Made 710$ In One Hour

[DeletedUser9]

I shorted a commodity called "Silver Cash" at 23.02 and closed at 22.6.

It was leveraged at a 1% margin so I only put up 400$ and I could trade 40,000$ worth of silver. I made a profit of 710$ in less than one hour using a take profit order.

Has anyone had long term success trading commodities ? I know in TMF MJ says the stock market will never result in exponential gains but maybe it can if they are extremely leveraged or you have tons of money to begin with ?

If you properly manage risk and your emotions is it possible to turn lets say 1000$ into 1,000,000$ by compounding your profits continuously.

I remember reading somewhere that the financial sector creates a huge amount of millionaires and billionaires.

 

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[Phones]

It was leveraged at a 1% margin so I only put up 400$ and I could trade 40,000$ worth of silver.

Sorry to hijack the thread but, can you explain this to someone who doesn't know forex from the "inside"? How can you have 400$ and yet trade 40k$ worth of silver? How can you make 710$ out of a 400$ trade? If indeed they "leverage" your trade, what about if you had a major loss... I mean, If you can make 700$ with 400$, you might as well loose the 400$ and be in debt for 5k$?

 

[dknise]

Sorry to hijack the thread but, can you explain this to someone who doesn't know forex from the "inside"? How can you have 400$ and yet trade 40k$ worth of silver? How can you make 710$ out of a 400$ trade? If indeed they "leverage" your trade, what about if you had a major loss... I mean, If you can make 700$ with 400$, you might as well loose the 400$ and be in debt for 5k$?

While in stocks if you have under $25k your brokerage gives you 2:1 margin, meaning you an trade up to 2x the amount you have using their money, many FOREX brokers give upwards of 200:1 margin.


ChaseLA -- with stocks it's very hard to have exponential growth on anything, because of liquidity problems of selling or buying back your shares and not affecting the market dramatically. In FOREX it's much easier, because billions of dollars are literally being traded every minute.

 

[DeletedUser9]

Sorry to hijack the thread but, can you explain this to someone who doesn't know forex from the "inside"? How can you have 400$ and yet trade 40k$ worth of silver? How can you make 710$ out of a 400$ trade? If indeed they "leverage" your trade, what about if you had a major loss... I mean, If you can make 700$ with 400$, you might as well loose the 400$ and be in debt for 5k$?

Im trading leveraged CFD's, apparently they are not legal in the US due to the high risk nature.

To answer the 5k debt that would not have been possible as an account closeout happens when my account re-valuation reaches 20% of my margin (in this case the 400$) 320$ my broker liquidates all trades on my account unless I fund it some more.

A 10% jump on a single day is next to impossible with the particular commodity I was trading, so I wasn't going to lose 5k, I wouldn't have entered the trade otherwise.

 

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[DeletedUser9]

While in stocks if you have under $25k your brokerage gives you 2:1 margin, meaning you an trade up to 2x the amount you have using their money, many FOREX brokers give upwards of 200:1 margin.


ChaseLA -- with stocks it's very hard to have exponential growth on anything, because of liquidity problems of selling or buying back your shares and not affecting the market dramatically. In FOREX it's much easier, because billions of dollars are literally being traded every minute.

But is it rare to have 1-2% price changes in FOREX ?

Commodities and shares are much more volatile than currencies which adds more risk but also room for much larger profits.

 

[Nomangee]

In theory, it's relatively easy to make out of $1.000 1 million in Forex.

I have created a challenge for me a few weeks back, that I got from a friend who is a prof. Spot FX trader for 7-8 years and he made it for himself once, which I want to start in the next year.

It has compounding elements, a few gaming parts with level ups and stages and a time limit of one year, you can find it here: https://docs.google.com/spreadsheet/ccc?key=0AgaTlcb0bXJ5dEpMN0k5b3pTbFlfTGF4TnlNVEpMZVE&usp=sharing

From 300€ to 1 Million in 163 level ups, every level up are 50 pips, which is from my previous trading weeks achievable. But as I said, it's only theory, as the psychological part will play a huge role when you are over $10.000 for the first time.

