Looking to buy GBP/CHF at 1.4889 (limit order), 29 pip stop.

Gordon Gekko's real-time Forex trading calls

Ok, wait a minute Slicktick. How much margin money do you need just to initiate that 5 micro lots EUR/CHF position (to simplify assume spread is zero and 1 euro = 1 chf)?

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

If I loan you 1 million USD at 0.5% interest in New York City so you can buy and deposit Australian dollars in a bank in Sydney (that pays 3% interest), you make money, assuming the currency market stays flat or does not move too much against you ...

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

Whatever you say Grin, whatever you say

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

And the only way to owe money is to borrow it in the first place. A debt cannot exist without a loan.

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

Oh I see, so now it's not "paper money" anymore, it's "real" money. Tell me Grin, how can you possibly lose much much more than your initial deposit (margin) unless someone loans you that money in the first place? And when you buy 100,000 euros with ...

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

Exactly. Quote from the article : "Leverage is a loan that is provided to an investor by the broker that is handling his or her forex account. " And if the trader loses that loan bad things will start to happen, just like the character Omar said in ...

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

By the way, here is the exact definition of the verb "to leverage": to use borrowed capital for (an investment), expecting the profits made to be greater than the interest payable. Which is exactly what we are doing. When we buy 100,000 euros with ...

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

Let me put it another way. You buy 100,000 euros with a $1,000 margin deposit. Something extremely bad happens in Europe and the Euro loses 99% of its value in a few seconds. How much do you owe your broker?

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

When you buy 100,000 euros with only $1,000 (margin money), where does the $99,000 come from (assuming $1 = 1 Euro)? When you buy a $100,000 house with only $10,000 down, where does the $90K come from?

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

In the financial world trading with leverage means someone is lending you money to control a relatively large position (say 100,000 units of currency) with a very small capital (say 1,000 units of currency). THAT'S IT! Yes, it is called the risk per ...

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

Palabara, I am not sure if your comment concerns me but I can assure you that I have no intention of hurting anyone's feeling in this forum. We are just here to exchange trading ideas, that's all. Cordially.

Million dollars dream - starting from $1000

Your comment is the exact equivalent of saying "Hey, look at all these Lotto Jackpot winners, they "broke" the "code" and achieved "incredible" returns!" Of course B.S. mainstream media (and Lottery officials as well) will never show you the number ...

Million dollars dream - starting from $1000

Adriann, maintaining a positive attitude is a good thing, but staying in touch with reality is even more important, as far as trading is concerned. Any trader who believes that making 3% a day (or even 3% a week for that matter) year after year is ...

Million dollars dream - starting from $1000

Correct, if their broker offers a 50:1 leverage and they have $10K in their account, they naively believe that by reducing their trading size to 0.02 standard lot they are now trading with a 1 to 1 leverage. They now feel "safe" because they just ...

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

Right on the money. Used properly, a high leverage (400 to 1 and more) would allow the trader to multiply his/her capital at a fantastic rate, assuming he is only using his/her profits to add new positions. To the best of my knowledge, the Forex is ...

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

Well, if you can make "just" 2% a month on average (about 27% a year), consistently, while still maintaining your drawdown under 25%, consider yourself a very, very good trader already, trust me on this one.

Million dollars dream - starting from $1000

Hi ProfitDaily: From what I understand, here is how some traders think: "I have $100,000 in my Forex account and I bought 1 standard lot worth $100,000, therefore my leverage is 1 to 1." With that kind of "logic", it is virtually impossible to have ...

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

No Sam, making 3% a day is almost impossible. Even the best traders and hedge fund managers cannot make 3% per month consistently and with a reasonable maximum drawdown (under 25% of capital), let alone per week or per day! At first glance 3% a day ...

Million dollars dream - starting from $1000

Again, you cannot decrease/increase leverage. Leverage is fixed by your Forex broker. It does not change, just like you cannot change the fees that your local bank charges you for ATM withdrawals. You can only decrease (or increase) the percentage ...

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