Help required with respect to GBP/USD

I bought GBP/USD on 30th August 2011 @ 1.6374.

Currenty market is on 1.6166.

Per point value of my position is 5usd and right now im in loss of 1000usd.

My total equity is USD4000.

Please suggest what to do.

1. Cut bait and run.
2. Deposit money left into a savings account.
3. Practice trading for a year.
4. Reevaluate how serious you are about trading: Hobby, job or career.
5. Trade with lower risk. (Promise, the market doesn't care.)

owwww. Yeah, cut loss and go learn risk management, money management, stop loss usage, trade planning, trade execution, etc.

The fact that you're posting on a forum about what to do with a loss is a clear indicator you shouldn't be trading and are currently out of your element.

Screw it, hang in there kid. The GBP always comes back.

Considering your risk size and (I assume) desire to not use a stop loss, I would assume you like to gamble.

Why stop gambling now? I agree with Dopey...let it ride...

Well.... maybe let it ride if it keeps retracing higher. But back below 1.6150 is a warning that you could be setting up for bigger losses.

If you're still short without a stoploss and GBP breaks below 1.6100.... quit trading and get a job.

I agree..he is obviously gambling and in this situation it is all or nothing now..maybe risk another 1k on it..if it work great, if not u tried at least it pretty much break even

only cause he is a gambler.. i give this advise and like u say dopey the sum bitch does have habit of coming back!!


put wonderfully..

If he gets it to breakeven or even wins he'll lose everything after.

ok, looking at the GBP the monthly volatility seems to be ranging from 1.6150sh or so to approx 1.66

its been trading on the upside with big swings might come back to your position but it also might, make you have a big loss.

your equity is to low to try to re average, and bail on retrace, this would be a good time to do it, but not with your capital, my advice would be to hold on to it as downside pressure seems to be diminishing, but be very careful of where the bounce stops.

i do agree that by the sound of it, you need to learn more about trading, position sizes, risk management. etc. thankfully for you that britain still floats their own currency

Contrary to some of the ridiculous posts in this thread, the philosophy here is simple:


In order to make large gains, you HAVE to be willing to take large risks.


And if you're not in this to make a huge profit in the end, then I don't know WTF you're even trading.

There is absolutely NOTHING wrong with trading with large or even non-existent stops.

But that's ONLY if you know what the hell you're doing.

For instance, GBP/USD is one of the worst pairs to trade using this method. It's known for steeply trending.

1. Right pair (ones that range more than trend)

2. Right direction (long-term trend)

3. Right time (avoid major news)

4. Right price (use limits ... sell at resistance, buy at support ... don't be those idiots that use STOP orders ... that kind of thinking is just fundamentally stupid)


I always make sure every single one of my trades fulfills all four of the above requirements.

I always set a very large stop loss, and that stop has NEVER in my history of trading, ever been triggered. IF the price happens to go against me (which doesn't happen often), I simply wait for it to come back around. I'll take a SMALL loss if it seems like the price has hit a support level and is unlikely to go down further.

Using this method I grow my account anywhere from 10%-20% a month.

You can listen to 95% of the traders out there who are saying that you can't profit in the end by taking big risks. Except this flawed logic goes against the natural rule of the universe:

The potential for big profit requires the taking of big risks. As long as you know what you're doing, you can mitigate that risk. Have you cake and f****** eat it too.

End of story.



Case in point:

I just made a 5% increase in my account overnight. At about 3:00am EST I set an order to SELL USD/JPY at 77.16 and to TP at 76.79. Just checked in about an hour ago to find my order triggered and exited to give me a nice little profit.

This ingenious move was based on recent movement/behavior in the hours prior.

As you can see from the charts, I just barely missed the resistance and support levels. Meaning I almost made a PERFECT trade.

This kind of ingenuity is what separates the 5% of traders that profit consistently versus the 95% that FAIL miserably.

Arrogant? Maybe. But as far as I'm concerned, intelligience, wisdom, and skill give one the right to be as arrogant as he chooses.

Humility is reserved for the losers.

^^

Classic.

I made 2873% last night on the same exact trade! It was PERFECT.

edit: I meant to say I AM PERFECT. INGENIOUS.

Considering the fact that maximum leverage is now 50:1, that is physically impossible.

If you're gonna post immature bulls***, at least have the sense to make up a realistic number.

This is why the vast majority of traders lose in the end.

Enjoy breaking even over the next ten years. With that kind of attitude, that's the best you can hope for.

But don't despair. Considering the statistics of 95% of all traders being complete failures, it's safe to say that you're in good company. If any of the bullcrap posts in this thread are any indication, almost none of you know what the hell you're doing.

can u prove it!!!

he is right, large risks can potentially bring large profits, but big losses as well, having an understanding of volatility gives you a realistic expectation of what are normal deviations.

he is using S/R to measure actual current volatility, price variations is a fact in trading.

there are different types of investors
aggressive
balanced
and risk averse

none is wrong just different risk apatites however, the OP sounds like he needs a lot more experience before he starts biting more than he can chew

The guy asked for some help with his position and you write your trading story. I never cease to be amazed at the amount of nattering nabobs who can't give a simple answer to a simple question.

But now that you've expended a lot of time and energy trying to prove how great you are to anonymous people who think you're full of shit, why don't you address the op's question. Or is your head still too swollen to do so?

It was a joke. The above statement is stupid.


