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I've figured out why so many people lose money in Forex

  • #221
  • Feb 27, 2015 10:50am Feb 27, 2015 10:50am
Quoting JoeNY
Lots of people that don't trade making post. I just want to know......... Is anybody making money cuz price is punching off some really nice levels..... I hope you guys are in some nice trades. Awesome morning despite all the FOMC puppets about to speak.. Those that can't say it can't be done. Those that can could care less. These forums are full of people that fail at a method and dismiss it as not possible. It's a shame to have such a mindset especially if you're up there in age. I expect this mentality from children. Don't let this flow into...
Oh my... ... testy testy there Joe ... ....
Ghost Rider - WWTBMD?
  • #222
  • Feb 27, 2015 10:50am Feb 27, 2015 10:50am
Quoting Asw
Most people lose money because they don't know what they are doing, they are bullshitted how to trade by these self appointed guru's. They talk the same old bullshit, that doesn't even come close to teaching how to trade. It takes years to learn how to trade and become profitable, not a 4 hour course or a webonaire on the Internet. Then when you do learn, the criminal brokers are there to throw all the tricks at you to relieve you of your cash. I'll also guarantee there is no way you can make money day trading using M15, H1 or H4 charts,...


Trading is not for everybody, some of us are gifted while the rest are extremely incompetent and say things like you out of frustration because they see no progress.

You say it "It takes years to learn how to trade and become profitable", Well I only studied FOREX for seven months and I just began trading at the beginning of this month, and I am more profitable than those who have studied for 10 years

You say "there is no way you can make money day trading using M15, H1 or H4 charts", Well I trade of 1min charts and I'm very profitable. 58.86% for this month

Didnt you know that 95% of wannabe FOREX traders are failures, while the 5% are succuessful and will become millionaires? Well, let me tell you that you fit well in the 95% group, not everybody can be in the 5% like me


Money talks, bullshit walks. Get a job a McDonalds, you are not trading material.
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Trade smart, not hard
  • #223
  • Feb 27, 2015 10:53am Feb 27, 2015 10:53am


Quoting albchr
{quote} Oh my... ... testy testy there Joe ... ....
SPC * Swollen PocketZ Crew!
  • #224
  • Feb 27, 2015 11:06am Feb 27, 2015 11:06am
Quoting JoeNY
Is anybody making money cuz price is punching off some really nice levels
Nice post.

Decided to stop since it's Friday. Only traded EURUSD today. 22 trades for net 230.2 pips. Kinda sucks. Next week should be better due to NFP. Have a good weekend
You cannot be extraordinary by being normal
  • #225
  • Feb 27, 2015 11:08am Feb 27, 2015 11:08am
Cool... enjoy...

Quoting dkrock
{quote} Nice post. Decided to stop since it's Friday. Only traded EURUSD today. 22 trades for net 230.2 pips. Kinda sucks. Next week should be better due to NFP. Have a good weekend
SPC * Swollen PocketZ Crew!
  • #226
  • Feb 27, 2015 11:13am Feb 27, 2015 11:13am
Quoting JoeNY
Cool... enjoy... {quote}
I took a short on Eur/jpy a little while back (30 mins) lol but I'm going to hold it for a little while.. Maybe a little over 100 pips..

I'll add details for those who wish to hold me accountable for my trade 134.15 Sell sell sell.. Hehe That's my entry.. Goes down to 133.xx around .15ish I'll jump off board there.
There are those who know, and there are those who don't know.
  • #227
  • Feb 27, 2015 11:57am Feb 27, 2015 11:57am
Quoting JoeNY
Second grammar comment towards a member and only 6 post. That's just lovely... Find another way to accumulate post. I think I know where this is going. We'll be watching you closely... {quote}

