Reasonable Expectations???

[diallist]

Many thanks to each of you for your kind and informative answers. I am new to forex, but not new to trading. Last and this week I took my first live trades. The sixteen trades I've made since Thursday have netted me 418 pips. Because of my lack of experience in forex, I do not know if this was a typical gain or an exceptionally good one. For all I know, I'll be down 200 pips next week. I guess what I really wanted to know was what someone with a year of experience trading equity options could reasonably expect for an average weekly pip gain. I've got my emotions pretty well under control and I follow my system rules to the letter.

One other question, if I may further impose on your generous help:

It occurred to me that it may not be necessary to reduce the position size from 3 to 1. Yes, trading 3 standard lots would cause the dollar movement to be three times faster, but the stop loss dollar value would also be three times larger which would negate the speed of the position. In other words it would take exactly the same amount of time for 3 lots to lose $900 and for 1 lot to lose $300. As long as I'm risking under 2% of my account, is it really necessary to reduce the true leverage as well? What is your opinion?

Again, thanks for your most generous help.

[MickMason]

Originally posted by diallist


The sixteen trades I've made since Thursday have netted me 418 pips.

Excellent, a great start! The important thing, as you probably already know, is to break down those 16 trades, how were those 418pips made in regards to risk/reward, winners/losers, and timing of trades.


I've got my emotions pretty well under control and I follow my system rules to the letter.

Then you're already 90% there. Trading forex is no different than trading any other instrument, the same money management rules and trading disciplines apply to any market, I think you found that out over the past few days.


As long as I'm risking under 2% of my account, is it really necessary to reduce the true leverage as well?

6:1 leverage is far from excessive, your risk management is within acceptable limits at 2%, I don't think reducing trade size is necessary. Whatever you feel comfortable with is the key, the last thing you want to feel is anxiety or pressure when trading.

I hope you realise that taking 418 pips over 4 days will probably mean your mailbox will get pretty busy


Mick

[autofx]

Originally posted by philhackett

It is very difficult to lose money if you use my system.

You haven't met Mick, have you!

[autofx]

Originally posted by amarnath
Hi mickmason,

I see.....sounds like just another unnecessarily complicated system to me. Trading, like you say, is simple, it doesn't require a qualification in Technical Analysis, three screens, half a dozen indicators on a chart, or 12 hours a day to be profitable

No, just a rich aunt to deposit money in your account after each
margin call!

[MickMason]

Originally posted by autofx


No, just a rich aunt to deposit money in your account after each
margin call!

Well lookie here, it's the -924pips automated trading guru with nothing useful to say as usual.

I told you Bob, your mom gives me money, I'm like a son to her after her disappointment at the way you turned out, in fact I don't think she even knows you're out of prison yet

Mick

[TrendlineBreak]

Poll Results to date !!

[MickMason]

It's neck and neck, but it looks like the pizza's out the question though

If it's a boxing match I hope he brings his trombone, I've never heard one being played from where I'd put it

Mick

[MickMason]

Originally posted by James


No I do not.

Heck, I've just taken 2 cents since midnight GMT last night and you say 100pips isn't possible in a week? What kind of trader are you James?

Mick (I never knew the Asian session could be so much fun!)