From the immortal words of John McEnroe YOU Can't Be SERIOUSOriginally Posted by ;
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From the immortal words of John McEnroe YOU Can't Be SERIOUSOriginally Posted by ;
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Do you belived that Stan Drukenmiller, John Paulson, Steinhardt and George Soros, Julian Robertson, Paul Tudor obtained an edge reading books by Tharp, Bollinger, Tom DeMark and Nielson etc? You shouldn't be kidding.Originally Posted by ;
The definition of edge varies for each person, and exactly what one called edge to me ain't border but no more than tools (your spent money 100-100.000. -, your own system; person, computers, egy, books on technical analysis ). Once you deposit cash to the broker its cash its tools, that must generate money for you to take home. To put it differently, they are your equipment to get the money.
With 1:100 and 1:20 investment for me it doesn't serve hot soup and steak on the table daily on winter, regardless of what edge you proclaimed that you've, like playing bingo you can promised to have an edge and its fine for me personally, since it would just make decent brain action. However, if you can ride the wave like I ride the pair of USDJPY now 2010.11.18 in 17:00PM, this is the real edge by my definition and I place 10 lot buy on it and also ride/surf the wave when it goes up from 83.258 into 83.753 (that I have been waiting patiently inside decending Valve that by almost any technical charting publication ought to go down and great for shorting, but publication isn't right, just after shooting star and turning top it goes far up) when a lot of retail trader shorting yen. This type of edge I figured out that Soros said to Stan Drukenmiller go for the jugular when he leveraged for shorting cable 1:400 ($50 million to leverage $20 billion) and surfed the wave (on top of 1750 pips) when it's coming. In now USDJPY pair, I strongly believed it is due to The Bank of Japan (CB) intervention to weaken the yen and also to keep their products connected to the dollar not to be expensive. I am happy
Do not bother, they are just what's indeed called the 1-5% in this forum that differ compared to remaining.Originally Posted by ;
Its trading Currency Market. You need to already be rich before trading Currency Market.
The average retail place trader will never be wealthy trading Currency Market. Period! To a lot of variables and an market . Sure, you can make a wonderful living trading Currency Market but you'll never be at the level of say, Soros or Paulson unless unless you're coming into Currency Market with a million or more. Soros, Paulson, and many others know this, which explains the reason why they trade clients cash.
It takes money to earn money. The client money you've got the most risk you require. If you acquire that risky trade, the more of a commission you command. Want be a different Soros, a mass a wonderful collection of clients. If Soros and gang was given a $5,000 Currency Market account, they like you, would lose against the place as theres too many variables retail Currency Market traders.Lack of verifiable information (i.e. fundamentals) Lack of uniformed market data (data feeds different from broker to broker) Broker conflict of interest Lack of a Central Exchange Questionable ethic (broker)
To list a few...
So I'd be astounded at finding a retail place Currency Market trader who is wealthy from trading Currency Market from a $5,000 account. Not saying its impossible but too many traders are holding on to this notion they will be that lucky ones to do. Most Currency Market traders stop and will lose their shirts, others will make a nice living trading Currency Market. However, to get wealthy trading Currency Market, you'll need to already be rich. The Currency Market market, as it currently stands, is set up so the normal day trader will fail. You are chances of making a decent living trading Currency Market is high if you're a Buy and Hold trader. Reason why Buy and Hold traders possess the possibility/opportunities to create a decent living is that they are not pron to average broker integrity, lack of information, higher cost of business, and data.
Investment to trading 1 lot (for great take home pay):
$1000. - leverage 1:100
$5,000. - leverage 1:20
$50,000. - leverage 1:2
Risk management 1-2% reduction tolerance
For $1000. - investment together with leverage 1:100, account wiped out (broker joyful )
For $5000. - investment together with leverage 1:20, account criple 40 percent (broker win)
For $50,000. Investment with, account harm 4 undamaged to return.
Conclusion:
For investment $1000-$5000 (there is no advantage at all )
Trading 1 lot would be to give charity to the brokers (they are very happy).
Trading.1 lot is paying tuition continuously waste your valuable time (great for retired activity).
Trading .01 lot is mind training, waste your valuable time better get whole time occupation (idem ditto).
For investment $50,000-$100,000. -
Trading 1 lot would be great take home pay from investment
Thats all well and good however let me ask how many people come to this stadium with 50k and no comprehension of what to do.Originally Posted by ;
Your final example where you state'waste precious time' is so far off. It's responsible trading to discover whether you've got an edge that is exploitable before'investing' 50k in an account.
It's terribly unlikely that anyone trading with a portion of 50k with higher leverage and risk that they'll live out 6 months (if that) but the'wasted precious moment, better off getting a job' percentage is really the smartest part. If you dont believe it then by all means, open and account with 50k, throw your knowledge and start your learning curve from there.
I will say this once and once only. There's not any such thing as'wasted time' if you're learning wasted opportunitys should you don't listen and take time to them to consume that information.
Your edge is not defined by the size of your account. In order to assertain if that edge exists over a lengthy period you have to have data, a beginning in present and at least years of historic. I could exchange with exactly the same strategy with 50k or 5k. When I take the very same trades the results will be the same albeit that the latter will lead to a greater monetary win (or loss).
RT
HI, I think that definetelly yes. . When you understand the fundamentals. . And have great idea. . I have started half year ago... read five books about trading. . And when look at chart I see lot of thinks, that I dindnt view earlier. . You have to want it, although its not simple to be succesfull. . The best think about forex is posible of development. . For example my trade. . I purchased 2000 euro. . And after 6 month my best commerce was 200 000 dolar. . This is some thing like 6 hundred occasions. . This can be possible at forex, thanks to leverage
Q: Is it possible to be rich in FX trading with $1000-$5000. - investment ?Originally Posted by ;
A: No matter what edge do you identified which fit for you trading style, the answer isn't!
Demo trading is a lot better off to find out the egy and finding edge if you can state, and actual micro-mini account ($1000-$5000) is to check and get learning curve to deal the plogy factor of trading and won't ever bring your income up and get rich as the topic ask for.
I never said that trading a 5k account can make you wealthy, I was merely stating that your logic that an edge has a few involvment with trading account dimensions is flawed. Having a large account does not add to or subtract from you'advantage' it only makes more or less money (or declines as mentioned ) through your appliion of your advantage. Having a bigger account does help somewhat with the facets of feeling the reward for your effort but jumping in too soon with your new found advantage to a account and you might find that a few losses will have you imagining yourself.Originally Posted by ;
As for your remark on investing in a demo account vs a tiny live I couldnt disagree more. Not many men and women exchange a demo account correctly. At least with a little account if you treat it wrong you will find yourself in the margin column. If you cannot exchange a account correctly then you will not trade a account correctly. Too many men and women believe because they have success with demos that they can move up into the big leagues and exchange a great sized account (5k ).
And as a side note, there have been a number of folks who took insufficient account sizes and surpassed the million dollar mark so it is not Impossible just Improbable.
RT
Definition of rich is comparative. How much cash do you need to have to feel rich?