Thread: Closed: Discuss EUR/USD News with a DailyFX Analyst

Originally Posted by AjsooOO

One thing I don't understand. When I have to risk no more than 5% of the capital of my account, what does it mean?

With FXCM France that's 50€ blocked in the account per position opened, a lot being 10000€. I'm currently trading @ one position opened = 2500€ available in the account

The risk is also about how many pips between your entry and your initial stop placement. If you sell the EUR/USD at 1.3500 and place your buy stop at 1.3600, you have a risk of 100 pips. In a standard account where each pip is worth $1, that is a risk of $100 per lot you open. If you have an account balance of $2,000, you can only open one lot as $100 is 5% of $2,000. So margin really is no factor, but your risk on the trade and how many lots you open is how you determine your overall risk. The idea is to keep your risk low and to just try to be profitable every month. Big gains come with high risk and high risk is a good way to lose your money and end up out of the game. It is the series of profitable months back to back that results in big gains. Even if you only make $1 this month, give yourself a pat on the back for having a profitable month. Then try to be profitable again the next month. If you treat trading as a get rich quick scheme, these markets will punish your account balance.

Originally Posted by Thomas Long

I think you need some help with figuring out returns, you cannot have a return of over 100% with a 75 pip gain in the AUD/USD. Margin for a standard lot is $100, so even if you maxed out your account, you could only profit by $75 on this trade. You may also need some help with your time zones. The AUD/USD did not trade as low as .8811 near that time in New York and there is three hour difference between the East Coast and the West Coast in the US. Before you start calling out others about their trades, you really need to make sure you know what you are talking about.

You can see my results of my trade this morning. I have a micro account.
Margin for a AUD/USD lot is $10. I play for researching (moreover, I don't have to much money yet) so then play with small lots.
29.84/40=75%

I'm sorry I make mistake. I just calculated again by Excel.

Originally Posted by Thomas Long

The risk is also about how many pips between your entry and your initial stop placement. If you sell the EUR/USD at 1.3500 and place your buy stop at 1.3600, you have a risk of 100 pips. In a standard account where each pip is worth $1, that is a risk of $100 per lot you open. If you have an account balance of $2,000, you can only open one lot as $100 is 5% of $2,000. So margin really is no factor, but your risk on the trade and how many lots you open is how you determine your overall risk. The idea is to keep your risk low and to just try to be profitable every month. Big gains come with high risk and high risk is a good way to lose your money and end up out of the game. It is the series of profitable months back to back that results in big gains. Even if you only make $1 this month, give yourself a pat on the back for having a profitable month. Then try to be profitable again the next month. If you treat trading as a get rich quick scheme, these markets will punish your account balance.

Hi Thomas,

I am seeing a double bottom in Euro/usd PAIR.

It has been non trending and choppy for last few days, and with double bottom, it has the potential to retrace to 1.38 levels in my opinion.

Your views on this pls. Thanks.

Originally Posted by Thomas Long

The risk is also about how many pips between your entry and your initial stop placement. If you sell the EUR/USD at 1.3500 and place your buy stop at 1.3600, you have a risk of 100 pips. In a standard account where each pip is worth $1, that is a risk of $100 per lot you open. If you have an account balance of $2,000, you can only open one lot as $100 is 5% of $2,000. So margin really is no factor, but your risk on the trade and how many lots you open is how you determine your overall risk. The idea is to keep your risk low and to just try to be profitable every month. Big gains come with high risk and high risk is a good way to lose your money and end up out of the game. It is the series of profitable months back to back that results in big gains. Even if you only make $1 this month, give yourself a pat on the back for having a profitable month. Then try to be profitable again the next month. If you treat trading as a get rich quick scheme, these markets will punish your account balance.

Yeah but I mean, I still don't see the use to place stop orders for example 100 pips above my short trades as many times it crosses that line and then back towards profit area or 0-profit area, and as far as extreme cases are concerned, i could still pend to get out at lower losses levels. Though it never happened to me as im conservative enough, that would be only losing twice or three to five times more than 100 pips. If such cases are rare enough, that's profitable - I assume. But till now it helped me always to close in the green for tens of medium-term trades


+65-75% on my account balance since last august this way

Originally Posted by dhan1163

You saw I got 134% in 3 hours in the morning (02/25/10).
Sometimes you have to wait maybe 10 hours or a days or 3 days because news is affecting while price is going to target point. But, from yesterday I found more things to enter positions and it to its target in short time interval . I think we can have at least 10% each day.

10% a day

please tell me how long you have been trading?

I ask because if you only had $1000 to begin with and have been trading for 225 days only you will have made $728,955.65 compounded at only 3%

and if 10% a day were what you can/are making I would need to ask why you would visit a forum with some of the posts you have made.

You have made it clear that you can see the future so maybe 10% is not too much to expect afterall.

Good luck

Originally Posted by NMV

Hi Thomas,

I am seeing a double bottom in Euro/usd PAIR.

It has been non trending and choppy for last few days, and with double bottom, it has the potential to retrace to 1.38 levels in my opinion.

Your views on this pls. Thanks.

It very well could, but it also has the potential of moving down to new lows. I prefer to trade with the direction of the trend and this trend is down. I would consider a move up to the 1.38 area as a good selling opportunity and would start to look for my entry.

Originally Posted by CodyB

10% a day

please tell me how long you have been trading?

