$150,000 initial capital - any good strategies? | Forex Factory

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$150,000 initial capital - any good strategies?

  • #1
  • First Post: Feb 28, 2014 2:32pm Feb 28, 2014 2:32pm
Looking through the mass of trading systems out there it seems that most people want to trade the strategies that will turn their small trade money into riches quick. Out of the many systems provides here, Is there any that are particularly recommended when trading an account of 150k to start? I'd be ecstatic with 5-10 pips a day.
I'm trying to research many of the strategies but it is a bit overwhelming and was hoping that someone might be able to "NUDGE" me in the right direction as research into every system is so time consuming.
I know everyone will have a different opinion, so i'm looking for a point in the right direction (thread) from those that are or have been trading an account of approximately this size as well.
I know I have to do my own research and practice as I do it everyday and everyones style is different and no 2 people trade alike and all that.
Any "tips" would be greatly appreciated.
Thank you,
Mike
  • #2
  • Feb 28, 2014 2:55pm Feb 28, 2014 2:55pm
The good thing about having a large account is that you can do some things from a money management point of view that you might be constrained with from having a smaller account in terms of using less leverage and margin. I'm trading an account almost double that and it allows me to add to positions when price action goes against me several hundred pips at times without being too concerned with margin requirements. Goes without saying that you can comfortably trade larger lot sizes as well. That's a nice account to start with
  • #3
  • Feb 28, 2014 3:41pm Feb 28, 2014 3:41pm
Quoting yazzie
The good thing about having a large account is that you can do some things from a money management point of view that you might be constrained with from having a smaller account in terms of using less leverage and margin. I'm trading an account almost double that and it allows me to add to positions when price action goes against me several hundred pips at times without being too concerned with margin requirements. Goes without saying that you can comfortably trade larger lot sizes as well. That's a nice account to start with
Food for serious thought, thank you.
Do you take many trades with smaller lot, or Larger lots with less trades?
I've always felt more at ease when i've had multiple "stock" trades open at the same with them being down $500 each vs one sock that was down $2500. I would just have to get used to one or the other more.

Thank you very much for the comment.
  • #4
  • Feb 28, 2014 4:02pm Feb 28, 2014 4:02pm
If you're new to trading (and it seems so) do yourself a favor: Do not start with a 150k account. Start small focused on learning, rather than profit. Earn the right to trade a large account first.
"To hold, you must first open your hand. Let go." - Lao Tzu
  • #5
  • Feb 28, 2014 4:13pm Feb 28, 2014 4:13pm
Quoting vox dei
If you're new to trading (and it seems so) do yourself a favor: Do not start with a 150k account. Start small focused on learning, rather than profit. Earn the right to trade a large account first.
Very good advice, thank you.

I am currently trading this account with Interactive Brokers mainly for stocks. I haven't yet tried to link MT4 to it but hope it will work.
So in my case, my account is already active... But, I am new to forex so will have to start off trading it like it's a small account.

I will definitely add this to my set of rules until I have achieved enough experience to be able to edit them.

Thank you!
  • #6
  • Feb 28, 2014 4:21pm Feb 28, 2014 4:21pm
At first don't trade for profit so much as consistency. Make your lot size as small as possible and don't go larger until you are doing well at the small sizes. My goal as a trader is to be boring....steady consistent results. Work towards that would by my suggestion.
Best wishes and good trading.
  • #7
  • Feb 28, 2014 4:25pm Feb 28, 2014 4:25pm
Quoting forex5x
At first don't trade for profit so much as consistency. Make your lot size as small as possible and don't go larger until you are doing well at the small sizes. My goal as a trader is to be boring....steady consistent results. Work towards that would by my suggestion. Best wishes and good trading.
True. Same goal here. The money follows by making the same correct yet boring decisions over and over again. If trading is exciting, then you should be very worried indeed.
There's always money in the banana stand.
  • #8
  • Feb 28, 2014 5:26pm Feb 28, 2014 5:26pm
hi bro
i can help you in two way it seems me and you have the same path
i was in stock market and transferred all my plans to forex but i gave you some notes
i needed 2 month only to understand the difference between the stock markets and the forex in some points like (leverage,can win in both sides buy and sell, choosing a pipe price or lot size , price changing) and many many things that why i think it is better to keep you all the live account away for not less that 6 month until you understand the basic difference between this two markets

the second thing making money
in stock market i tried to minimize the capital as much i can so i can reduce my risk and i couldn't minimize it less than 5000$ so i can make average 500$ a week but in forex market i don't need more than 120$ to start making money and my risk is only ( 120$ ) so i don't mean i am trading with 120 but i can make 20 or 30$ per day with only 120 in my account and it is impossible for me to make 0.5 cent with this capital in stock market

so this two points that i hope it help you in you trading

notes: i started in forex market as training and still training since last sep-13 and still not trading in live market
every one knows that drinking soda have very bad things but they dont write it on the cans on the other hand if you open any forex (book,course or website) it will continue writing and saying the it is high risk so be aware that it is one of the most risky things in the world

and good luck
  • #9
  • Feb 28, 2014 5:42pm Feb 28, 2014 5:42pm
Wow guys, already much more excellent advice than I would have expected.
I wanted to thank each one of you individually but It would have been too long.
I have copied everything that all of you have said so far. It all "sounds" simple, but there is actually a whole lot to it and a lot to think about with that advice alone.
I hope everyone else sees that as well.

I am truly grateful.

