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Need help about how to manage money, account, in Forex

  • #21
  • Feb 9, 2015 7:50am Feb 9, 2015 7:50am
how to table all the trade in excel list? Could someone kind hearted to advise?
Thank you in advance
Let Market Tell You
  • #22
  • Feb 9, 2015 7:11pm Feb 9, 2015 7:11pm
Thank you fartist, I appreciate your help
Quoting fartist
{quote} Hi Motiram, 1) Number of pairs you choose to trade depends on your trading plan. For a trend follower, they trade all markets. Compare that with a day trader who only choose to focus on a few pairs. Let me know if that helps! fartist
Can you suggest which pairs can be trade for a day and who is day trader? Any link

Quoting fartist
{quote} 2) With regards to lot size, i find it is better to know how much you are risking per trade, how wide is your stops and only then decide how much size to put on for your trade. More information regarding position sizing can be found here.
Link is helpful, I am learning on demo account currency USD leverage 1:200

I have a one question how can I calculate the margin money I will require to trade lots?

For example table shows if I Sell following currency 0.05 lots I require margin money as shown in the table so far what is the formula applied to have 0.05 lots having leverage 1:200 will be required such money for each pair?

Pairs-----------Lot Size------Margin Required
AUD/CAD----0,05-------------$19,51--------------------
AUD/JPY-----0,05-------------$19,51--------------------
AUD/USD----0,05-------------$19,51--------------------
CAD/JPY-----0,05-------------$20,04--------------------
EUR/AUD----0,05-------------$28,33--------------------
EUR/CAD----0,05-------------$28,33--------------------
EUR/JPY-----0,05-------------$28,33--------------------
EUR/USD----0,05-------------$28,33--------------------
GBP/AUD----0,05-------------$38,05--------------------
GBP/JPY-----0,05-------------$38,05--------------------
GBP/USD----0,05-------------$38,05--------------------
NZD/JPY-----0,05-------------$18,51--------------------
NZD/USD----0,05-------------$18,51--------------------
USD/CAD----0,05-------------$25,00--------------------
USD/JPY-----0,05-------------$25,00--------------------

Quoting fartist
{quote} 3) With regards to SL and TP , this depends on your trading plan once again. One way you can go about placing your stops is based on ATR. You can check out this video for further explanation. Let me know if that helps! fartist
Really this is a interesting link find new way to define Stop loss using the ATR

Regards,
Moti
  • #23
  • Feb 9, 2015 7:18pm Feb 9, 2015 7:18pm
Quoting stefcio2002
It s ok, except one point : you need to take into account your tradinc account base currency? an equity of 2000 USD is not the same that an equity of 2000 JPY. and 40Usd is not the same as 40 JPY when it comes to risking 2%. therfore 1 pip ina 2 lots trade on EUR/GBP has not the same value in %age if your account is lin USD, in EUR, JPY or AUSD. I suppose this calculation is made for USD base account. But if your account is not labelled in USD you will have to adjust.
Stefcio2002 risk table is under construction I need to find some answer first, when it will be ready I will upload here so you can check it and give your opinion,

Thank you

Regards,
Moti
  • #24
  • Feb 10, 2015 2:44am Feb 10, 2015 2:44am
As you are writing that you are a newbie trade with 0.01 lots only.

This way you can experience all the newbie things without killing your account in the first days.

If your account is positive after a month increase your lotsize to 0.02 and trade for another month with that.
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  • #25
  • Feb 10, 2015 4:53am Feb 10, 2015 4:53am
Quoting Slicktick
As you are writing that you are a newbie trade with 0.01 lots only. This way you can experience all the newbie things without killing your account in the first days. If your account is positive after a month increase your lotsize to 0.02 and trade for another month with that.
Thank you Slicktick also it is good guidance to increase the lot size after the account size has increased, I am trying to learn how to manage money can you guide me How can be calculated how much money to be needed to sell or buy for example 0.01 lot for different currencies pairs if leverage is 1:200 I am having hard time to calculate.

