I would like to trade intraday as it seems to fit my schedule and style better, and taking a look at the 5min Intraday System recently posted by Phillip Nel (http://www.forexfactory.com/forexfor...ad.php?t=11854), it seemed promising.

However, when applying your formula for money management I get the following:

Account Size = $1000

Percent Risk = 1%

Amount Risked = $1000*.01 = $10

Stop size = 6 pips

Pip value = .10 (10 cents on a micro account)

Total pip value = 6 pip stop * .10 = $.6

Position size = $10/$.6 = 16.67 micro lots (round down to 16)

Resultant pip value = 1.6 ($1.60 per pip)

Resultant leverage = 16000 position size / $1000 account size = 16:1

Winning Trade (Take Profit Point): 9 pips = $14.40

Losing Trade (Stop-Loss Point): 6 pips = $9.60

This seems to contradict entirely the points you are trying to drill into the heads of beginners like myself. The leverage is much much higher than you recommend.

However, with my logic (and this may be flawed), I would only need to win 50% of my trades to at least make a profit, and would still be risking only 1% of my account. Is this wrong?

So my question would be this: how would I be able to trade systems with small stop-loss points and TP points effectively with a small account balance? Is this even possible?

Thanks in advance for your time!

However, when applying your formula for money management I get the following:

Account Size = $1000

Percent Risk = 1%

Amount Risked = $1000*.01 = $10

Stop size = 6 pips

Pip value = .10 (10 cents on a micro account)

Total pip value = 6 pip stop * .10 = $.6

Position size = $10/$.6 = 16.67 micro lots (round down to 16)

Resultant pip value = 1.6 ($1.60 per pip)

Resultant leverage = 16000 position size / $1000 account size = 16:1

Winning Trade (Take Profit Point): 9 pips = $14.40

Losing Trade (Stop-Loss Point): 6 pips = $9.60

This seems to contradict entirely the points you are trying to drill into the heads of beginners like myself. The leverage is much much higher than you recommend.

However, with my logic (and this may be flawed), I would only need to win 50% of my trades to at least make a profit, and would still be risking only 1% of my account. Is this wrong?

So my question would be this: how would I be able to trade systems with small stop-loss points and TP points effectively with a small account balance? Is this even possible?

Thanks in advance for your time!