Comments for Forex Is About Learning http://www.tantalusonline.com/blog Forex research, trading and making lot's o' money Mon, 08 Feb 2010 15:31:06 -0500 http://wordpress.org/?v=2.8.5 hourly 1 Comment on Top Dog Trading Forex Program Review by Forex Robot Varieties - The Ways They Can Effect Your Profits http://www.tantalusonline.com/blog/forex-products/top-dog-trading-forex-program-review/comment-page-1/#comment-172 Forex Robot Varieties - The Ways They Can Effect Your Profits Mon, 08 Feb 2010 15:31:06 +0000 http://www.tantalusonline.com/blog/learn-forex-trading-top-dog-trading-review/#comment-172 [...] this article we ll be looking at methods to discover the foremost forex computer program for you & ways to avoid getting cheated by expensive software that doesn t create genuine results [...] [...] this article we ll be looking at methods to discover the foremost forex computer program for you & ways to avoid getting cheated by expensive software that doesn t create genuine results [...]

]]> Comment on Automated Forex Program | Forex Robot Scams by Forex Robot Varieties – The Many Ways They Can Effect Your Profits | Current Stock Market Reports http://www.tantalusonline.com/blog/forex-products/automated-forex-program-forex-robot-scams/comment-page-1/#comment-171 Forex Robot Varieties – The Many Ways They Can Effect Your Profits | Current Stock Market Reports Mon, 08 Feb 2010 14:01:32 +0000 http://www.tantalusonline.com/blog/automated-forex-trading-forex-robot-scams/#comment-171 [...] accommodated to a software application that lets you to incorporate your trading abilities. Some forex trading systems permit you to select your own entry and exit points founded on the trading signals it offers for [...] [...] accommodated to a software application that lets you to incorporate your trading abilities. Some forex trading systems permit you to select your own entry and exit points founded on the trading signals it offers for [...]

]]> Comment on Forex Margin – Why You Shouldn’t Care by Tantalus http://www.tantalusonline.com/blog/forex-school/forex-margin-why-you-shouldnt-care/comment-page-1/#comment-140 Tantalus Thu, 28 Jan 2010 16:06:59 +0000 http://www.tantalusonline.com/blog/?p=159#comment-140 Perhaps a better title to the article might have been '... Why You Shouldn't Focus on Margin". I hoped that this post would help traders to understand what you and I already agree to. Thanks for your help in clarifying the issue. Perhaps a better title to the article might have been ‘… Why You Shouldn’t Focus on Margin”. I hoped that this post would help traders to understand what you and I already agree to.

Thanks for your help in clarifying the issue.

]]> Comment on Forex Margin – Why You Shouldn’t Care by Jason http://www.tantalusonline.com/blog/forex-school/forex-margin-why-you-shouldnt-care/comment-page-1/#comment-132 Jason Tue, 26 Jan 2010 13:34:21 +0000 http://www.tantalusonline.com/blog/?p=159#comment-132 Oh yes you are right...but I think though people looking for more 'margin', do so looking to trade that margin. They wouldn't be looking for 500:1 account if they only wanted 50:1. And this is where the problem is. They do not understand that trading is about exchanging money for risk. Also it is worth noting even the best professional traders who trade on margin do not earn to the same multiple their risk is increased> Some of the best hedge fund manahers only return 40% or so for their clients but their risk to their capital is much greater than 40%. Or put it another way. Most indpendent traders would be better off trading say £10,000 in shares not using margin than trading say 2 index futures contract. Oh yes you are right…but I think though people looking for more ‘margin’, do so looking to trade that margin. They wouldn’t be looking for 500:1 account if they only wanted 50:1. And this is where the problem is. They do not understand that trading is about exchanging money for risk.

Also it is worth noting even the best professional traders who trade on margin do not earn to the same multiple their risk is increased> Some of the best hedge fund manahers only return 40% or so for their clients but their risk to their capital is much greater than 40%.

Or put it another way. Most indpendent traders would be better off trading say £10,000 in shares not using margin than trading say 2 index futures contract.

