Forex Help

[Kingwizz]

Hi all. I am fairly new to the currency markets in terms of trading basic lots. My aim is to produce a yearly average of 500 pips profit a month trading. Taking into account 50pip stop losses. This figure is likely to be higher though it's better to be safe that sorry. In terms of keeping a fairly medium risk profile (No margins) what would you think this equates to in terms of % return on an over bank?

At the moment I have it down as 5% - trading only one trade at a time (So not to trade against myself) & using the whole bank in each trade. That means that if I lose 500 pips in a month it is only 5% loss. Does this sound reasonable? Thanks for any help.

 

[shadowninja]

Perhaps I've misread something.

Can you give me an example? Say you start with £10k in the bank...

 

[Kingwizz]

No problems. Thanks for your help. So an example; I long GBP/USD at 1.9815 It moves to 2.0000 which means my trade is closed @ 150pips profit (which is my aim). Trading with £10k bank. I put everything in on one-trade (No Margins) & to me that means a profit of 1.5% or £150. Is this a reasonable risk profile? I'm aiming at medium risk. Baring in mind that after reading through the countless fund manager guides I have, I don't think a loss of 10% in the course of a few months seems bad (Which in a rough time is what I would look at achieving). I know that markets can turn but with a 50pip stop loss I'm only really looking at losing £50 in one go on £10K bank.

 

[shadowninja]

I've not traded without margin on forex so hopefully someone with more experience of doing this can answer. You are supposed to risk no more than 1% of your account per trade so if you do that then there shouldn't be a problem (assuming you pull the position once it hits your stop).

 

[Kingwizz]

Cheers mate. That sounds about right with me. If you don't mind me asking what sort of profit do you aim for in a month? (In Pips & Return on Bank). Thanks Again,

 

[shadowninja]

Forget about profits for the moment. You need to worry about not losing too much.

When I started out, I just thought about how much I could earn a day.

 

[avextrex]

Cheers mate. That sounds about right with me. If you don't mind me asking what sort of profit do you aim for in a month? (In Pips & Return on Bank). Thanks Again,

Theres something that i learnt, the best trading method to really make money is a very boring tradingtype. Spot for trends, use ur MAs/stochastic/RSI to identify the trend direction and failures. Some ppl may say that my way is not a smart trading way like those using bots and softwares. But it worked for me. I mean come on..if u have something to tend to, then don't trade. U also have sat/sun to enjoy when the market is closed. My average pips a day is between 50-120. And I am a naked, rubber band/ swing trader who doesn't put Stop losses or take profits because I know i'll be there to monitor the movements. Once my MAs/stochastic/RSI tallies, than i'll make my move and sometimes its inaccurate but end of the day I make a profit rather than losses. The kind of losses I don't mind is Loss In Profits and not ur Capital. I hope this is a bit of a help. May the force be with u.

avextrex

 

[Kingwizz]

Thanks for the advice avextrex - though I think you would probably be better off proofing in the suicide forum. I would say at least with Russian Roulette the odds are in you favour!

 

[avextrex]

Thanks for the advice avextrex - though I think you would probably be better off proofing in the suicide forum. I would say at least with Russian Roulette the odds are in you favour!

AHhahahaha..you're welcome..well if u'r looking for easy money without hardwork first...
then all i can say...Happy Losing Money...*smiles*

 

[Kingwizz]

I was more concerned about the "No stops" or "No Take profits". I mean what if in 1 minute a market turns 300 pips because some bad news is released. Instead of losing 50pips with your stop loss - you've just got decked by someone from the bank of Iraq. If it works for you then I have no criticisms. Personally with such a loose trading style I would find it difficult to calculate my risk properly.

 

[Vrothdar]

Theres something that i learnt, the best trading method to really make money is a very boring tradingtype. Spot for trends, use ur MAs/stochastic/RSI to identify the trend direction and failures. Some ppl may say that my way is not a smart trading way like those using bots and softwares. But it worked for me. I mean come on..if u have something to tend to, then don't trade. U also have sat/sun to enjoy when the market is closed. My average pips a day is between 50-120. And I am a naked, rubber band/ swing trader who doesn't put Stop losses or take profits because I know i'll be there to monitor the movements. Once my MAs/stochastic/RSI tallies, than i'll make my move and sometimes its inaccurate but end of the day I make a profit rather than losses. The kind of losses I don't mind is Loss In Profits and not ur Capital. I hope this is a bit of a help. May the force be with u.

avextrex

You've achieved all that in less than 3 weeks since asking what a stoploss is?! Very impressive if it's true. Care to share how you made such progress so quickly?