Only if you are a succesfull trader
- Thread starter drasfs
- Start date
In the FX markets just 5pips a day will make
you rich in no time.
Try 10:1, for starters. Averaging 5 pips daily in Euro at 10:1 leverage gets you 203% annual return. Triples your money every year. 5 years, you're up more than 250-fold (ignoring taxes for simplicity).
No, not at all. Would only be true if you were to RARELY have TINY losses. Otherwise, what you call "effective" is of no use.
At 100:1, every time you take a mere 5-pip loss, you're down 5% of your account. Do that a few times in a row, or even a bunch of times not in a row, and say hello to the grade school arithmetic bummer known as negative effect of asymmetrical leverage. In plain English, it becomes exponentially more difficult to come back from even an extremely modest, double-digit -- in pips, not % -- drawdown.
...I am sure You'll be happy for 2- 3 weeks
There is no secret indicator. All needed information is revealed to you on the chart. Learn to read the chart, it's patterns and pay attention to signals from indicators, but take into consideration that there are many false alarms, so treat these signals as "pay attention" signals rather than "buy/sell" signals.
Practice in a demo account until you profit for the long run - occasional profits or losses says nothing. Practice until your trades are more successful than not (say, at least 70% out of the last 100 trials).
I advise you concentrate on a single ticker (at least in the beginning). Learn it's behaviour at different hours. I also advise you to trade "medium" time-frames, you may use 1min chart, but avoid "scalping" and really-short-term strategies until you are more experienced. Try to set no more than 5 to 7 orders a day, otherwise you might end up paying many spreads but have very little profits (if any) and a with high risk.
Many people say keep psychology aside, trade with no fear and no greed feelings. i say bull---t, you cannot really control your feelings, therefore instead use your feelings as another "pay attention" signals. When you fear it is usually because you unconsciously see something in the chart that signals that you are probably in the wrong position, and vice versa for greed. Your job is to be aware to these emotions and try to be conscious about what triggered them so you can analyze it logically and cosider if this signal is enough for taking an action or not.
Practice in a demo account until you profit for the long run - occasional profits or losses says nothing. Practice until your trades are more successful than not (say, at least 70% out of the last 100 trials).
I advise you concentrate on a single ticker (at least in the beginning). Learn it's behaviour at different hours. I also advise you to trade "medium" time-frames, you may use 1min chart, but avoid "scalping" and really-short-term strategies until you are more experienced. Try to set no more than 5 to 7 orders a day, otherwise you might end up paying many spreads but have very little profits (if any) and a with high risk.
Many people say keep psychology aside, trade with no fear and no greed feelings. i say bull---t, you cannot really control your feelings, therefore instead use your feelings as another "pay attention" signals. When you fear it is usually because you unconsciously see something in the chart that signals that you are probably in the wrong position, and vice versa for greed. Your job is to be aware to these emotions and try to be conscious about what triggered them so you can analyze it logically and cosider if this signal is enough for taking an action or not.