RahmanSL
Major
- Messages
- 2,934
Be satisfied with USD50-60 on a USD5k account???....hmmmm, to be perfectly honest, I don’t think so!...above USD700 would be okay and I can achieve that (and more) on each normal trading day…BUT, then the thoughts, “Why stop at USD700??” creeps in and then I go looking for trouble by entering too many trades.
As I have mentioned before, I straddle the currencies pair (i.e hedge them) and play off both ways. When I trade like that, there comes certain times when I actually feel pity for the currencies pair as it doesn’t know which way to go as it is “trapped” by all those hedged positions and it doesn’t matter to me as I make money both directions. If one side of the hedged positions outnumbered the other, I then enter 1.0 t0 2.0 lot size trades, and this is when I can scalp large profits. At such times, I feel a tinge of guilt as I scalped profit in seconds which is equivalent to some workers daily, weekly, and even monthly salary. And they have to toil under the hot sun all day long just to earn that money.
And, also as mentioned, on normal daily currencies movements, my account can sustain the losses which are either offset by the hedged positions or, as when there is a clear trend, I enter fairly large lots (1.0-2.0 lot) and skim off the profits in quick successions.
However, currencies spikes (especially like that one last Wed and then again twice more on Friday) upsets my whole system and balanced calculations resulting in me entering, hedging, & closing trades at speed (and losing track of how many trades made) just to keep ahead of a margin call or worse, stop out. My problem is that I have to be able to just immediately sacrifice the larger losses when there is a clear trend in the opposite direction.
After much reflection on why I failed in so many micro and some inadequately funded Standard & ECN accounts, I believe the root cause lie in what I perceived as good profits in a trading session and it’s all tied in to our earning power.
For example, if we earn usd100k per year, physiologically our brain is looking for usd384 per day (5 days working week) and anything less than that is unacceptable. In the process to attain that profit mark, we take high risk and, if as the trading session draws nearer and we are no way near our target mark, we take on even more risk which, in a bad market, will wipe out the account.
So, making usd10 to maybe usd50 in a micro account becomes insignificant and unsatisfying…and, of course, a complete waste of good money.
Based on this principal, micro account is good for practicing and to get a feel of real market trading conditions.
Demo account is good for Newbies to familiarize and to learn how to use the trading platform and to apply what they have been learning towards their development of a trading strategy.
It is also, of course, suitable for seasoned Traders to try out new trading strategies before applying that to a live account.
But I wouldn’t recommend Newbies to stay too long on a Demo because there is a real danger that Newbies, after making thousands on a large Demo account, will trade real account like the Demo one and soon discover that trading a small or insufficiently funded account does not work out as in a well funded Demo account….and, of course, we cannot simple click on a new “Live” account and fund it with “Virtual” money.
Ok “along”, another trading week will be upon us soon, and another success or failure story will be due next Sat/Sun.
Take care and all the best in your trade!
As I have mentioned before, I straddle the currencies pair (i.e hedge them) and play off both ways. When I trade like that, there comes certain times when I actually feel pity for the currencies pair as it doesn’t know which way to go as it is “trapped” by all those hedged positions and it doesn’t matter to me as I make money both directions. If one side of the hedged positions outnumbered the other, I then enter 1.0 t0 2.0 lot size trades, and this is when I can scalp large profits. At such times, I feel a tinge of guilt as I scalped profit in seconds which is equivalent to some workers daily, weekly, and even monthly salary. And they have to toil under the hot sun all day long just to earn that money.
And, also as mentioned, on normal daily currencies movements, my account can sustain the losses which are either offset by the hedged positions or, as when there is a clear trend, I enter fairly large lots (1.0-2.0 lot) and skim off the profits in quick successions.
However, currencies spikes (especially like that one last Wed and then again twice more on Friday) upsets my whole system and balanced calculations resulting in me entering, hedging, & closing trades at speed (and losing track of how many trades made) just to keep ahead of a margin call or worse, stop out. My problem is that I have to be able to just immediately sacrifice the larger losses when there is a clear trend in the opposite direction.
After much reflection on why I failed in so many micro and some inadequately funded Standard & ECN accounts, I believe the root cause lie in what I perceived as good profits in a trading session and it’s all tied in to our earning power.
For example, if we earn usd100k per year, physiologically our brain is looking for usd384 per day (5 days working week) and anything less than that is unacceptable. In the process to attain that profit mark, we take high risk and, if as the trading session draws nearer and we are no way near our target mark, we take on even more risk which, in a bad market, will wipe out the account.
So, making usd10 to maybe usd50 in a micro account becomes insignificant and unsatisfying…and, of course, a complete waste of good money.
Based on this principal, micro account is good for practicing and to get a feel of real market trading conditions.
Demo account is good for Newbies to familiarize and to learn how to use the trading platform and to apply what they have been learning towards their development of a trading strategy.
It is also, of course, suitable for seasoned Traders to try out new trading strategies before applying that to a live account.
But I wouldn’t recommend Newbies to stay too long on a Demo because there is a real danger that Newbies, after making thousands on a large Demo account, will trade real account like the Demo one and soon discover that trading a small or insufficiently funded account does not work out as in a well funded Demo account….and, of course, we cannot simple click on a new “Live” account and fund it with “Virtual” money.
Ok “along”, another trading week will be upon us soon, and another success or failure story will be due next Sat/Sun.
Take care and all the best in your trade!
. I think we should put some sort of control, by considering all aspect of things such as news, spike, margin that sometime can totally work against our limitation.
