This was my issue for YEARS! The reason I, and most traders over-leveraged, is not because we don't know we're taking to big of risk, it's because we're hoping we can build our account to a sizeable amount so risking 1% - 2% per trade earns at LEAST a decent living. We're hoping to "hit the jackpot", so to speak, and praying we don't blow our account (which we always do) so we can reach a $25,000 account to earn a healthy profit risking low per trade. It's simply far to difficult for anyone to start with $1k - $2k and NOT be tempted to 'over-leverage' to get it to where you can trade properly and safely. This is why funding firms like FTMO and many others popping up in the last 2 - 3 years have been a God send, truly, because they provide the leverage we need to get our foot through the door using pure skill, not luck and chance, to earn money. Before, you'd have to be employed at a trading desk or compete with 1,000's of other "would be traders" to get access to the kind of funding and capital neccessary to build personal wealth. Now, you can start off with $25k - $100k you don't personally have (very, very few people do) using other peoples money. This eliminates the fear of losing ones own money while simultaneously leveraging other peoples money. Thus, removing much of the emotional process behind trading as it feels akin to demo trading successfully anyway when my money isn't personally involved AND I have the leverage neccessary to make trading worth my while and, most importantly, fun for me to look forward to trading every day. Any one starting with a small balance already is severally underleveraged, and this mentallatiy of trying to play "catch up" is why most of us avoided this rule. These online trading fund firms leveled the playing field big time and made the process very simple to get funded. Hedge Fund traders use the EXACT same concept when trading wealthy peoples money on their behalf and earn a percentage of that monthly for profit sharing dividends. That's how they got rich. NOT trading their own personal funds (which they invest elsewhere), but trading others. It's genuis, really, and this recent trend of funding for traders takes the average working class guy working at Mcdonalds and gives him the footing he needs to succeed, because most of us don't have wealthy parents or a lump sum of $50k lying around to trade with. Thanks for this video.
You are 100% right . I’ve come to this conclusion to after losing 30k. The leverage is the biggest trick that brokers use to blow up your account. They have turned the trade identity to the gambling
Thanks Guy. No problem. I do tend to post things that jars with people, but it jars because it's the truth and not what a lot of people want to hear! Hoping you have a great 2019!
@@bartosz4512 So how's that working out for you, i once tried to work with an account manager in the past but i had such experience. But i'm still willing to give in another shot but with much smaller capital.
I try to control my risk but its so tempting to overleverage especially seeing those big profits gives me a high. I'm able to control my emotions for few months and suddenly I end in a spree of overleverage trades which gives profit and eventual blows up in my face
Something that makes the new regulations on margin rates a bit of a joke is the fact that you can just switch to an overseas broker who isn't subject to the EU laws, in this respect they haven't really stopped anyone who is determined to use high leverage.
Words to live by, James 👍 With small accounts the risk/return will need to be much higher, no? It will be much harder to build an account up when the return is more easily swallowed up by the charges. £1k account trading 1% with a charge of .25 open/close will take a very long time to grow.
Yes, sadly a 1k account does take some time to grow. But the good thing is, if you do it right, you only need to grow it once. Compounding eventually starts bumping it up also, especially with a 2% risk. And the great thing about seeing yourself consistently profitable and not blowing accounts due to overleverage is you are confident in putting more money into the account as and when you can.
I feel the same and don’t know what to do... lost 9.7k :/. The big wins and the market going the direction I thought when I dropped out just kept tempting me over and over. It’s hard to stop because I want to make it back desperately.
@@absolute___zero no, you haven't. It really is embarrassing when someone comments on a video claiming to be an expert when the have absolutely no idea what they're talking about.
I'm talking long term. Anyone can increase an account by 20%. I used to increase account 500% to 1000% over leveraging. But it's not sustainable long term - over years. And the end result is always the same - a blown account.
I think ESMA works out positive to me. It forces naughty traders to behave according to what they wanted to do in the first place but did not have guts to follow. Now I have no choice but stake low.
I don't agree because it was forced onto people but I do think it is good overall. I have heard so many horror stories over the years of people losing all their money. At least this offers some protection.
