Dumb Newbie Question

[mrfixituk]

FOREX pairs there is only small percentage gains. So to make big money you eventually have to keep building the size of your trades combined with the leverage available?

 

[malaguti]

FOREX pairs there is only small percentage gains. So to make big money you eventually have to keep building the size of your trades combined with the leverage available?

whilst still keeping in line with your risk..
but yes you are correct. percentage gains are possibly easier in stocks, but then so are percentage losses

 

[TheLastBear]

FOREX pairs there is only small percentage gains. So to make big money you eventually have to keep building the size of your trades combined with the leverage available?

Yes and as mentioned in this thread you need to stick to your risk management in order not to blow your account. I think sticking to risk management as well as strategy may be the hardest thing for many new traders.

PS: The only dumb question is the one not asked.

 

[Rambo35]

I try to not focus on percentage moves, but rather have a certain amount of pips I would like to earn per trade and place my levels according to my strategy which I am still working on. I do think it is better to focus on pips rather than %.

 

[NVP]

FOREX pairs there is only small percentage gains. So to make big money you eventually have to keep building the size of your trades combined with the leverage available?

Yes - small net wins over the long term is the aim

N

 

[Jack Francisco]

Yes - small net wins over the long term is the aim

N[/QUOT

Well said. at first setup a money management plan. We should try to satisfy with this small amount of profits always because it is better to trade with small profits than blowing down our accounts.:clap:

 

[TheLastBear]

I try to not focus on percentage moves, but rather have a certain amount of pips I would like to earn per trade and place my levels according to my strategy which I am still working on. I do think it is better to focus on pips rather than %.

I focus on pips as well as it fits my trading style better. I think percentage returns are better in equity trading, while my focus in my forex accounts are pips.

 

[Ituglobal]

Yes, currency pairs and crosses have small % gains and losses when compared to stocks. But we must remember that stocks are different from currencies in nature. I've seen traders that make significant gains on in Forex. One Russian Forex trader made a gain of 3500% in less than 5 days (when the BoJ weakened the Yen). He doubled the account 35 times in a week, but that's suicide trading, since one mayn't last long with that kind of high risk.