Superb! That was of course the exact answer. You buy a 100K house with 10K down payment, you sell it for 120k say 1 week later, so your leverage is 10:1 (100,000 divided by 10,000) and your return on investment is 200% in one week. You used the ...

I've figured out why so many people lose money in Forex

There is only one little problem with your "logic": your bank must see that 10K down payment first before granting you the $100,000 loan - $90,000 actually - so you can buy the house and resell it for a profit (assuming you can find a buyer the same ...

I've figured out why so many people lose money in Forex

Grin, seriously, are you at least fully aware that you are never answering VERY simple, explicit, direct questions and just playing with fancy words, while still giving people the illusion that you just answered the question? Great, I guess Donald ...

I've figured out why so many people lose money in Forex

Shellsnail, you buy a $100,000 house with a $10,000 down payment. Then you resell it the same day for $120,000. What is your leverage and your return on investment (forget about the interest rate for the moment)?

I've figured out why so many people lose money in Forex

Well said. Personally I leave about 250 to 300 pips worth of money in my trading account (to withstand most drawdowns) and the rest stays in my bank account, where it belongs. Now watch this, some traders (the usual suspects...) are going to say (or ...

I've figured out why so many people lose money in Forex

Take care Isingh, thanks for dropping by.

Gordon Gekko's real-time Forex trading calls

That is true. That is also true, small time frames allow you to fine-tune your entries and use a much smaller stop. This in turn allows you to buy/sell more lots. Some traders wait for a breakout on the 1h time frame for example but use the 15 min ...

Gordon Gekko's real-time Forex trading calls

I day-trade on the small time frames (5 to 15 min). The 1 hour time frame usually produces late entries and exits, as far as this day-trade system is concerned. Even though I follow 28 currency pairs each day, a lot of them are quickly eliminated ...

Gordon Gekko's real-time Forex trading calls

There are basically 2 moments when this randomness stops (or at least loses its intensity): 1: When the market trends, and in that case we buy/short after a breakout and let our profits run. 2: When the market is trading within a well defined range. ...

Gordon Gekko's real-time Forex trading calls

Absolutely, that's the power of compounding. One penny invested at 4% interest at the birth of Jesus would have bought 8,190 balls of gold in 1990, each "ball" being equal to the weight of this planet. At $37K per kilo of gold, that's a lot of ...

Gordon Gekko's real-time Forex trading calls

You are absolutely correct. But this is ONLY possible because the market itself is NOT random, to begin with. Otherwise we would all make a killing at the roulette table, for example, just by following this random-entry strategy.

Gordon Gekko's real-time Forex trading calls

That's it, I give up.

I've figured out why so many people lose money in Forex

Thank you Sir. I must admit that I was totally shocked when I learned that it was possible to make money even with random entry points. I said to myself : "What? What kind of nonsense is that??" And that's when I started to realize that an exit ...

Gordon Gekko's real-time Forex trading calls

If no one is lending you anything, how come FX and Futures brokers are now doing anything they can to get their money back from the traders who were in the wrong side of the market, after the SNB episode? And generally speaking, how can you possibly ...

I've figured out why so many people lose money in Forex

NO, NO, NO AND NO! Leverage is the total value of the contract/lot you are buying divided by margin money, that's it, end of story. If you can buy (control) 100,000 units of currency with only 1,000 units of currency then your leverage is 100 to 1 ...

I've figured out why so many people lose money in Forex

Absolutely. For instance, depositing $10,000 or even $5,000 just to trade micro lots (where each pip represents about 10 cents) does not make any sense at all. And yet some traders would do it because they strongly believe that they just "lowered" ...

I've figured out why so many people lose money in Forex

Really? Then I guess traders who use a 1:1 leverage (the lowest leverage possible) must be all billionaires by now. It does not decrease it either. Risk has nothing to do with leverage, and vice versa. The only way to decrease risk is to...decrease ...

I've figured out why so many people lose money in Forex

Trading results for week ending March 13, 2015. Looking to buy GBP/CHF at 1.4889 (limit order), 29 pip stop: +166 pips Bought GBP/USD at 1.5130, 37 pip stop: 37 pip loss. Shorting EUR/JPY at 128.50, 54 pip stop: break-even Short GBP/AUD at 1.9732 ...

Gordon Gekko's real-time Forex trading calls

Trade closed at 3PM at 88.86, 2 pip profit. Oh well, that should be enough for a box of nice Cuban cigars. By the way, I wonder if that no-good Bud Fox still has connections at the airport, I am out of cigars... Jokes aside, trading ...

Gordon Gekko's real-time Forex trading calls

Short NZD/JPY position is now active. It does not have time to move that much but anything is still possible.

Gordon Gekko's real-time Forex trading calls