Decisive Trading I understand that it caused the reduction of size for a lot of traders and I know how devastating it is for them. But there are people like me, who were losing a lot of money for years and no lessons were learnt and at the end I just gave up thinking that’s how it’s supposed to be: losing all the time. So for me losing LESS because I cannot add up meant a lot. I managed to pay off my credit cards since July and although some debt is still left I know I can clear it. And I don’t have sleepless nights any more worrying about money. So I think it was only a benefit for people who cannot control themselves, for people like me, who are gamblers, it did turn out to be a positive thing. But I agree that it impacted a lot of proper traders out there.
@@Rita50 I am really glad to hear it has helped you out and you are on your way to clearing your credit cards. The markets can be devastating and swallow a lot of money. Happy to hear you are now on a better track.
Everything that you shared here, James, And I mean exactly everything, was me exactly last year!!!!! I’m very grateful for your raw transparency and honesty. Im struggling to rebuild my account. But when I get there, I’ll know what to do. Im going to get my connect 4 game from out of my closet, too. Already started jogging in the snow, in the meantime. I’m really staying positive in 2019, Brother.
That is great positivity. I'm hoping 2019 is a fantastic year for you. It can seem like a mountain to climb rebuilding an account but it also makes you appreciate it more and cling onto it like a madman when it gets there!
This was my issue for YEARS! The reason I, and most traders over-leveraged, is not because we don't know we're taking to big of risk, it's because we're hoping we can build our account to a sizeable amount so risking 1% - 2% per trade earns at LEAST a decent living. We're hoping to "hit the jackpot", so to speak, and praying we don't blow our account (which we always do) so we can reach a $25,000 account to earn a healthy profit risking low per trade. It's simply far to difficult for anyone to start with $1k - $2k and NOT be tempted to 'over-leverage' to get it to where you can trade properly and safely.
This is why funding firms like FTMO and many others popping up in the last 2 - 3 years have been a God send, truly, because they provide the leverage we need to get our foot through the door using pure skill, not luck and chance, to earn money. Before, you'd have to be employed at a trading desk or compete with 1,000's of other "would be traders" to get access to the kind of funding and capital neccessary to build personal wealth. Now, you can start off with $25k - $100k you don't personally have (very, very few people do) using other peoples money. This eliminates the fear of losing ones own money while simultaneously leveraging other peoples money. Thus, removing much of the emotional process behind trading as it feels akin to demo trading successfully anyway when my money isn't personally involved AND I have the leverage neccessary to make trading worth my while and, most importantly, fun for me to look forward to trading every day.
Any one starting with a small balance already is severally underleveraged, and this mentallatiy of trying to play "catch up" is why most of us avoided this rule. These online trading fund firms leveled the playing field big time and made the process very simple to get funded. Hedge Fund traders use the EXACT same concept when trading wealthy peoples money on their behalf and earn a percentage of that monthly for profit sharing dividends. That's how they got rich. NOT trading their own personal funds (which they invest elsewhere), but trading others. It's genuis, really, and this recent trend of funding for traders takes the average working class guy working at Mcdonalds and gives him the footing he needs to succeed, because most of us don't have wealthy parents or a lump sum of $50k lying around to trade with. Thanks for this video.
You are 100% right . I’ve come to this conclusion to after losing 30k. The leverage is the biggest trick that brokers use to blow up your account. They have turned the trade identity to the gambling
All European Brokers : Plus500, eToro , trading 212, Ava trade and etc.
The voice of experience and wisdom. Thank you for posting that James.
Thanks Guy. No problem. I do tend to post things that jars with people, but it jars because it's the truth and not what a lot of people want to hear! Hoping you have a great 2019!
This is Extract of all the trading philosophy. Yet simple
*Not bad but i always prefer having an account manager help me grow my account to a formidable level while i take my time to master Forex on demo*
@@bartosz4512 So how's that working out for you, i once tried to work with an account manager in the past but i had such experience. But i'm still willing to give in another shot but with much smaller capital.
Thank you so much for posting this. Seriously appreciate you
One of the hardest thing in trading is to control your psychology
So true.
I try to control my risk but its so tempting to overleverage especially seeing those big profits gives me a high.
I'm able to control my emotions for few months and suddenly I end in a spree of overleverage trades which gives profit and eventual blows up in my face
spot on ! I am a good trader but i was over trading and placing to much per trade for years. I lost £1000s before getting this issue under control.
I was the exact same. It taught me the lesson, I just wish it hadn't been so bloody expensive!
