pepy Posted February 15, 2013 Share Posted February 15, 2013 Come to think of this one I think that compounding is very neccesary in forex trading because when you do compounding your capital increase hence creating a chance for profit increament too but all this can be gotten when the right knowledge is there. as i told before ,that thing is depend on the traders, i think if you already have enough capital to trade plus some backup if later you will lose your capital, then it is not necessary to do compound for your trading capital, but if you still target to make more capital then you can do that with more compound it means you have more capital to trade Quote Link to comment Share on other sites More sharing options...
standart Posted February 18, 2013 Share Posted February 18, 2013 compounding is important to make traders account growing because every time traders compound the profit, they have opportunity to increase the lot rate per order. but there is traders that keep trading with the same amount every time and take all the profit after particular period. compound the profit or not, I think its depend on traders choice. Quote Link to comment Share on other sites More sharing options...
pepy Posted February 19, 2013 Share Posted February 19, 2013 just make sure you know the right time to compounding, i just get some story from my friend and other traders that there are few traders that do over compounding in forex and loss all of their balance. that is a tragedy as for me, compounding is good as long as we don't overuse that. Quote Link to comment Share on other sites More sharing options...
rexway Posted February 19, 2013 Share Posted February 19, 2013 This most be true its all depend on the trader I do agree with this what I know is that if the trader has the capital then there is no way to make up on the compounding he just need to focus on the profit he make and invest his own personal money Quote Link to comment Share on other sites More sharing options...
budado Posted February 25, 2013 Share Posted February 25, 2013 Four out of eight accounts that I have right now got MC and I think that's a clear sign how dangerous forex trading is. And the strategy I use is averaging. That's is much safer than doing compounding. And I'm sure if I did compounding all of my accounts right now got MC. In forex trading you need to invest to have more free margin. The more free margin you have the more you can survive in the long run. Quote Link to comment Share on other sites More sharing options...
pepy Posted February 27, 2013 Share Posted February 27, 2013 This most be true its all depend on the trader I do agree with this what I know is that if the trader has the capital then there is no way to make up on the compounding he just need to focus on the profit he make and invest his own personal money as long as they are in profit i think that compounding is not a big deal for traders, if they want to gain more capital for their own sake then it is okay, as long as they know what they do, at least with compounding people will have more chance to get more bucks from their own trading activity Quote Link to comment Share on other sites More sharing options...
riddick09 Posted March 19, 2013 Share Posted March 19, 2013 It's a big deal particularly if they don't have here proper risk management or applying stop loss in their trades. Without it I guess their profits made in that trading account will be easily reach their MC and yet, if we are not that patient in the market analysis. I really don't like compounding as it somehow alter my strategy and also unsure if we will still be recover when a big loss occurred. Quote Link to comment Share on other sites More sharing options...
monyitomon Posted March 20, 2013 Share Posted March 20, 2013 It is really important that you are able to make your capital big without putting new money in there so that is what they called "Compounding". Though, we know that when you have earned a profits, it's just much better to withdraw it. Well, I guess you should have some plan on what you want to do with it, if you going to recover your capital first so that it's safe, then after that you can compound. Quote Link to comment Share on other sites More sharing options...
mesbakh Posted March 20, 2013 Share Posted March 20, 2013 compudning is very god idea, coz it could make 10 bucks inton100000 just in 5 months in stable 10 percent dialy profit. Quote Link to comment Share on other sites More sharing options...
Achiever2015 Posted March 21, 2013 Share Posted March 21, 2013 Until a trader can certify himself as having mastery over the trends and fluctuations of market, and have known well enough the art of risk management, then compounding should not be an option. Compounding really is important, but we must know the right time. Quote Link to comment Share on other sites More sharing options...
pepy Posted March 21, 2013 Share Posted March 21, 2013 compounding is very okay and i don't see any problem with it, as long as we know the right place to do that, over-compounding is something that i really want to avoid, if i do compounding in forex it must be at most 20% of my profit, or usually about 15% of mine, if i already have backup then i don't want to do this anymore. Quote Link to comment Share on other sites More sharing options...
budado Posted March 22, 2013 Share Posted March 22, 2013 Its not important and its anti-productive as you can loss all of your profit plus capital if you make some mistake when you trade. that's why its very important that we trade in forex if we feel that we can still trade and make money in forex but we must make sure that each time we make profit we cashout. In this way even if we get MC some how we already cashout and earn back some of our investments. Quote Link to comment Share on other sites More sharing options...