]]> Comment on Forex Margin – Why You Shouldn’t Care by Tantalus http://www.tantalusonline.com/blog/forex-school/forex-margin-why-you-shouldnt-care/comment-page-1/#comment-131 Tantalus Tue, 26 Jan 2010 06:15:36 +0000 http://www.tantalusonline.com/blog/?p=159#comment-131 Thanks for your input, Jason, but I think you've missed the point of the article. If a trader sets up their trades to risk only a set amount, they can only lose that amount. Executing that same trade on an account with a different amount of leverage does not affect the risk at all. My point was that a prudent trader makes trades based on the amount they can reasonably afford to lose, not based on how much the broker will let them risk. Of course if they can't control the impulse to risk as much as the broker will allow them to, they'll soon be broke, but then they wouldn't be prudent, would they? It's like driving a motorcycle. If you go only 30 MPH you'll be fairly safe. You don't need a powerful bike to go 30 MPH so you can be happy with a smaller engine. If you do have a big, powerful motorbike, though, you'll still be safe<strong><em> if you still drive 30 MPH</em></strong>. The large, powerful engine is only dangerous if you choose to drive fast. It's the way you drive, not the size of the bike that determines if you're safe or not. I stand by the statement: You <strong><em>shouldn't</em></strong> care about margin because you <strong><em>should</em></strong> be trading with carefully controlled risk. Thanks for your input, Jason, but I think you’ve missed the point of the article. If a trader sets up their trades to risk only a set amount, they can only lose that amount. Executing that same trade on an account with a different amount of leverage does not affect the risk at all. My point was that a prudent trader makes trades based on the amount they can reasonably afford to lose, not based on how much the broker will let them risk. Of course if they can’t control the impulse to risk as much as the broker will allow them to, they’ll soon be broke, but then they wouldn’t be prudent, would they?

It’s like driving a motorcycle. If you go only 30 MPH you’ll be fairly safe. You don’t need a powerful bike to go 30 MPH so you can be happy with a smaller engine. If you do have a big, powerful motorbike, though, you’ll still be safe if you still drive 30 MPH. The large, powerful engine is only dangerous if you choose to drive fast. It’s the way you drive, not the size of the bike that determines if you’re safe or not.

I stand by the statement: You shouldn’t care about margin because you should be trading with carefully controlled risk.

]]> Comment on Forex Margin – Why You Shouldn’t Care by Jason http://www.tantalusonline.com/blog/forex-school/forex-margin-why-you-shouldnt-care/comment-page-1/#comment-130 Jason Mon, 25 Jan 2010 16:54:40 +0000 http://www.tantalusonline.com/blog/?p=159#comment-130 Think it is a little misleading. Trading 500:1 instead of 50:1 does have a risk factor. The risk of losing enough money so you can't afford to trade does increase. In your example of 50:1 @ $5000 account and $30 loss you are risking only 0.6% of your account on a trade and in the other 6%. Sure the probability or risk of the trade not working out doesn't change but the probability of your losing your account quicker has increased 10 fold. Ignore margin at your peril in my opinion. The ironic thing is those that are good a trading are the ones who can trade at a high margin rate but Do NOt because the understand the risks involved. Yet those who do not make consistant profits do use high margin levels. I think there is definitely a correlation between the two. Jason reg@greattradingsystems.com www.greattradingsystems.com Think it is a little misleading. Trading 500:1 instead of 50:1 does have a risk factor. The risk of losing enough money so you can’t afford to trade does increase.

In your example of 50:1 @ $5000 account and $30 loss you are risking only 0.6% of your account on a trade and in the other 6%.

Sure the probability or risk of the trade not working out doesn’t change but the probability of your losing your account quicker has increased 10 fold.

Ignore margin at your peril in my opinion. The ironic thing is those that are good a trading are the ones who can trade at a high margin rate but Do NOt because the understand the risks involved.

Yet those who do not make consistant profits do use high margin levels.

I think there is definitely a correlation between the two.

Jason
reg@greattradingsystems.com
http://www.greattradingsystems.com

]]> Comment on Forex Margin – Why You Shouldn’t Care by thurai http://www.tantalusonline.com/blog/forex-school/forex-margin-why-you-shouldnt-care/comment-page-1/#comment-124 thurai Sun, 24 Jan 2010 15:40:07 +0000 http://www.tantalusonline.com/blog/?p=159#comment-124 Hi, Great post and looking forward to hear from you on the how to do you make money from forex blog Regards Thurai Hi,

Great post and looking forward to hear from you on the how to do you make money from forex blog

Regards
Thurai

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]]> Comment on Forex Margin – Why You Shouldn’t Care by The online forex » the Forex Market - get these Accounts Right Below or you will Lose at Currency Trading! http://www.tantalusonline.com/blog/forex-school/forex-margin-why-you-shouldnt-care/comment-page-1/#comment-115 The online forex » the Forex Market - get these Accounts Right Below or you will Lose at Currency Trading! Fri, 22 Jan 2010 15:22:54 +0000 http://www.tantalusonline.com/blog/?p=159#comment-115 [...] is actually the forex market.Still, you must decide according to trading which pair (s) will work best for you. All you need to do is look at trading [...] [...] is actually the forex market.Still, you must decide according to trading which pair (s) will work best for you. All you need to do is look at trading [...]

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