tar
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That is so stupid a 200 pips gap shouldn't have that impact on someone's account ....
Self taught? Impossible!
- Thread starter MoonRocket
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That is so stupid a 200 pips gap shouldn't have that impact on someone's account ....
scose-no-doubt
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I'm absolutely flabbergasted at this. If you're short and the market gaps up please tell me how you can mitigate your losses.
alphadude
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the answer is less leverage.
the first objective of any pro; is to live to trade another day. i mean think about how much you can lose; before how much you can win.
tar
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continue trading your plan normally what is the big deal , it is called drawdown , gap or not drawdowns is in inevitable , your account shouldn't be effected that much by 200 or 500 pips loss ...
scose-no-doubt
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That's all well and good but it's retrospective. If you're already in and then the market gaps...
alphadude
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your position sizing need to be correct; so if you have a gap of 200 or even 500; it should not represent a loss of more than 2% of your account size.
I personally trade at no more than 5x leverage. In most cases my position size will range from 0.5x to 2x account size; only if am certain with high probability that the entry is good; that i go up to 5x.
this means less profit; but also less risk. 25% a year will be a very good year for me.
scose-no-doubt
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HAHA what a loser. On trade2win we take 10 pips for 5%. How the hell are you going to buy £2000 bottles of champagne and fancy cars to show off with trading your small stakes? You obviously have no idea what you're doing. Newb.
the hare
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Dont trade small stakes :smart:
Ironically, the way you usually get to trade large stakes is by making less return.
tar
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scose-no-doubt
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alphadude
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hehe.. talking about losers; am not the one who blow out at 200 pips gap; you did and pretended to be "stop loss susan".
are you sure it wasn't "stop loss scose-no-doubt" ?
scose-no-doubt
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I don't need stops, I use direct hedges. Even though I aim for 7 pips. I have no risk but I break even after spread on most trades and make 2 pips if it works out. 2 pips if 18% as I'm leveraged. Ballin'.
VielGeld
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Aren't rate announcements pre-planned news items? I've seen some currencies blow through 70-90 pips in 5-10s in low liquidity environments. 200 is quite brutal, but that's why I decided not to touch news.
Worst case scenario for an FX trader is to get caught when the gov't pegs its currency. Easy couple hundred pips loss right there.
Worst case scenario for an FX trader is to get caught when the gov't pegs its currency. Easy couple hundred pips loss right there.
counter_violent
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Well yes normally they are scheduled events but very occasionally they are not...and this was one such occasion...brutal indeed.
As scose pointed out about price gaps...you get the next available price... and if thats not bad enough, you are also in a queue to get filled !
Mike Kshemaraja
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LOL,
In forex you have "bracket orders", meaning once you enter an order your SL pops out automatically at the moment of your entry, so you will not have an entry without a SL.
Regarding gaps, a scalper is in the market for minutes and no more one hour, and what is more the forex market is a 24 hours business, does not gap and if it does, gaps only the weekend. (you also have brokers that do not close the weekend so gaps do not exist).
A sharp scalper does not enter the market before a news announcement, his SL are tight and brokers tend to widen their spread considerably at the time but not all of them, also to enter before an announcement is more like gambling for a scalper.
A scalper is the right opposite of a gambler, he scrupulously analyse each individual candles ( 1 minutes or even 30 seconds) to a level that could be attributed to obsessive compulsion disorder, LOL, in brief he does not like to take chances.
And sorry to say that if your female friend was trading forex and got hit by 200 pips, she did not really know what she was doing.
I would like to point out also that scalping is not for lazy people, you need to be prepared and to be prepared you need a lot of work.
Regarding annual returns, what is right for some is not necessary right for others, returns are based on individuals skills and I strongly belevie that each of us gets what they deserve.
I hope my post have cleared a few point, now I will be moving on from this thread because I feel it is getting to the stagnation point, it has been an interesting experience, LOL, thanks Moon.
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The fact is the market at any moment can chew you up, what if a terrorist attack hit wall street or something similar that is totally unexpected?
You have to expect the unexpected, if you are scalping then always protect yourself against a huge unexpected movement because chances are it is going to happen at some point if you are constantly trading, it is just statistically a matter of time, and if you haven't worked that out yet by yourself then maybe this game is not for you?
You have to expect the unexpected, if you are scalping then always protect yourself against a huge unexpected movement because chances are it is going to happen at some point if you are constantly trading, it is just statistically a matter of time, and if you haven't worked that out yet by yourself then maybe this game is not for you?
sure it sounds like an unlucky story but the reality it is not an unlucky story, it was ultimately poor trading that did her, there are no excuses and this is why it is such an individual awesome game, like the lady you can get spat out at any time
A more realistic possibility, greece announce that they are pulling out of the euro out of the blue without warning, more than a possibility at the moment and what do you think will be the market reaction? you have the one account and its gets wiped out, is that unlucky or bad trading? Ultimately you have to accept it is bad trading, your lack of understanding of potential market reaction, no doubt.
A more realistic possibility, greece announce that they are pulling out of the euro out of the blue without warning, more than a possibility at the moment and what do you think will be the market reaction? you have the one account and its gets wiped out, is that unlucky or bad trading? Ultimately you have to accept it is bad trading, your lack of understanding of potential market reaction, no doubt.
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tony1979
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You really don't know anything do you...
counter_violent
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I'm flabbergasted at some of these responses....I never thought there were so many dimwits in trading...just goes to show how wrong I was about that!
