Is risk diversification even possible in the forex market? - page 10
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If you trade a single trade in a market with a 10% risk, it means that you will lose 10% of your deposit when the stop is triggered. If you have 10 trades in the market at the same time with the same lot as in 1 case, the risk will be 100%. This is the worst case (which can never be excluded), when all trades will close on a stop loss.
Only the risk will not be 100%.
It all depends on your TS and its probability of being at a loss...
The probability of losing everything with perfect diversification should be the same.
(either in 1 or 2 case.)
P.S. When I was working 10 years ago - our daily risk was literally on 3 deals.
That is, you lost 3 trades in a row from the start - so you're closed (until the next business day ...)
Depo load was almost always 100% (all of them).
(although this is scalping itself).
And even being scalpers traders often held 3-4 instruments at a time...
If I had such an approach I personally had months in which I was not at a loss (I mean any specific day)...
I can't understand what it has to do with depot load.
Although mostly of course one third of all working days (in a month), as a rule you are in deficit...
What leverage was it all on?
Anyway, you're wasting your time in forex.... imho, he'll break your horns in no time.
What leverage was it all on?
Anyway, you're wasting your time in forex.... imho, he'll break your horns in no time.
Everyone had different buying power depending on their skills and so on.
What leverage was it all on?
Anyway, you're wasting your time in forex.... imho, he'll break your horns in no time.
(if you do - then why don't you advise me?)
Don't forget that all currency pairs have the US dollar in them. So diversification is out of the question. Diversification can only be achieved when you select a portfolio consisting of shares from different economic sectors. For example portfolio: shares of companies in mining industry, power industry, agriculture, transport etc. In forex, trading different currency pairs at the same time only increases the risk.
Don't forget that all currency pairs have the US dollar in them. So diversification is out of the question. Diversification can only be achieved when you select a portfolio consisting of shares from different economic sectors. For example, a portfolio of shares in the mining industry, electricity, agriculture, transport, etc. etc.
(But I don't fully understand why?)
That's actually what I originally wanted to talk about in this thread...
(how much it affects everything, etc.)
But you're the first one to talk about it so far...
I've heard that there is a quid everywhere.
That's actually what I wanted to talk about in this thread in the first place...
(how it affects everything and so on).
But you're the first one to talk about it so far...
Then why have you started an off-topic discussion for 10 pages? You must have read the story of how the dollar became the measure of value for all currencies instead of gold. And it is everywhere, even in cross pairs. And you must have seen many times, when news about the US economy comes out, all currency pairs react to it. The only way to diversify risks in forex, I think, is to use different trading systems, independent from each other. Not the same trading system but on different currency pairs.
Google the Bretton Woods agreement.
Before you create topics here, you would start with the basics:
- the value of a contract in forex;
- what a collateral is and when it applies;
- What is a swap and when does it arise; etc.
etc. etc.
You are zero, so you are simply unable to understand what they are trying to tell you here.
10 pages of "down the drain".
(I've been looking into Forex for about half a year).
But I am interested in several things:
1) Find some very detailed information about correlations.
2) The more opinions the better (so it is not a waste of time)
3) That he who trades several instruments simultaneously - would show the principles by which it diversifies the risks.
P.S. Explain what exactly I can not understand if you are an expert? )
I've heard of a quid everywhere.
(but don't fully understand why?)
.......
Then why have you started an off-topic discussion for 10 pages? You must have read the story of how the dollar became the measure of value for all currencies instead of gold. And it is everywhere, even in cross pairs. And you must have seen many times, when news about the US economy comes out, all currency pairs react to it. The only way to diversify risks in forex, I think, is to use different trading systems, independent from each other. Not the same trading system but on different currency pairs.
Google the Bretton Woods Agreement.
Please tell me exactly how the US unemployment news affects the AUDNZD pair.