Cable Update (GBPUSD)

Goodnight matey!

UK growth prospects are not looking good!
http://news.bbc.co.uk/1/hi/business/10092145.stm

But still the b;;;;;;;;tch is riding higher!

See you in the morning broertje!

Hi Pawpaw,

in case no one has really broken this down for you before, let me do it. Many professional traders say that if there is any such thing as a "Holy Grail" in trading, it is this: NEVER lose more than 1.5% of your account size PER TRADE -- or to take it even further, NEVER lose more than 1.5% of your account size at ANY ONE TIME. It doesn't matter if you have $100,000, $10,000, $1,000 or $100 in your account, the formula is always the same.

Here's how you do this --- simple formula (this is figured in $USD. of course you would figure it a little differently if your base currency is not $USD).

1. figure your maximum acceptable loss like this:

my account size X .015 = maximum acceptable loss
example: $1000 acct size X .015 = $15 acceptable loss.

2. figure amount of pips between your prospective trade entry and your stop loss (mental or hard stop loss)

example: entry 1.5330 long, stop loss 1.5290 = 40 pips to stop loss

3. figure the position size by dividing the maximum acceptable loss amount into the number of pips in stop loss

example (as in above):
$15 divided by 40 pips = $0.375 per pip acceptable position size

this means in the above example, the maximum position size you should take, on a $1,000 account size with a 40 pip stop loss, should be 3750 units. this is of course assuming you are using a br0ker that allows you to do that kind of micro unit with that kind of account size.

a more realistic scenario might be a $10,000 account size, which would permit a $150 loss, meaning on a 40 pip stop loss trade, your maximum position size should be 37,500 units giving you $3.75 per pip of profit (or loss).

the way to get a better position size is to wait until the prospective trade being offered by the market gives you a better risk to reward ratio -- for example, you might see very good support at "the figure" of 1.53, enter at 1.5305 and put your stop loss at 1.5290. In such a case, your stop loss is only 15 pips, so your figures change: on a $10,000 account it looks like this:

$10,000 * .015 = $150
$150 / 15 = $10 per pip
position size = 100,000 units for $10 per pip.

that's a nice position size with still an acceptable risk at only 15 pips! the key here lies in analysing the trade properly as not all trades afford this kind of risk/reward ratio, most are more like the one above with 30 to 40 pips of possible risk. But even on a 30 pip risk, on a $10k account you can enter a $5 per pip position size without risking more than 1.5% and that is a very decent position size if the trade has a high probability and a nice target.

Believe me this IS the correct way to do your trading, especially if you are a net loser so far. Because if you are a net loser, it doesn't matter if you have winners because your losers eat up all your profits and then take your capital away as well. If you have not tried this approach, please try to implement it consistently for a few weeks. Believe it or not, you will be surprised at how the simple practice of ensuring that you lose no more than 1.5% at any one time will cause your balance to start going upwards. True, you will not see the kind of spectacular profits you are looking for as a new trader. But the mere fact that you are not losing as much will give you the confidence you need to start shaping yourself psychologically as a winning trader, and soon you will be able to move into the realm of making those larger wins that you crave.

I hope this helps

my best,
h.

Max 2% per trade, max 6% exposition in a day of your entire portfofio....

What is average win, what is average loser, what is win %...

You can start thinking about a "system" now...

Agree with that and I am certain they are bound to lose it too, maybe even devaluation of Sterling, but that is just my thinking.

Funnymentals are only their to manipulate general opinion.
Rather go technical then listen to this BS.

Have you saw DowJon drop at 61.8? we had a nice bad news at the same time...
This is only a conincidence... LOL

[quote=Makeveli;3684659]why do you think we will go that low ? even if the conservitives win the election we'll go to 148 ? the only thing that could bring us that low is f we lose the aaa rating?


observe November 2009 pattern, we are doing the same currently

you should say it this way

Hi Pawpaw,
http://img594.imageshack.us/img594/7561/pawpaw.gif
sounds better isn't it

2% or 6% are very High !!!

I use 0.5% drop by drop fills the ocean

this is the main reason i am normally tension free on my trades, cause my risk is nominal

and another reason why i find more time to joke around

right - never risk more than 1.5% unless you have large, green COJONES

I was talking about the maximum but you have a major point there!
Risking so less that it dosen't affect your emotion is allready a way to win.

I totaly agree whit your approch.

DUBAI—Representatives from the emirate of Dubai announced with disappointment this week that its recent debt crisis has forced developers to halt construction on the city's long-planned 22-mile-long indoor mountain range.


http://img171.imageshack.us/img171/1...250x1000q8.jpg
Planners continue to take future reservations for the mountains' 9 and 10-star hotels.

The culmination of a decade's worth of ambitious and expensive building projects, Dubai's estimated $100 billion debt officially brought work on the artificial mountain range to a stop on Tuesday.



"This is a very sad day for the emirate of Dubai," Crown Prince Hamdan bin Mohammed al-Maktoum told reporters at a press conference held inside the gold-plated anti-gravity chamber in his palace. "Although I believe it is the basic right of all who visit us to be able to scale to the top of a 15,000-foot-tall manmade snowcap, these tough economic times have made it an impossibility. Never before has our proud municipality faced such a grave crisis."


Added Sheikh Hamdan, "The time, I'm afraid, has finally come for us to tighten our jewel-studded belts."

How this will impact us?

perhaps this news item will impact us in a BIG WAY

http://img217.imageshack.us/img217/4325/reagan.gif

lol forexlion, still loving your style

trade forex, but love the way you trade

never end up biting your nails

 

1. do a complete fundamental and technical analysis
2. then design a trade plan
3. then brainstorm the plan to cater for all possibilities
4. when you are fully assured, trade the plan

half the time i find people on this forum switching sides randomly

They spent the money already

richlady was the fed chairman, the money had to vanish

by the way what did you do with the 3 dozen toothbrushes ?????

Hi bro
Good Post
Where is ur g/f now?

Excellent advice, thanks for sharing your magic pearls of wisdom.

Point 1 & 2 - coming along steady
Point 3 & 4 - Need much work

Ps. I bite my nails daily.. a dirty nasty habit it is indeed..

Good morning citizens, hope all of you have a terrific day today. Happy pipping...