Why you should trade 1-2% of your account on a trade! | Page 3 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Why your broker is your friend and your enemy 8 replies

Why you should wait for your candle to close 2 replies

Why you always should have stop loss in your system 0 replies

Lessons you learn only when you blow up your account. 7 replies

Attachments: Why you should trade 1-2% of your account on a trade!
Exit Attachments

Why you should trade 1-2% of your account on a trade!

  • #41
  • Mar 31, 2018 2:21pm Mar 31, 2018 2:21pm
Quoting Samson85
{quote} So let's say I have a £20k account and I want to trade ecb minutes or post draghi speech. I am willing to probably risk 20% of the account as I know it will move in a long trend for a long duatation until it hits s3 or r3 pivot points. If I am doing a normal trade where I have used a technical entry I will only risk maximum 2% of the account as a straight direction isn't guaranteed due to bulls and bears battling it out. Hope that makes sense.
from what u have said above I can simply say that
u r not a trader. u have very limited experience n u r probably not trading live account or even if u do u r either losing great or will lose massive in d close future.

any trader risking 20% of account for single trade is either stupid or a liar. or u really have no clue what u r doing and talking about

but good luck. u r d liquidity of this market

ps: I have never seen a real trader using "will" n there wont be any in d future too
WaBaS Where are Buyers and Sellers
  • #42
  • Mar 31, 2018 2:27pm Mar 31, 2018 2:27pm
I have the upper limit set for 5% but rarely hit that level. Typically it works out to 1-3%. In the U.S. you run into a limitation due to the reduced leverage on our accounts. This mostly happens for me due to trading lower time frames which allows a larger position size and still keeps the risk relatively low.

For new people I strongly recommend some sort of lot size calculator either by spreadsheet or preferably one that operates directly on the trading software you are using. There are a ton of them out there for MT4. I wrote one for myself that fits my trading style that basically allows me to move two lines on the screen and based on the risk limit and the max leverage usable settings immediately calculates the proper lot size. It will even show you what that risk percentage means in dollars and cents. 2% sounds small until you attach it to a 10k account and suddenly it is 200 bucks.
  • #43
  • Edited 5:42pm Mar 31, 2018 5:26pm | Edited 5:42pm
Quoting mr.brown
{quote} from what u have said above I can simply say that u r not a trader. u have very limited experience n u r probably not trading live account or even if u do u r either losing great or will lose massive in d close future. any trader risking 20% of account for single trade is either stupid or a liar. or u really have no clue what u r doing and talking about but good luck. u r d liquidity of this market ps: I have never seen a real trader using "will" n there wont be any in d future too
Mr Brown I think you need to read through the thread because there are guys who are risking 45% on here.

So risking 20% on a risk event which you are 99% sure will go a certain way is high risk?

I suggest you look at the opening message of the thread and read it properly.

The majority of my trades are 2% risk I wrote but when a certain event is guaranteed to move in one direction why go in so tiny? I suggest you read up or watch the video on George Soros and see what winning vs risk is. He went 100% In and made 1 billion in a day because the probability was so on his side.

If you go to my fundamental beats technical thread. I outlined the banks were saying heavy dollar buying from Tuesday and what happened then.....? The the dollar gained rapid strength vs everything from Tuesday to Thursday. That is what you call a high probability trade if you have a reliable news feed.


If you look at the picture I put in this thread I urged to trade 1-2% not to end up in the same mess as that live account I came across last year.

Below you will see a picture of a high probability trade I took because I could hear the eur/nok minutes directly and I was on the right side of the trade

I then traded the eurnok minutes again months later because I knew nok would gain strength because they had good inflation prior and they said GDP was good on their readings.

This is what you call trading with the probability on your side and you'll see that those trades last no more than 15 minutes and all hit the s3 pivot for the day

I have a ton of trade examples on risk events so please do not insult my ability as I do not yours.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: Screenshot_20171214-092423.png Size: 145 KB
Click to Enlarge Name: Screenshot_20180315-161234.png Size: 136 KB
  • #44
  • Mar 31, 2018 6:42pm Mar 31, 2018 6:42pm
Hi,

You must risk not more than 2% of the account, trust me, if you trade with 0.5% to 1% per trade, your account will grow with steady profits without problems. Don't be crazy and trade like a professional.