I have made all the digging now after 9 month of 24/7 studying, found the perfect system for ME and have half automated my style of trading with 2 trade managers in conjunction.

So lets hope for the best in the next year

Quote by my Friend: "Trading is easy, don't let anyone persuade you otherwise."

ps: If you played poker before, it's way easier to start with trading, as at the end it's only a numbers game.

 

[dknise]

But is it rare to have 1-2% price changes in FOREX ?

Commodities and shares are much more volatile than currencies which adds more risk but also room for much larger profits.

1% trading 100 units is the same as 0.1% trading 1000 units, and that's only a margin advantage of 10 where as FOREX often has a margin advantage of 100 of stocks. Like I was talking about with liquidity, I often had trouble through a good market maker offloading $150k worth of shares in a day trade, there just plain and simple isn't enough volume! Slapping that on the ask all at once almost always affects the market price, and doing stage sell offs ranks up the transaction fees. The other cool thing with ECN FOREX brokers is the fixed cost per dollar for the transactions. You'll always know your transaction costs based on volume when you build your strategies ahead of time.

 

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[RHL]

I prefer flips of tangible objects in the real world with real value. Sure, it's less liquid, but a house is never going to depreciate to zero dollars, or change value by 40% in one day (without me getting a big payout from property insurance). Dig deep enough bargaining on the buy, when the cash is in your pocket, and you'll make out even on the worst sell. Go big enough (and with few enough liabilities on the side) and you can afford to sit idle for months waiting for the dream deal to come up and bump up your profits.

Stocks scare the crap out of me most times. If I do an appallingly bad transaction for some reason (never happened yet), it'd mean breaking even or perhaps losing 4-5% of my investment. If you have a bad stock day, you might as well take an acetylene torch to your principal. Also, stock prices are uniform. No special bargains. Whereas if I find something for sale that has a poorly worded ad with blurry cell phone pics and a desperate seller, I might get 25% below what the market wants for a very expensive purchase.

 

[DeletedUser9]

I prefer flips of tangible objects in the real world with real value. Sure, it's less liquid, but a house is never going to depreciate to zero dollars, or change value by 40% in one day (without me getting a big payout from property insurance). Dig deep enough bargaining on the buy, when the cash is in your pocket, and you'll make out even on the worst sell. Go big enough (and with few enough liabilities on the side) and you can afford to sit idle for months waiting for the dream deal to come up and bump up your profits.

Stocks scare the crap out of me most times. If I do an appallingly bad transaction for some reason (never happened yet), it'd mean breaking even or perhaps losing 4-5% of my investment. If you have a bad stock day, you might as well take an acetylene torch to your principal. Also, stock prices are uniform. No special bargains. Whereas if I find something for sale that has a poorly worded ad with blurry cell phone pics and a desperate seller, I might get 25% below what the market wants for a very expensive purchase.

There is definitely a learning curve, the first time I traded with real money I lost 700$ in like 30 minutes due to over leverage.

I think I am going to stick to commodities and steer clear of shares due to volatility

 

[tafy]

You can lose half you money in minutes if you are on the wrong side of the trade, I love forex but I have blown 3 accounts already. Depends on your personality if you are successful or not

 

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[Nomangee]

You should approach trading, like a Business.

If someone would like to start seriously, with trading forex/commodities you should read this post very carefully: http://www.forexfactory.com/showthread.php?t=2331

Especially the parts where he describes, how you should make an own Business plan for your trading career.

 

[mentalic]

I had studied Forex/CFDs about two years ago and decided that in order to succeed you must either:
- Make long term investments (weeks, months, years)
OR
- Have a huge capital and devote 8-12 hours/day
(I read the following books: The Discinplined Trader, Technical Analysis of the Financial Markets, the whole babypips.com lessons and zeroed 2x times a 100k demo account)

Making 710$ means nothing. It could be pure luck. It does not prove that your strategy is sustainable. On the other hand, shorting 10 times and getting 71$ each time could mean something.