Hahaha....I hope so. This forum reminds me of Facebook. I was looking to network with others in the hopes of learning from the mistakes of others, and bam, right out of the box some dude who claims to be a calculus guru tells someone else that, not only is his post BS, but that he is BS too!! So I mention that mr calculus might aught to brush up on some English and spelling, perhaps branch out from math, and then Im accused of criticism, because not all traders are in the US....not to mention, that I think Im better than anyone else. Ohhh one more slash that MY English isnt so perfect either. I literally peed myself reading the next comment from said individual. ... the once that dont trade, are the most critical once.....LOL So I merely point out that maybe they meant 'ones '.....and now your watching me? Well you watch real closely, beacuse while you and your buds are on this forum picking apart others, I will be honing in on my skills to master the art of trading. Your opinions of me, mean nothing, and I am not daunted by your cyber bulling. I have no interest in accumulating posts, I thought this would be a good thing, I was wrong. I do know that I may not be better than anyone but I certainly better than this...... goodbye!
  • #228
  • Feb 27, 2015 12:15pm Feb 27, 2015 12:15pm
This concept has been discussed, at length, many times. Here is a thread from a few years ago:

http://www.forexfactory.com/showthread.php?t=191230


Regards,
  • #229
  • Edited 12:43pm Feb 27, 2015 12:26pm | Edited 12:43pm
Quoting FatFortunes
What I meant was if you have a $1000 account and are trading 1 standard lot, you are trading at 1:100 leverage. If you have a $100,000 account and trade 1 standard lot, you are trading at 1:1 leverage.
Absolutely not! This is NOT the definition of leverage, Sir. Leverage is a LOAN that your broker is willing to grant you to open a position, nothing else.

Let's follow your example. To simplify, let's assume that $1 = 1 Euro.

If $1,000 margin money is required to buy 1 standard EUR/USD lot (in other words you are buying 100,000 Euros with only $1,000) that means that your forex broker is lending you $99,000.

And that means he is offering you a 100 to 1 leverage. In essence he is saying "Deposit just $1,000 and I will let you buy 100,000 euros".

As you can see, your trading capital has absolutely nothing to do here. Nothing. You could deposit 1 trillion dollars in your account and it would not make a difference, the 100:1 leverage is still the same. If your broker is offering you a 100:1 leverage then each time you open a position you are trading with a 100 to 1 leverage, period, even if you have trillions of dollars sitting in your account.

The percentage of trading capital you allocate to each trade has absolutely nothing to do with leverage.
Leverage simply means you are using your broker's money to obtain a much, much higher return on investment (assuming your account is profitable).

I am not making this up, here is the true and only definition of leverage:
http://www.investopedia.com/ask/answ...exleverage.asp
Each losing trade is an opportunity to learn
  • #230
  • Feb 27, 2015 12:32pm Feb 27, 2015 12:32pm
Quoting dkrock
Hello. By your analysis, should I conclude you have not made a Forex trade yet? It seems to me that commission is commission, and is not applied against the leverage, but against position size. At least that is how my commission is calculated. $X times number of lots. It seems to me you are analyzing position trades of equities with Forex. Why would anyone have a stop of 250 pips? That is ridiculous. Volatility is your best friend. Without it, the market is flat and you make nothing. You reference volatility of your account balance. ?HUH? I am sorry...
bravo brother u make the point
we don't predict, we only ride
  • #231
  • Feb 27, 2015 12:35pm Feb 27, 2015 12:35pm
It all comes down to mode, median, and mean. You track the mean until the mode acts like a constant and then trade when the median is crossed. Simple Well most of the time. There are some occasions when the mode is irrelevant, but eventually that formula plays out again

