the bit where he advises noobs to trade £5k of their £20k savings is immoral. he says to lose all the money you would have to make 150 losing tardes in a row. Presumably noobs should set aside their remaining £15k to go on his up an coming training course. It is reckless to encourage new traders to trade with anything other than a demo account. horrible little man.
That is dreadful advice...
...Sort of...
I would actually agree that you shouldn't SIM but his premise that you would need 150 losers in a row is disingenius.
I guess his 150 comes from £5k/150 or a risk of about £30 per trade. OK - got that but why on earth would the 150 trades need to be in a row? Couldn't it be 75 losers, 1 break even and another 75 losers? I know that's probably a stupid thing for me to say but it's pretty stupid what he is saying.
It's as if he's saying that your account is totally safe as long as you don't lose an incredible 150 trades in a row. So - a big thumbs up if you are only at 100 losers in a row.
With a £5k account on Forex, you could nip over to Oanda and trade any size. So you could knock that $30/trade risk down to 30p/trade if you wanted. Best of both worlds, you are dipping your toe in the water with real trades but you are not risking a significant amount. I wonder why he never mentioned that?
What would kill a guy risking £30/trade on a new account is:
- Risking more than £30 per trade through lack of knowledge
- A bit of revenge trading
- Closing winners out too early
In other words - being a newbie.
What would NOT happen is for a new trader to make 150 losing trades in a row. If such a being exists, send him to me and I will shower him with milk and honey whilst fading his trades. Anyone that can lose 150 trades in a row is a trading genius.