Originally I fell into the trap of demoing over trading and over leveraging!!
I have now managed to beat my ego!
Am I right in thinking that a good place to start for real would be
1000 usd risk capital with no more
than 2 percent per trade risked
And stops no more than 30 pips away
The aim would be to make around 25 pips per week on a day trade basis
Does that make sense??
If so also I don't want to leverage at all- is that possible...?
If you fell into the overleverage, and overtrading trap, don't open an account with $1000, open it with $100.
And if you trade nano lots, you won't be leveraged. And you'll still have $900 to try again with.
If you put it all in, you'll be tempted to cheat. Especially since the demo account has exposed that propensity already. Until your discipline is rock solid, don't tempt yourself.
Last edited by Master Tang; 07-21-2012 at 07:14 AM.
30pip SL would be ok, some use more some use less, depends on your trading style
25pip target per week. ok, how many trades do you plan on making per week? cuz with a 30pip SL and 25pip TP, Houston we have a problem.
it's 100% possible to have zero effective leverage. just make your position size equal to your equity / balance (and account for the exchange rate). easy peasy. zero effective leverage. there will be inherent leverage though since your broker will only tie up 1-5% of your fund and lend you the rest (even though you don't need it), but you can ignore that and it's an inescapable part of "how things are done". just look at your EFFECTIVE leverage then.
correct on SL location. below initial BUY LONG, and above initial SELL SHORT. common logic dictates that as the trades moves in the direction you want it to move, you move the SL along with it a bit at a time (nudge it up if you're long, nudge it down if you're short), so that in case the market takes a run against you, at least you might keep SOME of the profits.