stick to it, however I still don't know enough about the markets to know why when it doesn't behave as predicted it didn't, such as how commodities, stocks, and futures influence forex. And TIMING costs, its easy to see the market is trending, and that it will go in a certain direction, but WHEN to the minute to get in is something maybe only experience can teach??

Any good books on margin management?
Money & Pain Respect the market, protect your capital, be patient
  • #3
  • Apr 2, 2008 9:11pm Apr 2, 2008 9:11pm
How long did you do demo before you went live?
The ForEx giveth and the ForEx taketh away. (more taketh than giveth).
  • #4
  • Apr 3, 2008 3:10am Apr 3, 2008 3:10am
After two months demo trading I am going live with £10k. I have learnt enough to know that I don't know much, and experience is the best teacher.
I am posting this thread to garner the advice and insights from those further down the path.

For example, are there any systems that work well with small margins?
Money & Pain Respect the market, protect your capital, be patient
  • #5
  • Apr 3, 2008 3:36am Apr 3, 2008 3:36am
Quoting toyboy tramp
After two months demo trading I am going live with £10k. I have learnt enough to know that I don't know much, and experience is the best teacher.
I am posting this thread to garner the advice and insights from those further down the path.
You are starting with 10k which is way too much money for a beginner.
I am going to give you advice that will save you possibly 7k.
You should start with 3k with a mini account only trading 1 pound/dollar per pip. Statistics show there is a 95 per cent chance that you will blow this account. If this was to happen, you would have learned from your mistakes and still have 7k in the bank to start again with 3k at a time and one mini lot. If on the other hand, you make profit immediately, build on that initial 3k; there is plenty of time my friend. Live trading is very different from demo trading. Good luck.
  • #6
  • Apr 3, 2008 3:54am Apr 3, 2008 3:54am
oanda has £0.001 per pip lol, start with £100 and you get experienced without droppin 10k
  • #7
  • Apr 3, 2008 4:26am Apr 3, 2008 4:26am
I'm using oanda to demo, the two previous posts make an excellent phased transition, starting with £100/.001 a pip and progressing to 3k/£1 a pip.
Great advice!

Thanks
Money & Pain Respect the market, protect your capital, be patient
  • #8
  • Apr 3, 2008 6:55am Apr 3, 2008 6:55am
Quoting toyboy tramp
I'm using oanda to demo, the two previous posts make an excellent phased transition, starting with £100/.001 a pip and progressing to 3k/£1 a pip.
Great advice!

Thanks
I'm sure someone will mention this eventually...

Regarding the later 3k/1 option down the road....

3k/£1 a pip is a disaster waiting to happen.

1% of 3000 is £30.

£30 divided by £1 per pip doesn't leave much of a stop.
...That'd force you to trade smaller time frames. (even then , I'd want more flexibility)

Does that suit your method of trading?

I guess I'm trying to ask whether you're open to the idea of 3k/.001 per pip or 3k/.258 per pip and so on, tailored to the stop/risk for each individual trade you take. You need to choose a broker /live account that gives you this flexibility if you ever wish to use it. (strongly recommended!)

I'm not that great at putting this into words. There are others here , many times more qualified than me on this subject if you wish to look into this a bit closer anyway.

Oh yeah... And starting off with tiny £100 feeler account on Oanda is an awesome idea for a starters.
Bundy's status today: "Waiting..."
  • #9
  • Apr 3, 2008 7:09am Apr 3, 2008 7:09am
Quoting toyboy tramp
I realise I am under-capitalised, and wondered what money management methods work for you with small margins? What dangers should I be wary of going live for the first time?

Anything that might help me and others like me profit, survive and flourish in the markets would be gratefully acknowledged.

