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clockwork71 · 08-06-2007, 20:33

Wow, spot forex is so volatile that I don't even recommend it to new clients anymore. I had a guy who started with our firm about 5 to 6 months ago. He opened a spot forex account for self trade. He started with $90,000 USD. He lost $70,000 with only 2 positions in about a week. This happend during the infamous Thursday of the chinese yuan-revaluation last year. That day saw moves in the yen of about 200 to 300 pips in a matter of seconds. Ofcourse he was on the wrong side. This guy is a computer programmer and mechanical technician...and he was crushed.

He was slipped over 150 pips on each trade. Yes...any firm that says they guarantee slippage is full of it. Forex firms will only guarantee slippage in a normal market....not fast markets. "Read the fine print."

Well, as a FOREX trader, I can tell you what he did wrong.

He was using WAY TOO MUCH of his capitol in those two trades. Period. Bad money management will get you killed in FOREX. (And any other market I assume.)

He should have NEVER been able to lose like that. If he hadn't tried to make a million dollars in his first week, he would have survived it.

And as far as a 150 pip slip, I have never seen that.

And yes, I was trading that day.....and did quite well.

I would have loved to be risking 70k, since I was right, but I would never do that....just common sense if you only have 90k to begin with.

A simple stop loss and a call to his broker SHOULD have cleared that up. If not, then it is still his fault for gambling (yes he was gambling) that much. He has nobody but himself to blame.

As far as the rest, I don't tradr stocks, but certainly will in the future, as I believe in multiple streams of income.

08-06-2007, 20:33	#50
clockwork71 level 1 Join Date: Jun 2007 Posts: 3 Downloads: 0 Uploads: 0 Rep Power: 0	Re: Forex Vs Stocks Wow, spot forex is so volatile that I don't even recommend it to new clients anymore. I had a guy who started with our firm about 5 to 6 months ago. He opened a spot forex account for self trade. He started with $90,000 USD. He lost $70,000 with only 2 positions in about a week. This happend during the infamous Thursday of the chinese yuan-revaluation last year. That day saw moves in the yen of about 200 to 300 pips in a matter of seconds. Ofcourse he was on the wrong side. This guy is a computer programmer and mechanical technician...and he was crushed. He was slipped over 150 pips on each trade. Yes...any firm that says they guarantee slippage is full of it. Forex firms will only guarantee slippage in a normal market....not fast markets. "Read the fine print." Well, as a FOREX trader, I can tell you what he did wrong. He was using WAY TOO MUCH of his capitol in those two trades. Period. Bad money management will get you killed in FOREX. (And any other market I assume.) He should have NEVER been able to lose like that. If he hadn't tried to make a million dollars in his first week, he would have survived it. And as far as a 150 pip slip, I have never seen that. And yes, I was trading that day.....and did quite well. I would have loved to be risking 70k, since I was right, but I would never do that....just common sense if you only have 90k to begin with. A simple stop loss and a call to his broker SHOULD have cleared that up. If not, then it is still his fault for gambling (yes he was gambling) that much. He has nobody but himself to blame. As far as the rest, I don't tradr stocks, but certainly will in the future, as I believe in multiple streams of income.