I ask because if you only had $1000 to begin with and have been trading for 225 days only you will have made $728,955.65 compounded at only 3%

and if 10% a day were what you can/are making I would need to ask why you would visit a forum with some of the posts you have made.

You have made it clear that you can see the future so maybe 10% is not too much to expect afterall.

Good luck

Cody,

I have been looking answer for this question.

What is average return on equity one should look for per day?

Thanks

Forex is about capital preservation NOT profit

I would like to see more about defined risk than outlandish profit claims.

Originally Posted by AjsooOO

Yeah but I mean, I still don't see the use to place stop orders for example 100 pips above my short trades as many times it crosses that line and then back towards profit area or 0-profit area, and as far as extreme cases are concerned, i could still pend to get out at lower losses levels. Though it never happened to me as im conservative enough, that would be only losing twice or three to five times more than 100 pips. If such cases are rare enough, that's profitable - I assume. But till now it helped me always to close in the green for tens of medium-term trades


+65-75% on my account balance since last august this way

I have known traders who feel the same way and it only takes one bad trade to knock you out. You will also find examples of traders who traded without stops in the Market Wizards books by Jack Schwager. But they all got hit hard eventually. The lucky ones came back with a healthy respect for defining risk but many disappear never to return. I am convinced that you cannot win without first learning how to lose gracefully. This is of course my opinion, but I think you will find that most of those who have been around for awhile agree.

I'm coming here because I want to learn more things about current technical analysis also fundamental analysis as News. It help me understand more my own theory.
If I do some things that You don't plesant. I'm sorry. I don't intend to make any trouble here. Maybe, next time I'm only participating in current analysis here. Thank you for your understand and help me.
I'm sorry one more time.

I have experience with the stock markets for long term (almost no use technical analysis). I came Forex from July-2009. I'm a new comer. After some times I lost some money . Hence, I have been learning about technical analysis and find out some things good.

Originally Posted by NMV

Cody,

I have been looking answer for this question.

What is average return on equity one should look for per day?

Thanks

I cant answer that..I take whatever the market gives me during the time I am trading. setting a % goal or a pip goal is setting yourself up for disappointment in my opinion.

If you have a goal that you feel must be met and the market is slow you will start to overtrade and feel stressed to make that goal and start to chase trades.

take what it gives you for the 2 or 3 or 5 hours you trade each day and be happy.

forex is not a race you can win, its a marathon you must master

Originally Posted by Thomas Long

I have known traders who feel the same way and it only takes one bad trade to knock you out. You will also find examples of traders who traded without stops in the Market Wizards books by Jack Schwager. But they all got hit hard eventually. The lucky ones came back but many disappear never to return. I am convinced that you cannot win without first learning how to lose gracefully. This is of course my opinion, but I think you will find that most of those who have been around for awhile agree.

I agree. For me, there are two main reasons 95% of FX traders are unsuccessful: Psychological ineptitude and small margins. The psychological input makes people get into hope mode. Small margins that are wiped out with just one bad trade either send them away for good from this market or make them search for the holy grail of indicators.

Trading without hard stops is like jumping off a cliff without a parachute expecting (hope mode) that you will fly. It's just dumb.

Originally Posted by dhan1163

I'm coming here because I want to learn more things about current technical analysis also fundamental analysis as News. It help me understand more my own theory.
If I do some things that You don't plesant. I'm sorry. I don't intend to make any trouble here. Maybe, next time I'm only participating in current analysis here. Thank you for your understand and help me.
I'm sorry one more time.

You have to understand that there are some posters in this forum who really do know what they are talking about. They have seen many come on here to boast about big returns only to disappear just as quickly. If you are here to learn, then ask, listen and learn. If you are here to make claims about winning every trade and big gains, then expect to be challenged.

Originally Posted by Thomas Long

I have known traders who feel the same way and it only takes one bad trade to knock you out. You will also find examples of traders who traded without stops in the Market Wizards books by Jack Schwager. But they all got hit hard eventually. The lucky ones came back with a healthy respect for defining risk but many disappear never to return. I am convinced that you cannot win without first learning how to lose gracefully. This is of course my opinion, but I think you will find that most of those who have been around for awhile agree.

Yeah I totally agree with the learning to lose gracefully thing. I agree 200%. However, I have something against automatic stops, I prefer doing it for myself if I have a good reason to do it. The main danger is pyschological. I'll take this seriously into consideration in the future, especially when trading with no more trend supporting me.

Here are my trade orders as signals are signals are mixed. I usually don't like setting so much orders in an OCO. I'm little confident the two ones with a green mark. As far as oil is concerned, i would be able to end up without any loss I think, but for eur/aud, pending to stop loss is necessary in case trend has reversed.

Originally Posted by CodyB

I cant answer that..I take whatever the market gives me during the time I am trading. setting a % goal or a pip goal is setting yourself up for disappointment in my opinion.

If you have a goal that you feel must be met and the market is slow you will start to overtrade and feel stressed to make that goal and start to chase trades.

take what it gives you for the 2 or 3 or 5 hours you trade each day and be happy.

forex is not a race you can win, its a marathon you must master

I fully agree to your answer, but i wanted to rate my capabilities of my past performance atleast from jan onwards.

This is why i asked you.

I was new to this as you may knowing, i started in august. Untill december it has been mixed, in the sence whatever earned as profit was lost.

Now last 2 months i have been following conservative approach, and my equity on 1 st jan has doubled now untill today.

I am just trying to find out if this is good or not good or average.


Thanks for ur reply.