Chicky
I agree with your observations and with others posted. Just to add something:
You will be amazed at how few traders even know how to calculate the leverage used on a trade, they can only quote what leverage that is allowed by their broker which got nothing to do with the leverage you use.
Proper risk management is a combination of how much money you "plan" to loose if your SL is hit and proper use of leverage. Most newbies do not think about it but if they trade one standerd contract on a $10,000 account then they are using 10:1leverage (100,000 is a standard lot divided by 10,000 your account size). It gets even worse when a guy trades a standard lot on a $2,000 account, that is 50:1 leverage, pure suicide.
Any case as someone said we need the 95% otherwise we will not make any money in this market.
Regards
I agree with your observations and with others posted. Just to add something:
You will be amazed at how few traders even know how to calculate the leverage used on a trade, they can only quote what leverage that is allowed by their broker which got nothing to do with the leverage you use.
Proper risk management is a combination of how much money you "plan" to loose if your SL is hit and proper use of leverage. Most newbies do not think about it but if they trade one standerd contract on a $10,000 account then they are using 10:1leverage (100,000 is a standard lot divided by 10,000 your account size). It gets even worse when a guy trades a standard lot on a $2,000 account, that is 50:1 leverage, pure suicide.
Any case as someone said we need the 95% otherwise we will not make any money in this market.
Regards