Thanks Monaco.
Can you give me some example, for $1000 account size.
thanks in advance.
Ignored
Again I don't know the rules of your trading system. If you don't have any hard entry/exit rules I suggest you work on that.
2% of $1000 is $20. So we shall assume that maximum risk is $20. Next we need to determine the size of your position. This is dependent upon your system entry/exit rules. If your rules allow for a 20 pip stop loss then the value of each pip should be $1. If your rules allow for a 100 point stop loss then each pip should be worth 20cents.
This model of risk will not make you a millionaire in the first year but will increase your chances of still being a trader a year from now.
Again I don't know the rules of your trading system. If you don't have any hard entry/exit rules I suggest you work on that.
2% of $1000 is $20. So we shall assume that maximum risk is $20. Next we need to determine the size of your position. This is dependent upon your system entry/exit rules. If your rules allow for a 20 pip stop loss then the value of each pip should be $1. If your rules allow for a 100 point stop loss then each pip should be worth 20cents.
This model of risk will not make you a millionaire in the first year but will increase your chances of still being a trader a year from now.
Monaco
Ignored
Thanks Monaco
Today I made 80 Pips in NZDUSD
Sell
@ 0.6884
TP 0.6844
Second Lot open with target 0.6809
Risk as you said , 2%.
Today I made 80 Pips in NZDUSD
Sell
@ 0.6884
TP 0.6844
Second Lot open with target 0.6809
Risk as you said , 2%.
Thanks
Ignored
Cool !
2% sounds small and you will be tempted to increase size especially when you are on a winning streak or when your capital grows. Resisting this temptation can be difficult but by sticking with 2% you can stay in the game and trading like other things in life is all about staying power!
2% sounds small and you will be tempted to increase size especially when you are on a winning streak or when your capital grows. Resisting this temptation can be difficult but by sticking with 2% you can stay in the game and trading like other things in life is all about staying power!
Monaco
Ignored
Decided to stick to 2%.
I dont know much about technicals and indicators. Always I trade like this.
I watch 20 to 30 candles (sime times less based on price movement), for those pairs which are in price consolidation. Then simply place trade with 20 stop loss and 35 to 40 Target in both direction.
Some pairs I trade in mini lots and some in standard.
I Exit if price is not moving further or almost no movement for three four candles. Winning % I think 70 to 80%. In every winning trade I take 20 pips loss and 20 pips profit. So basically in every winning trade 20 pips gain. Even though 40 pips, because in other direction I loose 20 pips.
Any thoughts or suggestions to improve will be appreciated.
Decided to stick to 2%.
I dont know much about technicals and indicators. Always I trade like this.
I watch 20 to 30 candles (sime times less based on price movement), for those pairs which are in price consolidation. Then simply place trade with 20 stop loss and 35 to 40 Target in both direction.
Some pairs I trade in mini lots and some in standard.
I Exit if price is not moving further or almost no movement for three four candles. Winning % I think 70 to 80%. In every winning trade I take 20 pips loss and 20 pips profit. So basically in every winning trade 20 pips gain. Even though 40 pips, because in other direction I loose 20 pips.
Any thoughts or suggestions to improve will be appreciated.
Ignored
I think I may be misunderstanding your approach to the markets. Are you saying that you enter a long and short trade at the same time (using 2 different brokers or accounts I assume) with a 20 pip stop loss on each trade and and a 35 - 40 pip profit target?
I think I may be misunderstanding your approach to the markets. Are you saying that you enter a long and short trade at the same time (using 2 different brokers or accounts I assume) with a 20 pip stop loss on each trade and and a 35 - 40 pip profit target?
Ignored
yes long and short at the same time. Same account with hedge.
I use GTS (FxSol).
This is not a method that I have used before. I prefer taking a directional bias when I trade.
Do you find spread costs are high though if you have to pay spread on both sides of the hedge?
Ignored
I think they are same. I never noticed. And as I said, when used indicators or techs etc. I lost lot of $ last year. I stopped and using demos for almost six months with this method. I found Ok i think.
By the way I use only 5 mins charts. I dont even look at other time frames.
Any other simple method you suggest?
I think they are same. I never noticed. And as I said, when used indicators or techs etc. I lost lot of $ last year. I stopped and using demos for almost six months with this method. I found Ok i think.
By the way I use only 5 mins charts. I dont even look at other time frames.
Any other simple method you suggest?
Thanks
Ignored
Well if it is working for you then keep doing it.
I am not really a day trader. Trading short time frames from my perspective tends to lead to a reliance upon indicators and can lead to over trading. My preference is a simplistic trend following approach using daily charts that relies upon good risk management and adding to my positions when a good trend emerges.
I think the important thing is to know what fits with your personality and lifestyle and go with that.
I am not really a day trader. Trading short time frames from my perspective tends to lead to a reliance upon indicators and can lead to over trading. My preference is a simplistic trend following approach using daily charts that relies upon good risk management and adding to my positions when a good trend emerges.
I think the important thing is to know what fits with your personality and lifestyle and go with that.
Monaco
Ignored
Thanks for suggestion. I will stick to it for now and see.
So far I made 208 pips in NZDUSD.
I am scared today because of NFP, so I closed.
Any one please tell me the trend of NZDUSD? will it go down!???
thanks
Ignored
Nice trade on the Kiwi.
The Kiwi has been heading south since the beginning of 2007 and none of the economic data has been very positive for the Kiwi thus far.
As to your question as to whether it will go down further no one can say with a 100% certainty. That is why a good trading system has clear entry/exit rules so as to avoid trying to guess what the market will do next.
The Kiwi has been heading south since the beginning of 2007 and none of the economic data has been very positive for the Kiwi thus far.
As to your question as to whether it will go down further no one can say with a 100% certainty. That is why a good trading system has clear entry/exit rules so as to avoid trying to guess what the market will do next.
