Reality and Facts -- Winner Traders only 17% - page 5
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Actually, the "mistake" is not on leverage,
but on lot size used by trader who still lack understanding :
patience, caution, wisdom, not greedy, and so on, -- that is about trading psychology.
be sure first learn and practice continuously for 3 - 5 years in demo accounts in the right way.
It is necessary to know more definitely,
whether we can work in forex or not.
Because forex is not always suitable for everyone.
Keep the spirit and
diligent practice in the right way.
Good luck :)
My first comment would be thank you but i will add another comment shortly to other participants
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.
trade 1 leverage 500/10 = leverage 50 = 5 standart lot. You win 30 pips (each pip = 5 USD, won 150 USD) - new balance is whatever your previous balance + 150.
trade 2 Now, for 150 win + previous balance, the 50 leverage is 12.5 standart Lot ?????????? "Why" (each pip = 12.5 USD). You win again 30 pips (won 375 USD). new balance = 150 + 375 + initial balance
trade 3 Now, for 525 win + initial balance, the 50 leverage is 31.25 standart Lots (each pips = 31.25 USD). You lose 30 pips = 31.25 * 30 = 937.5 USD loss (you are in minus 412.5 USD).
End result with 50 leverage is a loss just as the previously calculated "miscalculated to be honest because 312.5 * 30 = 9375$ not 9750$
If you plan to triple and quadruple your lot size then any leverage will give you a big loss and wipe your account sooner or later, ask any beginner about stocks they will say you don't put all the money you win in the next trade!
P.S the above calculations was just divided by 10 but copied and paste to to save time >>>> suggestion for anyone who reads this is to add different leverage with the same Lot size and see if they will not always end up with a loss!!
trade 1 leverage 500/10 = leverage 50 = 5 standart lot. You win 30 pips (each pip = 5 USD, won 150 USD) - new balance is whatever your previous balance + 150.
trade 2 Now, for 150 win + previous balance, the 50 leverage is 12.5 standart Lot ?????????? "Why" (each pip = 12.5 USD). You win again 30 pips (won 375 USD). new balance = 150 + 375 + initial balance
trade 3 Now, for 525 win + initial balance, the 50 leverage is 31.25 standart Lots (each pips = 31.25 USD). You lose 30 pips = 31.25 * 30 = 937.5 USD loss (you are in minus 412.5 USD).
End result with 50 leverage is a loss just as the previously calculated "miscalculated to be honest because 312.5 * 30 = 9375$ not 9750$
If you plan to triple and quadruple your lot size then any leverage will give you a big loss and wipe your account sooner or later, ask any beginner about stocks they will say you don't put all the money you win in the next trade!
P.S the above calculations was just divided by 10 but copied and paste to to save time >>>> suggestion for anyone who reads this is to add different leverage with the same Lot size and see if they will not always end up with a loss!!
It is clear that what you said about me, is true, but about you. You don't know how to calculate leverage.
You can not divide everything by 10 without dividing the balance as well.
Your comment about "whatever your previous balance + 150" - is wrong because without the balance you can not calculate leverage.
for 100 $ balance, to trade leverage 50 is to trade 0.05 standart lot (5000 USD).
if the balance is 1000$ then the 50 leverage is to trade 0.5 lot (50000 USD).
So it's clear that your example is wrong as well as your conclusion.
And as for the calculation of the 3rd deal I gave in leverage 500 - it was margin call long before the lose of 9000 USD.
It is clear that what you said about me, is true, but about you. You don't know how to calculate leverage.
You can not divide everything by 10 without dividing the balance as well.
Your comment about "whatever your previous balance + 150" - is wrong because without the balance you can not calculate leverage.
for 100 $ balance, to trade leverage 50 is to trade 0.05 standart lot (5000 USD).
if the balance is 1000$ then the 50 leverage is to trade 0.5 lot (50000 USD).
So it's clear that your example is stupid and wrong as well as your conclusion, you don't care what the balance is but you know the leverage - funny.
dude 500 leverage doesn't work that way "" new balance is 2500 trade 2 Now, for 2500 new balance, the 500 leverage is 12.5 standart Lot "
no broker will open all the new balance in full standard lot, the software doesn't allow that, this is why i said "whatever balance" because it just doesn't work!
I hope im not to intense or too triggered i just find that the trading style is the problem not the leverage, pardon me if i got off track a little
dude 500 leverage doesn't work that way "" new balance is 2500 trade 2 Now, for 2500 new balance, the 500 leverage is 12.5 standart Lot "
no broker will open all the new balance in full standard lot, the software doesn't allow that, this is why i said "whatever balance" because it just doesn't work!
I hope im not to intense or too triggered i just find that the trading style is the problem not the leverage, pardon me if i got off track a little
And the more accute point - is that you try to calculate leverage without knowing what the balance is. How can you do it, DUDE.
trade 1 leverage 500/10 = leverage 50 = 5 standart lot. You win 30 pips (each pip = 5 USD, won 150 USD) - new balance is whatever your previous balance + 150.
trade 2 Now, for 150 win + previous balance, the 50 leverage is 12.5 standart Lot ?????????? "Why" (each pip = 12.5 USD). You win again 30 pips (won 375 USD). new balance = 150 + 375 + initial balance
It's not whatever balance in trade 2 - because if previous balance was 100,000 USD and you think that 12.5 standart lot is 50 leverage, then you can see that you don't know how to calculate.
Amir Yacoby:
( new balance is 2500. trade 2 Now, for 2500 new balance, the 500 leverage is 12.5 standart Lot)
2500$ x 500 leverage = 1,250,000 "units of exposure"
1 lot in a 500 leverage = 100,000 units
12.5 Lots = 1,250,000 units
If you open 12.5 Lots then you will have 0$ in the free margin
this is 0$ in free margin not "small margin requirement" .. again what you are saying is the least irrational, trading doesn't go through assumptions, what your saying does not happen!!
No need to reply for this post im just clearing things up for whoever will read and want to examine whats going on
2500$ x 500 leverage = 1,250,000 "units of exposure"
1 lot in a 500 leverage = 100,000 units
12.5 Lots = 1,250,000 units
If you open 12.5 Lots then you will have 0$ in the free margin
this is 0$ in free margin not "small margin requirement" .. again what you are saying is the least irrational, trading doesn't go through assumptions, what your saying does not happen!!
No need to reply for this post im just clearing things up for whoever will read and want to examine whats going on
My first comment would be thank you but i will add another comment shortly to other participants
Thank you ^^
Btw, we must remain united to defeat market owners who have many ways to win. :)
Let's get ready.
Thank you ^^
Btw, we must remain united to defeat market owners who have many ways to win. :)
Let's get ready.
No-one owns the market. You think anyone owns the EuroDollar market? Not even the US can own this market. It is the one and only free market in the world.