If you trade like me, you'll be homeless and broke within a week.
Goldilocks All Time Return:
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Alternative Trade Management/Money Management Methods 3 replies
Money Management / Risk Management 24 replies
My first "proper" live account 7 replies
Successful Trade Management / Risk Management 0 replies
Rationale behind "Risk Per Trade" and "Risk/Reward Ratio"? 8 replies
DislikedThis thread seems like a very long-winded way to work out risk and trade size!
$10,000 equity
1% risk - $100
Stop Loss - 50 pips
$100 divided by 50 pips - $2 per pip
Trade size - ~20,000 units give or take
Margin requirement and leverage are irrelevant calculations in this context.Ignored
DislikedHello SlimBuffett,
I was not referring to what is the range allowed in some accounts whether micro or mini. I was discussing what happens with specific position sizes.Ignored
DislikedWhen trading 1 Std. Lot, each pip represents a $10 move in your account balance (roughly).Ignored
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I often use the Earn Forex calculator, but now I see they have it as an indicator - displays your trade parameters right on the chart, works great for anyone needing that calculation.Ignored
DislikedI got the same result using those figures, and I agree with the margin requirement and leverage being irrelevant too! No one has ever explained how they would affect Position Sizing ???
I often use the Earn Forex calculator, but now I see they have it as an indicator - displays your trade parameters right on the chart, works great for anyone needing that calculation.
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DislikedA waste of time?
Right, so why are they included in the discussion and examples, it could be confusing.
There are an infinite number of ways, are you planning on covering them all 'cos we could be here a while!Ignored
Disliked
The leverage being used will certainly affect the required margin for a trade. Calculating possible position sizes without considering leverage does not help if the equity is not available for that trade.
FX4Ignored
DislikedNeither was I.
DUH !
What I'm saying is that a MINI account allows you to trade for as little as .10 cents per pip. A MICRO account allows you to trade .01 or 1 cent per pip.
I would guess that a lot of new traders trade on a micro account for as little as 1 cent per pip. Trading real money even @ 1 cent per pip is better than demo.
If you don't really know the difference between mini and micro accounts how are you going to help anyone?Ignored
Disliked
A waste of time?
Maybe not, if a trader can use the smallest position possible to test the waters....might be a money saver and no more time lost than in a trader if it went sour.Ignored
DislikedA waste of time?
Maybe not, if a trader can use the smallest position possible to test the waters....might be a money saver and no more time lost than in a trader if it went sour.Ignored
DislikedNano....demo....same difference pretty much, the nano amount is so insignificant it's unlikely to make any difference to anyone logistically, financially, or psychologically.
I have....they're still irrelevant.
I dunno, going by your opening posts it sounded like a 'guide' to me....Ignored
DislikedYou could also waste time and pips by "testing the waters." If you lower your position size on the initial entry, would that suggest that you're not very confident in the trade?
If so, why enter the trade at all? Just a thought.Ignored
Dislikedthat statement implies a range...from as little as.....up to $1.00 per pip in a mini-account.Ignored
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But that's not what I had in mind for entering the trade with a small position. It helps a trader to "feel" the market...Ignored
DislikedI think Erebus's tool needs to have an alert on it when people risk too much, sirens and a BIG flashing neon message pops up saying "Are you NUTS!!!"Ignored
DislikedYou're JUST NOT GETTING IT !! It does not imply a range !!
IF YOU HAVE A MINI ACCOUNT YOU CAN TRADE FOR AS LITTLE AS .10 CENTS PER PIP. YOU CANNOT TRADE ANYTHING LESS THAN THAT
IF YOU HAVE A MICRO ACCOUNT YOU CAN TRADE FOR AS LITTLE AS ONE CENT PER PIP.
It is NOT a range. It's the difference between MINI and MICROIgnored
QuoteDislikedQuote:
Originally Posted by FX4Newbies http://www.forexfactory.com/images/buttons/viewpost.gif
With a micro, a 10-pip move = $1.00 roughly.
DislikedWhich one would help prepare you better for competing in the Grand Prix, driving a cheap disposable compact at 1mph or driving a realistic simulator at 150+mph, which one would give you a better 'feel' and prepare you better for what's to come? Neither probably....but the latter is more likely to.Ignored
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I just have to accept the fact that you do not yet understand the purpose or value of entering with a smaller position first, before loading your 'big guns"Ignored
DislikedOn the contrary I understand the concept of scaling in and managing risk extremely well. My tongue-in-cheek remark about trading nano lots being a 'waste of time' referred to your comment "I don't know what they call position sizes smaller than a micro-lot".
As it seems you're attempting to create a novice's guide to "What Is "Proper" Risk/Money/Trade Management?" you need to keep the terminology simple and the information accurate and unambiguous, and...Ignored