Hi there,
I'm new to the forums and to spread trading, as the title suggests I've made a living playing online poker for the last 4 years and now I've just started trading but the spreads seem prohibitively high, apologies if this is a newbie question or my way of explaining it is bad.
Example if you buy gold at Bid:1770.0 Ask:1770.4 would any of you plan on taking profits at less than 1780?
Because, to keep it simple say I had planned on taking profits at at say 1775
and putting a stop loss at 1665 it would mean I need a 54/46 edge on the market
just to Break even!Is that right!?
(As 54% of the time I win 46 units & 46% of the time I lose 54 units)
I thought you would rake it in if you a had 55/45 edge on the markets but the spread would take 80% of your profits if you were doing $5 (50 point) trade sizes on Gold if the spread is 4 points.
So my question is, is the above example correct & is it fair to say that none of you would deal in average trade sizes that are less than 20x the spread?
Thanks in advance!
I'm new to the forums and to spread trading, as the title suggests I've made a living playing online poker for the last 4 years and now I've just started trading but the spreads seem prohibitively high, apologies if this is a newbie question or my way of explaining it is bad.
Example if you buy gold at Bid:1770.0 Ask:1770.4 would any of you plan on taking profits at less than 1780?
Because, to keep it simple say I had planned on taking profits at at say 1775
and putting a stop loss at 1665 it would mean I need a 54/46 edge on the market
just to Break even!Is that right!?
(As 54% of the time I win 46 units & 46% of the time I lose 54 units)
I thought you would rake it in if you a had 55/45 edge on the markets but the spread would take 80% of your profits if you were doing $5 (50 point) trade sizes on Gold if the spread is 4 points.
So my question is, is the above example correct & is it fair to say that none of you would deal in average trade sizes that are less than 20x the spread?
Thanks in advance!