Dislikedexcuse me for my stupid doubt
Should I add the spread to the stop loss size and then calculate the 2% of money management, or only use the original stop loss?
thanks
vurIgnored
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Dislikedexcuse me for my stupid doubt
Should I add the spread to the stop loss size and then calculate the 2% of money management, or only use the original stop loss?
thanks
vurIgnored
DislikedAccording to your money management rules,you should be risking 1% of you balance. If you start with 10,000$ and your trade size is 1,000$ (Risk 1%) After 1 year,your balance is 15,000$.Ignored
DislikedMost of the newbies start with 1000 dollar account or less and if you go with 1-2 % mind..you would be trading with 10 to 20 dollars ..which won't even hit your emotional chords to give you any experience of what it means to gain and loose in forex
trade with money which means to you....you would atleast need 30 to 40K a year to make a living in FOREX and atleast 10 to 20 K to say you make some extra income...
Think like a high rollar, play big, loose big and win big..its just all relativity...at the end of the day...you will make money in time...Ignored
DislikedMoney management is the most significant part of any trading system.
http://www.actionforex.com/images/st...s/fxmaster.gifIgnored
DislikedHello everybody,
I'm just starting my Forex trading adventure, and I can't find a clear answer to a basic money management question, hope someone here can help:
What is meant by not risking more than 2% per trade, is it 2% of account balance per trade OR set a SL at 2% loss of balance?
e.g.: assume: $100 account, 1:10 leverage
Scenario 1: trade $2x10 per trade, setting SL where I see fit (say 50 pips abovebelow)
Scenario 2: trade $100x10 per trade, setting SL at the pip equivalent of $2 abovebelow
so which is it? (or am I completely off...Ignored
DislikedSay you have a $10,000 account and you don't want to risk more than 2% per trade.
You determine you want to enter a trade and you think that a 50-pip stop is appropriate to give it a chance to head in the right direction. If you are stopped out, that 50 pips should not be worth more than $200 (2% of $10,000).
So you enter that trade and it's open. It hasn't been resolved one way or the other. If you want to enter another trade while the first one is open you need to apply your 2% to $9,800. (NOT 10,000 because $200 of that is already riding...Ignored
DislikedI believe it's little bit confusing if you will adjust your lot size with every trade. I do the following : If i have 10,000 and i want to risk 2%, i will set my trade size to 200$ and i will keep it fixed until my balance is 11,000$ or 9,000$ then i will recalculate it. According to your example, risking 200$ is almost same like risking 196$. However, i'm not taking more than 2 trades in same time. If more correlated trades are taken simultaneously then the risk should be much lower than 2% per trade.
What do you think?Ignored
DislikedThis calculator may assist you in working out a position size (though I can't vouch for its accuracy/reliability): http://www.earnforex.com/position-size-calculator
Cheers,
DIgnored