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Account size, Position Size and leverage

shienri
Apr 14 2016 at 06:27
5 posts
BIGBEARBROTHER posted:
shienri posted:
BIGBEARBROTHER posted:
When I started trading myself, I used to blow about 5K per month. Till now I have stopped this and started trusting professionals so I have begun to invest. Actually it is better to start with $1K, but it mostly depends on your possibilities


ya i am looking at starting small like $1k.

what you mean by trusting professionals? as in trading course?


By trusting professionals I mean invest your funds to PAMM or buy signals or just entrust management of your account to those people who are highly involved in trading, trade constantly, watch for market for days and nights and just live by trading. If you've got a usual job or your business and trading is like a hoby for you, then believe me, you like other 95%+ traders are likely to face failure during your forex journey, and then it is only up to you whether you give up or not. if you like trading then you should trade on demos or mini/micro accounts. And only when you make constant profit for years, it is reasonable to open usual account. I myself have made the decision to trust professional far long ago and now I can see that that is the right decision.


I see what you mean, I plan to work on demos so that I am good at it before I trade.
I dont have large capital for a good return on managed account,
so I will have to work at it and see if ultimately i can be good and trade for a profit.

BIGBEARBROTHER (BIGBEARBROTHER)
Apr 14 2016 at 12:00
8 posts
shienri posted:
BIGBEARBROTHER posted:
shienri posted:
BIGBEARBROTHER posted:
When I started trading myself, I used to blow about 5K per month. Till now I have stopped this and started trusting professionals so I have begun to invest. Actually it is better to start with $1K, but it mostly depends on your possibilities


ya i am looking at starting small like $1k.

what you mean by trusting professionals? as in trading course?


By trusting professionals I mean invest your funds to PAMM or buy signals or just entrust management of your account to those people who are highly involved in trading, trade constantly, watch for market for days and nights and just live by trading. If you've got a usual job or your business and trading is like a hoby for you, then believe me, you like other 95%+ traders are likely to face failure during your forex journey, and then it is only up to you whether you give up or not. if you like trading then you should trade on demos or mini/micro accounts. And only when you make constant profit for years, it is reasonable to open usual account. I myself have made the decision to trust professional far long ago and now I can see that that is the right decision.


I see what you mean, I plan to work on demos so that I am good at it before I trade.
I dont have large capital for a good return on managed account,
so I will have to work at it and see if ultimately i can be good and trade for a profit.

Anyway, if you don't have money I'd advise you to trade demo (if you're a newbie), but it would be much better to trade micro accounts, where $1 equals $100. That is not going to be stressful for you and thus you will see how is it to be under real market conditions.

Money should work for you, not you for them
koval
Jun 17 2016 at 06:49
37 posts
Calculate your position size

Calculating the exact size of your position is at the core of good money management. Because the calculation itself is not very straightforward, you can find a simple calculator on our website(www.consiliuminvest.com/strategies). To access it, just look at the right-hand edge of the window - you will see a button 'RISK CALCULATOR'. When you click on it, a window will appear. Then you need to choose the name of the instrument that you want to trade, the price of the order, your deposit and your desired percentage risk per one transaction. The result you get is the size of transaction in lots that matches your risk tolerance.




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kricka
Jun 17 2016 at 11:44
92 posts
For you guys that are trading on cTrader instead of MT4. RMMRobot.com is a very good site on the subject of risk and money management. Also a lot of free downloads based on the same important principle of protection the trading account.

" Lock in the profit and minimize the draw down "
CarlosMZ (CarlosMZ)
Oct 30 2016 at 07:33
55 posts
the best way to see how leverage, trade size and account size affect your results is to open the demo account and see how it all works when you open different positions. when you read explanations it may get difficult to understand all in one time.

CliveCampbell (CliveCampbell)
Nov 03 2016 at 15:30
47 posts
Instead of asking , why not do the following - Find couple of brokers that you checked online and you are sure that they are no scam. Find the ones who are having free demo environment, and simply start testing yourself what ratio between account size, positions size , number of open positions leverage and etc. works perfectly for you. Because in here every trader will share his opinion which works the best for his needs, thus it might not work perfectly for you. I hope you are getting my point.

LLewis
Nov 28 2016 at 16:01
35 posts
koval posted:
Calculate your position size

Calculating the exact size of your position is at the core of good money management. Because the calculation itself is not very straightforward, you can find a simple calculator on our website(www.consiliuminvest.com/strategies). To access it, just look at the right-hand edge of the window - you will see a button 'RISK CALCULATOR'. When you click on it, a window will appear. Then you need to choose the name of the instrument that you want to trade, the price of the order, your deposit and your desired percentage risk per one transaction. The result you get is the size of transaction in lots that matches your risk tolerance.




INCORRECT


CORRECT



Good tool that takes into account all the discussed variables. I find it helpful. Actually, the position size (micro, mini or standard lots) is quite important for the risk/money management. Personally, I prefer trading with many but small positions.

Once a trader, always a trader!
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