Quote from asiaprop:
all your screaming does not help, tell me trading 50:1 or 100:1 is not taking completely outsized risk. The point is, anyone trading money on such basis DOES NOT understand risk nor should be trading because he/she is not only risking his own money but on a larger scale also adding to aggregate risk in the market as a whole.
You don't have a clue, do you?
It is NOT the leverage that's the problem insomuch as it is the
lack of skill and knowledge on how to make the leverage work FOR you instead of AGAINST you.
The simple fact that you don't yet understand this incredibly fundamental concept, is proof positive that the only PayPal Paper Trader around here, is YOU.
I bet that you are one of those same so-called "Traders," who rail against the idea that having two opposing open position of equal size and timing, is not considered real hedging, and that both positions have no "real purpose" but to cancel each other out? I bet that is your mentality, as well, no doubt.
200:1, 100:, 50:1, whatever, whenever. The problem is a lack of education on HOW these markets work. If you are a true equity derivatives trader, then you should already know that
good trade strategy coupled to good money management strategy can trump 50% trade accuracy - and - 50% probability is plain vanilla risk, upon entry into most all financially traded markets. So, it is your education that raises your trading accuracy with respect to striking your Limit Order BEFORE the market strikes your Stop Order. What you truly understand about how the market (read: your pair) works, is what move your trading accuracy above the 50% probability range and into the high percentiles where real traders live out their trading lives.
Big, just posted the perfect example of two traders using two different leverage levels, yet turning out the exact same failure rate. Mathematically, your harping on Leverage as being the problem for trader's failing, is illogical and irrational and it paints you as a total neophyte to this business.
Now, grow up (in this business) and learn what you need to become consistently successful and stop acting as clueless as the bureaucrats who will ruin just about anything they can get their hands on. If the YOU and the CFTC were seriously concerned about Consumer Protection as it relates to Currency Traders (what a joke that concept truly turns out to be), then both YOU and the CFTC would be trying to build a comprehensive strategy for increasing the overall education of each Currency Trader in the market place. That, above all else, would make more traders more successful and it would do wonders to lower the so-called 95% failure rate.
Mathematically, you can lose far more than you win and STILL walk away from this business a Millionaire at least over a period of just a few years but ONLY if you learn what Money Management looks like AND how to properly structure your trades (positions) such that when a failure does happen, even at 200:1 or 100:1, you don't get wiped out. THAT comes from EDUCATION and NOT from artificially reducing leverage.
Without proper education, you can mandate the leverage down to 10:1 and the trader will STILL lose everything IF they don't understand proper Money Management AND proper Trade Set-up (configuration).
So, go sell silly somewhere else - I'm all stocked up here. Leverage is not the target. Education, is the target.