Need help with formulas o any way to calculate

Regards,
Moti
  • #26
  • Feb 10, 2015 6:50am Feb 10, 2015 6:50am
Quoting Motiram
{quote} Thank you Slicktick also it is good guidance to increase the lot size after the account size has increased, I am trying to learn how to manage money can you guide me How can be calculated how much money to be needed to sell or buy for example 0.01 lot for different currencies pairs if leverage is 1:200 I am having hard time to calculate. Need help with formulas o any way to calculate Regards, Moti
Well, I could just give you a formula, but then you would find out that you could start trading with about 3 lots (which would kill your account in a few minutes)

Use 0.01 lots and you will not have to worry about that as your 2k account is well founded for this. Additonally you will still be able to trade next month.



You can use such a margin calculator: http://www.investing.com/forex-tools/margin-calculator
Play with it if you want but after that still use 0.01 lot to begin your trading adventure.
..
  • #27
  • Feb 10, 2015 7:21am Feb 10, 2015 7:21am
Adjust your position size based upon your risk tolerance and also how many pips you are using for a stop loss.

The below website is what I use to ensure that I risk the same amount every trade
http://www.earnforex.com/position-size-calculator

I use a fixed advantage of my entire account every trade. The advantages?

  1. Compounding when winning
  2. Account suitability when losing
  3. Good money management practice in general

I have learnt the hard way myself and am just slowly starting to build my account back up.

  • #28
  • Feb 10, 2015 8:27am Feb 10, 2015 8:27am
Quoting Motiram
Hello To All I have a very simple question for you experts, but for me it results very tuff to understand money management, I am a bit dump in mathematics. So for I need your guidance with practical examples may be in excel sheet in detailed, which could make my life easier to understand myself For example: I want to open a live account with amount of 2000€ how could I maintain the account as a newbe during the learning period not losing too much. And keeping account balanced Conditions: capital investment 2000€, if leverage is 1:200 1-how much...
1: E/U
2: 0.01
3: TP = 50% of closest other S/R. SL = Circa 12 pip + spread.

These answers get you about 0.1% of the way you need to go. They could be answered totally different too.

Like:

1: Any pair
2: 0.01-0.03
3: TP depends on the pair. Look at ATR readings for example. SL depends on what pair too. Since all pairs have different volatlity its pretty hard to say.
My signature is: "Classified".
  • #29
  • Feb 10, 2015 8:54am Feb 10, 2015 8:54am
Quoting Slicktick
{quote} Well, I could just give you a formula, but then you would find out that you could start trading with about 3 lots (which would kill your account in a few minutes)
I think to trade without understanding MM is risky I want to learn MM my request is if you know the formula will be great help to learn in future. Some one said FIRST LEARN THAN REMOVE “L”

Quoting Slicktick
{quote} Use 0.01 lots and you will not have to worry about that as your 2k account is well founded for this. Additonally you will still be able to trade next month.
Slicktick I believe your suggestion is a 100% correct, following on your advice if I trade 0.01 lot even SL is100pips and hits loss will not be more than10€, correct me if I am wrong, and may get more chances to hit TP40pips before and earn 4€/trade, Risk 0.005% Reward 0.002% to be in profit I need 8 trade to be in profit and 2 in the loss mean win loos % 80/20 obviously can be improved by increasing TP40 to 60 o 70 this all depends one must have trading experience. Other side of the coin I like your suggestion most this way trade may run few days and I will get more time to analyse the pair trend and can stay in the market long time it is possible

Quoting Slicktick
{quote} You can use such a margin calculator: http://www.investing.com/forex-tools/margin-calculator Play with it if you want but after that still use 0.01 lot to begin your trading adventure.
Thank you for the link finds that is a good margin calculator

Finally I would like to know about which pairs are good to trade and how can be analysed about pairs direction for example do EUR/JPY go in the same direction as AUD/CAD?

I appreciate your help and giving a your precious time

I want to sure you I will use 0.01 lots to begin my trading adventure, which I believe is logic for bingers.

