Could you increase your balance by 500% within one month??

[mebejason]

I took a look at the "King of the Mini's" trading log. (It's linked in a post below).

First of all, this guy(or gal) pissed away his/her account during the first two weeks of the month. You'll see the account equity was a mere $48.83 on March 14th.

He then re-deposited $1,200 (it took a week to do that-so he lost a week).
He then regularly WAY over leveraged his trades - some were 500k trades on an account with less than $1500. (not a good idea).

So, this guy actually posted profits of over 500% in just one week!

Yes, short-term results like this are possible, but I wouldn't recommend over leveraging like that. No offence to the owner of the account - I can only dream of those results - but he probably won't be around much longer if he keeps that up - the name of the game is RISK MANAGEMENT.

[hun83]

yeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeees

[majed]

Originally Posted by hun83

yeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeees

hun83 ; how?
do you have past experiance in that?
thanks

[majed]

Originally Posted by mebejason

I took a look at the "King of the Mini's" trading log. (It's linked in a post below).

First of all, this guy(or gal) pissed away his/her account during the first two weeks of the month. You'll see the account equity was a mere $48.83 on March 14th.

He then re-deposited $1,200 (it took a week to do that-so he lost a week).
He then regularly WAY over leveraged his trades - some were 500k trades on an account with less than $1500. (not a good idea).

So, this guy actually posted profits of over 500% in just one week!

Yes, short-term results like this are possible, but I wouldn't recommend over leveraging like that. No offence to the owner of the account - I can only dream of those results - but he probably won't be around much longer if he keeps that up - the name of the game is RISK MANAGEMENT.

hi mebejason
do you think that high leavarage always means bad money management?
is their any safe money managements ways that can works with high leavarage?
regards

[mebejason]

Hi majed.

The only way I think one could get away with huge leverage, is with VERY tight stops - around 4-7pips with his equity . Anything more, and he's risking over 5-10%+ equity - WAY too much.
But this guy wasn't doing that - there were several trades where he lost over 20% of his equity in one trade....

[garyh]

I've done 100% and even 200% in a month, but it was dicey at times doing it, risk a 20-25% loss if you are wrong. But 500% in a WEEK. MY GOD! That's russian roulette with 5 bullets out of 6 chambers! You WILL blow the account, just depends on when.

Having said that, now I'm going to take the other side. What he did could be a decent money management technique, provided you play by a set of rules. For example those rules might be that you open the account each month with a set amount, say $500 or $1000 on a mini, then trade majorly overleveraged until either it's all gone or you reach a certain target amount or time period. Once you reach that target amount, then remove the winnings and take it back to the start amount then do it again. If you blow the account, then don't fund the account again for a certain time period, say till the end of the month. Anyway, what's the difference if you blow the account, if the amount in the account is only a percentage of your total working capital. It's the same as funding it with all your money and only trade a percentage of that. As long as there is money management to control to your loss so you can trade again the next day.

Personally, it's not a method I would recommend, because it promotes recklessness and limits your profits.

[forex777]

the 500%+ trader added to his winning positions.

It can be done. The fact of the matter is, he didn't risk 20% of his account on one trade if he had $15,000 in the bank available and earmarked for his forex account.

If you know what you're doing, fine. Money management and risk managent I think are personal. Dependent on how confident you are in what the keys you;re clicking.

You can do whatever you want. Nothing's in impossible. If you have enough in your account to avoid margin calls and YOU REALLY KNOW WHAT YOU ARE DOING, who gives a shit what anyone thinks about money management, IF YOU REALLY KNOW WHAT YOU"RE DOING.

Most of the big boys made their money with what would be considered crazy money management. To them it wasn't because they took calculated risks based on CONFIDENCE. That's now to say, anyone else should do this until they, again, REALLY KNOW WHAT THE THEY ARE DOING AND HAVE THE BALLS TO DO IT.

Many have blown out their accounts based on these principles as you all very well know.

Knowing what you're doing is the key to it all, as it is to everything we undertake in life, I think...

[Truville]

he didn't risk 20% of his account on one trade if he had $15,000
True, if he 15K in the account. He didn't.

Beginning Balance 1,369.57


Money management and risk managent I think are personal.
Agreed.

You can do whatever you want. Nothing's in impossible.
Huh? Of course you can do whatever you want, since it's your account after all. But nothing is impossible? That's just silly. Of course some things are impossible. And some these may be possible, but inadvisable.

Look, I'm not really diasgreeing with you substantially. I just think that people should not confuse these mini trading contests with actual trading. The contestants are short-term, all-out, big risk. Comparing this King of the Mini contest to real account trading is like comapring a 100 yard dash to a marathon runner. I just question how much knowledge can be shared between the two.