Forex is becoming an extreme field! | Forex Factory

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Forex is becoming an extreme field!

  • #1
  • First Post: May 16, 2013 1:50am May 16, 2013 1:50am
Forex is a large field that you have never learned a month. The market is always changing and we always learn new things.
  • #2
  • May 16, 2013 2:09am May 16, 2013 2:09am
That is the reason why 90% of the traders lose money you gotta know one tiny secret about financial markets,The technical analysis,fundamentals are just tools you cannot predict the future price movement.Money management is the key and risk management is the lock only these two things makes a trader a winner and a loser.Even 90% accurate systems fail sometime.After all market is unbeatable
  • #3
  • May 16, 2013 10:09am May 16, 2013 10:09am
In my country, traders lose their money because they don't like using a stop loss in their trading. Most of them got margin call.

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read 1 candles
  • #4
  • May 16, 2013 2:13pm May 16, 2013 2:13pm
Quoting Eagleprice
That is the reason why 90% of the traders lose money you gotta know one tiny secret about financial markets,The technical analysis,fundamentals are just tools you cannot predict the future price movement.Money management is the key and risk management is the lock only these two things makes a trader a winner and a loser.Even 90% accurate systems fail sometime.After all market is unbeatable
please avoid this line of reasoning. Positive expectancy is the name of the game.you have to have a system that will beat the spread n slippage.

money management by itself will never provide an edge.
wo-yoy! wo-yoy! wo-yoy! wo-yoi! wo-yoy-yoy-yoy!
  • #5
  • May 16, 2013 4:48pm May 16, 2013 4:48pm
Quoting pemully
{quote}money management by itself will never provide an edge.
Good one. I always use to think that.
  • #6
  • May 16, 2013 5:55pm May 16, 2013 5:55pm
Mm is fine if we talk risk reward ratio on trades but
If you should question something thats using percentage as your risk
Limiting your profits because you had a loss before. Sure
Those experts teaching think 15 percent a year is good but thats if you have large capital.
People on ff using their mm to get rich are stupid. If you wanna make money before u die you really should consider
The 1-2 percent risk beeing a big wall to your profits
  • #7
  • May 16, 2013 6:36pm May 16, 2013 6:36pm
no reason to target more than 20% per month, which is 2000 pips per month using 1:1 (none) leverage. 100 pips a day.

a few years doing that will give you all the money you need.

Or just use 2:1 leverage and make it 50 pips a day or 3:1 and its 33 pips a day. Most professional money managers do not exceed 3:1 leverage.


It's hard work but doable for sure... you will find most trading forums are filled with naysayers who believe no one has ever in the history of the trading universe returned 1000+% in a year. How wrong these people are.

People have returned 10,000% in a year. However, most people are so arrogant they believe that if they themselves cannot do it, that no one else possibly can.
Be hopeful in a winning position, and fearful in a losing position.
  • #8
  • May 16, 2013 8:52pm May 16, 2013 8:52pm
  •  FerruFx
  • Joined May 2007 | Status: MT4/MT5 EAs/Indicators/Alerts coder | 6,542 Posts | Online Now
Quoting pindang
In my country, traders lose their money because they don't like using a stop loss in their trading.
Trading without SL isn't trading ... but gambling.
MT4/MT5 EAs/Indicators/Alerts coder
  • #9
  • May 16, 2013 10:27pm May 16, 2013 10:27pm
Quoting pindang
In my country, traders lose their money because they don't like using a stop loss in their trading. Most of them got margin call. --------- read 1 candles
  • #10
  • May 16, 2013 10:28pm May 16, 2013 10:28pm
Quoting pemully
{quote} please avoid this line of reasoning. Positive expectancy is the name of the game.you have to have a system that will beat the spread n slippage. money management by itself will never provide an edge.
  • #11
  • May 17, 2013 12:27am May 17, 2013 12:27am
Quoting pemully
{quote} please avoid this line of reasoning. Positive expectancy is the name of the game.you have to have a system that will beat the spread n slippage. money management by itself will never provide an edge.
This is the first time I heard that money management will never provide an edge. Agree With me or not money management is the key.Everyone in this business for a long time knows this very well.That is what separate the winners from the losers.If there is any Institutional traders you ask them what is your trading strategy they will tell you simple strategies they use in the market.They always have a minimalist approach but they have advanced money management and risk management technique and most importantly a contingency plan for every trades they open and close.Think about Investors like Soros,Warren buffet etc. Are they making profits on every positions,No because the reason is that they know that market doesn't always go by their side this is where MM comes in hand, To tackle the losses
  • #12
  • May 17, 2013 12:31am May 17, 2013 12:31am
Quoting pindang
In my country, traders lose their money because they don't like using a stop loss in their trading. Most of them got margin call. --------- read 1 candles
It is nothing but self suicide