If you can't figure that out, then you are either trading support/resistance lines, or using too much detail.
You cannot be extraordinary by being normal
  • #232
  • Feb 27, 2015 12:45pm Feb 27, 2015 12:45pm
Quoting EarnPipsNow
{quote} Absolutely not! This is NOT the definition of leverage, Sir. Leverage is a LOAN that your broker is willing to grant you to open a position, nothing else. Let's follow your example. To simplify, let's assume that $1 = 1 Euro. If $1,000 margin money is required to buy 1 standard EUR/USD lot (in other words you are buying 100,000 Euros with only $1,000) that means that your forex broker is lending you $99,000. And that means he is offering you a 100 to 1 leverage. As you can see, your trading capital has absolutely nothing to do here. Nothing....
Man, I love when people get it. I've been explaining this over and over. This is why I use high leverage brokers as I am able to keep the majority of my funds safely in my own bank and take advantage of the leverage. If I'm going to trade 1 standard lot, with a 500:1 broker, I only need $200, now, of course, I'll transfer enough to cover the actual stop, so if it's 40-50 pips, then $400-$500. If I trade with a NFA regulated broker, let's say USD/JPY, they have now lowered JPY to 33:!, I need to deposit over $3,000 just for margin. So to risk my $400, I need to deposit $3,000! Why would anyone want to do that? % of loss and profit should be calculated on what you have allocated to trade, not what you have on deposit with broker. if my stop loss is a margin call, who cares, it's still only 2% of trading capital.
  • #233
  • Feb 27, 2015 12:46pm Feb 27, 2015 12:46pm
Quoting clivepackham
{quote} I gotta say this is one of the best posts I've ever read on FF, absolutely spot on....I especially liked the reference to the "ocean" as we all know prices move in waves yet as soon as price starts to wave against us we panic close out only to see the price start to wave back our way. Once I realised we have to trade the waves and that the waves are all part of trading, it all began to take shape... Don't fear the waves, ride the waves buy the bottom of waves and sell the tops of waves. Learn to ride the waves and you'll be riding your emotions...
lets surf
we don't predict, we only ride
  • #234
  • Feb 27, 2015 1:02pm Feb 27, 2015 1:02pm
Quoting replaced
{quote} The calculator does do compound gains. However the probability of having compounding gains to begin with must be taken into account as well. {quote} Mathematically, it does not matter. In fact, using stops instead of deleveraging should increase loses even more by increasing trading costs. The first sign of a novice is when they use stops instead of deleverage. It doesn't matter if you spend 50 hours a week at a roulette table, the odds do not change. Why would a single trade in and out change the odds?
Wow, please stop this nonsense!!!! Roulette has fixed odds, they do not change, there are 38 numbers, the 0 and 00 are the house edge. Unless you are flipping a coin to trade, there are no "fixed" odds in trading. When someone wins, someone loses, it doesn't work like that in a casino. Go follow someone like forexalien or fxray, they call the trades in advance, win probably 90% of their trades and the gain on the wins is far greater than the losses. Patterns repeat themselves, the market trades in waves, there is support and resistance, trendlines, fib levels, moving averages etc. The market tells you where it's going once you have studies enough. I'm not sure what you are trying to prove or disprove, but your comparisons are ridiculous.
  • #235
  • Feb 27, 2015 1:12pm Feb 27, 2015 1:12pm
Quoting Profit Daily
Man, I love when people get it.
Thank you ProfitDaily, glad to see we are on the same wavelength.

Quoting Profit Daily
If I trade with a NFA regulated broker, let's say USD/JPY, they have now lowered JPY to 33:!
Yes I know. Unfortunately the maximum leverage that can be offered in the US is 50 to 1, thanks to the NFA regulators.

