calculating day P/L in FX trading

[kwasiowusu.gh]

Hi Guys,

I'm a newbie in FX trading. I started my first demo practice watching out on my Gross P/L. But i found out that my equity kept going into the negative, even when my gross P/L was showing a positive balance.

Is there anybody out there who can explain it in a newbie's slang?

 

[TheBramble]

Your open positions do not figure in your gross P/L. It's only when you close a position that it gets tallied.

So here's a hint, never close a losing position and you'll always look good.

PS. Keep an aye on your 'margin used' - your broker does. LOL

 

[Rhody Trader]

So here's a hint, never close a losing position and you'll always look good.

And please, please, please realize that was said totally tongue-in-cheek.

 

[TheBramble]

Awww.....

John, your heart's in the right place, but I'm sure wusu ain't that stupid.

Not like he'd ever vote for Bush. More than once....

 

[grantx]

Nine,

That Bramble bloke is spreading disinformation and subversion. I protest in the strongest possible terms (and conditions).

Grant

 

[Rhody Trader]

John, your heart's in the right place, but I'm sure wusu ain't that stupid.

The ability of newbies to take literally things which were not meant to be (or were meant as jokes) seems to have no bounds.

 

[TheBramble]

I understand where you're coming from John and I sincerely doubt wusu or anyone else is quite that clueless. If they are, us being super nice to them on here ain't gonna save them anyhow.

 

[nine]

LOL Bramble, you are a cynic on so many levels. My sort of guy

 

[MrGecko]

wusu,

nevermind what all these guys are on about; I suggest you don't watch your Gross $ p/l at all - try monitoring your positions in terms of "pips" or "ticks" (or whatever) instead. You might find that this help because it encourages you to evaluate your current positions in terms of RISK, not money - e.g. -10pips on a trade with 40pip risk isn't anything to be concerned about (IMO), but it is difficult not to become emotionally involved when your looking at a -$100 or -$1000 loss (you might start attaching some utility to the money, such as a fancy lunch or weekend away, etc). The likelhood of your trade turning out to be a winner is just the same, it just removes your attachment to the money - and the foolish decisions you might make off the back of it.

 

[grantx]

Nine,

"LOL Bramble, you are a cynic on so many levels. My sort of guy". He's just showing off. Don't encourage him.

Grant.

 

[TheBramble]

Mr. X. I understand your frustrations. What part of P/L would you like me to explain to you?

A PM option is available if you wish to save yourself any further embarrassment.

 

[kwasiowusu.gh]

it's wonderful to see the kind of discussion my thread generated. i think you guys should never underestimate the dumbness of a newbie in this biz. but my shout out goes to ambrose. you're such a gr8 guy. keep it up