Keep getting wiped out in FX

[it_geek]

Hello all,


Started trading FX on demo recently on MetaTrader.


Always realise I keep getting wiped out (and my position has been greatly eroded even with stop losses) when I apply my usual strategies to FX. Never had a problem using it while doing stocks...


Lucky not real money, otherwise I confirm cry now



So how is the analysis diff for FX?


Need some advice here...

 

[havetheveryfun]

come to this thread: https://forums.hardwarezone.com.sg/...urrency-general-chit-chat-thread-5775388.html

also check out reddit forex for risk management and how to manage your account.

if you use stop losses and still getting wiped out, then something is wrong with your stop losses. Normally people do not advise risking more than 2-4% of your capital per trade. This means that if you only have $2000 in your account, you should only put a stop loss of maximum $40-$80 per trade. This way you would need 20 + losing trades before you blow your account.

The other thing is that you should not over-leverage even though it is possible to do so. If you are beginner, you should not trade more than 10-20x of your capital. This means that if your account is $2000 only, you should only buy maximum $20000 of a particular currency, which is also equivalent to 0.2 lot. But even that is considered a lot for a beginner, try to trade smaller if you are still new and slowly increase your lot size later.

disclaimer: i am still newbie to forex too and this is merely theory if you want to put stop losses that is the way to go in managing your account and stop losses. am making some kopi money of few hundreds after few months but so far have not wiped out my account yet. don't be enticed by all the advertisements outside etc that says that you can become rich overnight in forex etc.. a more realistic expectation if you really want to trade forex is an average growth of 2-5% of your capital per month.

I would also recommend you to check out other brokers like CMC markets. their platform is much more friendly to beginner (but the downside is you cant leverage as much) and you can calculate all your stop losses etc in terms of SGD easily compared to MT4

 

[Mr. Wood]

TA FA still applicable.
when u open account with local brokers, there is a broker attached to your account. bug him/her to give u free walkthrough of platform and basics of TA FA.

there are free online education https://www.babypips.com/learn/forex

if you get stopped out often, review whether the stop loss is meaningful. eg near support resistance pivot line moving average? or anyhow stop loss.

 

[BBCWatcher]

I would add that you're (apparently/most probably) gambling, and the advice provided can only help limit your gambling losses. It cannot eliminate those losses. The "house" (brokers) always win(s).

 

[Kyzers0ze]

Right now forex markets a bit wonky depending on what you trade. Unexpected events from Trump, NK or even recently Italy can cause even the big players to panic, throwing everything into chaos.

Most important thing about trading Forex is chart time.

I don't know how you trade stocks but a 1 indicator chart is not going to cut it.

I'm working on a trading strategy in the trump environment as well. PM me if you want to get something going

 

[Mannoroth]

come to this thread:

Worst advice ever.

 

[havetheveryfun]

Worst advice ever.

what abt u then ? ur acc should be in 10-20k after a month or so of compounding from Fx gains daily already from just a starting capital of 1k

 

[Kyzers0ze]

don't feed the trolls that don't offer constructive statements lol

 

[3dfxplayer]

Hello all,


Started trading FX on demo recently on MetaTrader.


Always realise I keep getting wiped out (and my position has been greatly eroded even with stop losses) when I apply my usual strategies to FX. Never had a problem using it while doing stocks...


Lucky not real money, otherwise I confirm cry now



So how is the analysis diff for FX?


Need some advice here...

You are getting wiped out because you don't understand the product. FX doesn't have anywhere near the ATR (average trading range) of stocks and it has a different price behaviour. Think about this, most FX pairs move well under 1% on most days, would you trade a stock that moves less than 1% on most days? No? Then why would you trade FX?

Of course we all know the answer to that is the availability of leverage, lots of it and it can be had for cheap.

My advice to anyone who is trying to get into FX is to stay the hell away from it. Its a bad idea to lever up big time, thinking that you can figure out where/when the next 0.5% up/down move is going to hit for a product that usually moves <1% a day, add the random central bank tape bomb/intervention and you have something thats designed to wipe out accounts.

 

[onegoal]

Forex is very volatile. U have to be very experienced trader to be able to make money. For use about 7k as base and get profits of 3k to 5k in returns. Never trade stocks anymore as stock is too slow in returns. I would suggest strengthen your technical analysis skills, u will have better chances.

 

[ExtremeWays]

I would add that you're (apparently/most probably) gambling, and the advice provided can only help limit your gambling losses. It cannot eliminate those losses. The "house" (brokers) always win(s).

Mr. Canberra have proven otherwise. He made "6K" this month

 

[gawdzilla]

You are getting wiped out because you don't understand the product. FX doesn't have anywhere near the ATR (average trading range) of stocks and it has a different price behaviour. Think about this, most FX pairs move well under 1% on most days, would you trade a stock that moves less than 1% on most days? No? Then why would you trade FX?