 

[adoredunchin]

let's ignore the fact that you trade with a 1:100 margin.
assuming that you trade only 2% P/L per trade makes your bankroll 35k$.
Making 720$ profit and laying it with 400$ gives you a ratio of 1.8:1 or if its total profit of 1120$ -> 2.8:1.
Not knowing your trading style 1.8 is pretty low (~36% or ~26% of the trades must be a winning trade to make break even, assuming that it's only one trade you took.
Professionals use a max. ratio of 1:5. So think about it. If you are really that good as you think the margin only helps you when you don't have that much money. But people with not that much money are in 99% of the case newcomers in the market.
I really hope your ROI keeps going up like that, but I doubt that.
my 2 cents

but what's the purpose to post that here ? Here are people making 10000 in an hour.

 

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[dknise]

let's ignore the fact that you trade with a 1:100 margin.
assuming that you trade only 2% P/L per trade makes your bankroll 35k$.
Making 720$ profit and laying it with 400$ gives you a ratio of 1.8:1 or if its total profit of 1120$ -> 2.8:1.
Not knowing your trading style 1.8 is pretty low (~36% or ~26% of the trades must be a winning trade to make break even, assuming that it's only one trade you took.
Professionals use a max. ratio of 1:5. So think about it. If you are really that good as you think the margin only helps you when you don't have that much money. But people with not that much money are in 99% of the case newcomers in the market.
I really hope your ROI keeps going up like that, but I doubt that.
my 2 cents

but what's the purpose to post that here ? Here are people making 10000 in an hour.

Half of what you wrote I couldn't understand.... but this:

assuming that you trade only 2% P/L per trade

If you have a hard rule to only make 2% P/L trades regardless of the financial instrument you're trading, you're going to lose your a$$ for refusing to accept the market conditions you're dealt. That would be like being a bull in a bear market.

 

[Nomangee]

I had studied Forex/CFDs about two years ago and decided that in order to succeed you must either:
- Make long term investments (weeks, months, years)
OR
- Have a huge capital and devote 8-12 hours/day
(I read the following books: The Discinplined Trader, Technical Analysis of the Financial Markets, the whole babypips.com lessons and zeroed 2x times a 100k demo account)

Making 710$ means nothing. It could be pure luck. It does not prove that your strategy is sustainable. On the other hand, shorting 10 times and getting 71$ each time could mean something.

I know a lot of traders and nobody does more then swingtrading, most of them only do Daytrading, which is the way to go from my point of view. You have way better odds in short Term.

Also at first you need to devote a lot of time, but who builds up a succesfull Business without putting in alteast 8-12 hours per day for a few months/years? I know a few guys that have build out of a $10-20k Bankroll in 6 Month a $100k and after that only traded once a week or sometimes only once a month and it was enough to life a comfortable life.

For me it's atm the "safest" or best way to build up my Bankroll and later on reinvest that into a Business. So let the money work for you style!

ps: If someone would like to be educated about the american monetary system and would like to laugh about, that the most used currency in the world is produced by a private company owned by shareholders who get a 6% annual dividend, you can watch this video: http://www.youtube.com/watch?v=iFDe5kUUyT0

 

[dknise]

ps: If someone would like to be educated about the american monetary system and would like to laugh about, that the most used currency in the world is produced by a private company owned by shareholders who get a 6% annual dividend, you can watch this video: http://www.youtube.com/watch?v=iFDe5kUUyT0

You're insane you crazy conspiracy theorist. That video is great.

 

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[Shuffle]

Hi guys!

Trading scares people the same way starting a businses scares people. Same thing just different medium. You can lose everything in a trade the same way you can lose a house or a tangible object if you are CARELESS. Being CARELESS will cost you ANYTHING. Treat it as a business as you would any other.

You can blow your account many times over the same way you can spend your savings on something that just doesn't sell as well as you thought it would. Research, research, research.

