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  • #161
  • Oct 14, 2014 4:13am Oct 14, 2014 4:13am
Quoting cuchuflito
Take 1 lousy dollar, open an account with OANDA bucket shop...where you can trade free from lots.. Risk 5% of initial capital per trade, yes that`s 5 lousy cents. If you make it to double and compound every month, it makes about 16 million in 2 years.... Yes, starting with 1 $. On the other hand, if you don´t even make it to keep that 1 $ alive, why risk any more? Here´s the enemy: ( I just read it in Bloomberg): The U.K.’s Financial Conduct Authority was the first agency to say it’s looking into allegations that dealers...
Dont even need $1, Oanda offer $50 free trading promotion.
All posts are my personal opinion
  • #162
  • Oct 14, 2014 5:19am Oct 14, 2014 5:19am
Quoting cuchuflito
Take 1 lousy dollar, open an account with OANDA bucket shop...where you can trade free from lots.. Risk 5% of initial capital per trade, yes that`s 5 lousy cents. If you make it to double and compound every month, it makes about 16 million in 2 years.... Yes, starting with 1 $.
easier to say than done ;-)
On my way to financial independence - if others can do it - I can do it
  • #163
  • Oct 14, 2014 6:19am Oct 14, 2014 6:19am
Quoting DXanatos
The risks of compounding. 1. Your wins and losses have to be normalized across all pairs so that you can be consistent with your win percentage. 2. Compounding daily with a loss will increase the amount you need to win with your next trade to bring your trading account back to norm. 3. Each pair outside of the ones crossed with the USD have different pip values 4. Each pair has a different spread. 5. Your Reward Ratio has to you be skewed in your favor to match your win rate. These things need to be addressed even before you begin to trade. Best...
Not if your strateg(y)(ies) (is)(are) so good (it)(they) always win
Not financial advice. For testing purposes only. Do not use on live account
  • #164
  • Oct 14, 2014 7:35am Oct 14, 2014 7:35am
Would be at some point beneficial to define what the rags mean in financial terms...

Like the mentions of lousy 1$, really!!, I think wouldn't in real life qualify. Neither would $50, even.
The odds would just be so much against the trader. Especially a beginner.
Compounding, I am all in for it. But compounding what!? Surely not the 1-5 cents daily, I hope!
Trading needs computer, needs fast enough net, those cost money, so, realistically the monthly profit should cover it.
Trading takes time too, either screen time scaling, or research time getting the next big idea.
Instead of the invested/wasted time trying to fight the odds, one can go on and put a few hours work...at a job...for the cause. That is, make 200-500-1000$ in a month or 2, then come back and try trading, not aiming to translate 5% daily gains to 5 cents to compound, but maybe try for 1% daily for 10$...that realistically can cover the bills, a reasonable return with a sound approach, and actually makes sense to compound too, not to mention it, how many months it saves one vs. trying to grow that 1-10-50$...surely takes more hours in trading to reach 1000$, than actually work for.
Right, work isn't that much fun, granted, but I believe that option gives ultimately the best solution.
there is always, always another trade!!
  • #165
  • Oct 14, 2014 8:08am Oct 14, 2014 8:08am
Quoting profitfarmer
Would be at some point beneficial to define what the rags mean in financial terms... Like the mentions of lousy 1$, really!!, I think wouldn't in real life qualify. Neither would $50, even. The odds would just be so much against the trader. Especially a beginner. Compounding, I am all in for it. But compounding what!? Surely not the 1-5 cents daily, I hope! Trading needs computer, needs fast enough net, those cost money, so, realistically the monthly profit should cover it. Trading takes time too, either screen time scaling, or research time getting...
Why are you taking this so seriously? Obviously noone's gonna try to become a millionaire by starting with $1 in his account. Not if he can put $5 in it instead.
  • #166
  • Oct 14, 2014 8:21am Oct 14, 2014 8:21am
and me for a moment wanted to think someone seriously want to become a millionaire!!
bad me!
there is always, always another trade!!
  • #167
  • Oct 14, 2014 10:52am Oct 14, 2014 10:52am
Quoting Honk
{quote} Why are you taking this so seriously? Obviously noone's gonna try to become a millionaire by starting with $1 in his account. Not if he can put $5 in it instead.
The point is, it doesn´t matter so much,if your start with a lousy 1$, or 50$, the point is to have an edge.
If you do, then correct MM, which in my book is POSITION SIZING, and compounding get´s you there...no limits...
The next vaiable is the amount of times in a day, week, month or year your edge can be played..(life is limited)..

