For the way I trade that huge 1 hr just kinda unravels any normal trades I would do... lol It's like a big obstacle in the way that throws anything over a 30 min view into disarray... as I tend to work off the 1day, 4hr, 1hr, 30min, 15min and 5min altogether ha ha...
This is more like a fundamental/tech trade...
to SimpleTrades...
I will live or die by these trades I'm making so as much fun as i make it sound... this is my only income...
It definitely changes your outlook on things and is difficult when you don't have the correct bankroll to start with...
OPM is looked at differently by me at this point... if you can withdraw your initial sum like you're talking about and then trade that's great...
When I talk about OPM... maybe a better and more properly scary word would be pyramiding...
A hypothetical:
Lets say i have a $100 acct... I short $100 and then every so many pips down I add or roll it into my 100 increasing the size as I go...
there are a million ways to do this but i warn You Strongly that Margin will be your undoing if done incorrectly because you will quickly see your equity moving up but you are running out of margin and it can happen in a flash...
you find yourself on the sideline cut by a third or half... it's like dying by a 1000 cuts...
This is not the way I do it as it is more controlled and mechanical (I have many written programs along with much experience that I use along with good mentors) in nature because you can blink when things go wrong and they will trust me... and it's game over...
In some ways this is bit like gridding if you do it wrong...
Stick with your way I think it much safer... until you have developed your own theories...
Maybe I shouldn't have explained any of this but I don't need you or anyone else blowing up because of me
As for scaling in when you already have the money and like the trade... most of the time, and I think atticus and others would agree, that you are better off to get it all in with your x% of your acct(bankroll etc...) that you've decided to risk on that trade and then stop out as predetermined quickly if your wrong and wait for the next opportunity.
I use all my margin and it is excessive but much smaller than that of our European counterparts... I can blow up in a heartbeat if I screw up...
I don't have time to fully access your strategy... if it works for you fine but sounds like you are playing with fire... especially if you get serious...
get into good habits right away so that there is no question when you are violating them and how that plays into your strategy as a whole or doesn't...
it's easy to fool yourself in this game...
to be honest the fact that you casually mention your acct wouldn't have been blown out over the weekend worries me as I get the sense this is throw away money which is fine but not the same as those who will pay their rent or buy groceries tomorrow with what they make or lose.
Just some thoughts and none meant to be demeaning
Maybe others can also look at your strategy, I don't mind if you don't...
Just don't look at mine because you won't find it here only glimpses...
Feel like I just wrote a book
wdbaker
xclr8tr
atticus wannabee
Quote from SimpleTrades:
OPM? Good idea. I finally recovered all of my losses from 2012, pulled it out of the account, and now I am trading with pure profit. When I was doubling up/down, I was working with micro lots (1000) (u). I never owned more than a mini lot (10,000) at any given time. Usually went in with 2u to 3u at any given time so that a pip never cost me more than $1 when fully loaded. As I said, I am working with small numbers. I found it very effective to add 2u to 3u at a time, and then peeled each off as they became profitable. I'd then load back up again, over and over again until finally the first 2u to 3u, would suddenly go in my favour, and if it didn't, well, so what, the sum of the smaller wins was far greater than the one big loss.
By the way, I don't know what your margin requirement is, but I am limited to a minimum of 3% on my account. i.e a mini lot requires about a $390 deposit. So, the leverage isn't excessive when you consider that a pip costs me at most $1. My account wouldn't have been blown out if I had been fully loaded over the weekend. I would have only touched one third of the deposit requirement.
No stop set on this one.