I'm looking at getting into forex full time. I checked a couple of accounts on different websites. I was wondering if i should quit my job and get into to full time. I'm not sure what you mean? I would not leave my decently salaried job for that amount With all due respect you are both very wrong.
I trade anywhere from between dollars a pip per one trade. I am however using my leverage. But, I do not recommend this for someone new. As said in babypips, once you have some experience you can better use the double edged sword that is leverage. If I lose a certain amount of pips I stop trading.
Focus your mind on the goal of learning to be a very skilled trader, the money will happen as a bi product. If you think about money you will engage the part of your brain that daydreams about being rich or just what you would do with some extra money, AND the fear of losing money.
So, your mind will be on money and not on trading. Tymen I know from first hand experience that what you said is simply not true. That was just by slowly compounding. AND I almost wrecked it after my first three weeks. Then I learned my biggest lesson, of not letting my losers run.
You CAN, make decent money and learn valuable lessons from live micro accounts. The only people that should start 1K- 5K accounts for their first ones are people who laugh at losing K.
Ok, you got me there. It wasn't "slowly," compounding at that point. After I almost blew the account I sat out of trading for a week to get my mind right. When I started again, I compounded with every winning trade. I saw a big downtrend and kept getting in at retraces as it went down. So, it wasn't revenge trading, it was more like WTF my accounts almost blown so I might as well be agressive and try to rebuild it. Part of it was luck, now that I look back, I had hit a winning streak as the trending strategy I was learning at the time was perfect for the market condition I was looking at.
You see, herein lies the problem. I advocated and assume correct money management for all trading. In such a case, only a micro account would suffice.
At least you are being very honest You have been very fortunate to build up your account the way you have. Now Sheetal , may not have your good fortune, and in any case, he has asked for advice, and we are compelled to give him what is correct according to the textbooks. I totally agree with this. In conclusion, all the best with your trading. I can see that you are shaping up to be a gun trader. I can remember when you first came on this forum - full of questions.
Now you have no problem giving first class counsel to the newbies!! I am a teacher and Babpips runs a school on forex trading. It is important that I do not contradict what the school says. Read again, the chapter Then you will understand exactly where I am coming from.
That is where I and the babypips school disagree. I believe they should re think that statement. Leverage isn't the killer. Misunderstanding the leverage and using a large amount of leverage when the trader can't wield the leverage without hurting themselves is what kills.
But, utilizing levearage to your advantage is a big part of forex. It's just beyond what someone new should be doing. IF you become consistent and have a repeatable edge, then it is in your monetary interest to raise your risk. This is not to say the risk should be so foolhardy that it cleans out your account. Great teachers don't just repeat what is writtin in the text, as if it was a written in stone fact. If that is all a teacher does, then their is no reason for them to teach, because it's already been written, just point the student to the book.
A parrot isn't a teacher. Well, what can I say? Every book written by master traders will all say the same thing as the Babypips school. You can disagree with sound counsel but you do so at your own risk. I only submit that I would give orthodox counsel re money management to a person starting out. But I am not a parrot!! And even so, as an experienced trader I cannot contradict what the school says It is true that at 10 cents per pip, you will make no money. The school says to go and work and add funds till you have a sizable deposit.
That seems fair to me. If you re read the babypips school it also says that using a good amount of leverage is useful in the hands of a skilled trader. Read between the lines, often the real clarity is there. So, you've read every book there is? I like books myself. But, I've found more often than not the ones written by, "master traders," are often pretty much garbadge.
Most of the, "master traders," don't come from backgrounds like the smalltime traders here myself included , most start with millions and trade on that. Most of the traders here are hoping to start small and build their way up, to millions. If you do your reasearch, you will find most, "master traders," are not masters at all, they are leverageing what to most of us are already fotunes and making a living.
It's much easier to make a living on what is already a fortune. It's another animal entirely to take a small amount of money and compound it slowly into a fortune.
That is, if my goal is to make a fortune from a small starting account before I am Once I get to critical mass a sizeable account which will not trade large amounts easily, then I have to either size down or find a larger lake to swim in.
In the end if what you are doing is working and is found to be repeatable over x amount of trades, IE, an edge, then there is NO reason not to risk more to make more. This as long as it's really an edge and not a lucky streak or a new excited trader because he won three in a row. Please understand I am not saying to throw all of your account into a trade or trade unwisely without an edge and just hope.
What I'm saying is develop an edge first. Winning more than losing Then leverage it higher when you are confident that it is a repeatable edge. I also disagree with: You should not keep depositing money until you have a sizeable deposit IMO. All that will do is make you loose more on your first couple of account which are learning stages. When you can start a small account and keep compounding it, then you know you are starting to build REAL trading skill.
The mindset you talk about: A large starting account will in no way help you be a successful trader. You will just loose more initially.
Most popular brokers offer micro accounts with micro lots. So, what was true in the past that you can't really trade unless you have a big account , is simply not true anymore. But, they are not for someone brand spanking new to trading, I have already stated that. Not picking sides here This is not directed to any participant on this thread. It is just my opinion to the thread starter. If you want to make 50 bucks a day.
Go pick up a second job and put your 50 a day into your trading account. Start slow and small using all the lessons in babypips on money management and risk. Once you have gained all the experience that you think you will ever need, go ahead and blow off all the rules in the Babypips school and trade to your hearts content and good luck. You will see that no matter how small the number you picked, the end number will be more than the financial bailouts after a years time.
Nobody here or a single person in the world has that much money.More...