Would it fair to say if you have enough capital to trade one $1 million lot but you only trade one mini lot. You will most likely to make money in a long run since you can ride out the ups and downs until you are profitable? Just using MACD to trade. - Forex Questions and Answers - FXAnswer

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Would it fair to say if you have enough capital to trade one $1 million lot but you only trade one mini lot. You will most likely to make money in a long run since you can ride out the ups and downs until you are profitable? Just using MACD to trade.

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1 year ago

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0 Votes This question depends on your risk aversion and by how you define "make money." Holding onto a mini lot until it turns around and becomes profitable is an option, but there's a lot to consider. If you hold onto the mini lot, and it becomes profitable, when do you take your money? Do you leave at 200 pips, 2000 pips, etc? It may be years before you cash out and see a modest $2000 gain. If you invest $1 million and gain $2000 in a year, you just made 0.2% interest and probably could have found better vehicles for your low-risk venture. Investing large lots will result in higher risks, and -- with proper risk and money management -- higher gains over time. You may make $2000 in a day, and you may lose $3000 the next day and then gain another $1500 the day after that. It's scarier and more difficult to maintain emotional control, but over time, generally more profitable. by Duane 1 year ago by Duane 1 year ago
0 Votes The essence of trading is to make money.If one understand the ebbs and flow of the market and trading conservatively in the long run one should be able to take money out of the market consistencely.One very improtant fact is that one should know where his trade no longer work and cut the loses. by Harold 1 year ago by Harold 1 year ago
0 Votes Market is liquid and the price fluctuates in a big range over a long period of time. However, there is good chance that a historical high or low will not been hit again for extended period of time. We may have infinite financial muscles to hold on, but we have limited life span to wait just for a trade. by Kingpin 1 year ago by Kingpin 1 year ago

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This question depends on your risk aversion and by how you define "make money." Holding onto a mini lot until it turns around and becomes profitable is an option, but there's a lot to consider.

If you hold onto the mini lot, and it becomes profitable, when do you take your money? Do you leave at 200 pips, 2000 pips, etc? It may be years before you cash out and see a modest $2000 gain. If you invest $1 million and gain $2000 in a year, you just made 0.2% interest and probably could have found better vehicles for your low-risk venture.
Investing large lots will result in higher risks, and -- with proper risk and money management -- higher gains over time. You may make $2000 in a day, and you may lose $3000 the next day and then gain another $1500 the day after that. It's scarier and more difficult to maintain emotional control, but over time, generally more profitable.

Duane

1 year ago

Votes

The essence of trading is to make money.If one understand the ebbs and flow of the market and trading conservatively in the long run one should be able to take money out of the market consistencely.One very improtant fact is that one should know where his trade no longer work and cut the loses.

Harold

1 year ago

Votes

Market is liquid and the price fluctuates in a big range over a long period of time. However, there is good chance that a historical high or low will not been hit again for extended period of time. We may have infinite financial muscles to hold on, but we have limited life span to wait just for a trade.

Kingpin

1 year ago

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