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  1. #1
    Trader Senorita's Avatar
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    Martingale For Beginners

    MARTINGALE FOR BEGINNERS

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    Introduction: ]
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    Martingale strategy have really been one of the oldest method of betting and still popular up to this present times. Where its believed that a punter have to double any losing stake till a win comes out. The name comes from a man named John Henry Martindale, who encouraged punters to stake with this system of bet and it was first introduced to the casino game. The funny part of it all is that this man in question never used this system personally on his own. It's been a lot of years now and many have redefined this system to really suite in their preference to which they can survive and earn with this method.

    However in this article we are going to analyze properly on this martingale system and how good they are for those that will choose to trade with it. Beginners in forex are really looking for the right system and method to which they can develop with so that they can have the proper ability to which they could trade good for themselves and earn for a life time with forex. We all love the idea of success and we have to work hard to at least find that which will really have to work for us more of the time with forex trading.

    What Does Martingale Means For A Beginner

    To set the record straight most beginners must have been tempted to research about this system and have come to understand that in this system one must look to double his stake when loss occurs in repeated means till eventually a win comes up to clear that loss and thus give them a targeted profits. For example if we stake $1 on a trade or bet to win $1 but eventually loose it, on our next trade we must look to stake 2$ to target 4$ profits. Assuming on the 2$ dollar stake we won, we will get a profits of 4$ where 3$ is the amount staked entirely and $1 the actual profits we realized from the run off.

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    So for every beginner it's one of the simple terms to understand in this market and know that we double our risk when we make loss and when we win, the cycle continues with the initial stake. So starting off this system we tend to use the lowest funds as possible so as to minimize risk and have the ability to go for a longer term doubling if we managed to see ourselves in a losing streak.

    Does Martingale System Work?

    This have been questions among those who are eager to use this system for themselves and while this system is mathematically possible to give winnings, in the real world it is just another scenario because human have lot of things to deal with ranging from emotions and management. It will be hard for some to control their emotions especially when they start losing in a very long straight in their trade or bet. It's possible for traders and punters to loose 10 -100 times in a row and when the capital is not available to take the doubling of each loss, it means that this system have failed.

    Moreover for this system to work in the real life means having unlimited money supply and unlimited amount of time which we know can't be possible. So it means that for every trader out there they must know that when your loss reaches a stage where your capital equity can't double up your risk in trading, it means you are bound to give up in this system and eventually get frustrated with loss.

    Martingale System Formular

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    From the above picture, this is a breakdown of how this martingale system works in practicals. Using the minimum stake of $1 amount for our starting trade.

    *On our first stake we started with $1 and target a profits of $1. After the end of the trade we have a positive trade and end up with a final profit balance of $1

    *On our second trade we stake $1 again and target a profit of $1. After the end of the trade we have a positive trade and end up with a final profits balance of $2

    *On our third trade we stake another $1 and target a profit if $1. After the end of the trade we have a negative trade and end up with a final profit balance of $1

    *Since we have lost, we double up. Then on our fourth trade, we now stake $2 and target a profit of $1. After the end of the trade we have a negative trade and ended up with a final loss balance of -$1

    * Continuing the cycle, we now stake $4 on our fifth trade and a target of $1 profit. After the end of the trade we have a negative trade and ended up with a final loss balance of -$5

    *On the sixth trade, we stake $8 with a target profits of 1$. After the end of the trade we have a positive trade and end up with a final profit balance of $3.

    We could see from this description above that in the martingale system of trade, every loss is growing up in progression yet with a profit target of a little $1.

    THE MARTINGALE IN FOREX TRADING

    Martingale system can be used in forex and that is as a result of doubling our investment in each and every loss. Many experienced traders have always believed that it is bound to work more often for a trader who understand the scope of trading. Meanwhile forex have its advantage as market could trend for a longer time and can always give a trader a good edge to make much more profits with this system.