  • #13
  • May 17, 2013 12:44am May 17, 2013 12:44am
Quoting Eagleprice
{quote} This is the first time I heard that money management will never provide an edge. Agree With me or not money management is the key.Everyone in this business for a long time knows this very well.That is what separate the winners from the losers.If there is any Institutional traders you ask them what is your trading strategy they will tell you simple strategies they use in the market.They always have a minimalist approach but they have advanced money management and risk management technique and most importantly a contingency plan for every...
I think you may be confusing money management with edge. They are different. Money management is the method by which you handle risk. In other words, it is how much you choose to limit your losses versus gains. An edge is to have a greater probability with your entries of profiting rather than losing (over many trades). What pemully was trying to say is that no matter how good your money management is, if you don't have an edge you will still lose it all eventually.
  • #14
  • May 17, 2013 12:53am May 17, 2013 12:53am
  •  FerruFx
  • Joined May 2007 | Status: MT4/MT5 EAs/Indicators/Alerts coder | 6,542 Posts | Online Now
2+2 is 100% right ... But I think that Eagleprice wasn't talking about the risk but the trade management once opened. Am I right ?
MT4/MT5 EAs/Indicators/Alerts coder
  • #15
  • May 17, 2013 1:08am May 17, 2013 1:08am
Quoting FerruFx
2+2 is 100% right ... But I think that Eagleprice wasn't talking about the risk but the trade management once opened. Am I right ?
I think of money management more as position sizing, but yea it is pretty much the same as trade management I suppose if you are cutting or adding size throughout the life of the trade. After all, you are managing your bankroll (money). Edge, in my view, is entering (or adding position size) at a time where you are less likely to have to reduce or close for a loss rather than exit for a profit.
  • #16
  • May 17, 2013 1:08am May 17, 2013 1:08am
Quoting 2+2=4ex
{quote} I think you may be confusing money management with edge. They are different. Money management is the method by which you handle risk. In other words, it is how much you choose to limit your losses versus gains. An edge is to have a greater probability with your entries of profiting rather than losing (over many trades). What the other poster was trying to say is that no matter how good your money management is, if you don't have an edge you will still lose it all eventually.
Is this means like trading systems probability? is that what he is talking about?
  • #17
  • May 17, 2013 1:15am May 17, 2013 1:15am
Quoting FerruFx
2+2 is 100% right ... But I think that Eagleprice wasn't talking about the risk but the trade management once opened. Am I right ?
I am talking about Risk management and Money management .I mean to say lot of people don't use MM and RM and end up blowing their account and also even simple systems work with better MM technique
  • #18
  • May 17, 2013 1:26am May 17, 2013 1:26am
Quoting Eagleprice
{quote} Is this means like trading systems probability? is that what he is talking about?
I think he means entering where you are more likely to have a profitable run rather than a losing trade.
  • #19
  • May 17, 2013 1:35am May 17, 2013 1:35am
Quoting 2+2=4ex
{quote} I think he means entering where you are more likely to have a profitable run rather than a losing trade.
Ok I confused myself with his comments that's true I thought he is saying that MM will never help you out
  • #20
  • May 17, 2013 1:45am May 17, 2013 1:45am
Quoting Eagleprice
{quote} I am talking about Risk management and Money management .I mean to say lot of people don't use MM and RM and end up blowing their account and also even simple systems work with better MM technique
I think the terms MM and RM can be similar and therefore confusing, so let's not worry about their definitions. All we need to know is that we got to make our position sizes small enough to survive the times you run into drawdown (more losses than wins), but not too small where we are letting too much potential profit get away. The bottom line is you need to have an idea when probabilities are skewed. Being able to gauge skewed probabilities correctly more than wrongly can give you an edge. Then, again, it's just a matter of figuring out how much to risk so that you can survive the bad runs.
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