400:1 - Dangerous -

[MickMason]

Originally Posted by TraderABC

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

That's exactly the pot-of-gold-at-the-end-of-the-rainbow pipe-dream that has all these totally unsuitable, underfunded, clueless, desperate losers flocking into the market, all hoping for the dream to come true. They look at a chart, multiply 100pips by their miniscule overleveraged account and order the Porsche Boxster. Half an hour after opening their live account they're sitting scratching their head wondering what hit them!

My advice, spend the money on something more enjoyable than clicking buttons on a computer, heck, spend it at the roulette wheel, at least there's more chance of them making a buck!




Mick

[fastbusiness]

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

Well, you see, making 12.5 pips a day really shouldn't be that hard. You know, sometimes I make over 40 pips per trade using 20:1 leverage, when market is going my way - so 40 pips at 20:1 is equal to 80 pips at 10:1. Got the point? I don't use 10:1 all the time. When a good opportunity shows up I raise leverage to 20:1 or even 30:1. It is very, very rare that I use 40:1 leverage while trading.

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

Someone on this forum sad that 200:1 and over is double edge sword. You could earn allot fast, but you can loss allot even faster.

[TraderABC]

Originally Posted by MickMason

That's exactly the pot-of-gold-at-the-end-of-the-rainbow pipe-dream that has all these totally unsuitable, underfunded, clueless, desperate losers flocking into the market, all hoping for the dream to come true. They look at a chart, multiply 100pips by their miniscule overleveraged account and order the Porsche Boxster. Half an hour after opening their live account they're sitting scratching their head wondering what hit them!

My advice, spend the money on something more enjoyable than clicking buttons on a computer, heck, spend it at the roulette wheel, at least there's more chance of them making a buck!




Mick

\

Dear Mick, you have misunderstood me badly. I have stated in the other post that you need to go through these stages DEMO TRADE, mini-mini, mini, standard. Nowhere did I say that you should rush in. NO, you need to work slowly and gradually increasing the difficulty, from 0 to 10cents to 1$ and then to 10$ per pip and beyond.

Yes 400:1 is a double edged sword, that is why you practice the heck out of it until you can use it.

[fxsport]

Originally Posted by fastbusiness

Well, you see, making 12.5 pips a day really shouldn't be that hard. You know, sometimes I make over 40 pips per trade using 20:1 leverage, when market is going my way

Ok Fastbusiness good point. I mean is it easier to make 10 pips @200:1 leverage or to make 200 pips at 1:1?

Different strokes for different folks!

[MickMason]

Originally Posted by TraderABC

Yes 400:1 is a double edged sword, that is why you practice the heck out of it until you can use it.

That's the point, there is never a time when it would be appropriate to use 400:1 leverage, no matter how much practice anyone has done, 400:1 is financial suicide.

I think you are missing the basic principles of money and risk management, but hey, it's your money and you must spend it in any way you see fit


Mick

[TraderABC]

Originally Posted by MickMason

That's the point, there is never a time when it would be appropriate to use 400:1 leverage, no matter how much practice anyone has done, 400:1 is financial suicide.

Never say never!

I think you are missing the basic principles of money and risk management, but hey, it's your money and you must spend it in any way you see fit

Mick

If your lossess are small and infrequent, then maybe 400 isn't that bad - when it is PROPERLY USED. ...

[rob]

Originally Posted by eagleeye

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

Yep, it takes a long time to grasp what forex and trading is about, almost like a spiritual journey.
Most of the 'gurus' of moneytec who were here when I first joined aren't around now

[gyda62]

On an FXCM mini account a 10k trade = $1 per pip
On a standard account a 100k trade =$10 per pip

I was wondering if 100:1 means $10 per pip.
Is this how it works???

Regards
Michael