Never more than 3%
- #183
- Edited 5:28pm Aug 9, 2016 5:09pm | Edited 5:28pm
- Joined Mar 2016 | Status: Peace_To_The_World | 624 Posts
Can somebody please let me know exactly how much of my capital I am risking if I have a 3k account and im buying at 3.0 size? lev is 100:1??
Leverage 100:1 means only that you need to pay 3000 (1:100) margin for your 300.000 (3 Lot) position. So this wouldn't be even possible.
Then you should check the pip value per lot of the instrument you want to trade (Just use an indicator): It can be 7$, 8, 10$ etc. per pip (1 Lot position), nearly every pair has a different pip value.
When the value of one pip is 10$ for 1 lot and you enter with 3 lots, every pip is worth 30$.
If you want to risk 1% of your account per trade (30$ without spread+commissions) your SL should be around 1 pip, which is not much
But you shouldn't set your SL calculated on the risk...it should be set based on your trade logic/strategy...
Then you need to calculate the correct lot size for the trade based on your SL (Let's say 50 pips):
Risk 1% = 30$
SL = 50 pips
-> 1 Pip should equal 0.6$, so you should use on a pair with a pip value of 10$ per lot a 0.06 position (0.6$ per pip)
"Men Who Can Both Be Right & Sit Tight Are Uncommon" ~ Jesse Livermore
- #187
- Aug 10, 2016 2:19pm Aug 10, 2016 2:19pm
- Joined May 2016 | Status: Trader | 6,301 Posts
Risk 50% of your previous profit only, adjust it to your Stop loss value in pips (whatever it is at the moment), that will give you the exact lot position; also Scale in positions you will NEVER ever going to grow an account to decent level and make money using the 2% crap copy-paste that is all over the internet.. not unless you win at least 98% of the time (lol)
Amen. That's why I trade offshore. The US regulations on the leverage and FIFO are only there to hinder good traders from making money. A bad trader is going to lose his account, regardless, the low leverage just prolongs the process.
If you have an edge, even a small one, you can risk up to 50% risk per trade and your account will grow exponentially.
If you don't have an edge although you might think you got one, your account will vanish logarithmically.
2% risk per trade will bring more money to the brokers.
50% risk per trade will bring less money to the brokers but will save your time by making you billionnaire almost overnight or by making you broke almost overnight, the latter would happen anyway if you had risked only 2% but the agony would have been much longer and painful (tons of prozacs, depression, divorce, hair loss...)
If you don't have an edge although you might think you got one, your account will vanish logarithmically.
2% risk per trade will bring more money to the brokers.
50% risk per trade will bring less money to the brokers but will save your time by making you billionnaire almost overnight or by making you broke almost overnight, the latter would happen anyway if you had risked only 2% but the agony would have been much longer and painful (tons of prozacs, depression, divorce, hair loss...)
Don't give up on your dreams. Keep sleeping.
