400:1 - Dangerous -

[fastbusiness]

Quote:

Originally Posted by eagleeye

Personally I write about what I know PERSONALLY. I've made mistakes and would caution you not to do that same thing I did. It was a very expensive lesson but I learned.

That’s exactly why I opened this thread.

About trading plan - YES I do have trading plan; only an idiot would start trading without a plan. My plan is actually a set of well-formed rules that I follow strictly during trading. When I first started trading demo account I used full 50: 1 leverage (I'm using big O), but I realized that using 10:1 is much, much safer and works better for me (I can make steady profit - without big losses). I'm actually scalper - I'm scalping market, I have many smaller wins but when you gather all that at the end of the day you will see a pretty nice profit. With my strategy I'm expecting around 1500 % return in a year. And all that with 12.5 pips a day. Sounds good?

I opened this thread just to see if anyone will suggest 400:1 account. I will always stay with my low leverage account, but sometimes I just want something more exciting than just 10:1 L trading...

[Karsten]

What's the big deal? If you open with $1000 and trade 1 mini at $25, that's 2.5% of your account. I use a 20 pip stop loss on all my trades. If you have 25 losers in a row, you still have half of your account left. Once you've netted 1000 pips move up to 2 mini lots. 500 more pips, go to 3, etc. It's a better way to really get the psychology of trading down instead of fooling around with a demo forever. Be patient, you'll get rich soon enough.

When I went to a 20 pip stop loss I finally started making money. If the trade started out in the wrong direction, then I wanted out. Hanging on to a loser is far more ruinous than worrying about the leverage.

[fxsport]

Originally Posted by fastbusiness

With my strategy I'm expecting around 1500 % return in a year. And all that with 12.5 pips a day. Sounds good?

Yeah this sounds good - IF you can do it every day.

I agree with you with good rules and stops who cares about 400:1 versus 10:1

[rob]

[quote=eagleeye]Here's an unscientific poll -

Read the responses to the question of 400:1 leverage

See how long the people have been registered with MoneyTec

Notice how the longer the person has been around the more "conservative" they are with regard to leverage
[quote]

heh.
I trade at about 5:1. Been on the forum for a year or two...

[MickMason]

Originally Posted by fxsport

I agree with you with good rules and stops who cares about 400:1 versus 10:1

If you're trading 400:1 you're risking 4% of your account per pip

If you're trading 10:1 you're risking 0.1% of your account per pip.

Even with the best 'good rules and stops' to say 'who cares about 400:1 versus 10:1', I would have thought the answer to that one was pretty obvious!

Always consider the downside first!


Mick

[TraderABC]

Originally Posted by MickMason

If you're trading 400:1 you're risking 4% of your account per pip

If you're trading 10:1 you're risking 0.1% of your account per pip.

Even with the best 'good rules and stops' to say 'who cares about 400:1 versus 10:1', I would have thought the answer to that one was pretty obvious!

Always consider the downside first!


Mick

Risk reward ratio IS important, however, it cannot be simplified too much. RR ratio can be more complex than just basic generalities.

For example: You may risk 10% of depo to get 10% on it (some scalpers swear by that as their daily goal) but your win % may be 90%. That is much better than lets say risking very little, for very little gain and much lower win%.

And remember while it is true that at full 400:1 leverage you are risking 4% per pip, but you could earn as much!

And remember, do not open live account before you paper trade, demo trade (where you can consistently double it every month), mini-mini, mini, and standard live account.

[eagleeye]

Originally Posted by rob

I trade at about 5:1. Been on the forum for a year or two...

Good Job Rob - You've beat the odds so far - keep up the good work

[eagleeye]

Originally Posted by MickMason

If you're trading 400:1 you're risking 4% of your account per pip

If you're trading 10:1 you're risking 0.1% of your account per pip.

Even with the best 'good rules and stops' to say 'who cares about 400:1 versus 10:1', I would have thought the answer to that one was pretty obvious!

Always consider the downside first!


Mick

Hey Mick

Sometimes the obvious isn't OBVIOUS when people get blinded by the "light"
The problem is that most times that light isn't the end of the tunnel but a train barrelling straight down on them! OUCH

I'll just stand by, put in my 2 cents and see who's around when the dust clears!

Merry Christmas All