I realize that my comments are not dollar-yen specific, but I have a few questions and I hope my comments will be worth reading.
What type of Risk Management strategy are you applying to your trading method? It appears extremely risky.
Quote:
Originally Posted by dznmrd
its possible to invest 50-75% of your balance to get a high profit outta it.
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Imagine that you have a $100,000 account rather than a $100 account. Would you still risk 50-75% of your balance ($50,000 to $75,000), on a single position & for every trade? Why is taking that position worth such a huge risk to your livelihood?
Quote:
Originally Posted by dznmrd
I think this pair is the star pair for anyone who needs easy money.
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I have issues with this statement because, if there is one thing that FX has taught me, it's that FX is not the place to seek easy money. Everyone needs money to live and reach our highest potential, and most of us want it to be easily attained. Of course there's nothing wrong with that desire, because it's human nature to want to produce the most possible output with the least possible effort. Capitalism & entrepreneurship, and the modern luxuries we enjoy, are made possible by that desire.
However collecting & recycling aluminum cans is easy money, and is a more profitable & dependable business than currency trading for most people. In FX, your gains are made possible only by someone else's loss (and if you aren't working with an ECN, those losses likely come from another trader who uses the same dealer as you). There are many people and institutions competing to be & remain profitable, including the broker/dealers. The belief that easy money is possible in FX works to your currency dealer's advantage because they can simply allow you to make small profits in the short-term, to entice you & build your confidence, and then begin using dishonest tactics to drain your account after a few large deposits (which you would make after building your confidences in your strategy and their firm).
So, how will the trading strategy remain profitable when you start making more money? Since your dealer will know that you're risking nearly everything every time you trade, how will you protect yourself and prevent them from sabotaging your method (whether via stop hunting, "system errors" or other techniques)? What level of leverage are you using, and what level of leverage do you see yourself using in 5 years, assuming you're still trading at that time?
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