Friday, October 16, 2009

On little theory of profitable trading

You know if you're not a PRO trader it's 95% that you'll lose your money in long term. Because you can't be lucky all the time.. You can? Why you're still si poor?!

It's easy mathematics.. You can trow coin in the air and get tail or head 50% each.
But guess two times - it's much harder and mathematically very low chances to do that.
I'm not even speakin about guessing five or ten times at the row.

So what you can do. You can open live trading account. Put for example 2000. And open 10 maximal position - it differs from broker to broker and because leverage (better to open 200:1). For example my broker will alow to open one lot usdjpy.
So each pips=100$. And if you guess you can double! your account closing after 20 pips. And maximum you'll lose 75% of 2000, because all brokers have 25% margin call. 25% of 2000 it's 500 - so you'll lose if you'll get 15 pips in the wrong way.
Of course you can set up a short stop.

And you have the chance to win 2000 and more almost 50% - even if open position trowing coin..

There is another strategy. You can open minimal account with 200$ open position for all that account. 200$ - it's not the big money to lose. But you can get almost 10$ for each pips. So you need 20 pips to double and 60 pips to quadriple your deposit. Look at charts. 100 pips of moovement daily - it's normal.

One thing remember it's much less chances to win second time :(.