Thread: Why you should trade 1-2% of your account on a trade!

Originally Posted by ;

quote So let's say I have a #20k account and I want to trade ecb minutes or article draghi speech. I am prepared to probably risk 20 percent of this account as I know it will move in a lengthy trend for quite a lengthy duatation till it hits s3 or r3 pivot points. If I'm doing a standard trade where I have used a technical entry I shall only risk maximum 2 percent of this account as a straight direction is not guaranteed because of bulls and bears battling it out. Hope that makes sense.

Out of what u have stated above I will only state that
u r not a trader. U have very limited experience n u r probably not trading reside account or even if u do u r losing great or will lose massive in d close future.

Any trader risking 20 percent of account for unmarried commerce is either stupid or a liar. Or u really have no clue what u r doing and speaking about

however decent luck. Un r d liquidity of the market

ps: I have not seen a real trader using will there will be some in d future too

I have the top limit but seldom hit at that amount. Typically it works out to 1-3%. From the U.S. you encounter a limitation due to the reduced leverage on our accounts. This mostly happens for me personally due to trading lower time frames which makes it possible for a bigger position dimensions and still keeps the risk relatively low.

For new folks I strongly recommend some sort of lot size calculator by spreadsheet or preferably one which operates directly on the trading software you are using. There are a ton of them out there for MT4. I wrote one for myself which matches my trading style that basically allows me to transfer two lines onto the screen and based on the risk limit along with also the maximum leverage usable settings instantly calculates the proper lot size. It will even show you exactly what that risk percentage means in dollars and cents. 2% seems small until you attach it to a 10k account and suddenly it's 200 bucks.

Originally Posted by ;

quote from what u have stated above I can simply state that u r not a trader. U have very limited experience n u r probably not trading reside account or even if u do u r losing great or will lose enormous in close future. Any trader risking 20% of account for single commerce is either stupid or a liar. Or u really have no clue what u r performing and speaking about but decent luck. U r d liquidity of the market ps: I have never seen a real trader using will n there wont be any in future also

Mr Brown I think you need to go the thread since there are guys that are risking 45% on here.

So risking 20% on a risk event that you are 99% confident will go a specific way is high risk?

I suggest you examine the opening message of the thread and read it correctly.

The majority of my transactions are 2% risk I wrote but if a certain event is certain to move in 1 direction why go in so tiny? I suggest you read up or watch the movie on George Soros and see exactly what winning vs risk is. He went 100% In and made 1 billion per day since the probability was so on his side.

If you go to my fundamental beats thread. I outlined the banks were stating heavy dollar buying from Tuesday and exactly what happened then...? The the dollar gained rapid energy versus everything from Tuesday to Thursday. That is what you call a high likelihood trade when you've got a trusted news feed.


When you examine the image I put in this thread I recommended to trade 1-2% to not wind up in precisely the same mess as that reside account I came across last year.

Below you will find a photo of a high probability trade I took since I could listen to the eur/nok minutes straight and that I was on the right side of the commerce

I traded the eurnok minutes again months since I knew nok would gain strength since they had good inflation prior and they stated GDP was good on their own readings.

This is what you call trading together with the probability on your side and you will see that those transactions last no more than 15 minutes and hit on the s3 pivot for your afternoon

I have a ton of trade examples on risk events so please don't insult my ability as I really don't yours.

Hello,

You have to risk more than 2% of the account, trust me, if you trade with 0.5% to 1% per transaction, your account will grow with continuous profits without difficulties. Do not be crazy and trade just like a professional.

Have a nice day!

Originally Posted by ;

I've the upper limit set for 5% but seldom reach this level. Typically it ends up to 1-3%. In the U.S. you run into a limit because of the decreased leverage on our accounts. This mainly happens for me because of trading lower time frames that allows a larger place dimensions and keeps the risk comparatively low. For new people I strongly recommend some sort of lot size calculator by spreadsheet or preferably one which operates directly on the trading software you're using. There are a ton of them out there for MT4. I wrote one for myself which...

Can you please place the indior of using two lines to compute lot size? Thank uou.