Forex does not require large amounts of time, nor does it require you to be a long term "investor" for weeks or months at a time. Look up SWING TRADING with DAILY CANDLES. There's always a way around if you do your research.

the 2% rule from what I understand originated from stock trading (I could be wrong, forgive me if I am). As for forex, you should trade what you are comfortable with, with 2% being a safe way of protecting capital.

Sure people make 10k an hour in here, but there are people making 10k an hour in forex too. It's just a matter of personal preference. While I respect everyone's way of attaining wealth, there are many ways to go about at it. We should all find out what works best for us, while respecting anothers methods if it works for them.

As for me, long story short, I like forex! I plan to start my own website with tutorials and eventually aim at starting my own hedge/gold fund. Can't do that unless I have a great track record you know?

TO EACH HIS OWN

 

[Nomangee]

You're insane you crazy conspiracy theorist. That video is great.

This has nothing to do with conspiracy, that are facts that are well known for most people that are more into the behind the scene, how money and currencies work.

This is directly from the FED website:

Federal Reserve Act

Section 7. Division of Earnings

(a) Dividends And Surplus Funds Of Reserve Banks.

Stockholder Dividends.
In General. After all necessary expenses of a Federal reserve bank have been paid or provided for, the stockholders of the bank shall be entitled to receive an annual dividend of 6 percent on paid-in capital stock.

here is the source, right at the beginning: http://www.federalreserve.gov/aboutthefed/section7.htm

ps: another small fact, nobody knows exactly who owns the company that produces the USD. But I think everybody can easily think of who it is

 

[Nomangee]

As for me, long story short, I like forex! I plan to start my own website with tutorials and eventually aim at starting my own hedge/gold fund. Can't do that unless I have a great track record you know?

TO EACH HIS OWN

Yeah thats one way to go, my path goes more into the trade copying thing and maybe some PAMM's later on as I don't want the pressure and time investement later, that comes with a venture like starting a Hedge fund, which I know really good from a friend who had his own prop firm.

 

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[dknise]

This has nothing to do with conspiracy, that are facts that are well known for most people that are more into the behind the scene, how money and currencies work.

I probably should have been more clear, I do love that video! Usually when I share it with people they call me a conspiracy theorist and say anyone can make a video. What they never realize is the reason I fed the info to them through that medium is I know they're too intellectuall uncurious to open up a book or do the research themselves on it. ^_^

 

[Shuffle]

I probably should have been more clear, I do love that video! Usually when I share it with people they call me a conspiracy theorist and say anyone can make a video. What they never realize is the reason I fed the info to them through that medium is I know they're too intellectuall uncurious to open up a book or do the research themselves on it. ^_^

Amen hahaha *clap clap* I guess being called a conspiracy theorist or crazy is a trend in here?

 

[rkmalo1]

If you properly manage risk and your emotions is it possible to turn lets say 1000$ into 1,000,000$ by compounding your profits continuously.

Possible? Yes. But unlikely. Managing your emotions when actively trading is extremely tough.

I remember reading somewhere that the financial sector creates a huge amount of millionaires and billionaires.

Please don't get into trading because of that sentence. There are MUCH "easier" ways to become a millionaire or a billionaire. Create something of value, trade on the side.

My first job out of college was prop desk trading for a large firm at the CME in downtown Chicago. From that experience, I believe that daytrading is the affiliate marketing of the financial world. Is it possible to become rich? Absolutely but again, highly unlikely.

 

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[Shuffle]

Possible? Yes. But unlikely. Managing your emotions when actively trading is extremely tough.



Please don't get into trading because of that sentence. There are MUCH "easier" ways to become a millionaire or a billionaire. Create something of value, trade on the side.

My first job out of college was prop desk trading for a large firm at the CME in downtown Chicago. From that experience, I believe that daytrading is the affiliate marketing of the financial world. Is it possible to become rich? Absolutely but again, highly unlikely.

Emotions are tough to control especially with day trading yes, but that doesn't mean there are ways around it you know? Some people are better at certain things than others. I wouldn't say there are easier ways, but rather better ways suited for different people. Everything is unlikely until proven otherwise.

To each his own.

