Featured Post

The Science of Getting Rich: CHAPTER VII [excerpt] by Wallace D. Wattles #Gratitude

--- Gratitude THE ILLUSTRATIONS GIVEN IN THE LAST CHAPTER will have conveyed to the reader the fact that the first step toward getting ...

Thursday, November 3, 2011

You too can trade FX like the Primary Dealers


MF Global.. leverage 40 to 1

Jefferies.. leverage 13 to 1

Why so much leverage?

Deep pockets, that's why.. When you get all the free fiat and bailouts you want from the Federal Reserve Bank you NEVER have to accept a losing trade!

These guys "bet wrong" all the time but they simply, strategically, add to their losers until they can either achieve a break even trade or make a profit.

You can trade this way too!

But I NEVER use even 13 to 1 leverage.. Due to account size and risk.

Once in a great while I may get to 4 or 5 to 1 but, generally speaking, by then I'm quite terrified! LMAO

If you have a 300,000.00 account you can very comfortably trade 10.00 per pip..

A 30,000.00 account? 1.00 per pip

A 3,000.00 account? 0.10 per pip

A 300.00 account? 0.01 per pip

Using this technique you can pretty much do whatever TF you want in the market without fear of being virtually destroyed by one or two bad trades.

3 lots = no leverage. 6 lots = 2 to 1. 12 lots = 4 to 1. Etc etc..

Leverage is VERY important and often overlooked or not properly understood.

Be careful out there for God's sake!


No comments:

Post a Comment