DrForexMD replies to: Pivot Trading

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Davit :”Lets say you place 1 standard lot and price goes against you 50pips that’s -500
Same scenario had you divided your 1 standard lot in quarters and after placing your trade 1/4 size realizing this thing is not going right then you hold rest of the orders and get out exactly same time your loss is -125 NOT -500
Which is smarter trading.Who has better advantage.You be the judge!There is lot more far more advantage trading small and not care to get in right now.”

This is ,along with PP, core of this trading method.

Unfortunately my broker (UK Bank and also MM) announced this from January :

“FOR EXAMPLE, ASSUME THE FOLLOWING SPOT RATES: EURJPY = 130.0 USDJPY = 110.0 A client trades 100,000 EURJPY in his USD account on which he pays 50 USD per 1 million USD traded (Level 1) 50 USD per 1 million USD traded is the equivalent of 0.005% 100,000 EUR * 130.0 = 13,000,000 JPY. 13,000,000 JPY * 0.005% = 650 JPY commission 650 JPY / 110.0 = 5.91 USD commission The standard conversion fee is applied when commissions are converted into the account currency.”

So to open and close a position with one LOT you have to pay 5.91 *2 + spread of 0.1-0.4 pips and that is litlle bit lower than it was with standard spreads,if you trade over 50000 (half lot).

Problem is here :

” IS THERE A MINIMUM TRANSACTION FEE FOR SMALL TRADE SIZES?
Yes. There is a minimum transaction fee of 3 USD.
FOR EXAMPLE, ASSUME THE FOLLOWING SPOT RATES: EURJPY = 130.0 USDJPY = 110.0 A client trades 10,000 EURJPY in his USD account on which he pays 50 USD per 1 million USD traded (Level 1) 50 USD per 1 million USD traded is the equivalent of 0.005% 10,000 EUR * 130.0 = 1,300,000 JPY. 1,300,000 JPY * 0.005% = 65 JPY commission 65 JPY / 110.0 = 0.59 USD commission The standard conversion fee is applied when commissions are converted into the account currency.
In this case, because the commission due is 0.59 USD (and less than 3 USD), a minimum commission of 3 USD applies.

Now,if you chop 1 LOT to 10 mini lots you will have to pay 10*3 to open and 10 * 3 to close (+ spread) and pay over 60$ for 1 LOT trade instead of 12-13 $ if you trade with one order.

They are rewarding big traders and killing small ones or if we think about it they want to PREVENT US TO TRADE SMART with bunch of mini and micro entries unless you have huge account size where trading with full lots is easier.
From this we can see what is danger for Banks,brokers and MM.They want us to play with high gear to become ‘scared money’ with tight stops(where they can push the price easy) and only this fact is clear proof that Davit trading style is the right one.

That is why i opened another acc. at other broker but this one is not so safe as the ShitBank so i will have to be cautious how much funds i will deposit there.

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