A Trading Post Blog
Commentary on Trading Post and the Online Trading Industry

Aug 27 2008

Start Trading with as Little as $25

For years FX Solutions had built up a client base heavy in super mini (1K) accounts.

I've touched on this before when I originally heard about it at the Los Angeles Traders Expo, but now FXCM has jumped into the fray with its www.forexmicrolot.com website.

Only the marketing schtick here is not Open an Account with $300, but open one with a  mere $25.

The general concept makes me wonder if this really engenders trading success. My personal opinion is that it doesn't and I'm not a fan. This isn't a broker ranking or review, but just my thoughts on the concept of these microscopic accounts.

Managing trader expectations is my primary responsibility at Trading Post. There are too many "traders" who are more gamblers than anything, who expect maximum returns for a minimum investment.

By and large it doesn't work that way. You are not going to take $25 and make it $1 million in a year.  Trading requires a more substantial investment of risk capital.

But what do you think? Does your experience dictate otherwise?

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Aug 27 2008

Social Networking with Traders

digsbyOne thing that has really been a salvation to my communication with traders - and they're increasingly from around the world. 

Between Facebook, my email accounts, instant messaging accounts, Twitter, etc., it becomes an enormous task to keep a pulse on and update everything. It's easy to just fumble around from application to application wishing there was something that could consolidate all these services into one platform.

That platform is Digsby. Thank you Digsby, I am in love and I have officially thrown my Trillian into the tech waste of my recycling bin.

Aug 27 2008

No Mas to the Forex Hype

Like a prize fighter quitting in the middle of a boxing match, I am going to say No Mas to the Forex Hype.

Really I'm getting sick of amateurs skewing the expectations of traders. It's continual, and it sucks.

I just received another email today (from a "fund manager" who does so through InterbankFX). Read it and tell me what you think. I have a headache now. And no I'm not being over dramatic.

And NO I'm not endorsing him. Just saying that at some point he's going to crash, just make sure you aren't riding with him.

-----

Hello dear friend,
you can find in this mail as attached 3 statement one with agrressive strategy i transform 3000 $ into 15 000$ in 40 days and one for a client i hide his name but you can see that it is trading by me from the LPOA that give me the permission to trade his account.
if you have any more questions about money management feel free to ask iam here to help you
God Bless you ,
Good trade Good day

how does the Manage Account Work?

You will open an account under your name with interbankfx and you will give me the power of attorney to just trade your account nothing else.

Profit Sharing

We are taking 30 % of the profit at the end of every month and you keep the 70%

Final Risk Control and Guarantee

Note that you owned your account and if at any time you feel concerned that your account is not well managed you can call the shot at any given time within 24hrs by removing the Power of Attorney from me. Also I will stop trading the account immediately If my loss falls to 2/10th of your initial opening account balance. For example, for an account with $1000 opening balance your risk is only US$200.00 and you can stop me from trading the account and withdraw your power of attorney from me if you wish.

P.S: Our accounts are giving from 30% to 50% profit every month.

Because we are working rather than speaking and we believe that actions speak louder than word, you just have to try us for one month, and remember you will not risk more than 2/10th of your account.

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