Can Someone Please Clear This Up For Me? | Forex Factory

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Can Someone Please Clear This Up For Me?

  • #1
  • First Post: Jan 11, 2009 5:05pm Jan 11, 2009 5:05pm
I have a few quick questions I hope somone can clear up for me. First on Interbank Fx I want to deposit 4000usd into my standard account,I was wondering if im making 200 pips a week compounded with 1 percent risk.How much will I make per week up to 6 months?Also Im using a levearage of 100:1. Another question is if im using 1 percent as my risk how do I calculate in each trade?


NewAge
  • #2
  • Jan 11, 2009 5:34pm Jan 11, 2009 5:34pm
Respectfully, have you ever heard of a program called Microsoft Excel? Shouldn't be too hard to figure out for you even with most basic knowledge of spreadsheets and mathematics. Don't start spending your money just yet though.

Also, you might want to look into leverage as it appears you have not quite grasped this concept yet. If you are using 100:1 leverage on a $4k account, this means you are taking positions of $400k, which you may be doing, if your stops are mega-tight and you playing the ultra-short term. But then you say you are risking 1% of your account per trade. 1% of your account is $40, so you are obviously not taking positions with 100:1 leverage. Leverage is expressed as a factor of the amount of borrowed capital (which your broker 'lends you') to your actual equity (your account size). So say you have 4 mini-lots ($40k) on a EURUSD trade, you are leveraging your position by a factor 10:1.

There is not enough information in your post to figure out how much a pip is worth, if you do not say how large your stop is - an 200 pip gain with 1% risked on each of 10 trades with an average stop of 10 pips is much greater than that of 10 trades with an average stop size of 100 pips.

http://www.investopedia.com/terms/l/leverage.asp

Read this article on Money Management:

http://www.scribd.com/doc/7355261/Mo...port-Van-Tharp
  • #3
  • Jan 11, 2009 5:47pm Jan 11, 2009 5:47pm
depends what currencies, pip values are different
Grabbing the bull by the horns!
  • #4
  • Jan 11, 2009 7:37pm Jan 11, 2009 7:37pm
With all due respect to you, I'd consider two things:

1. Do you understand the basics well enough to trade with real money?
2. Why do you think you can make 200 pips a week consistantly?

The links in the above post should help with question 1. Only you can answer question 2.
  • #5
  • Jan 11, 2009 7:40pm Jan 11, 2009 7:40pm
Quoting NewAgeInvest
I have a few quick questions I hope somone can clear up for me. First on Interbank Fx I want to deposit 4000usd into my standard account,I was wondering if im making 200 pips a week compounded with 1 percent risk.How much will I make per week up to 6 months?Also Im using a levearage of 100:1. Another question is if im using 1 percent as my risk how do I calculate in each trade?


NewAge
To add to All5's comments; you'ld be a fool to offer me Your Money, at this point in your education.
  • #6
  • Jan 11, 2009 8:26pm Jan 11, 2009 8:26pm
Quoting Bemac
To add to All5's comments; you'ld be a fool to offer me Your Money, at this point in your education.
I dont think anyone will get his money except his broker, I doubt they will be passing his trades on to the interbank as much as I doubt over .01% of forum members are trading on the Interbank market.
Living the adventure in my head.
  • #7
  • Jan 11, 2009 9:18pm Jan 11, 2009 9:18pm
Quoting NewAgeInvest
I have a few quick questions I hope somone can clear up for me. First on Interbank Fx I want to deposit 4000usd into my standard account,I was wondering if im making 200 pips a week compounded with 1 percent risk.How much will I make per week up to 6 months?Also Im using a levearage of 100:1. Another question is if im using 1 percent as my risk how do I calculate in each trade?


NewAge
If I were you and you wanted to trade live. I would trade at .01 lots until I got the hang of it. The higher lots you use the more expensive your education is going to be.
  • #8
  • Jan 11, 2009 10:33pm Jan 11, 2009 10:33pm
Quoting Leonlorenzo
I dont think anyone will get his money except his broker, I doubt they will be passing his trades on to the interbank as much as I doubt over .01% of forum members are trading on the Interbank market.
Touche. point taken.
  • #9
  • Jan 11, 2009 10:33pm Jan 11, 2009 10:33pm
Quoting nanningbob
If I were you and you wanted to trade live. I would trade at .01 lots until I got the hang of it. The higher lots you use the more expensive your education is going to be.
Id add,

Make sure you can double(at the minimum) a demo account first. If you cant do it in demo then your chances of doing it live are non-existant.

Just throwing this stuff at a wall, hopefully some of it will stick.

Leon
Living the adventure in my head.
  • #10
  • Jan 11, 2009 11:08pm Jan 11, 2009 11:08pm
Great advice, everyone. Could someone maybe put it all into an EA?
  • #11
  • Jan 11, 2009 11:18pm Jan 11, 2009 11:18pm
Quoting Bemac
Touche. point taken.
Lol, nope.... just realistic.
Living the adventure in my head.
  • #12
  • Last Post: Jan 11, 2009 11:49pm Jan 11, 2009 11:49pm
thanks for the info guys!
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