Of course we all know the answer to that is the availability of leverage, lots of it and it can be had for cheap.

My advice to anyone who is trying to get into FX is to stay the hell away from it. Its a bad idea to lever up big time, thinking that you can figure out where/when the next 0.5% up/down move is going to hit for a product that usually moves <1% a day, add the random central bank tape bomb/intervention and you have something thats designed to wipe out accounts.

nonsense

Sent from the deep sea using GAGT

 

[3dfxplayer]

nonsense

Sent from the deep sea using GAGT

Try constructing a better argument or better yet, go prove me wrong by getting rich from trading fx, I will be waiting.

 

[havetheveryfun]

Try constructing a better argument or better yet, go prove me wrong by getting rich from trading fx, I will be waiting.

dont think that its fair to compare fx and stocks that way. in FX most go by pips rather than %, and a good 50-100 (usually still less than 0.5%-1% as you said) pips is already a decent move to most people trading FX. Also it is easier to buy or short indexes using FX CFD accounts compared to a traditional account.

but true that most FX brokerage platforms are designed to make you lose money.

 

[3dfxplayer]

Forex is very volatile. U have to be very experienced trader to be able to make money. For use about 7k as base and get profits of 3k to 5k in returns. Never trade stocks anymore as stock is too slow in returns. I would suggest strengthen your technical analysis skills, u will have better chances.

3 things.

Forex is not volatile at all, I wouldn't consider anything that moves <0.5% a day on avg volatile.

Nobody can generate 3-5k returns with 7k long term unless he is able to exploit a market inefficiency (which unfortunately does not last forever), you are certain to blow up at some point if you try to lever up trading direction.

Stocks are not "slow in returns", no other financial instrument offers the kind of volatility you see in stocks, individual names can move over 100% intraday, fx has absolutely nothing on stocks when it comes to volatility.

The only thing fx has is leverage, bucket shops will gladly give you lots of it for cheap because they know you will blow up at some point and they get to take all your money.

 

[3dfxplayer]

dont think that its fair to compare fx and stocks that way. in FX most go by pips rather than %, and a good 50-100 (usually still less than 0.5%-1% as you said) pips is already a decent move to most people trading FX. Also it is easier to buy or short indexes using FX CFD accounts compared to a traditional account.

but true that most FX brokerage platforms are designed to make you lose money.

The number of "pips" or ticks has nothing to do with the actual magnitude of the moves. You can argue that fx has tighter spreads due to all the subdividing, which in theory can allow some intense scalping strategies to work (but never do in practice due to slippage and other frictional cost), but at the end of the day fact remains that its the leverage that magnifies the move and does all the work in fx.

What "traditional accounts" are you referring to? I have access to most instruments you can think of and I don't trade via a bucket shop, there is no reason to use a bucket shop, they are banned in the US for good reasons.

 

[onegoal]

Try constructing a better argument or better yet, go prove me wrong by getting rich from trading fx, I will be waiting.

i show you my trades in forex.
U be the judge if i really make money. SD is Singapore dollars
Blue is profit and red is losses

 

[onegoal]

Above is around 1month full records. I still have previous months. Can you tell me is it profitable? My margin is only 6k to 7k and i churn out profit afew thousands monthly. I quietly trade while in office. But my full time job just average pay only.

 

[onegoal]

3 things.

Forex is not volatile at all, I wouldn't consider anything that moves <0.5% a day on avg volatile.

Nobody can generate 3-5k returns with 7k long term unless he is able to exploit a market inefficiency (which unfortunately does not last forever), you are certain to blow up at some point if you try to lever up trading direction.

Stocks are not "slow in returns", no other financial instrument offers the kind of volatility you see in stocks, individual names can move over 100% intraday, fx has absolutely nothing on stocks when it comes to volatility.

The only thing fx has is leverage, bucket shops will gladly give you lots of it for cheap because they know you will blow up at some point and they get to take all your money.

Replied you above. My record tell you the answer it is very possible. i do this for extra cash. i believe i am a decent trader who can pull in profit. But too bad, my pocket is not so deep to do forex and stocks.

 

[3dfxplayer]

Replied you above. My record tell you the answer it is very possible. i do this for extra cash. i believe i am a decent trader who can pull in profit.

You have only been trading for a few months, try doing this for at least 5 years without blowing up before you conclude that you have it all figured out.

I've been trading for over 13 years now and I know a few traders personally, none of the successful ones trade fx, I do know a guy who grew his account from 10k to 200k over 3 years before getting blown up by the CHF.

But too bad, my pocket is not so deep to do forex and stocks.

Not sure what you mean by this but you are already trading fx.