Mike
  • #10
  • Feb 28, 2014 5:50pm Feb 28, 2014 5:50pm
Quoting Mikey-S
{quote} Very good advice, thank you. I am currently trading this account with Interactive Brokers mainly for stocks. I haven't yet tried to link MT4 to it but hope it will work. So in my case, my account is already active... But, I am new to forex so will have to start off trading it like it's a small account. I will definitely add this to my set of rules until I have achieved enough experience to be able to edit them. Thank you!
I'm glad to hear that. Good luck.
"To hold, you must first open your hand. Let go." - Lao Tzu
  • #11
  • Edited 7:17pm Feb 28, 2014 6:35pm | Edited 7:17pm
May I ask you guys, what kind of system you guys settled on? Price action, S/D, S/R, VSA, indicator based, scalp and/or swing?
Even narrowed down information would be most helpful.
  • #12
  • Feb 28, 2014 6:51pm Feb 28, 2014 6:51pm
Quoting Mikey-S
May I ask you guys, what kind of system you guys settled on? Price action, VSA, indicator based, scalp and/or swing? Even narrowed down information would be most helpful.
I go only throw normal indicators like macd and rsi etc but mostly I use two types together like one for opening postions and one for close it and most of the time I use 2 time frames like 10 mint and 30 mint or 1h and 1d and I am planing for 3 type of trading short mean open postion and close within 24h and it is ready but I dont have time to start tradibg on it due to my other working timesemi short a weekly postions still not ready long postions like month or month and half and it is semi ready
  • #13
  • Feb 28, 2014 7:21pm Feb 28, 2014 7:21pm
Quoting Mikey-S
Looking through the mass of trading systems out there it seems that most people want to trade the strategies that will turn their small trade money into riches quick. Out of the many systems provides here, Is there any that are particularly recommended when trading an account of 150k to start? I'd be ecstatic with 5-10 pips a day. I'm trying to research many of the strategies but it is a bit overwhelming and was hoping that someone might be able to "NUDGE" me in the right direction as research into every system is so time consuming. I know everyone...
Take your 150K and put it in a safe place. Then open a demo account and learn to trade. Really!
  • #14
  • Feb 28, 2014 7:32pm Feb 28, 2014 7:32pm
follow successful traders with solid track records of at least 3 months on real account..

I do same
Attached Image
I am smart than average trader, I simply copy the best.
  • #15
  • Feb 28, 2014 7:32pm Feb 28, 2014 7:32pm
if you don't have an strategy (trading plan) that you master it in demo at first .. you are going to lose all your fund 100% !!
  • #16
  • Feb 28, 2014 7:46pm Feb 28, 2014 7:46pm
Quoting I-Robo
follow successful traders with solid track records of at least 3 months on real account.. I do same {image}
How do you find such traders Robo?
  • #17
  • Feb 28, 2014 7:53pm Feb 28, 2014 7:53pm
Quoting Winston Reed
{quote} How do you find such traders Robo?

search
I am smart than average trader, I simply copy the best.
  • #18
  • Mar 1, 2014 1:18am Mar 1, 2014 1:18am
Quoting Mikey-S
Looking through the mass of trading systems out there it seems that most people want to trade the strategies that will turn their small trade money into riches quick. Out of the many systems provides here, Is there any that are particularly recommended when trading an account of 150k to start? I'd be ecstatic with 5-10 pips a day. I'm trying to research many of the strategies but it is a bit overwhelming and was hoping that someone might be able to "NUDGE" me in the right direction as research into every system is so time consuming. I know everyone...

Hi Mikey-S,

I have gone through many trading strategies and ended up developing my own. Almost all strategies are going to have some bad trades, you can easily assume that most strategies are 51%+ winning. I would highly recommend opening a demo account and test your strategy for 1-3 months before going live. Many times you will see 2-3 losses in a row, and then start looking for another trading strategy. Pick any trend riding strategy and when you have some bad trades, instead of looking for different strategy, try to improve the current strategy. Remember, winning trades and predicting future movement is based on probability. Try to increase your odds of winning. When your trades go wrong, don't try to recover it. Instead try to find out what went wrong and how could this bad trade can be avoided in future. And as i said before, all strategies have some loss trades. Don't change the strategy, stick to it, improve it and play the probability game. Once you get the process of developing strategy, you will see that you are getting 80%+ winning with good risk/reward ratio.

5-10 pips are nothing and can be easily achieved. You are lucky to have such good capital. Don't put it in market until you are ready and profitable in demo account.

Good luck
  • #19
  • Mar 1, 2014 3:13am Mar 1, 2014 3:13am
Mike,

I am almost "scared" to see you are planning to trade forex with a $150k account. If you are new to forex and have not yet mastered a profitable trading system, then there is a high risk of significant losses. I really would not like to come accross as arrogant, becasue I am in a learning phase as well.

However, based on what I have already learned, I would recommend the following steps outlined in my post here.
This describes setup-by-step a way to qualify a trading system. See also my blog post on it (no ads, no affiliate links).

And how to find the trading system that is right for you? I wish I knew a simple answer. I think you need to search (different systems described here, or in different books) , then test the systems based on the method I describe (or any other method that works for you), and hopefully at some time you will discover a trading system that works for you, that you trust, that you understand, and lastly, that you are able to trade with high quality in a consistent way.

And whether this is going to be a price action, supply & demand, a specific candle pattern at a key level in line with a trend, or elliott waves or geometry, and which timeframe and pairs... only you can find out what works for you. Key is to have a system that you understand and is well documented.

Good luck.
Michal9
  • #20
  • Mar 1, 2014 4:00am Mar 1, 2014 4:00am
Quoting michal9
Mike, I am almost "scared" to see you are planning to trade forex with a $150k account. If you are new to forex and have not yet mastered a profitable trading system, then there is a high risk of significant losses. I really would not like to come accross as arrogant, becasue I am in a learning phase as well. However, based on what I have already learned, I would recommend the following steps outlined in my post here. This describes setup-by-step a way to qualify a trading...

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