 

[rkmalo1]

Emotions are tough to control especially with day trading yes, but that doesn't mean there are ways around it you know? Some people are better at certain things than others. I wouldn't say there are easier ways, but rather better ways suited for different people. Everything is unlikely until proven otherwise.

To each his own.

very true!

 

[Nomangee]

I probably should have been more clear, I do love that video! Usually when I share it with people they call me a conspiracy theorist and say anyone can make a video. What they never realize is the reason I fed the info to them through that medium is I know they're too intellectuall uncurious to open up a book or do the research themselves on it. ^_^

Hehe yeah, irony is hard to catch in a chat. Something like this should be aired 24/7 on the TV to hammer it into the brains of the masses But as most is controlled by the big boys and the masses want to stay dumb, you will never see it.

 

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[Nomangee]

Emotions are tough to control especially with day trading yes, but that doesn't mean there are ways around it you know? Some people are better at certain things than others. I wouldn't say there are easier ways, but rather better ways suited for different people. Everything is unlikely until proven otherwise.

To each his own.

Regarding the emotions, it's really tough and the hardest part to overcome. But as everything in life you need to learn it somehow, if you wanna succeed. One guy told me once:" You need to be like a Robot!" and thats 100% true. You will never achieve it totally, but you can refine not only your emotions for trading, from my point of view this can help you all the time in life, if you stay calm in such stressful and nerve-racking situations.

 

[Shuffle]

Regarding the emotions, it's really tough and the hardest part to overcome. But as everything in life you need to learn it somehow, if you wanna succeed. One guy told me once:" You need to be like a Robot!" and thats 100% true. You will never achieve it totally, but you can refine not only your emotions for trading, from my point of view this can help you all the time in life, if you stay calm in such stressful and nerve-racking situations.

Being like a robot is absolutely true in terms of discipline in ALL aspects no doubt

Speaking of which, whats your methodology? Seeing that you day trade, what TF's?

 

[Nomangee]

Being like a robot is absolutely true in terms of discipline in ALL aspects no doubt

Speaking of which, whats your methodology? Seeing that you day trade, what TF's?

Regarding emotions I have found no "easy" solution. I have 3 rules that I follow for trading atm:
1. Keep it simple stupid
2. Patience, Patience, Patience
3. Practice, Practice, Practice

I don't use any Timeframe. It's called Renko, these are non time based charts, where a brick ( bar ) is build when the price rises or falls X number of Pips.

Have attached a screenshot where you can see my System that I'm atm using, with a 5 Pip brick size:


I try to automate as much as possible of my manual trading, so emotions have way less scope. For example I have an EA where I can draw a trend-/horizontal line that automatically places an order when it will be hittet by the price. I will also add later a trade manager called myfx, which tracks my trades and puts in different Take profit levels, so I don't need to adjust my sl/tp later on. My system has also atleast one alert, so I don't need to watch the charts 24/5. It's really less nerve-racking if you have something like this in place and don't need to follow up on every trade.

 

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[Shuffle]

Regarding emotions I have found no "easy" solution. I have 3 rules that I follow for trading atm:
1. Keep it simple stupid
2. Patience, Patience, Patience
3. Practice, Practice, Practice

I don't use any Timeframe. It's called Renko, these are non time based charts, where a brick ( bar ) is build when the price rises or falls X number of Pips.

Have attached a screenshot where you can see my System that I'm atm using, with a 5 Pip brick size:
View attachment 6136

I try to automate as much as possible of my manual trading, so emotions have way less scope. For example I have an EA where I can draw a trend-/horizontal line that automatically places an order when it will be hittet by the price. I will also add later a trade manager called myfx, which tracks my trades and puts in different Take profit levels, so I don't need to adjust my sl/tp later on. My system has also atleast one alert, so I don't need to watch the charts 24/5. It's really less nerve-racking if you have something like this in place and don't need to follow up on every trade.

Ah yes I've come across renko charts. Certainly a different way to go about not staring at your charts nonstop. Lots of ways to go about trading

 

[tafy]

Wow never seen renko chart, looks cool!