Great post.Originally Posted by ;
Risk management is far more significant than return. One of the main lessons that I've ever learned.
Great post.Originally Posted by ;
Risk management is far more significant than return. One of the main lessons that I've ever learned.
I do think that is the lesson you may give nobody. Everyone has learn it .Originally Posted by ;
Do the mathematics. Your SL is 50 pips. Trading one full lot is $10/pip (on xxxUSD pairs). So your risk 50 x 10 = $500 per transaction. If your first two trades are losses you will have blown your entire account.Originally Posted by ;
My guideline is 1 lot per $25k account size. To get a 50 pip SL, that works out at approximately 2% risk per transaction.
Should 1% be the trade dimensions, or should I count just stop loss. If I've stop loss I'll lose 1% of my total account balance?Originally Posted by ;
2 percent,i.e ,$20 risk per transaction split to a s/l.Originally Posted by ;
50 pip s/l equals $0.40 per pip.
You should begin with the lowest risk amount which will allow you to scale out of a position. You ought to start off trading with R $10, which will often allow you to scale out of your position with at least 1/2 of your own position.
In case you cannot be always be profitable with R $10 then you won't be profitable at bigger lot sizes. Make some consistent gains at the level, then return for more advice from the Forex traders here. Do not burn your account trading anything bigger than you can manage.
Thanks, Can you recommend me Broker with micro accounts and paypal deposit?Originally Posted by ;
Hi
that is my very first post, and my english is not great as u. I, however,'ll do my very best
I wish to help u. I connected risk management document, simply put ur initial funding.
I hope that can help.
https://www.forexforum.co.za/attachm...3475540482.xls
That is actually pretty good risk management.Originally Posted by ;
http://img847.imageshack.us/img847/396/18370093.png