The best horse betting millonaire in Australia once said..."give me an edge and a dollar"...I would add, and some years to live...so I can play my edge, and finally enjoy my profits...
  • #168
  • Oct 14, 2014 1:33pm Oct 14, 2014 1:33pm
Quoting cuchuflito
{quote} The point is, it doesn´t matter so much,if your start with a lousy 1$, or 50$, the point is to have an edge. If you do, then correct MM, which in my book is POSITION SIZING, and compounding get´s you there...no limits... The next vaiable is the amount of times in a day, week, month or year your edge can be played..(life is limited).. The best horse betting millonaire in Australia once said..."give me an edge and a dollar"...I would add, and some years to live...so I can play my edge, and finally enjoy my profits...
what you wrote about is possible only theoretically. In practice I honestly doubt that anyone have made it.
I am looking forward to threads saying it is possible to get billions from 1 cent
On my way to financial independence - if others can do it - I can do it
  • #169
  • Oct 14, 2014 3:30pm Oct 14, 2014 3:30pm
For the pro's here; if you only had a dollar next to your name (+ your trading skill) what "Rags To Riches" strategy would you apply?
Not financial advice. For testing purposes only. Do not use on live account
  • #170
  • Oct 14, 2014 3:31pm Oct 14, 2014 3:31pm
I may consider donating my $1 to charity
Not financial advice. For testing purposes only. Do not use on live account
  • #171
  • Oct 15, 2014 2:46am Oct 15, 2014 2:46am
Quoting Soros
project will be with fxcm, hotforex was just for 3 weeks cause i had money there
So when are you kicking off?
  • #172
  • Oct 15, 2014 3:05am Oct 15, 2014 3:05am
Quoting roel13
For the pro's here; if you only had a dollar next to your name (+ your trading skill) what "Rags To Riches" strategy would you apply?
PRICE ACTION is the only way
SEE LINE,TRADE LINE..PRICE HAS TO GO SOMEWHERE,,, PRICE WILL GO SOMEWHERE.
  • #173
  • Oct 15, 2014 3:33am Oct 15, 2014 3:33am
Quoting billytt
{quote} PRICE ACTION is the only way

Not really ....... .....but, everyone is entitled to their beliefs

pattern recognition is easy .....until some moron tries to write a program for it & doesn't cover ALL the variables

then as you're in the retail side of this, whatever you choose can be "adjusted" from the brokers (MM) side
  • #174
  • Oct 15, 2014 3:34am Oct 15, 2014 3:34am
Quoting billytt
{quote} PRICE ACTION is the only way
Price action a very misleading word here. Price action not just candlesticks and S/R, price action is gut and intuition.
All posts are my personal opinion
  • #175
  • Oct 15, 2014 5:10am Oct 15, 2014 5:10am
Quoting Soros
project will be with fxcm, hotforex was just for 3 weeks cause i had money there
hey Soro,
I saw this News earlier today on FF and think you might be interested