Originally Posted by ;

Hi, You have to risk not more than 2% of the account, trust me, if you trade with 0.5% to 1% per transaction, your account will grow with steady profits without problems. Do not be mad and trade like a professional. Have a nice day!

That I 100% agree with the 1 percent variable but take into account some ppl are beginning with like $1k to $3k and a few feel to use lots of leverage to generate money as their circumstances are somewhat different. So 0.5percent is a bit of a stretch for a few unless you've got a huge account.

A position sizing is similar to leverage, in its own double edged character.

Originally Posted by ;

Hi Everybody, 1 thing I dislike is visiting traders lose money because unfortunately it doesn't grow on trees. I saved this image of a trader I use to look up to about 4-5 months ago to know trading 1-2% on guide trades is essential to endure (I exchange big sizes on risk events for example ecb minutes because the volatility is quite direct/quick and predictable). Please use this image below to be aware that the aim of FX is to continue forever and not in the brief term. I'd want to know your views on the way you manage risk to continue...

As I mentioned when I 1st composed this thread I only trade 1-2% of the account on manual trades meaning normal trades predied on continued sentiment/fundamental flow.

This week I went on a heavy position post BOE meeting along with the trade was going excellent before we had floor breaking news out of Carney via a BBC interview. It stopped me out for a few ###I will not lie. I was pissed off and considered if I'd go in on such a hefty position again when trading risk occasions. I was not made aware via any site or paid support which Carney was speaking on BBC (otherwise I'd have not traded or had the halt set to break-even which was possible). Carney was touted as the'unreliable boyfriend' because he always seems to offer mixed signals and he sure proved that right!!!


To conclude this I shall go in heavy risk occasions, but I will be sure to drill down my analyst to know whether we've got speakers which could affect the commerce. For instance I was long cable on Friday and we had a BOE speaker on BBC so I shut the trade Straightforward

This year I have traded of the trunk of post meetings and profited quite nicely, especially of those NOK, ECB, SEK BOC since they state it how it is. Draghi did correct the market last year once the market misinterpreted one of his press conferences, but at least he waited a few days and not 2 hours prior to dropping a bombshell.

With that said I'm pleased to report that I have more winning trades than losing trades which leaves me profitable.

I blog all entrances from start (real life time) and closes trades on the ribbon https://www.nigeriaforextrading.com/...dissapear.html

Originally Posted by ;

quote from what u have said above I can simply say that u r not a trader. U have very limited expertise n r probably not trading live account or maybe if u do u r losing great or will lose enormous in d close future. Any trader risking 20 percent of account for single commerce is either stupid or a liar. Or really have no clue what u r performing and talking about but decent luck. U r d liquidity of the market ps: I have not seen a true trader using will there wont be any in d future also

There are people with an extremely high win rate (readily 85% AND even higher) that risk 20/30/40percent PER trade

YES its safe to risk that sum with a super high win rate

YES they have a clue and understand what they're doing (they could maintain that triumph rate for weeks easily)

for what I can see you aren't certain how to be an efficient trader and that's why you see this large risk as something a stupid or a liar person would do. . Sorry to hear but not everybody its like you =-RRB-


EDIT:

Imagine a Super high likelihood the price WILL move in 1 way in a specific point, what you ought to do? You have to exploit it to the moon and back!! Or you can view this way to: IF there its only a very slight little tiny chance (such as a 5% at maximum ) this move wont occur, then why you still chicken out and risk a very small sum in that commerce?? Consider it

Originally Posted by ;

the old me : risk with bigger dimensions, win big money than usual size. . But in the end. . Blow up the account. More and more and more moree the new me risk the very same, the scenario for each and every transaction is the same. . My toes may burn off, if I walk out barefoot on a hot day on the asphalt. . However. . If I walk out every day when it's hot, the asphalt gradually becomes bearable. I will end up resistant, as time passes, to the equity swings in my personal account with every transaction that is winning, or every losing trade. Over time, I begin to focus on what is important...

ah crappy analisys/egy paired with the improper capital management WILL blow your account everytime

The higher the triumph rate = the higher the percent you SHOULD risk per transaction, and viceversa also (but in this point which aproach or egy is not worthwhile ) and it WILL NOT blow off your account, plain and simple