Have a nice day!
  • #45
  • Apr 1, 2018 1:24am Apr 1, 2018 1:24am
Quoting magnumfreak
I have the upper limit set for 5% but rarely hit that level. Typically it works out to 1-3%. In the U.S. you run into a limitation due to the reduced leverage on our accounts. This mostly happens for me due to trading lower time frames which allows a larger position size and still keeps the risk relatively low. For new people I strongly recommend some sort of lot size calculator either by spreadsheet or preferably one that operates directly on the trading software you are using. There are a ton of them out there for MT4. I wrote one for myself that...
Can you please post the indicator of using two lines to calculate lot size? Thank uou.
Practice makes a person perfect
  • #46
  • Apr 1, 2018 2:37am Apr 1, 2018 2:37am
Quoting Wirtex
Hi, You must risk not more than 2% of the account, trust me, if you trade with 0.5% to 1% per trade, your account will grow with steady profits without problems. Don't be crazy and trade like a professional. Have a nice day!

I 100% agree with the 1% factor but take into account some ppl are starting with like $1k to $3k and some feel to use lots of leverage to make money as their circumstances are different. So 0.5% is a bit of a stretch for some unless you have a massive account.
  • #47
  • Apr 1, 2018 4:49am Apr 1, 2018 4:49am
A higher position sizing is similar to higher leverage, in its double edged nature.
'For the market to work, it needs people who think that they can beat it.'
  • #48
  • May 12, 2018 9:44pm May 12, 2018 9:44pm
Quoting Samson85
Hi Everyone, One thing I dislike is seeing traders lose money because unfortunately it does not grow on trees. I saved this image of a trader I use to look up to about 4-5 months back to know that trading 1-2% on manual trades is essential to survive (I trade big sizes on risk events for example ecb minutes etc because the volatility is very direct/quick and predictable). Please use this image below to know that the aim of forex is to last forever and not in the short term. I would be interested to know your views on how you manage risk to last...

As I mentioned when I 1st wrote this thread that I only trade 1-2% of the account on manual trades meaning normal trades based on continued sentiment/fundamental flow.

This week I went in on a heavy position post BOE meeting and the trade was going fantastic until we had ground breaking news from Carney via a BBC interview. Now it stopped me out for a few ££££ I won't lie. I was pissed off and contemplated whether I would go in on such a heavy position again when trading risk events. I was not made aware via any website or paid service that Carney was speaking on BBC (otherwise I would have not traded or had the stop set to break-even which was possible). Carney has been touted as the 'unreliable boyfriend' as he always seems to give mixed signals and he sure proved that right!!!


To conclude this I will still go in heavy on risk events, but I will be sure to drill down my analyst's to know whether we have speakers that could effect the trade. For example I was long cable on Friday and we had a BOE speaker on BBC so I closed the trade Simple

This year I have traded of the back of post meetings and profited very well, especially of the NOK, ECB, SEK & BOC as they say it how it is. Draghi did correct the market last year when the market misinterpreted one of his press conferences, but at least he waited a few days and not 2 hours before dropping a bombshell.

With that said I am happy to report that I have more winning trades than losing trades which leaves me profitable.

I blog all entries from start (real life time) and closes of trades on the thread https://www.forexfactory.com/showthread.php?t=750004
  • #49
  • Edited 10:52pm May 12, 2018 10:39pm | Edited 10:52pm
Quoting mr.brown
{quote} from what u have said above I can simply say that u r not a trader. u have very limited experience n u r probably not trading live account or even if u do u r either losing great or will lose massive in d close future. any trader risking 20% of account for single trade is either stupid or a liar. or u really have no clue what u r doing and talking about but good luck. u r d liquidity of this market ps: I have never seen a real trader using "will" n there wont be any in d future too
There are people that have a very high win rate (easily 85% AND even higher) that risk 20/30/40% PER trade

