Good Sunday morning!
I would like to share and revert to some humble observations regarding Retailer Forex versus presevation of capital. I did enjoy trading EUR/CHF and USD/CHF before the pair got a regulation by SCB (keep 1.2 EUR/CHF and releasing it in 3-4 years). In fact I watched the both moves on my screens/ platforms and brokers' behaviour. Regardless I had not been engaged in the battles, thereafter I stopped trading CHF. This year we have seen two sharp moves with GBP pairs allegedly related to BREXIT matter, I observed the both sharp moves on GBP/USD next day morning/ afternoon. Once, saw USD/ JPY making 300-400 pips within one minute. Now it would be high time to draw some brief conclusions, at least for myself.
- I do not trade CHF pairs;
- I am very caitious mostly on GBP/USD and USD/JPY;
- I am critical to possible broker's behavious and consequences.
We have very powerful 3 Pillars provided here by FTI and all his wisdom sharing must be taken into consideration. Firstly, preservation of capital. For me there is still luck of skill if I am trapped in a situation like a sharp fall for 1000 - 1200 pips within two - three minutes (one broker set the lowest at 1.1123, another/ bank - at 1.1498, the third broker where I am holding just a Demo - 1.1990) that might recently have occurred with respect to GBP pairs. You have to keep, first, your deposit size withstanding those 1500 pips move, especially even if at the moment you are already in rescue/ maybe leveraged mode; second, to literally babysit (more than 1 or 2 minutes of absence might be crucial). Well, price could retreat to certain degree as with the last G/U, or might not as with CHF 2011/ 2015 or previous G/U move in June. Then, how to respond rightly and accordingly, swift rescue should be within the Thread. Another thing is your own Mindset, Capitalisation and very agile reflex based on proper trained skills.
I must reiterate that I try to never gamble, not leave any open positions (more than 2xScouts) unattended, thus for all the above cases my capital had not been affected. If trade retail seriously, one must have aptitude and capital sufficient to stay safe with those rapid 1000 and more pips moves. It is very rare but it is very dangerous.
And, actually, as I mentioned, nothing is new, everything is graciously given by FTI and followers/ colleagues earlier within the Thread. I am sorry since it is not the first time I am reverting to the point and it could bother someone. Be prepared!
Have a successull trading and enjoy your Sunday!
Best regards, Exnav
I would like to share and revert to some humble observations regarding Retailer Forex versus presevation of capital. I did enjoy trading EUR/CHF and USD/CHF before the pair got a regulation by SCB (keep 1.2 EUR/CHF and releasing it in 3-4 years). In fact I watched the both moves on my screens/ platforms and brokers' behaviour. Regardless I had not been engaged in the battles, thereafter I stopped trading CHF. This year we have seen two sharp moves with GBP pairs allegedly related to BREXIT matter, I observed the both sharp moves on GBP/USD next day morning/ afternoon. Once, saw USD/ JPY making 300-400 pips within one minute. Now it would be high time to draw some brief conclusions, at least for myself.
- I do not trade CHF pairs;
- I am very caitious mostly on GBP/USD and USD/JPY;
- I am critical to possible broker's behavious and consequences.
We have very powerful 3 Pillars provided here by FTI and all his wisdom sharing must be taken into consideration. Firstly, preservation of capital. For me there is still luck of skill if I am trapped in a situation like a sharp fall for 1000 - 1200 pips within two - three minutes (one broker set the lowest at 1.1123, another/ bank - at 1.1498, the third broker where I am holding just a Demo - 1.1990) that might recently have occurred with respect to GBP pairs. You have to keep, first, your deposit size withstanding those 1500 pips move, especially even if at the moment you are already in rescue/ maybe leveraged mode; second, to literally babysit (more than 1 or 2 minutes of absence might be crucial). Well, price could retreat to certain degree as with the last G/U, or might not as with CHF 2011/ 2015 or previous G/U move in June. Then, how to respond rightly and accordingly, swift rescue should be within the Thread. Another thing is your own Mindset, Capitalisation and very agile reflex based on proper trained skills.
I must reiterate that I try to never gamble, not leave any open positions (more than 2xScouts) unattended, thus for all the above cases my capital had not been affected. If trade retail seriously, one must have aptitude and capital sufficient to stay safe with those rapid 1000 and more pips moves. It is very rare but it is very dangerous.
And, actually, as I mentioned, nothing is new, everything is graciously given by FTI and followers/ colleagues earlier within the Thread. I am sorry since it is not the first time I am reverting to the point and it could bother someone. Be prepared!
Have a successull trading and enjoy your Sunday!
Best regards, Exnav
Not to Advance is to Fall Back
Understood. But i must illiterate that one can only learn and internalise what one had experienced. So going all the way without experiencing is little benefits. First 200 so pages would be basics and foundationing. Should be sufficient for foundation to build on, if one has some finance background. Try find the emperor moth story. regards
