Wondering what is wrong or not good enough?
- Thread starter zoli
- Start date
Quote from zoli:
Yes, true for sure Murray.
My girlfriend knows little about trading, only that she gets sick and wants to go to toilet when I tell her that I have am in the market and I can loose 2-3000 easily. And that is not even hugh money, yet it is close 6 times more someone makes a month in my coutry.
So with her little knowledge she said: "paitence Zoli!"
And actually FX is not running wirst than an other. And I will get this.
Will be really cool.
My uncle likes to gamble so even gave me a little money to trade with. I warned him that I do not want because I can loose it all! He said fine, he wants it anyway because he likes adventures.
Good man. He hates any banks and investment firms actually. They are ....
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4 to 1 means your ''15% drawdowns '' probably go past 60%;
4 to 1 means you will remember your mistakes much better.[LOL]4 to 1 means your probable 60% drawdowns take about 120% per year to break even...............................4 to 1 means your female friend probably pukes 4 times as much.
Here is some helpful sarcasm. You maybe smarter than most of the top traders in Jack Schwager 3 top traders books-very few of them traded 4 x . Sarcasm is over
Well @ least 4x dealers disclose you may lose it all; the newer the trader the less they respect risk/leverage
.And in the unlikely event you maybe a bit smarter than most of the top traders in Jack Schwager's 3 top traders books-too BAD. As they say in Chicago''the smarter you are the longer it takes''[William Eng ]
Also if you are NOT in hi tax area, & you manage your money well, like paying cash for cars, debt free home, garden......It takes very , very little money to live on.Wisdom is profitable to direct
When I used to do lots of back testing on stocks, I played around leverage to maximize performance. Even the best systems nulled the account with 4x leverage.Quote from murray t turtle:
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4 to 1 means your ''15% drawdowns '' probably go past 60%;
4 to 1 means you will remember your mistakes much better.[LOL]4 to 1 means your probable 60% drawdowns take about 120% per year to break even...............................4 to 1 means your female friend probably pukes 4 times as much.
Here is some helpful sarcasm. You maybe smarter than most of the top traders in Jack Schwager 3 top traders books-very few of them traded 4 x . Sarcasm is over
Well @ least 4x dealers disclose you may lose it all; the newer the trader the less they respect risk/leverage
.And in the unlikely event you maybe a bit smarter than most of the top traders in Jack Schwager's 3 top traders books-too BAD. As they say in Chicago''the smarter you are the longer it takes''[William Eng ]
Also if you are NOT in hi tax area, & you manage your money well, like paying cash for cars, debt free home, garden......It takes very , very little money to live on.Wisdom is profitable to direct [/B]
Hmm yes I see. The position must be sized reasonably. I started with 1:100 in FX and never had any problem, so I am still using it.
It is true, though, that I always use carefully assessed position sizes and I think I never actually fully utilized this big leverage. I could have done the same performance with a much lower too.
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Light marathon;
It can work for a while[large leverage];
Bunker Hunt/silver,
Bear Stearns/banking.
LTC/trading,
Lehman/banking/blaming shortsellers.............................
Some do well with large leverage;
but with a worst case scenerio of that[large leverage] being a small/very small % of capital.
True, it can work for a while beautifully, until a string of losing trades.Quote from murray t turtle:
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Light marathon;
It can work for a while[large leverage];
Bunker Hunt/silver,
Bear Stearns/banking.
LTC/trading,
Lehman/banking/blaming shortsellers.............................
Some do well with large leverage;
but with a worst case scenerio of that[large leverage] being a small/very small % of capital.
Zoli mentions 100x leverage he uses in fx. It means that a sudden 100pip spike wipes his account almost clean, if he is on the wrong side.
Sure it would if I was that silly to put that large position. I always have pre-determined risk and I always use a hard stop just in case.
In fx you do not need to worry too much about gaps like in futures. Yout SL order can get filled.
So a 100 pip sudden spike sure erases my position if my SL order is in the way. In that case I lose what I already decided to be my risk.
So, frankly I never got the margin call and account wiping thing. So easyexample, I want to long eurusd and I am willing to risk say 2% of capital. I put the SL to the level where the trade would be invalidated and I size my position accordingly. I also keep track on the amount of margin I need if I am in red. I have always done so.
Do I do something wrong? Do I take an inappropreate approch?
I am asking seriously and not ironically trust me. Maybe I am with a too small position in the market, would that be so? I am interested in your reply, remember, this thread is about "Wondering what is wrong or not good enough?".
Z
Your account will tell you if you are doing something wrong or right.
As far as your fx leverage: if per trade you risk no more than 2% of your equity and you avoid the news releases, than you are fine in my opinion.
But if I understood your usage of 1:100 leverage correctly you meant the following: for example you have 10,000 usd in your account and you open a 700k eurusd position (about 1:100) than your stop must be 3.5 pips away so you don't lose more than 2% of your account.
Yes, there are certain types of trades, when you can get away with such a small stop, but those are the exceptions, but most of the time such a small stop loss is taken out.
I rather put it this way:
correct usage of that leverage is (in my risk management style)
: I have 10000 usd in my account, I never ever open a 700000 usd position with that small ballance, that would be a 7 lot line. 3.5 pip movement in this market happens whenever Bernanke blinks or farts. So I consider min 50 pip or rather 150 pip SL level to a position which is to survive a day and get into the flow of a trend.
In that case the correct size for me is 0.13 lot for 150 pip SL. So my risk is 0.13*10*150=200 usd, 2% of my ballance.
But we understand each other.