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cube
Fission
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Joined: Mar 12, 2005
Posts: 2506
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 Posted: Tue Apr 22, 2008 12:27 am Post subject: Re: Peak Investments |
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| Aaron wrote: | | I have recently been learning about currency trading, and how traders leverage the instability of world currencies to make money. |
As a trader I have to warn you:
Traders do NOT live long lives but they make up for it by living an interesting life.  |
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shakespear1
Light Sweet Crude
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Joined: May 13, 2005
Posts: 1481
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| Posted: Tue Apr 22, 2008 1:45 am Post subject: Re: Peak Investments |
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I had a friend who was doing this and due to turbulence around mid-2007 had to go back to his old regular job. 
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Men argue, nature acts !
Voltaire
"...In the absence of the gold standard, there is no way to protect savings from confiscation through inflation."
Alan Greenspan |
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Aaron
800 lb Gorilla
Joined: Apr 15, 2004
Posts: 6063
Location: Houston
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| Posted: Tue Apr 22, 2008 7:37 am Post subject: Re: Peak Investments |
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Yeah I have heard some horror stories too.
But still... If I bailed now... I'd be up around 40%.
Makes other investments look pretty weak.
It's this traders stop/loss limits which really convinced me. Very conservative... and he actually stops when he hits those marks.
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"We shall not cease from exploration
And the end of all our exploring
Will be to arrive where we started
And know the place for the first time." - TS Eliot* |
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cube
Fission
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Joined: Mar 12, 2005
Posts: 2506
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| Posted: Tue Apr 22, 2008 2:36 pm Post subject: Re: Peak Investments |
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| Aaron wrote: | Yeah I have heard some horror stories too.
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and I've lived through some horror stories.
There were 3 things that saved me:
1) STOP loss orders - If you're playing a game of leverage never go without it
2) Do not lose more than 10% on a single trade. - example if you lose 20% then you must make a 25% gain to get back to even. You can lose enough in 1 month that it will take you a full year to recover
3) Do not add to a losing position - if you are going long and the price instead goes down. Do NOT add a 2nd position thinking you're getting a good deal because the price is cheaper.
EVERY day trader has violated these rules before. What separates those who survive and those who had to go back and get a real job were those who learned from their mistakes and stuck to these rules. good luck |
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Aaron
800 lb Gorilla
Joined: Apr 15, 2004
Posts: 6063
Location: Houston
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| Posted: Tue Apr 22, 2008 5:02 pm Post subject: Re: Peak Investments |
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| cube wrote: | | Aaron wrote: | Yeah I have heard some horror stories too.
... |
and I've lived through some horror stories.
There were 3 things that saved me:
1) STOP loss orders - If you're playing a game of leverage never go without it
2) Do not lose more than 10% on a single trade. - example if you lose 20% then you must make a 25% gain to get back to even. You can lose enough in 1 month that it will take you a full year to recover
3) Do not add to a losing position - if you are going long and the price instead goes down. Do NOT add a 2nd position thinking you're getting a good deal because the price is cheaper.
EVERY day trader has violated these rules before. What separates those who survive and those who had to go back and get a real job were those who learned from their mistakes and stuck to these rules. good luck |
Totally agree with this.
Actually he has already hit the stop loss target twice when it turned out he would have made a great return staying in. He also only leverages 1:3, which I understand is pretty small compared to others.
So far 2 losing months out of 9 with under 7% loss for all trades.
Profit!
I'll update this thread as time passes.
_________________
"We shall not cease from exploration
And the end of all our exploring
Will be to arrive where we started
And know the place for the first time." - TS Eliot* |
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MrBill
Expert
Joined: Sep 15, 2005
Posts: 4378
Location: Eurasia
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| Posted: Mon Apr 28, 2008 3:18 am Post subject: Re: Peak Investments |
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Successful foreign exchange trading is being right 51% of the time. The rest is just discipline and good money management.
I have been sitting on a losing EURCAD short position for the past month. Now it looks like it has turned my way, but I was way too slow to pull the plug, and re-establish at better levels. So a good result at this point in time would be just to break even.
EURCAD CHART
Luckily it is a hedge, so actually I am better off when the euro appreciates and the Loonie falls. But as a trader I just entered at the wrong place and then did not take my stop loss early enough. No excuses. Your first loss, is your best loss.
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The organized state is a wonderful invention whereby everyone can live at someone else's expense. |
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Aaron
800 lb Gorilla
Joined: Apr 15, 2004
Posts: 6063
Location: Houston
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| Posted: Tue Apr 29, 2008 3:07 pm Post subject: Re: Peak Investments |
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_________________
"We shall not cease from exploration
And the end of all our exploring
Will be to arrive where we started
And know the place for the first time." - TS Eliot* |
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