DislikedInitial position from 0.5% to 1% would be fine to start with. So that you need at least -2000 pips to crash the account.Ignored
Thanks again,
FX4
Alternative Trade Management/Money Management Methods 3 replies
Money Management / Risk Management 24 replies
My first "proper" live account 7 replies
Successful Trade Management / Risk Management 0 replies
Rationale behind "Risk Per Trade" and "Risk/Reward Ratio"? 8 replies
DislikedInitial position from 0.5% to 1% would be fine to start with. So that you need at least -2000 pips to crash the account.Ignored
DislikedYeah. I like that way of trading: proper R/M-management and a broker who offers high leverage with the possibiloity to hedge. If you have a good understanding of market structure you can fade or trade the dealer (building positions) without being kicked out too early. Most of the time you make money and trade very similar like a market maker. Then it doesn't matter if it's a trending or ranging market.Ignored
DislikedI have a 400:1 leverage account with a starting capital of $2,000 and if I place a 1 micro lot trade... it is $0.10 per pip.
A stop of 50 pips represents a risk of losing $5.00 which is 0.25% of equity.Ignored
QuoteDislikedSmall risk percentage: under 3%. May I ask...do you swing trade or trade longer time-frames like H4 and up? Also, do you have a very specific trading system or are you more of a discretionary trader?
FX4
DislikedI agree it should be simply based on what you're willing to lose, using these account calculations can be dangerous. If your not feeling the market and you're not performing well then you really shouldnt be trading with much size at all. Any trading system/idea will go in and out of profitability the key is to recognise when its not working then reduce size. When its working increase size. Well atleast this works for me!Ignored
DislikedLonger timeframes... I have a thread, see my sig. Everything is explained there.
I got off track Thur/fri last week and scalped over 400 pips out of the market in less than 24 hours to get myself outa trouble.Ignored
DislikedThanks No-Luck. I like the .5% better to test the waters. For me that's where micro-lots come in handy.
Thanks again,
FX4Ignored
DislikedI just tested your suggestion on my systems. Testing waters as you call it made all of my systems less profitable. While psychologically it is comforting to test waters, it seems that in reality one gets less profits.
my 2 cents.Ignored
DislikedThen it does not work for your style of trading. It is to be used to see which way the market is moving, then increase the position size when the trader sees the market is confirming the trade-trend direction by what it is doing.. It does have some psychological advantage as well, because it makes it easier to close, rescue or flip if necessary but then again, you are a 100% mechanical trader, right?Ignored
Dislikedtrue, and from a psychological standpoint it definitely has its benefits. On the other hand forming an opinion and watching the charts confirming that opinion has the same benefits without risking a dime.Ignored
I think there are subtle differences between them though they are closely intertwined. Maybe I should throw in Emotional Management but alot has already been said in this thread.
To come...Trade Management.
FX4