In theory, what stops me from just holding to my forex position until the market moves back in the right direction and I make money. Currency pairs tend to fluctuate only about 1 percent, and its mostly in random directions. I've tried holding on initially losing forex positions while only setting limit orders on my demo, and within 2-3 days i'd always be profitable. Has anyone tried this.
In theory, what stops me from just holding to my forex position until the...
Nothing. Go ahead and do it.
You might get fucked by the spread depending on what broker you go through
Nothing wrong with it, but if you don't have enough margin to cover you'll get margin called. All it takes is one bad trade to blow your account.
why not just go all on in bitcoin? it always goes higher than you bought at eventually.
Nothing really, but as time goes on, your return goes down.
E.g. If you wait for 7 years to double your money in your trade, that's an average retire of ten percent a year.
Study from the french Autorités des Marchés Financiers (AMF) stated that 89% of participants had realized a loss during the 2014 year. The average loss per trader of this group was over 10k €
until quantum decryption cracks it in 2021-2023, bringing the price of btc to zero
Yeah, but anyone who's researched Forex understands that it's not supposed to be easy money. That's in any country. If you're trading on high leverage with a lot of money, you can lose that much on a single trade without a stop loss. Same goes for winning.
-low barrier to entry
-possible to make ridiculous returns
-high skill ceiling
-likely to lose for most people
There's no resource on the web that doesn't warn people off. However, with a 50% chance of profit I'd say it's probably better on the average day than straight up gambling so it's defintely worth demo trading to see if you can do a decent job of it.
If you're trading on high leverage with a lot of money, you can lose that much on a single trade without a stop loss. Same goes for winning
When people do this do they always set stop loss on the fly or do they set the program to automatically make it something reasonable factoring in the margin?
Depends on what indicators they're using, but mostly Fib and S&R.
LMAO, you've found the forex secret!
Just make sure you pick pairs that pay overnight.
If you're really good you won't get swamped. If you're not that good then eventually you'll get swamped. Either way it's still a winning strategy as long as you beat US T-bill yields of around 3%.
I blame stop-losses and lack of risk management. It's so easy to win with forex, people lose because they're too greedy. You'd have to be an idiot to be unable to make 20%+ a year after practicing for a year but I'm sure many smart people have blown up accounts after making 500%+ for more than a few years in a row.
quantum thingy not before 2050.
shitcoins are per se a shitty bogus scheme.
What do you mean "pay overnight"?
stocks have an average annual return of 8%
fuck that, lets play a zero-sum game instead
I'm up 100% on BitBay. Or you can hold your paper "investments."
I blame stop-losses and lack of risk management. It's so easy to win with forex, people lose because they're too greedy. You'd have to be an idiot to be unable to make 20%+ a year after practicing for a year
90% of traders lose money
every faggot on Veeky Forums is always in the 10%
Veeky Forums ladies and gentlemen
It's called carry trade or interest differential, some people can make money with just that.
It's speculative trading, no shit.
This is my strategy as well. I shorted the Swiss Franc in 1970. It's a temporary blip right now but eventually it will go above 5 USD and I'm going to have the last laugh.
It's psychological. Unless you've got the money just laying about that you KNOW you will not mourn the loss of, go ahead and try it. Odds are you are just as weak as the majority and will bail out once the red numbers become too large.
This exact thing is what tripled my demo account in about 2 weeks. And let me tell you, it did NOT work that way with real money. Unless you have considerable resources at your disposal to ride those swings without fear of a margin call you will not be doing this on a live market, guaranteed.
Your joke doesnt make sense. Buy dopecoin
You're right. I mean the USD is going above 5 CHF. Any month now.