@@absolute___zero again, no, you didn't.
Great content!! Great advice
This video was all I needed .. thank you so much !
same 🙏🏾
Very good advice! *Instant subscribed*
Best shirt in your videos so far, by a mile actually
Thank you. One of my only shirts that's still coffee stain free! 😂
What is good leverage for small account?
Wise words James. Thank you!
Thanks Justina. Hope you had a good Christmas break!
Something that makes the new regulations on margin rates a bit of a joke is the fact that you can just switch to an overseas broker who isn't subject to the EU laws, in this respect they haven't really stopped anyone who is determined to use high leverage.
Words to live by, James 👍
With small accounts the risk/return will need to be much higher, no? It will be much harder to build an account up when the return is more easily swallowed up by the charges. £1k account trading 1% with a charge of .25 open/close will take a very long time to grow.
Yes, sadly a 1k account does take some time to grow. But the good thing is, if you do it right, you only need to grow it once. Compounding eventually starts bumping it up also, especially with a 2% risk. And the great thing about seeing yourself consistently profitable and not blowing accounts due to overleverage is you are confident in putting more money into the account as and when you can.
I feel the same and don’t know what to do... lost 9.7k :/. The big wins and the market going the direction I thought when I dropped out just kept tempting me over and over. It’s hard to stop because I want to make it back desperately.
I think you emailed me also and I have sent you back a reply to this. Sorry for your losses it really is a horrible experience to go through.
@@absolute___zero no, you haven't. It really is embarrassing when someone comments on a video claiming to be an expert when the have absolutely no idea what they're talking about.
Take this loss as a really valuable experience, therefore you have learned that greed is dangerous, same I learnt
Sir u r solid. Thanks for giving knowledge of money management
Amazing bro . Thank you 🙏🏼
I'm using 50:1 leverage on a £1000 account. No stop loss but I have a strict exit plan. I know when my trade has failed. My account is up 20%
I'm talking long term. Anyone can increase an account by 20%. I used to increase account 500% to 1000% over leveraging. But it's not sustainable long term - over years. And the end result is always the same - a blown account.
@@decisivetrading9387 when I increase my account by 2000%... I'll shove it in your face😤💯
@@decisivetrading9387 I only risk maximum 1.5% a trade... When I see - £15 I take the hit. My risk management isn't too bad so I should be fine.
Maimed Fascia A.K.A. New London how much have you grown your account by since your comment then?
@@trakamtv5398most likely liquidated
I think ESMA works out positive to me. It forces naughty traders to behave according to what they wanted to do in the first place but did not have guts to follow. Now I have no choice but stake low.
I don't agree because it was forced onto people but I do think it is good overall. I have heard so many horror stories over the years of people losing all their money. At least this offers some protection.
Decisive Trading I understand that it caused the reduction of size for a lot of traders and I know how devastating it is for them. But there are people like me, who were losing a lot of money for years and no lessons were learnt and at the end I just gave up thinking that’s how it’s supposed to be: losing all the time. So for me losing LESS because I cannot add up meant a lot. I managed to pay off my credit cards since July and although some debt is still left I know I can clear it. And I don’t have sleepless nights any more worrying about money. So I think it was only a benefit for people who cannot control themselves, for people like me, who are gamblers, it did turn out to be a positive thing. But I agree that it impacted a lot of proper traders out there.
@@Rita50 I am really glad to hear it has helped you out and you are on your way to clearing your credit cards. The markets can be devastating and swallow a lot of money. Happy to hear you are now on a better track.
I agree. I have learnt so much more now by using small trades rather than larger leverages before the ruling when I was losing a lot of money.
Everything that you shared here, James, And I mean exactly everything, was me exactly last year!!!!! I’m very grateful for your raw transparency and honesty. Im struggling to rebuild my account. But when I get there, I’ll know what to do. Im going to get my connect 4 game from out of my closet, too. Already started jogging in the snow, in the meantime. I’m really staying positive in 2019, Brother.
That is great positivity. I'm hoping 2019 is a fantastic year for you. It can seem like a mountain to climb rebuilding an account but it also makes you appreciate it more and cling onto it like a madman when it gets there!
Decisive Trading indeed
amazing shirt
I want to talk about LEAVEridge!
Facts
Good session
Thank you.