    Some traders claim that with a good experience about this market, they can come up with a system that won't fail more than five times in a row and so martingale strategy can be a proper approach to such system as they can double their investment and win before a five straight loss. Meanwhile some critiques about this statement believes that the market is unpredictable sometimes and can go as long as making unnecessary sharp moves which could result a trader to loose much more. They note that nothing is guaranteed here and if you must practice this system, you must exhibit caution and money management rules.

    Tips For Successful Martingale System
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    Though this system is popular and have its own risk, I believe that with the right planning and management, a trader can of course use this method to his own advantage and can make sure he trade with the right management always. Forex is risky and no matter how reliable we can boast on our system, we must surely understand that we need proper and adequate management to help ourselves whenever the unexpected could really happen.

    Some tips I will advice traders who wants to use this system of trade are as follows

    1. Always make sure that you invest what you can afford to loose, that way we can bear our loss even if we find ourselves loose our capital.

    2. Demo trade with this system first and see if really you can make success with it before thinking to go for real trading. Practice makes perfect and it helps you understand the kind of risk you are taking while preparing for the real trade.

    3. Don't get too emotional especially on this martingale system because you could go off from your rules and make more risky decisions that could cause you more harm. In essence be patient and discipline with your rules of trade.

    4. While using the martingale system, set your draw downs so that if you reach a point where your loss is the highest you can bear, you could restart the cycle instead of increasing your risk and then loosing your investment.

    5. You can use the anti martingale system of trade which enables you to increase your lot size on each wins and decrease your lot size on each loss.

    What Beginners Must Know About Martingale

    For every newbie out there, you must know that forex trading is very risky and not really easy. You must put in strong effort to learn about this business and know what could work for you. Your decision on this martingale system lies totally on you and you must have to make the best effort to bring out the best into your trading.

    Martingale system might sound very easy but in practicals it's tends to be one of the most hardest method to manage. Emotions and risk management must be put in place and you must know the very rightful time to exit from your trade. Beginners must also try to understand the terms and conditions of their broker because some brokers might have limit in the actual lot size to take and if this is true, it means it could limit your powers to keep doubling your money once you reach a certain stage. This system can be well profitable if it's well managed and can sure be a good means of earning as long as you have a good system.

    CONCLUSION :

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    From this article I have been able to take out time to explain in a lay man's view what martingale strategy is all about. For beginners I believe that if they study this article they will have a better clue of this strategy and try to see if it can possibly work out for them. Up till this moment no one will give you full assurance whether the martingale system will work out well for you or not. You will have to practice on it and know how necessary it can help you make profits.

    I personally have tried this system and I have concluded on my own that it works and also does not work. You will have to find your capability on it and know how effectively you could manage it for proper earnings with forex. However we are all here for profits and we have so many method we can a choose from to trade forex. For martingale system, it will always be a system that will never fade or die away. It's been there right from time and as more get aware of this system, they try to modify it in the means if could really work out for them.

    Lastly I believe we have conquered this topic and you could make more research on this method. Once you have tried this system, it's left for you to decide if it works or not or if it's recommended as a sure system in the long run. All these lies on your hands.

    Thank you.

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  2. #21
    Trader techboy's Avatar
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    In principle, martingale is a sure way to win in this market but you need to prepare a very huge capital in your account so that you can survive under any condition, that is why their is no traders that can successfully trade in this strategy for a long time because of market unpredictability, sometime we are bump into consecutive loses and we will never know when the losing streak ends, and if you happen to have limited capital you cannot recover your loses.

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  3. #22
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    This kind of system could look very fasinating but it's a kind of system that easily make us emotional when there is series of loss. I bet no trader would love to loose and the thing about martingale system is that we keep doubling our lost capital hoping to win. No matter how we look at it, it's still a very risky method and what happens when we have no more doubling power to trade, we become losers at the end which is bad.

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  4. #23
    Trader maryrosi's Avatar
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    stragety martingale, is a very risky strategy for trading, especially if martingel done by beginner trader, it will be very risky, strategy martingel if done by professional trader, it will be better, but, if done by novice trader, then it will be very crucial. No long-lasting trader, for traders who use martingel technique, most of them do not last long.

