Reality and Facts -- Winner Traders only 17% - page 3
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this is 25% winning trades!! why would anyone wanna cap that with leverage!!
does putting a speed limit on the road help to serve any purpose if someone people can't drive and they just take the care keys and go to the streets?!
a better action would be setting a course and a small test for anyone who wants to start trading then putting a leverage if needed!!
what an unproductive rule
Reality can not change just satisfy your own mind with your own rules not a solution.
Which reality yours or mine?
People loose money because they dunno how to trade, putting a reason for it other than correcting one's own mistakes by one-self means that no body wants to change the fact that the losers will lose in order for the winners to win
And thats why the solution of changing the leverage is there!!
Which reality yours or mine?
People loose money because they dunno how to trade, putting a reason for it other than correcting one's own mistakes by one-self means that no body wants to change the fact that the losers will lose in order for the winners to win
And thats why the solution of changing the leverage is there!!
The same with leverage, maybe at 10 it will not be so obvious, at 20 it's a little closer to crushing, you need more expetiese and more luck. At 30, it's even closer, at 50 even closer, at 500 you just need 20 pips against your position and you are totally wiped = and it does not matter how well you trade.
So, leverage of course is of major importance.
Which reality yours or mine?
People loose money because they dunno how to trade, putting a reason for it other than correcting one's own mistakes by one-self means that no body wants to change the fact that the losers will lose in order for the winners to win
And thats why the solution of changing the leverage is there!!
If you winning 6 from out of 9 trades you can see reality
if you win 99 out of 100 wiith leverage 500 you loose all the account for the 1 loss. This is reality.
So, clearly there should be a balance between leverage and success rate and money loss/won for 1 trade.
So, leverage is a factor that can not be ruled out.
*- For instance, if you say 6 winnings out of 9 - let's say using leverage 100 and 30 pips stop loss. The 6 winnings are ok, and then 3 losses each 30 pips equals 90 pips loss with leverage 100 is equal total account loss - final balance = 0.
if you win 99 out of 100 wiith leverage 500 you loose all the account for the 1 loss. This is reality.
So, clearly there should be a balance between leverage and success rate and money loss/won for 1 trade.
So, leverage is a factor that can not be ruled out.
*- For instance, if you say 6 winnings out of 9 - let's say using leverage 100 and 30 pips stop loss. The 6 winnings are ok, and then 3 losses each 30 pips equals 90 pips loss with leverage 100 is equal total account loss - final balance = 0.
6 winnings 100 pips X 500 leverage = 600 pips X 500 leverage
1 loss 30 pips loss X 500 leverage = 30 pips X 500 leverage = less than 600 pips X 500 leverage
99 winnings 100 pips per win X 100 leverage = 9900 pips X 100 leverage
1 loss 30 pips per win X 100 leverage = again less than 100 pips X 500 leverage X 99 times >> conclusion is you clearly don't know how to calculate
you are giving an example of a winner in both cases and there is no way the leverage will make this winner lose
6 winnings 100 pips X 500 leverage = 600 pips X 500 leverage
1 loss 30 pips loss X 500 leverage = 30 pips X 500 leverage = less than 600 pips X 500 leverage
99 winnings 100 pips per win X 100 leverage = 9900 pips X 100 leverage
1 loss 30 pips per win X 100 leverage = again less than 100 pips X 500 leverage X 99 times >> conclusion is you clearly don't know how to calculate
you are giving an example of a winner in both cases and there is no way the leverage will make this winner lose
Don't want to make personal remarks about what you wrote, so just..
starting balance 1000 USD.
trade 1 leverage 500 = 5 standart lot. You win 30 pips (each pip = 50 USD, won 1500 USD) - new balance is 2500.
trade 2 Now, for 2500 new balance, the 500 leverage is 12.5 standart Lot (each pip = 125 USD). You win again 30 pips (won 3750 USD). new balance = 2500+3750=6250.
trade 3 Now, for 6250 new balance, the 500 leverage is 31.25 standart Lots (each pips = 312.5 USD). You lose 30 pips = 312.5 * 30 = 9750 USD loss (you are in minus 3500 USD).
It's clear that with 500 leverage, each trade no matter what happened before is 20 pips away from account loss.
And with 100 leverage, each trade is 100 pips loss from losing the whole account (or 3 consecutive losses of 30 pips), it does not matter how many winners were before.
Don't want to make personal remarks about what you wrote, so just..
starting balance 1000 USD.
trade 1 leverage 500 = 5 standart lot. You win 30 pips (each pip = 50 USD, won 1500 USD) - new balance is 2500.
trade 2 Now, for 2500 new balance, the 500 leverage is 12.5 standart Lot (each pip = 125 USD). You win again 30 pips (won 3750 USD). new balance = 2500+3750=6250.
trade 3 Now, for 6250 new balance, the 500 leverage is 31.25 standart Lots (each pips = 312.5 USD). You lose 30 pips = 312.5 * 30 = 9750 USD loss (you are in minus 3500 USD).
It's clear that with 500 leverage, each trade no matter what happened before is 20 pips away from account loss.
And with 100 leverage, each trade is 100 pips loss from losing the whole account, it does not matter how many winners were before.
Leverage is good, with leverage you can split the money in several accounts, and trade the same volume. Example: 100000, you can send only 1000 to your broker and make the same trade volume as 100000, that way you keep your equity safe in several places. Also, for example, you can have a total capital of 1000 and leverage 1000x and trade only 10% of your total equity, and make 100 USD trades, this way you can keep 900 safe somewhere else, if your stop fails you have more security.