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Help me understand forex.

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  • #16
    Re: Help me understand forex.

    anythng less than $1000 account must use microlots. else to risky, about 3k mini

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    • #17
      Re: Help me understand forex.

      The pillars of risk management:
      Use stop always
      Do be never in the business from an impulse
      Do never trade in borrowed money
      Do never risk more than your capital 2%-a
      Let the proportion of the size of your capital and your position be left over low, 1:at 10 not bigger

      I guarantee that your money will not run out if you observe these rules and you recognise it the success thingamy.

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      • #18
        Re: Help me understand forex.

        Originally posted by gavros777
        So couple months ago i traded on a live account with $200.The leverage was 1:100 and 5 times i was kicked out of the trades.My question is why i was kicked out.I know it wasn't the broker because it just $200, if i was them i wouldn't wasted my time on me but on the big fishes.Now this is how i traded.I sell the eur/usd by opening 2 lots at the same time and when the market was going against me i got kicked out.I still had $67 after i got kicked out and then the market moved in my favor but it was too late.Also one more question, what's the difference from balance/equity and margin/free margin? Thanks in advance for helping out.
        I do not understand how you can open 2 standard lot size trade with 200 dollars if you only have leverage 1:100. You were risking way more than you account balance alowed you to do. As suggested eralyer find yourselfe broker with higher leverage and do some demotrading before you go live and also I suggest to start with even nanolots.

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        • #19
          Re: Help me understand forex.

          finding the right tools for the task.
          most broker allow trading on mini lots (10,000) , but not all broker allow trading on micro lots (1000). So open the right trading account with correct lot size allowed and funded with correct amount. All serve to start trading.

          must try on demo account first. trade till the demo account margin out and you'll know better your risk tolerance.

          regards,
          derek

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          • #20
            Re: Help me understand forex.

            After you recognised it the trading platform and you can handle it, do not spend much time demo on an account. Not pour because the demo is an account you learn very illusive and bad habits because of his usage. On the one hand protects because of the stress and the psychological challenges what you will experience live, on the other hand the demo accounts a some other kind of price is supplied with data many times what shows the trading to more calculable one. Demo trade in the possible smallest unit instead of an account live, that to real feelings and experiences right.

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            • #21
              Re: Help me understand forex.

              Originally posted by ggrays1999
              You must multiply your lot value per pip x your pips in stops to determine your risk. You should not be trading a mini lot until at least $1000, using a 50 pip stop, that makes 5% risk.
              sounds about right

              i however am a risky trader and i traded mini with less than half that amount not long ago

              if you are comfortable with the risk [ and loosing your money ] then trade how you like.

              if i am feeling very very confident i will trade mini lots on my 2nd real account [ $400 in there in total ] and try to double the account with each trade.

              this is a ****** idea yes, but the $400 came from winnings, so i am not loosing anything by trying this method

              obviously you only trade what you can afford to loose, if you start with a $500 balance i suggest you trade 0.01 lots [ micro ] until you can proove to yourself [ LONG TERM PLEASE, NOT 1 WEEK AT LEAST 2-3 MONTHS OF CONSTANT INCREASE IN THE ACCOUNT, REMEMBER AS LONG AS YOU ARE POSITIVE AT THE END OF THE MONTH, YOU ARE POSITIVE!!!!!] that you can constantly increase an account, if you loose with mini or micro, you loose with full lots aswell.

              my opinion is not to trade demo
              you get to relaxed and increase risk becuase its not your money, you take trades you might not have normally taken

              you can simply avoid all these bad habits by NOT trading demo, ofcourse the downside is you risk real money

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