Hello,
New to being a member but definetly not new to the site. Been a trader for 8 months and have yet to see profit. I have just been constantly breaking even...
Anyway my question is for money management and possibly some of you experienced traders can help me out.
I find I always risk up to 2% of my account per trade. I had started with $500, and 2% of that is $10. And for this I trade a micro lot, as just -100 pips would reach my max risk.
My main question is: If I am risking my capital 'the proper way' by using 2%, not over leveraging, and looking for consistent small gains as this is how the big players I am guessing do it..why do I need a 100:1 leverage other than for maintaining less funds in my account? Heck, I am using a 2:1 leverage and possibly 4:1 when I use 2 microlots.
But that limits my stop loss to having a movement of -40 pips max...which in itself is pretty common I guess. The max I can see is someone doing a 10:1 leverage.
So...is 2% right to use? What I would like to know is what other traders, preferably profitable traders use, in terms of max stops(as it doesn't always need to be the max you can afford to lose).
Thanks for reading.
New to being a member but definetly not new to the site. Been a trader for 8 months and have yet to see profit. I have just been constantly breaking even...
Anyway my question is for money management and possibly some of you experienced traders can help me out.
I find I always risk up to 2% of my account per trade. I had started with $500, and 2% of that is $10. And for this I trade a micro lot, as just -100 pips would reach my max risk.
My main question is: If I am risking my capital 'the proper way' by using 2%, not over leveraging, and looking for consistent small gains as this is how the big players I am guessing do it..why do I need a 100:1 leverage other than for maintaining less funds in my account? Heck, I am using a 2:1 leverage and possibly 4:1 when I use 2 microlots.
But that limits my stop loss to having a movement of -40 pips max...which in itself is pretty common I guess. The max I can see is someone doing a 10:1 leverage.
So...is 2% right to use? What I would like to know is what other traders, preferably profitable traders use, in terms of max stops(as it doesn't always need to be the max you can afford to lose).
Thanks for reading.