You will not compound it most likely. You may make 5k from a 5k account but use the money. Even if you don't use them money, it becomes harder and harder psychologically as your account increases.
You don't need to risk 15%. You can do it risking 5%.
I totally agree to this point. I knew a FXSolution FX trader he always did really well. He KNEW these numbers were achievable/sustainable. SO he leveraged 400:1 and started betting big.
I MEAN BIG... Example, let's say he only wanted to lose at max -5% per pick. He'd invest 95% of account and let the -5% Margin call be his stop loss. I asked him one day about this, and he said,"A Brokers Margin Call are more Guarateed than any of my stop losses."
Now this guy was a great trader before this experiment. And he truly thought he had found the answer. +500% months were not unheard of and he was burning money left and right (SHOWBOATING like crazy and going to the Casino's etc...)
People dont realise the temptations at returns of +25k, +50k, +100k, +200k. etc... Imagine one day of trading and BAMM 30k. "WOW I can go out and buy a nice car today".
Needless to say he's out of the game now. It all caught up to him on a crazy (Italian) Prime Minister saying some comment about changing their currency or some BS like that. EUR/USD moved to fast and he got crushed. But the worst part is, this guy could trade and would have made a lifetime of this game. Sometimes, conventional thinking is the mainstream for a reason.
fooled by randomness
is a good book by Nassim Nicholas taleb
I sort of like Taleb: you have to admire someone who makes a career out of telling us, ad nauseum,that 'sh!t happens'.
What is amusing is the number of people Taleb assists psychologically. After all, if the successful guys are just lucky fools, I am at least not a fool even if I can't trade my way out of a paper bag.
Nice trade off that for a race which has zero expectancy (since you will die) but needs to have its ego massaged while waiting to shuffle off this mortal coil.
..... a black swan !! they do exist.... but thankfully they are very rare...
He lost it all on one trade?
SO he leveraged 400:1 and started betting big.
I MEAN BIG... Example, let's say he only wanted to lose at max -5% per pick. He'd invest 95% of account and let the -5% Margin call be his stop loss. I asked him one day about this, and he said,"A Brokers Margin Call are more Guarateed than any of my stop losses."
Now this guy was a great trader before this experiment. And he truly thought he had found the answer. +500% months were not unheard of
Not really.
Slippage got him pretty good on that Italian PM london session and I know he took some Huge losses trying the NFP.
Psychology got him in the end. Slippage hurt but when he started thinking he had this thing beat and played the NFP(s) with the same strategies.
If this is the case shouldn't there be millionaires right now out there. I mean if a person trades like this for 12 months, he could be stinking rich!!!.
Are there any of you in this forum who are making a very very good living as independent traders in forex. Can a person sustain gains of over 100% in a month for even 6 months?!
Just shoot for 1% per day or better.
I think anything over 100% a year is crazy. Anything from 20-99% is awesome. Anything under 20, is decent, but average. I just would not shoot for 400%. That's BS. It's possible to do some insane stuff with futures leverage and forex levg. but you can't risk everything on every trade. Build up your fortune slowly, and don't lose a dime.
Edit: You'll need an edge that works for you. An edge allows you to seriously win. It means the game is no longer in the house's favor. And follow your system with discipline. Without any discipline, you'll losr automatically, no doubt.
The market is the ocean. We are the fish. Follow the big currents and stay out of the dark belly of the ocean. Predators lurk for an easy meal so stay in the "school of fish." And when the crowd is wrong, get out, and wait.
that was good advice :cheesy:Alert:
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