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position sizing, please help!

  • #1
  • First Post: Jul 6, 2006 12:50pm Jul 6, 2006 12:50pm
Ok, i need help figuring out my lot size to trade here:

So basically i will deposit $500 into a broker (1:200) leverage
I want to risk no more than 3% ($15) on my first trade..


My strategy is to always trade two lots with 2 stop losses. They are 75 and 100 pips away from the entry. I want to know if I want that 75 pips stop loss to be my 1% risk and the 150pips stop loss to be my 2% risk (total 3% risk) what's the lot size I should trade prior to entering position?. Obviously I have to use microlots, but i don't know the calculation for this! I hope this makes sense

Basically i want to break down my 3% risk into 1% and 2% stop losses.

Please help. On oh yea, i am thinking of using interbankfx for my first live account due to the ability to trade micro (minimum lot 0.01).
ps. please give me a formula so that i can recalculate it on different capital amounts other than $500
thanks for the help
  • #2
  • Jul 6, 2006 12:56pm Jul 6, 2006 12:56pm
I posted a spreadsheet here that can help u with your calculations.
http://www.forexfactory.com/forexfor...5631#post55631
In trading, there is no bullshit. You either make money or you don't.
  • #3
  • Jul 6, 2006 3:12pm Jul 6, 2006 3:12pm
Hi,

<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /><o></o>

I am new to FX trading and I need an advice please on what charting package to use. I need it to have programming and back testing possibilities and a friendly stuff willing to help in the beginning. Also do you know if Oanda is a good dealer to open a live account with? I’ve been demo trading with them for 1 month and now I am thinking about opening a live account with them.

And another question (sorry if it sounds too stupid) – is it really possible to earn money consistently in FX market and what does it take in terms of time devoted to it/education/experience/discipline/etc.

<o></o>

Thank you very much.
  • #4
  • Jul 6, 2006 4:04pm Jul 6, 2006 4:04pm
Quoting lina
Hi,

<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /><o></o>

I am new to FX trading and I need an advice please on what charting package to use. I need it to have programming and back testing possibilities and a friendly stuff willing to help in the beginning. Also do you know if Oanda is a good dealer to open a live account with? I’ve been demo trading with them for 1 month and now I am thinking about opening a live account with them.

And another question (sorry if it sounds too stupid) – is it really possible to earn money consistently in FX market and what does it take in terms of time devoted to it/education/experience/discipline/etc.

<o></o>

Thank you very much.
Welcme to Forex Factory!

First question - many people here use Metatrader, it does everything you listed and it's free. As for the friendly stuff, I think in this forum you will find all the advice you will ever need...

Oanda is a good and reputable dealer; their charting package is very limited, but then again you can use Metatrader for charting.

As for the "another question", yes, but it is not easy, and it will take you anywhere from a few months to forever to learn it (my wife, for that matter, is getting impatient with me after 4 months).

Read the beginners' section in this Forum that should give you an idea what you are getting into.

Good
  • #5
  • Jul 6, 2006 7:03pm Jul 6, 2006 7:03pm
Thank you very much for the reply!
I just have a question regarding the Metatrader - when I google it I get a FX dealer page so it looks like that you need to have a live account with them to use it. Maybe it's a wrong one. Would you please send me the link to the correct website to download the software?

Thanks again.
  • #6
  • Jul 6, 2006 7:29pm Jul 6, 2006 7:29pm
I would suggest using the MT4 version from:
http://strategybuilderfx.com/
as it does not expire every 30 days. That way u do not need to worry about losing acct history and having to resign up every 30 days.
I am one who uses Oanda for trading and MT4 for charting and having an MT4 acct that does not expire is a must.
In trading, there is no bullshit. You either make money or you don't.
  • #7
  • Jul 6, 2006 7:29pm Jul 6, 2006 7:29pm
http://www.metaquotes.net/files/mt4setup.exe
  • #8
  • Jul 6, 2006 7:30pm Jul 6, 2006 7:30pm
Have you tried www.metatrader.com? You can also demo a demo version of Strategybuilder at www.strategybuilderfx.com.

Quoting lina
Thank you very much for the reply!
I just have a question regarding the Metatrader - when I google it I get a FX dealer page so it looks like that you need to have a live account with them to use it. Maybe it's a wrong one. Would you please send me the link to the correct website to download the software?

Thanks again.
  • #9
  • Last Post: Jul 6, 2006 7:59pm Jul 6, 2006 7:59pm
Quoting Yardie
Have you tried www.metatrader.com? You can also demo a demo version of Strategybuilder at www.strategybuilderfx.com.
Did you mean www.metatrader.net? Looks like www.metatrader.com is a squatter. Another real Metatrader site is www.metaquotes.net.

Dane
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