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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. #11
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    Martingale trading strategy not work in any kind of mathematics some time if a current trend is down regular then even we can lose some money in our trading account. Furthermore martingale is an dangerous trading strategy and it can damage our trading margin very quickly, I would suggest trader's to use hedging instead of martingale because hedging we can do nicely with proper calcualtion if we don't have to use stop loss.

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  3. #12
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    It takes a more experienced trader who knows the market so well to bank on this martingale system. If they can know a system that won't fail for long no matter the market condition then I believe martingale system can work. It's a kind of risky system of trade because you double each loss to target profits and in a situation where there is more number of loss in a row, your trading account balance could barely survive.

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  4. #13
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    Quote Originally Posted by Ifycoguy View Post
    I have been watching your participation in forum contest for a while now. I am tempted to say you will make a good quality writer if you take it as a passion and profession. A thumbs up from me.
    Thats what I have been saying its something she has inside her you are good at these and you will come out as a good trader and a writer at that, you know how to come up with stuff that can help people work with the right side of the market, you are able to put together a lot of information, thank you

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    Trader layigold's Avatar
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    I took pain to read through your thread because I would like to be objective in my comment and that be as it may , I will never adopt Martingale system in trading because it can make you lose your account so fast . If there is any time a trader should reduce the risk of trading , it is when he is facing loss in trading but this Martingale system teaches to the contrary . I will just advise traders to be more mindful of the risks being taken in trading as that is the only condition to staying longer in trading and if you can manage the risks of trading properly as a trader in forex , you are not far from success

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  6. #15
    Trader Silhouette's Avatar
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    I consider martingale strategy as risk increasing method of trading. I never intend to trade this way because of what I believe, martingale would just increase the amount of losses I'd suffer if I make mistakes. I do got money managements to trade and the lot size amount is managed properly. I don't want to increase my risk because safe trading is my best safety key to survive long with good profits.

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  7. #16
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    Quote Originally Posted by layigold View Post
    I took pain to read through your thread because I would like to be objective in my comment and that be as it may , I will never adopt Martingale system in trading because it can make you lose your account so fast . If there is any time a trader should reduce the risk of trading , it is when he is facing loss in trading but this Martingale system teaches to the contrary . I will just advise traders to be more mindful of the risks being taken in trading as that is the only condition to staying longer in trading and if you can manage the risks of trading properly as a trader in forex , you are not far from success
    The same thing here, any we need to know that any thing that seems as easy as this does not really work, it will only make us loss our money, but then again we have the new traders who are into the business for fast money so they are always really in connection with any trading system that can make them money.

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    Nice illustration there and i wish you all the best.However i don't really agree that martingale strategy is good for beginners when it comes to forex trading.What i see here is a strategy that is good for Binary options traders and that is only when you have enough capital to risk.Forex deals with a carefully set out rules of trading. If you neglect those rules no matter how huge the capital is,you can still lose everything.

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    Trader Batavia's Avatar
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    Quote Originally Posted by Ulthred View Post
    It takes a more experienced trader who knows the market so well to bank on this martingale system. If they can know a system that won't fail for long no matter the market condition then I believe martingale system can work. It's a kind of risky system of trade because you double each loss to target profits and in a situation where there is more number of loss in a row, your trading account balance could barely survive.
    yes it more takes more experience and i think beginners is not can be make it to run this strategy, and I thhink more better for newbie if want to trade by martiangle system they must to apply by demo and do practice and make surely they have understand about it, cause every system mus to tested early in demo before applying to real

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    Trader bigpharaoh's Avatar
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    Quote Originally Posted by Khimi234 View Post
    Well martingale is not any kind of good trading strategy at all and if trader's want to follow this then it become very important to know the major support and resistance at first and we should take very lower risk when we do martingale because with higher risk its hard to do martingale for long term goal, even I would not suggest to use this better to learn any other trading strategy like swing trading, technical trading etc.
    But the black trade unfortunately needs patience. This is lacking in the vast majority of traders. I prefer trading on a daily basis but the most important thing is not to get into a big lot deal. Also you must have skills to achieve success in this market as you mentioned.

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  11. #20
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    Quote Originally Posted by forexlearner View Post
    Martingale trading strategy not work in any kind of mathematics some time if a current trend is down regular then even we can lose some money in our trading account. Furthermore martingale is an dangerous trading strategy and it can damage our trading margin very quickly, I would suggest trader's to use hedging instead of martingale because hedging we can do nicely with proper calcualtion if we don't have to use stop loss.
    well, i have tried martingale for trading and the results were not good , traders really need to understand to implement martingale with well where good analysis is needed to support it, not easy to use thing trading strategies , better to use hedging as you have said above or stop loss to control my risk and save my balance. so good risk managements is needed by us to control the risk and give us more chances to do proper trading

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