filled at 1.6425 at 10:45am EST (real.live trading)...got my 10 pips profit..very thankful...
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EUR/USD & GBP/USD & AUD/USD Forex Trading
- Thread starter increasenow
- Start date
Quote from increasenow:
yes, it was...and got the 10 pit profit...very thankful...any trading for you today?
kinda wondering how many feel this 40-10 risk/reward ratio is too risky?
Cabletrader said it best: It all comes down toyour winning % when the risk/trade so heavily outweighs the potential gain. If you win better than 80% of your trades, you will be net profitable over time. If you win only 50%, you will soon go broke.
Figure it this way - every 1 loss will burn the profits from 4 winning trades. That is, for 5 trades, with 80% wins =
trade 1 = +10
trade 2 = +10
trade 3 = +10
trade4 = +10
trade 5 = -40
Net = +/- 0
So you need to win 80%+ (more than 80%, not 80%) to be net profitable.
Quote from increasenow:
kinda wondering how many feel this 40-10 risk/reward ratio is too risky?
Uh...everyone.
Your risk/reward ratio is skewed, especially since you are not scalping as cabletrader referenced. You are setting your TP and SL at time of trade which can be dangerous.
Look at it this way, would you risk a $4 dollar bet to make $1 when the odds are not 1:4 in your favor?
There is a good section at babypips about money management which I think you should read as well:
http://www.babypips.com/school/money_management.html
exactly...I've seen the EUR/USD and GBP/USD "explode" past 'nice round numbers'Quote from Ivanovich:
The argument that nice round numbers are great points because it is a visual draw for traders is completely irrelevant in FX, as the specs represent such a small amount of the movement in terms of the price action.
no, not bored at all...right now, I've got EUR/USD and GBP/USD on my trading screen and have been favoring trading the GBP/USD (love the potentional big moves and trading range)...also, I've got the ES (mini SP 500) on my trading screen also...that's itQuote from cabletrader:
You're doing great with the majors so why change, don't tell me you're bored already!
well said to you and Cable trader...I guess that is my ultimate thinking...keep the winning trade % at 80% or better hopefully!!!...note: I would like to decrease the stop and increase the profit goal as I 'get better' at reading trades...right now, 10 pips is good for me...Quote from ddaytrader:
Cabletrader said it best: It all comes down toyour winning % when the risk/trade so heavily outweighs the potential gain. If you win better than 80% of your trades, you will be net profitable over time. If you win only 50%, you will soon go broke.
Figure it this way - every 1 loss will burn the profits from 4 winning trades. That is, for 5 trades, with 80% wins =
trade 1 = +10
trade 2 = +10
trade 3 = +10
trade4 = +10
trade 5 = -40
Net = +/- 0
So you need to win 80%+ (more than 80%, not 80%) to be net profitable.
thanks!!!Quote from cstfx:
Uh...everyone.
Your risk/reward ratio is skewed, especially since you are not scalping as cabletrader referenced. You are setting your TP and SL at time of trade which can be dangerous.
Look at it this way, would you risk a $4 dollar bet to make $1 when the odds are not 1:4 in your favor?
There is a good section at babypips about money management which I think you should read as well:
http://www.babypips.com/school/money_management.html
Quote from uexkuell:
(Please note where EUR/USD, GBP/USD, AUD/USD, EUR/JPY are now - whatever appeared there on 07-13 it was not what should be called resistance)
Looks like GBPUSD is gonna hit some reisitance at 1.6450-55, which is around the 61.8% on the hourlies of the recent high back on 6/29. If it takes that out, next level could be 1.6546 which would be 76.4 level.
short 1 GBP/USD at 1.6415 at 12:47pm EST (real)...50 stop-10 profit