Quote:
Originally Posted by theunder18kid
so how are u going with only 1000? I mean it is really hard for me cause I trade really really really really really really really volatile pairs...... the GBP/JPY..... even though I manage to win most of the times I still dont think I can trade with 1000 to start with since my stops normally are 100-200 pips and also I'm not a day trader since I had some bad exp trading daily.... I trade daily charts on a weekly basis. I think maby u guys are right, maby I should get micro lots since I have to risk 20% of my equity at a time with only 1000..... which seems to me like really really really really really really really stupid. but hey everyone has that winning feeling and that lucky feeling about stuff like this.... maby I should start being real thanks for the advice guys I'll check if my broker will allow me to trade micro lots
cheers
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I've been starting off rather cautiously, until I get a firm grasp on the market. I've been generally risking anywhere from .25% to 3% of my equity on any one trade, I use pretty tight stops at levels I consider significant. If I get stopped out, I reevaluate my original hypothesis. If I still believe in it, I may wait a little then reenter the trade. For example, I was short hte dollar today and got stopped out of many of my positions (while in class haha), but looking at the reaction to such favorable news, it seemed to me as if the rallies were going to fail, so I got back in at better positions that I was originally in. After trading equities with a small account, I've really learned to appreciate risk, and hopefully it will pay off.
I'm up a little over 15% so far this month, which isn't going to be the tripling, etc of the account that you had in your practice accounts, but with the way I've been managing my risk as well as coming up with solid strategies, I think I can perform pretty well consistently. The more confident I become in my strategy (and the more I realize my weaknesses) I think I will risk a little more equity on each trade. But so far I've been able to maintain good returns with little risk. You never know, but hopefully I can keep consistent, which can be especially difficult when I have so much else to do in school.
I would still really recommend switching brokers if you have to risk essentially 20% on each trade. That's pretty extreme. It's a good way to double up quickly, but it's also a great way to lose it all quick. I like the flexibility that trading smaller lots allows, since you can take a big position if you feel strongly, or can enter piecewise until you are more confident in your analysis.
^^ My 2 cents.