I thought some stackers may be interested?, so I took this post from a previous thread. SS: Just for you. How I turned a few 10oz silver bars into 30oz bars last night. SS, this is a very simplified account of my trade last night using IG Markets Mini spot silver (500oz). For confirmation of my prior trade set up, and that I am not BS'ing you, see here from 14th Feb: http://forums.silverstackers.com/topic-22187-anybody-else-waiting-for-silver-to-dip-page-2.html. Part of successful trading is the ability to be patient. All calcs based on one contract. You can see from the first Pic that there had been tested resistance at $34.44 for a few weeks. A break through should signal momentum upwards. Thus, reference point is 3444, and entry a little above that (exact entry point depends on your plan). The high of 8 Feb was 3451.6. My plan called for an entry at 3454. Initial stop loss was 3439 (again determined by plan). Margin required $AUD235. Risk $US150 Next determine where you expect resistance to be encountered - ie if it breaks up, how far do you expect it to go? High of 28 Oct 2011 was 3569.1 - and I expected some resistance. So build in a safety factor and expect it to go to say 3560. Therefore aim to get out at 3560 (again dependant on plan). Now - determine whether risk is worth it! Risk = $USD150 Potential reward = 3560 - 3454 = 106 = $USD 530 Therefore risk:reward is 1 : 3.5 (acceptability depends on plan, risk management and your trading expectancy) - acceptable for my plan. Thus entered trade. Result per contract: Margin $US250 Profit $US530 (212% profit) :lol:
Thanks, you have me interested in the techniques. Must look up where i can learn, or even where this trading is done.
Nice info on the specifics of your speculative trades wrcmad....you will probably make a lot of money. That being said, I'm not fond of speculators and personally refuse to participate in the speculation game. It really is money for nothing falling into the hands of another unwanted middleman...another tool created by bankers/traders to take our wealth. Speculation encourages perverse market incentives and distorts price discovery processes. A few get rich while the rest get screwed...not really my cuppa. Yes I know, speculators provide Capital and liquidity in the marketplace....but that is overvalued compared to the benefits of having a fair commodities marketplace with proper price discovery. Stopping excessive speculation won't make bankers/traders rich, but it will lead to a more equitable marketplace for all. You have become them wrcmad...and your transformation into becoming a Sith Lord is now nearly complete ahahaha.
Thanks Irondog. I pose a question to you though. Is it not ironic that any stacker could think [they are] ".......not fond of speculators and personally refuse to participate in the speculation game........ A few get rich while the rest get screwed...not really my cuppa". It seems to me that quite a large proportion of silver stackers on this forum have speculated on physical metal (essentially a commodity/(currency?) trade and speculation on sovereign risk), and are pining for "prices to go to da moon", and relish the day when they are sitting proud holding all the real money while everyone else is holding worthless fiat. The parrallels are astounding to me.
Wrc Whats it is actual worth for one contract? In mini fx, one contract worth $10k. Impressive though
GM, Books, courses and a lot of self-tutorial. see previous thread: http://forums.silverstackers.com/topic-22773-i-don-t-wanna-stack-i-wanna-tradeplease-help.html
Correct me if I'm wrong but would a tutorial on the odds of black jack and how to double your money be fundamentally different to this? Gambling is gambling, right?
One trade in isolation may seem like a punt. However, if you have the right risk management strategy, trading techniques, trading plan, and known trading expectancy, over the long term you will come out in front. The odds are much more in your favour because you are only entering the market in circumstance where there is a high probability you will profit from the trade. The difference between this trade and a blackjack hand is that I had a pretty good idea, given the right setup, what the outcome would be 10 days before hand: http://forums.silverstackers.com/topic-22187-anybody-else-waiting-for-silver-to-dip-page-2.html Good trades can also be entered selectively. I don't think you could tell me what cards you would be dealt at the table in a week's time. And I don't think the croupier would allow you to only bet only on good hands once the cards have been turned. It is easy to dismiss trading as speculation (above post) or punting. This seems to be the general naive repsonse from most who are not very familiar with it. But, as also stated above, in my opinion, anyone stacking is essentially speculating on a commodity/currency trade and punting on soveregn risk. And if you want to consider gambling, then we could discuss numis and coin flippers all day. The difference is, stackers and coin collectors are 100% exposed to the trade, while the example above demonstrates tight risk management with limited potential losses. Don't get me wrong, I love my stack, and am willing to be exposed to the risk (due to my view on price direction), but I use thie above methods to grow it faster.
