Shit...its already a good month......just look at the JPY pairs from the last month!....MY SIDE CHIC!
http://www.youtube.com/watch?v=ndGjnhmBmHM
http://www.youtube.com/watch?v=ndGjnhmBmHM
Price Action with Indicators! ~The Freebie Newbie BOLOSO System~
- #213
- Edited 12:55am Mar 21, 2013 12:40am | Edited 12:55am
- | Commercial User | Joined Jun 2010 | 2,022 Posts
Just want to say thank you for your system.
And thank you for sharing it so generously.
I read the forum for about a week. Downloaded the indicators and
put them in my MT4 account and watched what they did.
Took me a few days to understand but got it in the end.
I had $9 in my account so not much room to move and didn't want
to deposit anymore in case I lost it all again. You cant trade less than
.01 lots with $9 so not many options there. Had one losing trade but
three winners so have now got $18. Woohoo. I've doubled my money.
Will keep...
I understand most if not all newbies blow accounts left and right. So to really understand the "game" of trading you must understand proper Money Management. With only being able to trade the smallest lot size you limit your chances of success. With real trading it is not just about risk to reward or finding killer setups that will give you those rewards as you wish.
Proper Money Management is knowing how much to risk per trade....while being able to open and close as many trades as you wish to do so. Which if you really want to make a killer return would be more then just 1-3 at a time while trading as many pairs as you could keep track of. I am not saying someone could not make it with only a few trades here and there....but professional traders understand that just because they have $10k in the account does not mean they need to risk $100 per trade. While that would only be 1% of the total account balance you limited yourself to open other potential trades.
If i took that same account and used only 1% but instead of risking it on 1 trade which would net me a $100 risk to a $300 reward(1:3). I choose to instead divide the 1% into lets say 5 separate trades, which the risk to all would equal the same 1% and all were shooting for a 1:3 risk/reward. By doing this i wait and confirm the trend and only once i have at least made my money back will i enter another trade. With doing this you have just increased your chances of a winning trade if you understand the basics of trading and charting. We have still risked the same amount and will get the same reward...even if you lost any 3($60) of the set of 5 you would still come out with a profit because just 2 wins equals ($120), yet it is smaller then 1:3 risk to reward ratio that you wanted to make...it is still a 1:1.2 ratio so you have still made a 20% gain on the amount you set out to risk. The best part is you controlled the risk to your account and you limited draw down 1% within 5 trades.
