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14 Year Old Forex Trader's Lessons

  • #3,141
  • Oct 17, 2011 2:10am Oct 17, 2011 2:10am
Quoting huskyboy
aren't you guys dreaming ?
nope. its business people, talking partnership, to make profits.
Have I got something on my face, SOLDIER?
  • #3,142
  • Oct 17, 2011 2:13am Oct 17, 2011 2:13am
Quoting bumapatria
im thinking easy 1% a day.
so in a year its 250%.

im sure (inshaallah, and god wiling) it would be more, but the 250% is just a target.
If its compounded its a LOT more than that.

http://en.wikipedia.org/wiki/Compound_interest
  • #3,143
  • Oct 17, 2011 2:15am Oct 17, 2011 2:15am
Quoting huskyboy
aren't you guys dreaming ?
It is free to dream.

Sometime and more every time I get a return of over 30% a week and I am lousy trader.

mla
"The Heart is the hub of all dances; go there and chill out"
  • #3,144
  • Oct 17, 2011 2:17am Oct 17, 2011 2:17am
Quoting highlander2
If its compounded its a LOT more than that.

http://en.wikipedia.org/wiki/Compound_interest

where does compound interest comes from in forex?

to my knowledge i dont get commissions from the broker, or swaps, or carry fees.

Compound interest arises when interest is added to the principal, so that from that moment on, the interest that has been added also itself earns interest.

i dont get it...
Have I got something on my face, SOLDIER?
  • #3,145
  • Oct 17, 2011 2:17am Oct 17, 2011 2:17am
Quoting highlander2
If its compounded its a LOT more than that.

http://en.wikipedia.org/wiki/Compound_interest
Yes, compound, that where the money is.

mla
"The Heart is the hub of all dances; go there and chill out"
  • #3,146
  • Oct 17, 2011 2:23am Oct 17, 2011 2:23am
Quoting bumapatria
where does compound interest comes from in forex?

to my knowledge i dont get commissions from the broker, or swaps, or carry fees.

Compound interest arises when interest is added to the principal, so that from that moment on, the interest that has been added also itself earns interest.

i dont get it...
Its not compound interest, but gains are compounded.

if start with 1k and add 1% a day you will be adding 1% to the previous days gain each time.

So for example

start- 1000

day1- 1010
day2- 1020.1
day3- 1030.3
day4- 1040.6
day5- 1051

by day 5 you have gained 1 extra dollar, if you just stuck to making 1% of the ORIGINAL balance you would not have made this extra dollar. as time goes on this will make a huge difference between each method.

But again this is all theory.
  • #3,147
  • Oct 17, 2011 2:24am Oct 17, 2011 2:24am
Quoting highlander2
Its not compound interest, but gains are compounded.

if start with 1k and add 1% a day you will be adding 1% to the previous days gain each time.

So for example

start- 1000

day1- 1010
day2- 1020.1
day3- 1030.3
day4- 1040.6
day5- 1051

by day 5 you have gained 1 extra dollar, if you just stuck to making 1% of the ORIGINAL balance you would not have made this extra dollar. as time goes on this will make a huge difference between each method.

But again this is all theory.
hmm make sense. okay thanks john
Have I got something on my face, SOLDIER?
  • #3,148
  • Oct 17, 2011 2:30am Oct 17, 2011 2:30am
Quoting bumapatria
hmm make sense. okay thanks john
Compounding gains are a field in itself, I suggest you do some research on it some time.

Ask Redlion, I suspect he will know a great deal more than me about it, and will probably be able to explain it better.
  • #3,149
  • Oct 17, 2011 2:31am Oct 17, 2011 2:31am
Quoting mla
It is free to dream.