YES its safe to risk that amount with a super high win rate

YES they have a clue and know what they are doing (they can keep that win rate for months easily)

for what i can see you are not sure how to be an efficient trader and thats why you see this "high" risk as something a "stupid or a liar" person would do.. sorry to hear that but not everyone its like you =)


EDIT:

Imagine a Super high probability that the price WILL move in 1 direction in a given point, what you should do? you need to exploit it to the moon and back !! or you can see it this way to: IF there its just a very slight little tiny chance (like a 5% at max) that this move wont happen, then why you still chicken out and risk a tiny amount in that trade?? think about it
  • #50
  • May 12, 2018 11:55pm May 12, 2018 11:55pm
Quoting 19pairs
the old me : risk with bigger size, win big money than usual size.. but in the end.. blow up the account. more and more and moree the new me : If i keep risk the same, the worst-case scenario for each and every trade is the same.. if i walk outside barefoot on a hot day on the asphalt, my feet may burn.. However.. if i walk outside every day when it’s hot, the asphalt slowly becomes bearable. i will become immune, over time, to the equity swings in my account with each losing trade, or each winning trade. over time, i begin to focus on what is important...

ah crappy analisys/strategy paired with the improper capital management WILL blow your account everytime

The higher the win rate = the higher the % you SHOULD risk per trade, and viceversa too (but at this point that aproach or "strategy" is not worth it) and it WILL NOT blow your account, plain and simple
  • #51
  • May 13, 2018 12:14am May 13, 2018 12:14am
i trade try zar and mxn i wait until the try as moved to its historical high and above for a sell trade with large positive swap , allways like it even when in wrong direction how many people know what the historical highs and lows on pairs , i do that gives a edge and not only that 5lots or 10lots on the trades , , euro/try is more swap and have a sell at this point , risk no , hope your trading gets to your euro pairs for a proffit , kindest regards from dave
people leave, but this thread will go on for ever
  • #52
  • May 13, 2018 3:47am May 13, 2018 3:47am
Quoting Aussi
i trade try zar and mxn i wait until the try as moved to its historical high and above for a sell trade with large positive swap , allways like it even when in wrong direction how many people know what the historical highs and lows on pairs , i do that gives a edge and not only that 5lots or 10lots on the trades , , euro/try is more swap and have a sell at this point , risk no , hope your trading gets to your euro pairs for a proffit , kindest regards from dave

I have heard a few people tell me that eur/try has a strong trend similar to that of the Dow last year.I have it on my list funny enough.

I also trade usd/mxn as it has a strong trend with fundamentals available in many news feeds.

The zar is quite steady right now but it did move well in an upward trend these prior months.
  • #53
  • May 13, 2018 3:49am May 13, 2018 3:49am
Quoting havo
{quote} There are people that have a very high win rate (easily 85% AND even higher) that risk 20/30/40% PER trade YES its safe to risk that amount with a super high win rate YES they have a clue and know what they are doing (they can keep that win rate for months easily) for what i can see you are not sure how to be an efficient trader and thats why you see this "high" risk as something a "stupid or a liar" person would do.. sorry to hear that but not everyone its like you =) EDIT: Imagine a Super high probability that the price WILL move in 1...

With this type of stratergy you're likely taking 2-8 trades per month.
  • #54
  • May 13, 2018 4:23am May 13, 2018 4:23am
Quoting havo
{quote} ah crappy analisys/strategy paired with the improper capital management WILL blow your account everytime The higher the win rate = the higher the % you SHOULD risk per trade, and viceversa too (but at this point that aproach or "strategy" is not worth it) and it WILL NOT blow your account, plain and simple

