No Sir, in the long run the spread (plus any commission) will kill you no matter how big (or small) your stop and take-profit are. Again, place 1,000 trades with a 2 pip spread and you will lose 2,000 pips on average, if your system has no edge. ...

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

You want testing? Here is one. Choose 100 people from a phone book, at random, and give them a Forex demo account. Invite them to make 1,000 trades. After 1,000 trades (and assuming a 2 pip spread per trade) ask them to show you their profit/loss ...

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

Hi Palabara: Even if your Forex broker charges you "only" 1 (ONE) penny ($0.01) to initiate a new position (regardless of its size), traders will STILL lose money in the long run. The size of the commission (and/or spread) has nothing to do with the ...

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

Like I said in the previous post, the number one reason why traders fail is precisely due to the spread and/or commissions. You cannot, CANNOT make money in the long run if someone (your broker) is taking money from your account each time you place ...

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

Not at all, most traders fail because playing the Forex market, the stock market or the Futures market is NOT a zero sum game. That's the number one reason. Let's suppose we both play a Head or Tail game with a perfectly balanced coin. If Head comes ...

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

By the way Replaced, did you know that you could make money trading even if your trades are totally random? Quote from the book "Trade your way to financial freedom" by Van K. Tharp: "Tom Basso designed a simple, random-entry trading system. We ...

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

Absolutely! In fact, trying to time the market with "overbought" and "oversold" indicators is deadly on highly-trending markets like the Forex market. On the other hand, these indicators usually work with mean-reverting markets like the equity ...

EMA Fibonacci Level Trading Strategy

And a triple zero (000) on the Mexican roulette

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

Yes you are right, enough forex for today! I am going to watch a 1978 trading movie called "Silver Bears", starring Michael Caine, Louis Jourdan and Cybill Shepherd. Take care guys

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

Yes you are right, the percentage of capital you allocate to each trade is extremely important, from a money management point of view, but that's another story. But allocating 1% or 100% to each trade does not change the leverage a bit, It's still ...

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

For the last time, if your Forex broker grants you a 100 to 1 leverage, then each time you open a position you are trading with a 100 to 1 leverage. It does not matter how many billions you have in your account . It does not matter how much money ...

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

No. Using the same example , to open a 1 micro lot position (0.01 standard lot) you will need $1,000 (plus cost of spread) if you are using a 1:1 leverage account. On the other hand, if your Forex broker grants you a 100 to 1 leverage, now you only ...

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

Absolutely. Using other people's money (OPM) to create tremendous wealth is no longer a secret, Palabara...

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

That's true Palabara, but in this example the Forex platform only needs to see $100K (plus, say, 30 dollars - 3 pips - for the spread) in your trading account to accept the transaction. Of course, as soon as the market moves just 1 pip against your ...

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

Ok, stop right there. If you are using a 1:1 leverage (and that means no leverage at all), then you will need at least $100,000 margin money just to open 1 standard EUR/USD lot position, assuming $1 = 1 Euro, and I am not even counting the cost of ...

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

No you cannot, Nicholas You can risk 1%, 2%, 3%,..., 100% of your account on any particular trade but you cannot change the leverage, just like you cannot change the maximum amount of money you can withdraw from your ATM debit card in any given 24 ...

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

Have a good weekend, Replaced.

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

Ok, I get it now, the whole problem comes from the fact that you still don't know what leverage truly means. For the last time, if your Forex broker is offering you a 50:1 leverage for example, you CANNOT trade with a 1:1 leverage, it's impossible. ...

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

Actually that's quite the opposite, trading on margin increases your return on investment, if your system is profitable. By definition, with a 100:1 leverage and percentage wise, a successful Forex trader is making a 100 times more money than a ...

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