Thanks

Best reads in my learning to date:

Murphy's "Technical Analysis of the financial markets"
Nisson's "Japanese Candlesticks Charting Techniques"
Lefevre's "Reminiscences of a stock operator"
your not ready there's a lot of question you don't have answer for. you say experience is the best wasy to learn, your about to learn a hard lesson once that 10k is gone.
If I Go Broke Trying Then I Will die happy.
  • #10
  • Apr 3, 2008 7:15am Apr 3, 2008 7:15am
for some reason i'm getting the feeling that instead of taking real advice, you want us to encourage you to go live with the full 10K.

you don't seem to know the value of money yet because otherwise you'd be more precautious and not start off with that full sum.

that is 10k sterling pounds, not 10k usd.it's a ton of money.
sorry man, but by the way you sound i think you're going to give it all back.

but then again, if you have a job that can get you 10k back easily, then go ahead, don't listen to us.
  • #11
  • Apr 3, 2008 7:40am Apr 3, 2008 7:40am

I'm planning a trip to the UK in August, from the land of OZ.

When are you planning to start? 10K would more than pay for my trip.

I say " go for it"

Roy

:
Polishing my crystal ball
  • #12
  • Apr 3, 2008 7:52am Apr 3, 2008 7:52am
Took me a second to figure out why my post wasn't in here anymore, I could have sworn I posted on this. Looks like the original was moved to the recycling bin and you started another with the same title?

My original advice:

Quote
Hmm... advice.

I know you've probably heard it before, but odds are you are going to lose that 10k. (And thats not even 10k of these worthless US dollars) Make sure you are willing and able to lose 100% of that money.

Second piece of advice I would give, withdrawl atleast 50% of that and put it in a high interest savings account. You're potential for making it huge is just as good trading 5k as it is 10k. The other 5k is simply extra money to lose in revenge trading. Put it somewhere that it will take you a few "cool off" days to get it back in your trading account.

Open a micro account, and focus on studying margin management. It doesn't matter what system of trading you are using. Honestly most of them could be profitable with proper money management.

The day after you trade your first live dollar, read Trading In The Zone.

When you lose 50% of that 5k you now have in your trading account. TAKE TIME OFF. Take a week-month off. Come to terms with the loss and feel good about it. It's a good thing to learn to lose correctly when 5k is on the line vs later on when 50k is on the line. It was basically an investment in training anyway.

Thats a good start I think.

Looks like we're all pretty consistent in the "don't start with 10k" department.

Forgot to reply to your PM last night.
The basis of a democratic state is liberty. ~ Aristotle
  • #13
  • Apr 3, 2008 8:25am Apr 3, 2008 8:25am
Please withdraw 9500. You have only demo-ed so far right? 500 or 10k, FX is so huge that the market wont notice the difference. With accounts of 500 you can blow it 20 times instead of one time with the appropriate 100k orders. 20x more experience, same amount of money
Happy Pip-hunt... KISSes
  • #14
  • Apr 3, 2008 8:44am Apr 3, 2008 8:44am
If he goes ahead with depositing his 10k sterling (20k USD) to trade forex, I bet you there is a broker out there with a smile on his face anticipating a great collect.
I dont believe that there is a newbie out there that can start forex trading overnight and win. It takes a lot of hard work and years of practice to be successful.
  • #15
  • Apr 3, 2008 10:57am Apr 3, 2008 10:57am
I wanted to go with 10k cos there's a chance, and your experience of that tantalising opportunity is definitely worth learning, the emphasised poo-pooing
seems to concur, and I like the strategies suggested below, and heed your words well.

So no 10k, much smaller and keep the ratios real.

More insights into fast learning techniques and pointers to worthwhile literature greatly welcomed.
Money & Pain Respect the market, protect your capital, be patient
  • #16
  • Jul 4, 2020 4:10pm Jul 4, 2020 4:10pm
Sad to say...but put that money elsewhere!...start a food a truck or something ANY OTHER TYPE OF BUSINESS EXCEPT THIS ONE...trading FOREX for a living IS HELL my friend.
You have to be mentaly sharp everyday.Mentaly disciplined everyday.Mentaly healthy everyday.
(i do this for a living but i honestly wouldn't advise it on any one.)
Sorry to disappoint you but this is the hard thing you,your mind is going to go through.
  • #17
  • Last Post: Oct 8, 2020 1:27pm Oct 8, 2020 1:27pm
Before investing money in this risky market, you should have proper knowledge about trading and about the market.
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