Regards,
Moti
  • #30
  • Feb 10, 2015 9:36am Feb 10, 2015 9:36am
Quoting Ivanyo
Adjust your position size based upon your risk tolerance and also how many pips you are using for a stop loss. The below website is what I use to ensure that I risk the same amount every trade http://www.earnforex.com/position-size-calculator
Thank you Ivanyo for the link it is very helpful

Quoting Ivanyo
I use a fixed advantage of my entire account every trade. The advantages? Compounding when winning Account suitability when losing Good money management practice in general
Ivanyo for newbe Forex is a full of question till get right direction half of the thing really I do not understand not because of are not explained but my lack of understanding I want please can you explain bit in detail if possible with example so I can pick the thread I am very bad in maths

Quoting Ivanyo
I have learnt the hard way myself and am just slowly starting to build my account back up.
Ivanyo I am suffering the same situation at present reading, reading and reading, your experts helps bring my knowledge up I want to congratulate you, at least after a hard work, all is resulting good and you getting green pips

Good luck to you

Thank you for all your help and time

Regards,
Moti
  • #31
  • Feb 10, 2015 9:58am Feb 10, 2015 9:58am
Thank you yaed for your help and time also for sharing your knowledge
Quoting yaed
{quote} TP = 50% of closest other S/R. SL = Circa 12 pip + spread.
Please can you advise what is 50% of closest “other S/R”

Quoting yaed
{quote}3: TP depends on the pair. Look at ATR readings for example. SL depends on what pair too. Since all pairs have different volatlity its pretty hard to say.
Now one more answer need to find which pairs are “volatile” Still long to go

Thank you have a good day

Regards,
Moti
  • #32
  • Feb 10, 2015 1:15pm Feb 10, 2015 1:15pm
Quoting Motiram
Hello To All I have a very simple question for you experts, but for me it results very tuff to understand money management, I am a bit dump in mathematics. So for I nee... in my mind may be there are much more please help with this query to stay as long as possible in the market. Thanks And Regards, Moti
With the questions you have posted, you need to start with a demo and better yet, head over to baby pips school or check out some of the old threads here. I would suggest that you hold back from going live right off the bat and for god's sake, why on earth would you want to start off with that leverage, aim lower, a lot lower..good luck
  • #33
  • Feb 11, 2015 2:03am Feb 11, 2015 2:03am
Quoting Motiram
Thank you fartist, I appreciate your help {quote} Can you suggest which pairs can be trade for a day and who is day trader? Any link {quote} Link is helpful, I am learning on demo account currency USD leverage 1:200 I have a one question how can I calculate the margin money I will require to trade lots? For example table shows if I Sell following currency 0.05 lots I require margin money as shown in the table so far what is the formula applied to have 0.05 lots having leverage 1:200 will be required such money for each pair? Pairs-----------Lot...
Hi Motiram,

There's no best product to trade intra-day. Each product would have their own idiosyncrasies and it's entirely up to you to find out.

I've seen traders trading currencies, stock indices etc. It's really up to you.

With regards to margin, again it depends on your broker on how much it's required.

fartist
Whether you can or you can't, you are both right.
  • #34
  • Last Post: Feb 11, 2015 9:51am Feb 11, 2015 9:51am
The 100.000.000 $ question
Uh well the s/r question is multi trillion dollar question. If i had an simple answer to that and gave it here, the world economy would change dramatically overnight.

One thing to note is that pretty much no system here is worth a damn. But you probably need to find that out yourself. Preferably by looking at a chart and figuring out what would happen if you did what they say.

Look at it this way: If someone knows how to trade well, that knowledge is worth millions or trillions of money. If that knowledge is aimed at making money, and worth that much, why would anyone distribute it freely? But the argument works the reverse also: If anyone is willing to sell you the information, the right price is millions, lets say 100.000.000 $. Are you going to pay that? Because thats what its worth.

And to continue, lets say a person HAS such information, how would that person sell that information? Just call hedgefunds and banks and say: "Hey, i can teach you to trade, but its going to cost you 100 million $." Without proof, who would pay that in advance? And if they WHERE able to verify the information beforehand, well they already have the information so why would they pay 100 million $ for it? So try to put yourself in the place of someone with such information. The info on how to trade that is. What do you do with the information? You cant sell it, because noone will pay for it BEFORE they can verify its importance. This is also, i think, why a profitable trader dont need to show her/his trades, what would be the point?

One further point in this is that a profitable traders, showing his/her positions openly invites the chance for other people to backwards engineer the logic of the trades. I think its quite easy actually to backward sengineer the logic of good trading.
My signature is: "Classified".
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