SKS,

Where is your stop placed on this trade. And what type of RR do you trade with?

Interested to know......

Hi Pebber,

Sorry I don't use SL at all but very rarely have to cut my losses short which is almost negligible in last 3 months. I prefer to leave tons of free equity in case situation goes against me. Todays EUR/CAD is safe as CAD weakness to continue and EUR will be almost stable until ECB meeting on Thursday.

My target R R is 10% a week as I use an leverage of 1:200. I have actually done that yesterday alone with AUD/USD short position in less than 6 hours of recommendation by Ilya. I am following this pair with Brad and Ilya for last few weeks but today Master Brad said just get into it so I am into it big way without SL. I will close this position in next 12 hours max and hopefully with a decent profit. Good Luck

Wow dude... one of these days you would be wiped out without SL and with 1:200 leverage. Just ask Master Brad if he uses SL and what kind of leverage he is using. I bet he always uses SL and he uses 1:10 or 1:20 leverage max. I bet he also limits his risk to be at most 3% of his overall capital, right Master Brad?

Hi C Mellon,

I full agree with you and that was the case before March 2008 but that's past now. You will be surprised that in last 3 months I have never reached to that stage and have taken bigger risk then I am taking today with EUR/CAD. Yes I did cut my losses short but the loss amount and no of lossing trades is negligible as compared to sucessful tardes. I am also glad to inform you that in last 3 months alone I have managed to recover most of losses incurred in last two years. This is all possible due to DailFX forum and expert opinions for Ilya, Brad, Italm, Justy and yourself.

Its not worth taking all this pain and stress for small amounts of profits/losses. Do less and selective trading. I trust and respect Brad a lot and have done my full home work before taking this position to face all eventualities. I know Bard trades in long term but I trade in short term, may be only few hours only and don't have to trade everyday!!!

Its just a matter of few hours and we will see the result.

Well all the best SKS.
I too had an attitude as of yours when I started and was making some very good profit over a 4 mth period. Then it all turned on me and I couldn't put my finger on exactly what was wrong, apart from I was leveraging way too much and not setting correct stops. But hey, we all have our different trading styles, some work some dont.....
I hope this doesn't happen to you, and your EURCAD goes thru the roof......

GL

A leverage of 1:200 is an offer you should always refuse.
One bad day, and you're gone.
GL.

HI GL and Pubber,

Thanks for your sincere and honest advise. I am pleased to inform you that I have already closed half of my position with decent profit last night itself as my target was just below 1.62 which was hit so Brad is a winner.

Yes 1:200 leverage is suicidal but if used wisely with a tight money management, it can give us great results which I am able to do it after learning hard way with heavey losses in last two years. One more fact is that I don't sit and do live trading like in past when I was making error and childish mistakes.

I am now on a path of slow and steady success and not thinking of becoming a Millioaire in 6 months. Lesson learned 'Less is More'.

LOL, Less is more with leverage of 200......... Sorry SKS but that's a bit of a laugh.

Anyhow all that behind us, seen your in NZ you didn't get much sleep last night? Were you waiting for the non eventful FOMC rate decision?

I see EURCAD has come back down to the 1.61 level so glad you took some profit at 62.

B

SKS, I find the statement is contradicting in many ways. Tight money management implies that you need to put Stop Loss (or hedging like Brad says though I don't like hedging) and you need a reasonable leverage. No Stop Loss and 1:200 leverage is not so called "tight money management". You can read all forex book out there in the market, and everyone of them says that any trader who do currency trading for a living should obey this rule if they want to survive for a long time and do this for a living.

Also, the fact that you don't have to sit and do live trading even though you don't have stop loss and have 1:200 leverage is beyond my understanding. If you don't have SL and 1:200 leverage, you need to sit on the computer 24/7 non stop, worrying every single 30 pips moving against you.

This style of trading is very dangerous. You may have 1 year very profitable trading, but all it takes is just that one single misfortunate day, and all the profit + initial capital can be wiped out. All it takes is one single misfortunate day when you think Brad / Ilya / Justy / whoever is absolutely correct, and you enter the trade confidently without SL and 1:200 leverage, then you leave for a coffee / shower. Next thing something extraordinary happens, and it moves 100-200 pips against you, and you don't want to close since it's already 150/200 pips against you, thinking it will come back again, but it keeps going against you, until finally all is gone.

Remember everyone is human and we can make mistakes with our analysis. No one can predict the market correctly 100%. That's why money management is very important. If anything, money management is the most important rule to obey in trading, much more important than entering the right trade and making a profit.

This is just my sharing, I hope you don't take any offense. You can continue trading with your style, but I am just sharing that this is dangerous.

Good luck.

Hi Brad, Thanks for your opinion yesterday on this pair and I am very happy to trade in this as already booked excellent profit already. But it was really good to see such amazing response to your call and it was a very constructive discussion I believe. Looking forward to enter this pair again once Euro has stabilised little bit. We survived FOMC and hopefully will be able to survice & flourish with ECB meeting later today. Regards

Hey Pubber & C Mellon,

You guys must be happy to know that today ALL funds in the account disappeared even though nothing drastic happened in EUR/CAD?

But the reason is not my loss or liquidation of position but Human error at CMC Markets New Zealand. They have accidently transferred or some fraudester has got access to my account? Now their office is closed so have to wait until tomm morning to see how much compensation I will get for this error?

Hi Pebber and C Mellon,

I know you or anyone will trust me what I am saying but its a hard fact and a reality. I have done it and will continue doing it. Yes its extremely dangerous to trade with such high leverage and that too without SL.

I usualy trade in Forex but also do swing trading in commodities and CFDs globally. By using such high leverage, I can trade in large volume, use max 10% equity and balance equity is used for swing trading which are highly liquid. In Forex my target is 50 - 100pips. I always look for tops and go short, very very rarely I go long like last night. I am very happy with EUR/CAD trade which helped me with a net retun of 28% in 48 hours on total equity. I do very less but selective trading mostly based upon opinions from DailyFx experts. I then withdraw $500 min per week to protect my capital against any eventualities, which I am doing wef 10th June 2008

This strategy works for me but may not work for everyone as it needs a big heart to diggest temporary losses when position goes against you. I trade only when I am confident on any pair or just look for good opportunity.

Ok let me give you a simple fact. I started on 1 May 2008 with just $1018 and as per statement dated 5th August 2008 my account balance is $22,049.

Please feel free to ask questions but please note that I work F/T and trade for myself only in evenings. I am not an expert in any of these techniques but I have learned how to interpret and use them. Good Luck to all!!!!

Hey SKS, new guy here. You are correct in that you can use high leverage but you must limit your exposure to something like 10%, this is actually somewhat conservative trading. It really is not the leverage but the exposure or a combination of. At Oanda where I trade you can use any amount, you are not limited by lots so I can trade 1.3% of my account if I want to (but the limit leverage at 50:1). If I use 20% of my account at 50:1 then it is the same as using 10% at 100:1 leverage. At 10% at 200:1 I think is stretching it a bit but hey it works for you.

At good exersize is to plot out how many consecutive losing trades you can go till you run out of money on one axis and your exposure on the other axis (10%, 20% etc.). Generate different plots for different leverage ratios, 50:1, 100:1,200:1). This is kind of give you a visual chart of risk.