Well, if you've been following my October FX trading and performance you might be starting to wonder why I'm bothering for these small amounts. I've been asking myself that anyway. But yesterday I watched a film called "The Age of Stupid" which puts in perspective even such amounts. And in turn makes me question the value for humanity of such a past-time or hobby.
So Novemeber 3 trades worth a profit of 130$. I believe my broker made 18$ on each of those round trips. Maybe I should just start with 6 lots instead of 1. Might give me a heart attack but bottom line would improve dramatically. Then again maybe it's cos I only bet such small amounts that I can trade in the way I do at the moment (i.e. not lost on a trade in 2 months and rarely even having strong enough conviction to trade in the first place).
I'm still close to 400$ underwater since the start of this FX experiment.
Personally, I don't know if making the jump from 1 to 6 lots is a good idea =) On paper it will look good, but I've done similar things in the past, and it's really hard to get psychologically prepared for the much larger fluctuations in PnL. At least that's how it worked for me =D
ReplyDeleteMaybe I'll go for 2-3 lots until I feel comfortable with that kind of risk. Probably won't be comfortable with jump to 6 I agree :)
ReplyDeleteTotoally agree, or you can set a target, once you reach the target, you can raise the lot.
ReplyDelete2-3 lots is good idea, which you can scale in / out of position.
Change broker, FXPT! :-)
ReplyDeleteHey Jules, change my FX broker? less than 2 pip spread on EURUSD...
ReplyDeleteoh...ok, 2 pips is reasonable...got it mixed up with your warrant broker... :-)
ReplyDeleteYes I'm waiting for my cheap "plan B" broker to clear my paperwork. Then the warrant action can restart there :) Have stopped trading warrants for the moment cos I was so pissed at costs :))
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