risk level?

cowmadagan

Sergeant
Messages
393
You should be choosing the risk by the number of pips you think it will take before it's certain that the pattern you anticipated is clearly not the case. That means you shouldn't have a set number of pips you always choose your stop loss by.
You should only have a maximum loss in dollars in mind.
Look at your charts and decide the reasonable range in pips, and set the number of lots to match the maximum loss.
 

Ricex

Sergeant
Messages
359
Ok cool you have a micro account, that's good.

It seems that you might need your broker to explain how their platform works and run through with you how to change lot size when you trade.

In a micro lot account you have the choice of trading with 1 micro lot upto 10 micro lots.
When you create a market order, in the amount box you will be able to change the lot size. It will be listed 1000 - 10,000.

Changing the number of lots that you trade will allow you to adjust your stop without risking more of your capital, as I explained above.

This can all sound confusing if you haven't grasped the basic idea of lots. I would caution you against trading with real money for the moment until you have studied a bit more this elementary part of the puzzle. I would suggest you find out more about the use of Stops as well, they are best placed in relation to something not just at random.

A lot of novice traders have said that they like this site here : Forex Trading Online: Foreign Exchange (FX) Currency Trading Made Fun

Work your way through the school and I'm sure things will make more sense.
 

vicks09

Recruit
Messages
10
You should be choosing the risk by the number of pips you think it will take before it's certain that the pattern you anticipated is clearly not the case. That means you shouldn't have a set number of pips you always choose your stop loss by.
You should only have a maximum loss in dollars in mind.
Look at your charts and decide the reasonable range in pips, and set the number of lots to match the maximum loss.
thanks mate

i think i am risking the right amount now, $10 at a time (4.5% of account, i know this a little higher than reccomended but its only 1.5% above the recommended 2-3% risk advised on here..) with my pips beign worth $0.10, so i understand that my TP and SL would be set according to each individual trade i place, and how successful i think the move wil be...

but what about the differences in price between demo and broker, i have read many times that this is the trial and error part of selecting a good broker, but im unsure if they all have this variance?

is there an independent site that we can use to check the exact price for a currency pair...real time...in order to compare with the demo's and brokers i am trying?

thanks
 

vicks09

Recruit
Messages
10
ok thanks, i have done abit of reading on babypips before, as i have been looking at forex for over 18 months now (although i dont put the time and effort in, so i forget somethings!) but this time i want to go for it all out!

i contacted my broker who said i can change the lot size, by adjusting my amount size, currently at $10 (0.10$ per pip) i can have many 1000 unit microlots open at once. I think this is good risk managment, and will allow me to have many losing trades (while i learn) without my losing all my account.

im not bothered about this real money account so much, as i need to stop demo trading as the platforms just dont behave like the real ones..

i understand now that if i have one, two, 5, or 10 microlots open at once, then this will effect the amount i should risk per trade....i think this is what your saying in your previous example, and i understand now what it means....and for now i plan to follow the little table you gave espceically if i have more than one trade open at once.

I understand that my stops are placed according to each indivdual trade, and how much i think it will go up or come down by.....and also how much im willing to risk in relation to this....so im ok with stop losses (for now!)

i will still read through the babypips site as your not the first person to recommend them to me....

if any of the above sounds incorrect or i am wayyy off the mark, please let me know!

thank you
 
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