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scared rather than greedy

Discussion in 'Beginners Bootcamp' started by margarita bogdanova, Feb 21, 2009.

  1. margarita bogdanova

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    Hello everybody!

    My name is Margarita. I started studying forex trading some three years ago, but only at the end of last year I got the guts to try it. Since the beginning of December I have been practicing with the Russian company Teletrade and the results I achieved on demo accounts, trding only with the EUR/USD pair.

    Last Monday I opened a live account of USD with Teletrade D. J. of USD2 000 but unortunately a mistake made by my bank (the name and the SWIFT code of the receiving bank in Hong Kong were wrong) caused a delay in the transfer. I hope on Monday (Febr. 23rd) I will finally be able to start live trading.

    However I am very much afraid that starting with such a small account is quite risky because the capital may be "eaten up" very quickly. Due to this all day yesterday I was trying to add to my account only 10-20 pips at a time, so that I can add to my capital tilll the moment it grows to the sum of USD 5 000 at least.

    Do you think I am doing the right thing?
     
  2. tingtong

    tingtong Private

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    hi

    just to give my thoughts:
    if you afraid of that your account is not big enough, there are brokers offering mini lots, or 0.1 lots, thus you can trade smaller.
    After changing demo to real trading, anyway going smaller might be smart thing, as i think one rarely trade similar to demo as a beginner, when fear of losing real money is there.

    good luck trading!
     
  3. Cyclon

    Cyclon Company Representative

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    Controlling Risk - Controls Fear and Greed

    It is important to have the correct position sizing and leverage combination
    This stuff goes for all of us because we all have emotions and make mistakes. The eventual size of your account will NOT change the need for this understanding.

    Never ever never never ever put yourself in a position where the market can hurt you in any significant way.

    Control position sizing - ideally risk a percentage like 2 - 3 % of equity, and you will insure that any learning is not going to do you in.

    That practice controls BOTH fear and greed which we all have.

    Here are two calculators by The Forex Project which will let you experiment with the actual numbers:


    Position size calculator:
    Forex Position Size Calculator

    Risk Calculator:
    Forex Risk Calculator

    The results may be different than what you may think. Give em a try.

    ;)

    Cheers,
    Cyclon
     

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