pepy Posted March 22, 2013 Share Posted March 22, 2013 Until a trader can certify himself as having mastery over the trends and fluctuations of market, and have known well enough the art of risk management, then compounding should not be an option. Compounding really is important, but we must know the right time. i agree with latest part, basically it is just same like my opinion about this compounding, if we know the right time to do that thing then we will not have much problem with this one and know the right way to handle it, also if we use it in the right time then we will maximize our earning. Quote Link to comment Share on other sites More sharing options...
acunmeswew Posted March 27, 2013 Share Posted March 27, 2013 For a healthy earning a good capital is needed. It would be better to not withdraw all the profit every month and increase your capital regularly. A good money management is also important to increase your capital. Quote Link to comment Share on other sites More sharing options...
pepy Posted March 27, 2013 Share Posted March 27, 2013 compounding of course is an important thing but back again to the traders i see that some traders don't want to do this thing because they think already have good enough capital or think that compounding is not important at all for them. but basically if we over compound our capital it will be bad too Quote Link to comment Share on other sites More sharing options...
savehouse Posted April 17, 2013 Share Posted April 17, 2013 personally i don't like the idea of compound when trading,i believe if one is trading and compounding his result,if the trader did encounter any loss,all he/she has worked for as a trader will be lose,personally i don't compound my profit and i withdraw my profit as soon as i can.even if i do lose when trading with capital,i have a well money management that i can fall back on Quote Link to comment Share on other sites More sharing options...
pepy Posted April 17, 2013 Share Posted April 17, 2013 Maybe for some traders they don't like this idea, but for the other this is a good way to get more capital without need to spend from your bucks aside from getting bonus from our post in paid forex forum such as MT5. If we can use this way wisely then the result will be good for us too, with more profit in our hands. Quote Link to comment Share on other sites More sharing options...
rexway Posted April 18, 2013 Share Posted April 18, 2013 @savehouse, I will always say that its all depend on the trader himself if the trader is that good I think that he can do compounding and at the same time earn alot of money from compounding and can turn the little profit which he has into a big profit Quote Link to comment Share on other sites More sharing options...
pepy Posted May 14, 2013 Share Posted May 14, 2013 Compounding is reallly important if you want fast capital and you are sure that you will gain profit from your investment in forex. but for some trader they think that compounding is not an important thing maybe because they got a lot of capital already, so that is why they think it is not important at all. Quote Link to comment Share on other sites More sharing options...
gaban Posted May 15, 2013 Share Posted May 15, 2013 Compounding is important to get comfort in trading, but it would better if we do it after we can make profit consistently in forex. And if we had have big capital to trade, we should be discipline, don't be greedy when trading. Quote Link to comment Share on other sites More sharing options...
budado Posted May 15, 2013 Share Posted May 15, 2013 Its depends on your analysis. If you have two buy position and the price goes up you can open another buy position if you think the price will continue to go up. This is good strategy and can make you earn more and more profit each time the price goes you way and when the price chance or back down then its good just to close all of your profitable position. In this way you can really make good income without any problem at all. Quote Link to comment Share on other sites More sharing options...
davils9 Posted May 26, 2013 Share Posted May 26, 2013 i think forex is a good business. if a man want to earn more he need to learn more and more about it and then he can take a demo account for training and then he can open a real account for trade Quote Link to comment Share on other sites More sharing options...
sakai Posted September 20, 2013 Share Posted September 20, 2013 If we made mistake, we could lose higher amount of bucks. But if we could make good analysis, our profit will be higher too. So it's depending on us when we must use this compounding strategy. Most traders like me are trying to find this type better earning strategy Quote Link to comment Share on other sites More sharing options...
Samar Posted September 20, 2013 Share Posted September 20, 2013 Personally i still don't like this because sometime more loss but to make capital big it's a good idea i think. We could use money management and risk management to control it. It will limit our risk of loss. Newbies are supposed to withdraw all their profits when they trade because forex trading is a risky business and must be followed with appropriate care. Quote Link to comment Share on other sites More sharing options...
StevenBendre Posted September 20, 2013 Share Posted September 20, 2013 Compounding system is good if we made plan to do that. It's bad if we compound all of our profits and we never withdrawn it. That is risky to our psychology if something happen in our account. We can feel we didn't get anything in all of our hard working so far and it made us lose spirit. Quote Link to comment Share on other sites More sharing options...
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