Are you For Ex? - Trading-Lab

Leth · #1 04-18-2008, 06:22 PM

Don't see much in TL on this subject. Anybody here trade the forex market or have any experience with it?

How do you view the different types of leverage it offers?

Soverus Khan · #2 04-18-2008, 09:33 PM

I traded eur/usd for about 6 months and still have the account. Massive leverage was great (200:1). I used par sar and MA crosses. Pulled a profit, but the time needed watching world monetary markets and news was too much. I still monitor the setups, but my focus is on stocks and in getting the trading goals met by noon each day. Life goes by too fast.

Leth · #3 04-19-2008, 12:52 AM

You got that right Khan, life does go by too fast. Also, it seems like the older I get, it goes even faster.
Anyways, I ran across this forex broker advertising 400:1 leverage on a small account. It sounds like this much leverage, no matter your account size, is extremely dangerous. 200:1 or less sounds more feasable.
Any thoughts?

Soverus Khan · #4 04-19-2008, 01:20 PM

200:1 allows you to get spastic at the wrong time. It demands discipline especially if a trader has an urge to "average in" to a loser. Under control, it is a huge multiplier as I tend to scale in to winners.....a double edge sword depending on the discipline level of the trader. Sometimes my own discipline is in question!!

Spread is also key. I've seen a tiny 2 pip spread change to a 10 pip spread without notice. That created a maalox (sp?) moment for sure.

Never traded fx on TS or IB, only OANDA. 400:1 sounds intriguing and spooky at the same time.

Time moves faster with age. I can now see why the quest for the fountain of youth has been an obsession.

Leth · #5 04-19-2008, 07:29 PM

Hmm...I think I may experiment with it some. I was thinking about opening an account on fxcm.com, but using only 10:1 leverage. I could try using a demo account, but honestly, I tend to get a little lazy and bend rules when there is no money on the line. Oh yeah...I also noticed that they even have mini lots which are also good for experimentation. I never new mini lots for forex even existed. Learning something new everyday I suppose. Anyways, I chose fxcm.com as a playground because they have, what appears to be, nice charting capabilities on thier platform; alot of bang for the buck. If they kill me on spreads, I'll be pissed.

Ive been experimenting with long term options on a personal portfolio of ETF currencies that include FXA, FXB, FXC, FXE, FXF, FXM, and FXY. The ETF currency game has been rough since they are fairly new to the exchange and liquidity is not as high as I am normally used too. As you can see from the daily charts on these securities, the daily fluctuations tend to bust through my stops on my long term systems quite often...so i need to find currency to trade that doesn't do this (im not interested in futures because of slippage and limit locks).
Currencies have the best trends overall, and right now forex looks good due to no commisions, no exchange fees (since there are no exchanges), leverage, liquidity, and fairly instantaneous order fills.
I'm having a few problems right now with my blue chip stock clients (who are also friends, bad combination)...so I dont know when I will start exactly. Ill keep you and everyone else posted on the experiment.

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#1 04-18-2008, 06:22 PM
Leth Super Moderator Join Date: Oct 2007 Posts: 621	Are you For Ex? Don't see much in TL on this subject. Anybody here trade the forex market or have any experience with it? How do you view the different types of leverage it offers? __________________ Nothing is more difficult than the art of maneuvering for advantageous positions. - Sun-Tzu Trade with the trend, Ride winners, Cut losers, Keep bets small, Use Stops - Old School

#2 04-18-2008, 09:33 PM
Soverus Khan Senior Member Join Date: Dec 2007 Posts: 306	I traded eur/usd for about 6 months and still have the account. Massive leverage was great (200:1). I used par sar and MA crosses. Pulled a profit, but the time needed watching world monetary markets and news was too much. I still monitor the setups, but my focus is on stocks and in getting the trading goals met by noon each day. Life goes by too fast.

#3 04-19-2008, 12:52 AM
Leth Super Moderator Join Date: Oct 2007 Posts: 621	You got that right Khan, life does go by too fast. Also, it seems like the older I get, it goes even faster. Anyways, I ran across this forex broker advertising 400:1 leverage on a small account. It sounds like this much leverage, no matter your account size, is extremely dangerous. 200:1 or less sounds more feasable. Any thoughts? __________________ Nothing is more difficult than the art of maneuvering for advantageous positions. - Sun-Tzu Trade with the trend, Ride winners, Cut losers, Keep bets small, Use Stops - Old School Last edited by Leth : 04-23-2008 at 01:31 PM.

#4 04-19-2008, 01:20 PM
Soverus Khan Senior Member Join Date: Dec 2007 Posts: 306	200:1 allows you to get spastic at the wrong time. It demands discipline especially if a trader has an urge to "average in" to a loser. Under control, it is a huge multiplier as I tend to scale in to winners.....a double edge sword depending on the discipline level of the trader. Sometimes my own discipline is in question!! Spread is also key. I've seen a tiny 2 pip spread change to a 10 pip spread without notice. That created a maalox (sp?) moment for sure. Never traded fx on TS or IB, only OANDA. 400:1 sounds intriguing and spooky at the same time. Time moves faster with age. I can now see why the quest for the fountain of youth has been an obsession.

#5 04-19-2008, 07:29 PM
Leth Super Moderator Join Date: Oct 2007 Posts: 621	Hmm...I think I may experiment with it some. I was thinking about opening an account on fxcm.com, but using only 10:1 leverage. I could try using a demo account, but honestly, I tend to get a little lazy and bend rules when there is no money on the line. Oh yeah...I also noticed that they even have mini lots which are also good for experimentation. I never new mini lots for forex even existed. Learning something new everyday I suppose. Anyways, I chose fxcm.com as a playground because they have, what appears to be, nice charting capabilities on thier platform; alot of bang for the buck. If they kill me on spreads, I'll be pissed. Ive been experimenting with long term options on a personal portfolio of ETF currencies that include FXA, FXB, FXC, FXE, FXF, FXM, and FXY. The ETF currency game has been rough since they are fairly new to the exchange and liquidity is not as high as I am normally used too. As you can see from the daily charts on these securities, the daily fluctuations tend to bust through my stops on my long term systems quite often...so i need to find currency to trade that doesn't do this (im not interested in futures because of slippage and limit locks). Currencies have the best trends overall, and right now forex looks good due to no commisions, no exchange fees (since there are no exchanges), leverage, liquidity, and fairly instantaneous order fills. I'm having a few problems right now with my blue chip stock clients (who are also friends, bad combination)...so I dont know when I will start exactly. Ill keep you and everyone else posted on the experiment. __________________ Nothing is more difficult than the art of maneuvering for advantageous positions. - Sun-Tzu Trade with the trend, Ride winners, Cut losers, Keep bets small, Use Stops - Old School Last edited by Leth : 04-23-2008 at 01:30 PM.