Bragging about how good of a trader you are is not immature bullshit? Above statement? Stupid.


Jokes on a forum have nothing to do with why the vast majority of traders lose in the end. Stupid.


We all know there's a direct correlation to propensity for humor and trading ability. Stupid.


Posting a trade in hindsight and talking about how much money you made off of it which has nothing to do with what the OP is asking about isn't bullcrap? Stupid. Posting trades you "made" in hindsight is like the epitome of bullshit on an anonymous forum.

As to the OP, most importantly, what is the value of this money to you? Is this just some money you have floating around or is it money you are expecting to be able to fall back on at some point? Take it from there, depending on your circumstances. If you need this money I would not play around. My opinion on the GBPUSD really hinges on the next two weeks. If we bounce in the next two - three weeks, I'd anticipate a move towards 66-67 by Oct.

Well, there is a time for taking big risks. But not all the time.

That trade was entered 2 days ago at the beginning of a London selloff that has continued through today. Entering that trade may have been an acceptable risk, but I don't think any of the 'big risk takers' would want to hold through 2 days of selloff.

Maybe it will return higher tomorrow on NFP data.... or maybe this is the start of the September trend lower.

Big risk is great.... but it needs to be managed.

This depends...is your $4,000 just play money? if so and there is more where that came from, then let it ride and see what happens. Worst case scenario is you will get a margin call and lose all but your original position.

If this is NOT just play money, then exit the position as quickly as possible...you will have 75% of your account and can spend the next couple of months getting back to break even.

The fact that you are asking us (the peanut gallery) what to do says volumes about your trading plan...ie you didn't have one.

Before you invest, gamble, or otherwise enter any position, I recommend you educate yourself on the values of risk management, position sizing, trading plans, and technical analysis.

From what I've read in your post it appears you didn't take into account the fundamental news announcements that were due out. The support at 1.6206 would've made an obvious stop placement and limited your loss. While it isn't readily recognizable from a "newbie's" point of view the GBP/USD has been a little top heavy for the past several weeks. The market has been banging on that support level for at least 3 of the past 5 weeks. It was bound to cave in sooner or later.

I'm happy to help with your education if you like...

Realize you have made many mistakes!!!,You should only risk about 1-2% of your equity per trade, you must use Stop Loss. Now your playing roulette, and tomorrow´s market biggest roulette Non Farm Payrolls report will be realeased and you could halve the rest of your equity within seconds or maybe turn your loss into profit............. but at this moment the best you can do is set a Stop Loss below today's low and let it go.......... then trade on a demo account until you make constant profit and then come back to the market to painstakingly recover what you have done.

@Dopey
@smittens4212


Says the losers who have made a career out of breaking even.

If I were less enlightened (like in my past), your empty words stemming from jealousy and denial might have phased me ... but fortunately, a huge part of being an arrogant (and highly successful, so rightfully so) capitalist is about genuinely not giving a s*** about what a couple of miserable failures think.

My philosophy is simple. Don't screw with me, and I have no beef with you. Since you two unenlightened trolls obviously have nothing better to do than to challenge the words of those far superior to yourselves, let me make this quite clear:

I HAVE NEVER FAILED TO FEED THE TROLLS.

That said, I'm going to make this as clear as possible.

The best traders succeed because they keep things simple and logical. The difference between morons and smart traders is that those of us with brains tend to gain WISDOM through our experiences, both successes AND failures.

In other words, it didn't take me long at all to realize WHAT to trade, HOW to trade, and WHEN to trade.

You two apparently lack the ability to READ, so let me post what I had already posted TO the OP once again:

1. Know what PAIR to trade (pairs that stay in a tight range vs. pairs that steeply trend)
2. Know the DIRECTION (NEVER trade against the long-term trend)
3. Know when NOT to trade (you should be able to smell ANY major news coming from a mile away ... it's not just what's on those stupid Forex calendars)
4. Know when to ENTER (sell at resistance or buy at support ... doing the OPPOSITE (i.e., setting STOP orders) is so fundamentally stupid that I can guarantee no one using such a method will succeed in the end)


Anyone who got caught up in the recent debt ceiling turmoil from a few weeks back deserved whatever the hell they got. You could have seen that crap coming from a mile away. I avoided trading an entire week before that s*** started. Anyone without even that level of patience/foresight/discipline doesn't have a chance in hell of making it in Forex anyway.

Following these steps I have never once needed or have triggered a stop loss. The only time I decide to take a loss is when I feel confident that the price is not going to return to my entry point. And most of the time, I end up being right about that.

I don't prematurely set tight SLs in anticipation of LOSING.

THAT is the #1 reason why most traders FAIL MISERABLY.

Either have some balls or don't trade at all. Like I said before, I don't know why you would even bother trading unless you were intent on taking a significant profit in the end. A significant profit in the END is only possible by making daring trades. Unless you're planning on spending the next few decades of your life in the foreign exchange market.

And given the direction that this damn country is heading ... anyone with an ounce of wisdom can see that any freedom left in the trading market is going to disappear (if not be eradicated entirely) in the near future. You don't have to have a marxist/progressive view of society to see that ... you just have to a brain in your head. Maybe if you two put yours together, it'll make one whole human brain.

And I am officially done wasting time in this thread. Don't even bother replying to this, as I won't be reading any such posts. I like to school the intellectually inferior, but I don't usually keep taking bait from trolls after the first time.