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Old 07-10-2006, 04:17   #15
tihomir
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Cool Re: Beating the spread

Spread/costs is what makes math negative expectancy in trading, just like zero in roulette.

example:

goal: 10 pips
risk: 10 pips
spread: 3

you need 13 pips move for your goal and only 7 to stop.

however it is true that position trading with large stops makes advantage of broker smaller but you will need good leverage and big account to survive.

Risk less than 0.5% if you want to be winner.

tihomir,
http://bgforex.org
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