I truly miss the 400:1 leverage offered only a few years ago.
Each losing trade is an opportunity to learn
  • #236
  • Feb 27, 2015 1:15pm Feb 27, 2015 1:15pm
Quoting t.nelson
{quote} Well you watch real closely, beacuse while you and your buds are on this forum picking apart others, I will be honing in on my skills to master the art of trading.
Don't hon to hard you might strain yourself
There are those who know, and there are those who don't know.
  • #237
  • Feb 27, 2015 1:21pm Feb 27, 2015 1:21pm
Quoting EarnPipsNow
{quote} Thank you ProfitDaily, glad to see we are on the same wavelength. {quote} Yes I know. Unfortunately the maximum leverage that can be offered in the US is 50 to 1, thanks to the NFA regulators. I truly miss the 400:1 leverage offered only a few years ago.
There are still 15 non-US brokers who still accept US clients. 7 of them are very reputable and offer much better trading conditions than any broker in the US. I have great experience with 4 of them. I'm not talking the obvious: leverage, no FIFO, hedging. They blow away everyone in the US in terms of spreads, commission, execution and speed of withdrawal. I used to fear the non regulation aspect until I realized the regulations in the US do absolutely 0, nothing, nada to benefit me. Funds are not protected in any way. So, if funds aren't protected here, I'm going where I have to put the least of my funds at risk AND have better trading conditions.
  • #238
  • Feb 27, 2015 1:21pm Feb 27, 2015 1:21pm
Quoting Profit Daily
{quote} Wow, please stop this nonsense!!!! Roulette has fixed odds, they do not change, there are 38 numbers, the 0 and 00 are the house edge. Unless you are flipping a coin to trade, there are no "fixed" odds in trading. When someone wins, someone loses, it doesn't work like that in a casino. Go follow someone like forexalien or fxray, they call the trades in advance, win probably 90% of their trades and the gain on the wins is far greater than the losses. Patterns repeat themselves, the market trades in waves, there is support and resistance,...

If you ever bring him off the roulette he will bring up the black jack table lol. Its an argument that will not have a winner, because its already been argued so many times and been proven false that trading is NOT gambling, yet someone will always come in and say trading is gambling. Then argument rises back up. My answer to that is those who make money don't really care and those who don't can wonder if so.

Anyone does anything long enough they will eventually bound to get it, maybe even be good at it. Its just being in it long enough is the hard part, if your not trading for a living your doing other things and doing other things AND trading makes it even more difficult because the latter gets less attention, but even then people can still divide and have done so enough time into getting it, and becoming good at it, and then trading for a living.
There are those who know, and there are those who don't know.
  • #239
  • Feb 27, 2015 1:46pm Feb 27, 2015 1:46pm
Quoting EarnPipsNow
{quote} Absolutely not! This is NOT the definition of leverage, Sir. Leverage is a LOAN that your broker is willing to grant you to open a position, nothing else. Let's follow your example. To simplify, let's assume that $1 = 1 Euro. If $1,000 margin money is required to buy 1 standard EUR/USD lot (in other words you are buying 100,000 Euros with only $1,000) that means that your forex broker is lending you $99,000. And that means he is offering you a 100 to 1 leverage. In essence he is saying "Deposit just $1,000 and I will let you buy 100,000...
FatFortunes isn't really wrong. There is more than one definition of leverage.

Well, yes, the broker is offering you the 100:1 leverage. However, if you have $100,000 in your brokerage account and trade 1 lot you are not using any of the offered leverage. So, your real leverage is 1:1.

Another link to investopedia (it's called real leverage there): http://www.investopedia.com/articles...x_leverage.asp
..
  • #240
  • Feb 27, 2015 1:49pm Feb 27, 2015 1:49pm
Quoting palabara
{quote} If you ever bring him off the roulette he will bring up the black jack table lol. Its an argument that will not have a winner, because its already been argued so many times and been proven false that trading is NOT gambling, yet someone will always come in and say trading is gambling. Then argument rises back up. My answer to that is those who make money don't really care and those who don't can wonder if so. Anyone does anything long enough they will eventually bound get it, maybe even be good at it. Its just being in it long enough is...
Absolutely, been trading 5 years almost to the day. First three were not profitable. The last two years have been great and I now make gains people say are not even possible and I'm still learning and getting better. I believe what happens to most is they are not successful quickly enough and then comes the mentality "If I can't do it, surely nobody can"
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