Lesson 1: Money Management
Simple: Risk no more than 2% on each trade.
Example:
I have an account with $1000.00
2% of $1000.00 is $20.
The stop loss on my system is 75.
The amont of risk/pip is 28 cents.
So – can you trade for a living if your initial capital is $1000?
Hint: NO
Simple: Risk no more than 2% on each trade.
Example:
I have an account with $1000.00
2% of $1000.00 is $20.
The stop loss on my system is 75.
The amont of risk/pip is 28 cents.
So – can you trade for a living if your initial capital is $1000?
Hint: NO