From what I've heard, professional traders risk no more than 1 to 2 percent of their equity on one trade, and leverage no more than 5:1 per trade. Some of the more daring types might risk up to 3 percent and leverage up to 10:1... but that is pretty ...

Really? what leverage and what risk per trade?

Someone once told me that you could take any method or indicator, study the crap out of it for several months, find out when it works and doesn't work, and you could make money off of it. People who used XYZ method and have been successful with it ...

Who/WHAT do you trust?

Yeah, the traditional "efficiency score" I've seen is basically the amount of money you gained (ie: sum of wins minus all losses) divided by the amount of money you gained plus money you would've had if there were no spread and no commissions. What ...

Are you sure you're a Day Trader?

Yeah, as shadeslay said, 7PM EDT. However, the Asian session is the least active of the three major sessions (European, American, Asian) on the FOREX market, so don't expect the market to move a lot during this session. Approximate times of the ...

Asian Session Action

Also, search for linuxtroll's posts for his "rainbow" method. It is basically every MA from a period of ~5 to ~250, and bands of MAs are colored like a rainbow. The spacing between each MA can vary depending on how much you want the MA ribbon to ...

Guppy Multiple Moving AverAge，GMMA

Huh. This is interesting, because your losses get counted in the final efficiency score (theoretically, you could have a negative efficiency with enough losses), so not only are you trying to get a decent chunk of the market movement, but you want ...

Are you sure you're a Day Trader?

Wow... very broad range of answers. I rolled a d20 to get my answer.

How many pairs do you trade?

...and if you have a hard time determining market direction, print out the price chart without indicators, hand it to an eight year old, and he will tell you. HINT: if it starts in the lower left corner and goes to the upper right, it's ...

Price bouncing off support or resistance,your thoughts

Coincidentally, using a High MA and a Low MA creates something similar to a Keltner Channel with a 0.5 ATR setting and a median price ([H+L]/2) as the center line. How this works is the ATR is basically the Average Range adjusted for gaps. Since ...

Turning Point Mov Avg System - Thoughts??

I've read one trading book written by a commodity floor trader. He says that the big difference between stocks and futures/forex is that futures are definitely a zero-sum game because the money/value going in always equals money/value flowing out on ...

Price bouncing off support or resistance,your thoughts

This is an interesting topic that needs to be explored more deeply. I thought of doing the same once with Parabolic SAR. When the market goes into a consolidation phase (measured by something like ATR, fractal indicator), the acceleration setting ...

Plutonite's Dynamic Trailing Stops

Yes... which is why I said besides a slight correlation between the two currencies. The EUR and CHF are more closely correlated, yet the daily range on the EURCHF is quite larger in pips per day than the EURGBP.

Grid Trading EURGBP

Grid trading works until what you're trading trends... in the wrong direction (usually grid traders pick whichever direction gives an interest payout on the pair, whether its all long orders or all short orders). At that point you wind up cutting ...

Grid Trading EURGBP

I think the same is true for futures/commodity brokers as well. The only type of broker that is obligated to report earnings to the IRS is with stocks, bonds and other interest bearing instruments. Also, regulated funds, whether they're mutual, ...

Perpetual travelers and tax on forex

Yep... and when you get to around $10k-$20k, you might as well trade currency futures, as the narrow spreads, regulation, and not worrying about interest rates is worth it. At that point, the only reason why you'd want to use the FOREX market is to ...

How the retail Forex works. Dealers vs. Clients

For me, it usually takes only a few months of backtest to decide if the system is even worthwhile or not. It's amazing how quickly a string of whipsaws can show up.

Poll: system due diligence

Yeah I was going to say, that if you have a true ECN broker, the spread should not widen more than ten pips on news, unless you were trading some really exotic cross with low volatility, such as the GBPAUD when the BoE makes an interest rate ...

Variable vs. Fixed Spreads

That sounds like me, when I was trying to scalp S&P e-minis three and a half years ago.

Scaling out of losing trades...

Actually, it's more complicated than that. Let's say that of the times you win, 75% of it went straight to your TP, and 25% hit the first SL or scale out point, then retraced back to your TP. So what you would have is 0.40*1+0.4*2= 1.2 for your ...

Scaling out of losing trades...

I think someone put it this way: "It would be like telling them that the sun doesn't rise every morning." This is also why people are hostile with religion, or more specifically, being told their religion is wrong. They were told since they were ...

Dagny Taggart ~ 1 2 3