Sometime and more every time I get a return of over 30% a week and I am lousy trader.

mla

wish i could relive my life, had so many dreams and now by getting older they still are dreams ...


lousy trader , ....great trader you mean, you sure have a great strategy
  • #3,150
  • Oct 17, 2011 2:32am Oct 17, 2011 2:32am
fecking jump all over the place.

right now loss at -$5.10

will need to rescue again...

silver low risk short.

and it is really hard. this guy executes trades when he says i do them. so i told him if you want to execute something, ill anlayze it and do it for you. he goes off puts a short on light sweet... man i dont know wtf is going to happen, so his sl was caught... well here goes the story:

overall hes nice guy though, just having a hard time with analysis.

i cant focus when he puts trades all over the place. i told him not to do that, hes maximizing his risk exposure etc. i thought the account was hacked etc. but he did it... -.-


i told him either you trade it, or i do. there cant be 2 traders for 1 account. if he wants to trade it, ill gladly leave brokerage service.
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Have I got something on my face, SOLDIER?
  • #3,151
  • Oct 17, 2011 2:39am Oct 17, 2011 2:39am
essentially the difference between the two are represented on this chart.
Attached Image
  • #3,152
  • Oct 17, 2011 2:45am Oct 17, 2011 2:45am
Quoting huskyboy
wish i could relive my life, had so many dreams and now by getting older they still are dreams ...


lousy trader , ....great trader you mean, you sure have a great strategy
Believing in yourself and reinforcing that notion is as much as important. Not easy, but very possible.

mla
"The Heart is the hub of all dances; go there and chill out"
  • #3,153
  • Oct 17, 2011 2:46am Oct 17, 2011 2:46am
finally...

lets make profit and rescue this loss.


ill take $10 and get out.

meaning netting $5 or so.
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Have I got something on my face, SOLDIER?
  • #3,154
  • Oct 17, 2011 2:47am Oct 17, 2011 2:47am
Quoting highlander2
essentially the difference between the two are represented on this chart.
Very useful post.



Need to pick up my boys from Taekwondo.

mla
"The Heart is the hub of all dances; go there and chill out"
  • #3,155
  • Oct 17, 2011 2:51am Oct 17, 2011 2:51am
essentially is a matter of understanding and determining your risk parameters, once that is done.

compounded gains can be made adjusting position sizes relative to account.

EDIT. in other words you are always trading the same way with the same risks regardless of account size therefore your performance carries the same impact on your capital

example

1000= 1000 units of currency or 0.1 lot
2000=0.2
3000=0.3
4000=0.4
5000=0.5
and so on so forth, adjusting position relative to account will ensure that account risk remains the same, then you dont worry about how LARGE your account is, if determining your size relative to account value, you could as easily make the same percentage target regardless of amount and as easily blow it too.
AVT INVENIAM VIAM AVT FACIAM
  • #3,156
  • Oct 17, 2011 2:59am Oct 17, 2011 2:59am
Quoting mla
Very useful post.



Need to pick up my boys from Taekwondo.

mla
ill spar with them some day
Have I got something on my face, SOLDIER?
  • #3,157
  • Oct 17, 2011 3:00am Oct 17, 2011 3:00am
Quoting the redlion
essentially is a matter of understanding and determining your risk parameters, once that is done.

compounded gains can be made adjusting position sizes relative to account.

EDIT. in other words you are always trading the same way with the same risks regardless of account size therefore your performance carries the same impact on your capital

example

1000= 1000 units of currency or 0.1 lot
2000=0.2
3000=0.3
4000=0.4
5000=0.5
and so on so forth, adjusting position relative to account will ensure that account risk remains the same, then you dont...
True. thanx red, finally he pops in
Have I got something on my face, SOLDIER?
  • #3,158
  • Oct 17, 2011 3:01am Oct 17, 2011 3:01am
by compounding your gains, your next target although the same in percentage wise consolidates previous gains and builds on them

10,000 5% = 500
10,500 5%=525
11,025 5%=551.25
...................................and so on
AVT INVENIAM VIAM AVT FACIAM
  • #3,159
  • Oct 17, 2011 3:02am Oct 17, 2011 3:02am
Quoting bumapatria
ill spar with them some day
I do not want you to get hurt.

mla
"The Heart is the hub of all dances; go there and chill out"
  • #3,160
  • Oct 17, 2011 3:05am Oct 17, 2011 3:05am
Quoting bumapatria
True. thanx red, finally he pops in
just got home, was seeing patients, started scalping for now, but i was posting and missed some entrances.

oh well the market always brings opportunities.

was able to take some trades today

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AVT INVENIAM VIAM AVT FACIAM
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