"Personal wealth rising at ‘fastest rate ever recorded,’ study finds"
http://www.forexfactory.com/news.php?do=news&id=508434
Dedication brings Satisfaction and Success.
  • #176
  • Oct 15, 2014 6:26am Oct 15, 2014 6:26am
Quoting billytt
{quote} PRICE ACTION is the only way
Mmmm... this is a myth...not saying price action does not work at all or is useless...but....
Well,someone else in other threads around says (also this ones insult other good people,just cause others think differently..and for what? for trying to sugar coat their SELLING stuff) that price action and S/R are enough and indicators are craps. Well...modern trading tell us really the opposite...at least if you wanna trade tf less than 1W - 1D profitably and CONSISTENTLY.... indicators like adx, fibo retracment, ADR, CCI, stochastic and others are largely used. Even banks and hedge funds are involved actually deeply in algorithmc trading..and denying this is just matter of being a STRATospheric cheater..or a dumb,whatever better fits (not referring to you of course,billytt)
And also i have to notice that even some people that spits on indicators like they were the hell, well....this people have at least 4 of them in EVERY chart he posts...so....
Cheers!
  • #177
  • Oct 15, 2014 7:20am Oct 15, 2014 7:20am
Quoting cariddi74
{quote} Even banks and hedge funds are involved actually deeply in algorithmc trading
I wouldn't say deeply
  • #178
  • Edited 9:55am Oct 15, 2014 7:32am | Edited 9:55am
Quoting cariddi74
{quote} Mmmm... this is a myth...not saying price action does not work at all or is useless...but.... Well,someone else in other threads around says (also this ones insult other good people,just cause others think differently..and for what? for trying to sugar coat their SELLING stuff) that price action and S/R are enough and indicators are craps. Well...modern trading tell us really the opposite...at least if you wanna trade tf less than 1W - 1D profitably and CONSISTENTLY.... indicators like adx, fibo retracment, ADR, CCI, stochastic...
In this thread there are some instituational traders (supposedly of course) sharing their insights and they seem to be mostly against indicators and say that the most successful traders that are still successful after many years are those who don't depend on crutches, like the stuff bank traders have access to and I guess indicators could be added to that as well. This is in regards to what you said about how hedge funds trade, etc. While they might be making lots of money by trading huge amounts they're not really the best traders. Anyways, here's the link: http://www.forexfactory.com/showthread.php?t=486128

edit: thread, not trade
  • #179
  • Oct 15, 2014 8:09am Oct 15, 2014 8:09am
Quoting billytt
{quote} PRICE ACTION is the only way
Agreed. Anything else is just conversation. All the indicators, all the Fibonnacci's only work when the conditions suit. The only way to be consistently profitable is to observe what is happening, and act accordingly.
Reaction, not prediction.

There are too many variables in this equation for it to fit any linear model. Retail traders....we are all ants in this market.
Deutsche Bank does not care what Fibbonacci level we are at,what the MACD is doing, or what MA is crossed...if it must enter the market, it will, in whatever way it chooses. All it can hope is that there are enough retail orders in the zone for it to minimise its slippage when the order is executed. These guys don't work to pip level...they work in zones.

The following video is a great summary of what is "really" going on in the markets, and how the real players operate. It doesn't get to the point until about 4 minutes in, but if you are interested...watch it...absorb the message. It's simplified, but it should speak volumes to the reality of the market.

Inserted Video


It's worth noting in this example that the bank's (hypothetical) 40 pip "cushion" is larger than many people use for their stop loss in scalping....this should tell you something about your chances for profitability using these parameters!

According to stats, approx 80% of the time, the big banks are market making in Forex...in this type of way. And there are multiple players on the field...so the outcome cannot possibly be predicted using a standard formula.
The 20% of time they spend prop trading can take various forms, but the inter bank market is responsible for most of what we see in the chart.

Also...the prop traders at institutional level do not use MT4 platform. They do not bother with all the bells and whistle indicators that retail traders put their faith in. This in itself should speak volumes to their worth.

The point of all this should be that if you follow the herd, you will most likely be slaughtered. The % of traders who are actually profitable long term should confirm this point.

There is nothing really new under the sun in terms of strategies using patterns, indicators or pre-determined levels. Some people claim to have an edge in their MM application, or something....but still...if your signals are based on so called "easy to recognise" patterns...then you are still putting yourself in position to be played in the way this video implies.

To use an analogy from where i live...the best way to avoid being attacked by sharks...is to not be in the water when they are likely to be there too!
Wealth comes from what you keep, not what you earn
  • #180
  • Oct 15, 2014 9:03am Oct 15, 2014 9:03am
BTW..a really good illustration of my point is the current EURUSD chart today....

Look and learn....
Wealth comes from what you keep, not what you earn
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