Okay. So you have clear cut percentages. That's good. So do you use a sliding scale as well? For example, if you lose 4% the first day, are you willing to lose a smaller percentage of your starting balance for that week or do you use the same 4% the ...

What Is "Proper" Risk/Money/Trade Management?

Okay Forex5050, I went back and figured out where I think I shifted into the wrong gears... If the trader sets the leverage at 1:10, then a micro-lot would cost roughly $100.00. So, if the account balance is $1,000.00, then trading 1 micro-lot he ...

What Is "Proper" Risk/Money/Trade Management?

Hi Permully, Aha...the term drawdown. Now this is something that would concern fund managers etc. bigtime as their clients would be watching the DD on their account like hawks. Both Actual DDs and Floating DDs are important. I knew of a trader who ...

What Is "Proper" Risk/Money/Trade Management?

Hello again Forex5050, How can leverage impact on pip value? Leverage does not impact pip value, but it does affect the margin requirement which in turn will affect the position size one can trade depending on the size of the account. Please show me ...

What Is "Proper" Risk/Money/Trade Management?

I see you are making the same mistake of not reading carefully what was said in the initial posts leading up to this discussion. Please PM me with any further discussions or comments. Thanks. FX4

What Is "Proper" Risk/Money/Trade Management?

Hi again Forex5050, Hope this post and some of the other discussions and calculator tool suggested would help you with the question you asked. Take care, FX4

What Is "Proper" Risk/Money/Trade Management?

Nobody is trying to mock you. I think it is time to move on from this discussion tonight. I just found it funny that something as basic as that, that one could see on any platform you thought I would not know. FX4

What Is "Proper" Risk/Money/Trade Management?

A mini account allows you to trade $10,000 currency lots and UP. A micro account allows you to trade $1,000 currency and UP. I'm sure you meant "units" not "lots". Of course I understand that. LOL. Anyone who trades can see that on the platform. ...

What Is "Proper" Risk/Money/Trade Management?

Okay Traders, Will be picking up where I left off sometime back...maybe tomorrow. FX4

What Is "Proper" Risk/Money/Trade Management?

As it seems you're attempting to create a novice's guide to "What Is "Proper" Risk/Money/Trade Management?" Not really, but it's an idea LOL. I think if a trader takes the time to follow my train of thought, it should work out just fine. That's how ...

What Is "Proper" Risk/Money/Trade Management?

I just have to accept the fact that you do not yet understand the purpose or value of entering with a smaller position first, before loading your 'big guns". Take care, FX4

What Is "Proper" Risk/Money/Trade Management?

Hi again, This is where I think this discussion started...Below was your reply...in blue to a small portion of the entire post. Sorry but that's wrong. A "micro" account trades at (roughly, and as low as) 1 cent per pip. A mini account trades @ ...

What Is "Proper" Risk/Money/Trade Management?

Not at all Slim Buffett. Once the market confirms that your thinking is correct, you look for the opportunity to scale in with larger positions. Like I said before, most traders seem to open their trade with the position size they intend to trade ...

What Is "Proper" Risk/Money/Trade Management?

Nano....demo....same difference pretty much, the nano amount is so insignificant it's unlikely to make any difference to anyone logistically, financially, or psychologically. But that's not what I had in mind for entering the trade with a small ...

What Is "Proper" Risk/Money/Trade Management?

Slim Buffett, My replies to your comments are in black. I was not referring to what is the range allowed in some accounts whether micro or mini. I was discussing what happens with specific position sizes. (My original post) Neither was I. Then later ...

What Is "Proper" Risk/Money/Trade Management?

A waste of time? Maybe not, if a trader can use the smallest position possible to test the waters....might be a money saver and no more time lost than in a trader if it went sour. Right, so why are they included in the discussion and examples, it ...

What Is "Proper" Risk/Money/Trade Management?

Very nice tool there Erebus. Thanks for sharing it. Interesting that they ask for the currency pair....maybe after pip value? The leverage being used will certainly affect the required margin for a trade. Calculating possible position sizes without ...

What Is "Proper" Risk/Money/Trade Management?

I like your quick calculation method Pipmutt. Margin and leverage may not be important here (in that particular calculation), but in other contexts they might be necessary considerations. This thread is about exploring many ways traders manage their ...

What Is "Proper" Risk/Money/Trade Management?

Hello Slim Buffett, I was not referring to what is the range allowed in some accounts whether micro or mini. I was discussing what happens with specific position sizes. When trading 1 Std. Lot, each pip represents a $10 move in your account balance ...

What Is "Proper" Risk/Money/Trade Management?

Hi Forex5050, [A little confusing here... Let's assume an account balance of 1000,00 USD and let's assume a maximum risk of 2 %= 20,00 USD. To make things easier, the trader sets a maximum effective leverage of 10:1, so he will never open a position ...

What Is "Proper" Risk/Money/Trade Management?