Calculations
The USD/JPY is trading now at about 80.4900 so how much would it cost me to buy 3000 shares of that currency? Also how much money am i required to have to day trade Forex? Because i know you need like 20 grand to day trade stocks. I have been trading stocks now for a couple months and i have a good trading strategy down using MA stochastic and a couple other indicators but will they still be effective in forex trading? Thank You
You really need to study the Forex Market before setting up a live account. The stock market and Forex do not move in the same rhythm.
Go through the FPA Military School and I could also suggest babypips.com
You can find some things about forex trading on 4xangels.com also.
To your question (to buy 3000 "shares" of USD/JPY):
I will try to make it as simple as possible.
First of all, in Forex you can buy Lots and not Shares.
You have to consider the following factors, in order to estimate a "value":
1. Initial Capital
2. Leverage
3. Money Management (A Stop Loss is very recommended)
Lets take your $20.000 as initial capital and a "standard" leverage of 1:100,
As safe money management is suggested to use max 2% loss per trade.
Depending how you trade, the Stop Loss determines your Lot Size.
With a leverage of 1:100, a standard lot size has a pip value of $10 (On the EUR/USD pair and we use that to make things easier)
For the sake of calculating a value, we consider 100 pips SL.
We calculate $20.000 * 2% = $400 maximum loss per trade
To calculate the Lot Size:
400/10(Pip Value)/100(SL)=0.40
As you can easily realize, you can make thousands of combinations of calculations if you change the parameters!
If you did not understand anything, it means you really need to go through the basics
After you do some basic reading read this calculation again.
Place more questions on the Forum. Me and all other members of this forum will try to help you understand the Forex market.
Never Forget: Keep away from Scammers! There are many ways to avoid them. The most simple one is: ask in the FPA about a Forex broker or a Forex product!