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  5. #24
    Trader Yayami's Avatar
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    martingale is quite complex technique to do even for some experienced traders because it's just not safe enough to do because it's a bit risky. doing this would only make us suffer more losses when we hold our wrong positions. to me i'm more suitable with using stop loss because whenever i made wrong trades, i just need to cut it and start a new trade with different direction. not adding more wrong positions with this martingale.

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  6. #25
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    Quote Originally Posted by Yayami View Post
    martingale is quite complex technique to do even for some experienced traders because it's just not safe enough to do because it's a bit risky. doing this would only make us suffer more losses when we hold our wrong positions. to me i'm more suitable with using stop loss because whenever i made wrong trades, i just need to cut it and start a new trade with different direction. not adding more wrong positions with this martingale.
    But we all do need a more simple trading method that can make us money, if we keep on with the complex trading system then we will have so many losses to deal with . Forex trading market is a profitable market, but will work only when we have given it the best possible time in learning, then we can have good account built with less losses.

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  7. #26
    Trader musiliu's Avatar
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    Martingale strategy is a very risky strategy for beginners, you know in martingale, you will need to keep increasing you stake after each loss, you may loss everything if things are not going you way or if your capital is not very large, though it may work for some professional traders but I don't think it is a right strategy for new traders because all your capital will be subjected to risk

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  8. #27
    Trader Yayami's Avatar
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    Quote Originally Posted by musiliu View Post
    Martingale strategy is a very risky strategy for beginners, you know in martingale, you will need to keep increasing you stake after each loss, you may loss everything if things are not going you way or if your capital is not very large, though it may work for some professional traders but I don't think it is a right strategy for new traders because all your capital will be subjected to risk
    i tried to do this martingale strategy and it did help me to lose my account so easy. it's because market use bigger margin and this consume more free margin and kill my equity slowly. besides that time i was still confuse to apply this but interested to do it. well this has become my painful experience and i won't do this again. martingale really not working with beginners because it's too complicated to understand.

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  9. #28
    Trader layigold's Avatar
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    If I understand the concept of this Martingale trading strategy very well , I will prefer to use it in binary trading than using it to trade forex . in forex trading , if all you do is to double the lot size each time you have a loss, you are less likely to stay long in trading and that I have experienced when I was a beginner trader. I felt like calling it a quit because that kind of a thing led me to serious loss. An experienced trader will never do that and neither will he offer his support in any way to any trading strategy that does that . If you want to enjoy being a forex trader, you must take the issue of risk and money management so seriously in trading .

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  10. #29
    Trader Sascha's Avatar
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    Quote Originally Posted by layigold View Post
    If I understand the concept of this Martingale trading strategy very well , I will prefer to use it in binary trading than using it to trade forex . in forex trading , if all you do is to double the lot size each time you have a loss, you are less likely to stay long in trading and that I have experienced when I was a beginner trader. I felt like calling it a quit because that kind of a thing led me to serious loss. An experienced trader will never do that and neither will he offer his support in any way to any trading strategy that does that . If you want to enjoy being a forex trader, you must take the issue of risk and money management so seriously in trading .
    i guess you probably right about using this martingale strategy for binary trading, not in forex market. it's because in binary, all amount in profit or loss is fixed. if we spend 10$ per trade as margin, in return we can can get about $7 or 8$ profits for correct trade. otherwise if our trade is put in wrong place, we only lose $10. so the risk is stable unlike forex trading.

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  11. #30
    Trader layigold's Avatar
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    If what you explained in this thread is what Martingale strategy stands to advocate , I will prefer to do away with it and trade forex in the best way that is convenient for me . Left to me , it is too risky to increase your stake as trades go against you in streak. In fact , when trades go against you , you are expected to reduce your lot size in subsequent trades you would take since your equity power would have been reduced from what it was before . We need to understand the high level of risks involved in forex trading and be very careful on how we manage it .

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