The most powerful force in the world: compounding | Page 2 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

The Magic of Compounding 75 replies

How long can I use compounding? 37 replies

few newbie questions - compounding 8 replies

What is compounding, and how can I apply it to scalping strategy? 3 replies

Compounding Interest puzzle 6 replies

Attachments: The most powerful force in the world: compounding
Exit Attachments

The most powerful force in the world: compounding

  • #21
  • Feb 4, 2017 10:35am Feb 4, 2017 10:35am
Quoting hanover
If you have to withdraw money from your account to preserve capital, then your trading system and/or MM is unsafe (prop traders and money managers don't/can't withdraw money!)
Not all losses are due to stupid trades. Sometimes brokers go bust or run into regulatory issues or ... retail simply is a different kind of animal with different problems than the professional trading businesses.

And while I think that the risk of black swans is extremely over exaggerated (and I'd really like to punch people who come with them every time), they exist and having some money in a bank account or a second broker is a good thing. If these prop firms go bust they close down and start from scratch, try that with your life. Life != Business.
  • #22
  • Feb 4, 2017 10:39am Feb 4, 2017 10:39am
Quoting T100
This is where the argument of not risking more than 2% complety falls down - you can't make a living income unless you have hundreds of thousands if not millions.
And that is completely nonsense. People say "2% per trade" not "2% at all". How much money you need is correlated to the number of trades you make.
  • #23
  • Feb 4, 2017 1:25pm Feb 4, 2017 1:25pm
Quoting JensG
Not all losses are due to stupid trades......
When I said "trading system and/or MM is unsafe" I was thinking more along the lines of traders who use uncapped martingales, and then define their MM as withdrawing some capital to safeguard it before the 'death trade' causes a margin call. Obviously prop traders and money managers can't withdraw the firm's, or their client's, money.
  • #24
  • Feb 4, 2017 5:45pm Feb 4, 2017 5:45pm
Quoting Forexpinbar
The great Albert Einstein once said Compound interest is the eighth wonder of the world. He who understands it, earns it he who doesn't pays it...
This is by far a fact.... most people will never understand!!!
  • #25
  • Feb 4, 2017 6:04pm Feb 4, 2017 6:04pm
Quoting josh11
{quote} This is by far a fact.... most people will never understand!!!
Coumpounding?????? The most powerful force on the earth???????? pffffftt. Entropy

Compound interest just slipped through the net of the Romans.....Usury at its best by greedy lenders.
  • #26
  • Feb 4, 2017 9:08pm Feb 4, 2017 9:08pm
Quoting Forexpinbar
The great Albert Einstein once said Compound interest is the eighth wonder of the world. He who understands it, earns it he who doesn't pays it. I believe as traders new and pro , anything is possible in forex with hardwork , discipline , persistence and patience..Dont let anyone tell you that you cant do it..You can make history and you can rewrite history if you put your mind to it..Most traders lack vision.Most of us dont have long term goals that is probably why we fail in the long run..If you have a profitable strategy and apply compounding...
Yeah if you get 11 wins in a row you will turn $50 into 1 million. Im trying lol. It will take some tries but once I catch trend hopefully it will pay for all those tries.
  • #27
  • Feb 5, 2017 3:13pm Feb 5, 2017 3:13pm
There is a good way to make big money with a lot of risk:
take some amount of money like 100$ then divide it by 20.
5$ will be the initial amount of money per pip that we trade. our maximum drawdown per trade is 20 pips, take profit in 30 pips.
after a winning trade, repeat process.

Money -- Money per Pip -- Win -- Total
100$ -- 5$ -- 150$ -- 250$ -- 1
250$ -- 12,5$ -- 375$ -- 625$ -- 2
625$ -- 31,25$ -- 937$ -- 1562$ -- 3
1562$ -- 78,1$ -- 2343$ -- 3905$ -- 4
3905$ -- 195,25$ -- 5857$ -- 9762$ -- 5

One mistake and you will lost everything.
with 70% accuracy you have 16,8% chance of get almost 10K starting with 100$
every trade has 100% risk and even with 70% accuracy, price wont have too much room since there is only 20 pips of maximum drawdown..

if you have surgical precision, cold mind, luck and some money you might get 9662$
There is no justice for the weak
  • #28
  • Last Post: Feb 6, 2017 3:30pm Feb 6, 2017 3:30pm
Thanks again Hannover
My sugestion to the members of this thread, read Hannoverīs posts clearly!

And for those who hope to make 4% a day, with high leverage ....watch this viedo carefully....if the waves are the Big Boys...guess who would be the retail traders..

Inserted Video
0 traders viewing now