the high % of winning trades does not mean one is profitable.... risking a lot to make a little will give one a high % win rate but it does not mean profitable
  • #55
  • May 13, 2018 5:39am May 13, 2018 5:39am
Quoting havo
{quote} There are people that have a very high win rate (easily 85% AND even higher) that risk 20/30/40% PER trade YES its safe to risk that amount with a super high win rate YES they have a clue and know what they are doing (they can keep that win rate for months easily) for what i can see you are not sure how to be an efficient trader and thats why you see this "high" risk as something a "stupid or a liar" person would do.. sorry to hear that but not everyone its like you =) EDIT: Imagine a Super high probability that the price WILL move in 1...
ok super smart, answer this one

what will happen when u r floating w 20% account risk n a reverse spike hit...!!??
even if u have stop loss it will most probably not fill...!!!
account MC

too many smart asses here, u have no clue what u r talking about, rookie talk, rookie talk
WaBaS Where are Buyers and Sellers
  • #56
  • May 13, 2018 6:35am May 13, 2018 6:35am
Lol.. blowing your account could lead to 9-5 nightmare.
Born to fuck
  • #57
  • May 13, 2018 6:41am May 13, 2018 6:41am
Quoting Samson85
{quote} Lol your funny. Fundamental isnt just maths it's broader spectrum. A perfect example is Canadian dollar. Last year when the bank of Canada indicated that they were going to hike interest rates everyone went crazy and started buying cad. Now we have a situation with nafta where trump is being difficult and refusing to do a nafta deal and that has weakened the cad. You'l see that gbp/cad has done a strong rally the last 6 weeks or so. Another example is when the bank of Japan a few years back announced qe and said they wanted to see a weaker...
Now its more likely about the oil.. I got best entry on GCAD and CADCHF short, will let that run for more while I already took profit on UCAD. There's some degree of certainty that oil will keep movin up after three weeks, and so Cad which hv negative correlation, we'll see.
Born to fuck
  • #58
  • Edited 7:12am May 13, 2018 6:56am | Edited 7:12am
The key is I only do it of the back of a risk event meaning strong quick market direction. This would normally involve setting the stop loss to break even quite soon as well.

You could have gone short of the back of draghis last press conference as it was completely risk free as it moved downward quite quickly with the stop set to break even.

The same trade could have been applied to the rbnz interest rate release if you had bought let's say aud/nzd or eur/nzd but you would ideally need Ransquwk ( to heaar the statement live to catch the spike) this or you either trade the breakout of the daily low or daily high post event.


These type of trades would normally happen probably few times a month.

The trade normally involves 0 drawdown as it's strong market direction.

My broker offers hard stop losses known as a guaranteed stop loss which cant be broken
  • #59
  • May 13, 2018 7:41am May 13, 2018 7:41am
So much bullsh*t in this thread I was literally in constant pain reading through all the post. Just to pick the best of the best:

Quoting Samson85
...My broker offers hard stop losses known as a guaranteed stop loss which cant be broken...
Quoting Samson85
...So let's say I want to trade ecb minutes or post draghi speech. I am willing to probably risk 20% of the account as I know it will move in a long trend for a long duatation...
Quoting Samson85
...You could have gone short of the back of draghis last press conference as it was completely risk free as it moved downward quite quickly with the stop set to break even...
@mr.brown You have very good points and reasoning, I like your posts.

PS.: no, I am not a professional, nor a good trader. I am an enthusiastic newbie...

m.
  • #60
  • May 13, 2018 8:03am May 13, 2018 8:03am
Quoting TakeUrPills
So much bullsh*t in this thread I was literally in constant pain reading through all the post. Just to pick the best of the best: {quote} {quote} {quote} @mr.brown You have very good points and reasoning, I like your posts. PS.: no, I am not a professional, nor a good trader. I am an enthusiastic newbie... m.

I take it you do not understand fundamental analysis?

Like I said, you can go to my other thread where I post all my trades daily from start to finish and you'll see over 75% wins.

I breakdown down the reason for every trade taken based on market sentiment!!

So before you start to quote me like I am some rookie just go and look at my trades!!!!

I'm guessing you was in pain when George Sorros put up his whole account and made 1 billion in a day!!! The same applies to warren buffett with risk!!! So maybe get an aspirin before you read this.
0 traders viewing now