I am really perturbed by some people and their ''elaborate'' systems.
This is the biggest game in the world. But a real trader should first has the ability to trade by price alone and turn a profit. Naked trading. No indicators just price action.
I cannot fathom why so many people rely on indicators that they have no idea what they do and what really gets me is they have 30 indicators running at one time.
A trader should be able to clearly articulate what each indicator does and represents if he is using it on a live account, much more so if he is teaching it.
Another point.
5% risk.
If a person was to trade 5% risk on a $25000 every trade and after profits and losses make a mere 15pips they would have upwards of $15MILLION the very first year if you took no profit.
$2.5million profit if you took 40% profit per month which equates to 1.7mil
*5% risk is rediculous for a seasoned trader is my point, you are taking excessive risk and if you traded longer than 6months using that system you'd already be a multimillionaire.
My point is Risk should be scaled back the better one gets or slowly ramped up to no more than 5%.
Each trade and trading day should be small in the grand scheme of things if one is really in it for the long haul. I understand these past 3weeks provided huge ranges and potential, but other than these special occasions like that I cannot see someone continually telling me they always risk 5% per trade. If they were making a mere 15pips per day they would be a multimillionaire in a year.
Sunday, November 2, 2008
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