Hi, im entirely new in forex trading. I dont know much about strategy and basic rules of trading. I started two weeks ago with a demo account. It turns out well where i can made 10% daily profit from 5-6 trade a day.
In my second week, i decided to go real account and put 200$ to the account. The first day i made 50$, second day was 60$ and third day 95$. Yes, im being addicted and keep trying to get more profit.
The thing is, i put af far as 50% of my margin on risk per trade while only took 10% as profit. This worked well cause i thought price always went up and down, as i have enough margin to cover 100 pips loss and wish price will turn and finally reach my target.
On my first 3 days, it proven worked really well. I took 5$-20$ per trade profit, which i trade like 10 times a day.
Then im being greedy and on my fourth day i still did the same. This fourth day my trade was losing 70 pips, was thought any moment will be a rebound, then i doubled my trade. It ended up a margin call. Price(eur usd) went down 150 pips in just 15 minutes (was3 days ago).
And now i learned that stop loss is a must. A
s i plan to start again using 1000$ as new start. I wanted to know how much risk i should put in my mind per trade? How much profit should i aim? (Was having no profit aim and keep trading till alarm sounds to remind me time to sleep).
TL:DR,
I start with 200$, laverage 1:1000. 1st day 250$, second day 310$, 3rd day 400$+, 4th day 0$.
Starting anew with 1000$ soon. Need to know a good stop loss and take profit for daily trade.
Both should be derived mathematically from tried, tested, proven parameters relating to the system you’re using.
Nobody can possibly suggest them, in abstract, without first having a lot of statistical information reliably monitored from many hundreds of trades using your system. (And you should ignore anyone who tries to.)
You’re [B]nowhere near[/B] ready to trade it with real money yet: you haven’t even proved that your method actually has a genuine edge in the first place, and that your trades have a positive net expectation, let alone being ready to think about position-sizing, trade-management and SL/TP-sizes. :34:
This book will help you a lot (if you read it!): [I]Profitability and Systematic Trading[/I] by Michael Harris (there’s an online copy of a lot of it available free, on Google books: you don’t even need to buy it. But you do need to understand it, or some equivalent of it, [B]before[/B] putting real money on the line).
I’m a newbie too, done lots of reading and revising and opened a demo account two weeks ago, in the nicest possible way - I am scared on your behalf!! Lexys is totally right…
[B][/B]Hi,
Newbie here too currently taking the really good BabyPips School course - I wouldnt dream of risking any real money until I’ve taken on board everything taught on this course.
(who wrote this course by the way? they deserve a massive pat on the back for the effort put in)
The following I’ve just read in the Pre-School section - I think OP you need to follow this advice as I will be doing:
[B]YOU SHOULD DEMO TRADE UNTIL YOU DEVELOP A SOLID, PROFITABLE SYSTEM BEFORE YOU EVEN THINK ABOUT PUTTING REAL MONEY ON THE LINE.
WE REPEAT – YOU SHOULD DEMO TRADE UNTIL YOU DEVELOP A SOLID, PROFITABLE SYSTEM BEFORE YOU EVEN THINK ABOUT PUTTING REAL MONEY ON THE LINE.[/B]
Everything here is well said. If you don’t know much and are placing random trades then its mostly pure luck friend. Go through the babypip school here and learn ALL that you can. Go through it twice,3 times 8 times lol its gold material. I’ve been threw it a few times myself. Then develope a strategy and demo trade for a few months, once you’re 3 consecutive months profitable then I’d go live. You can determine your risk and sl and all that in a DEMO account. You can also go to the free systems here at babypips and use them as well. 3 ducks is a great one for example. Take systems try them if you like it stick to it, and remember you can change them you might find a system here that is good but once you make a few personal tweeks it works better maybe. Just ideas, but once you find a system you like dont keep hoping system to system that will kill your trading!
Happy trading
Jason
In demo you make profits easily . You can loose as much , recover loss and trade again and again. Do not apply results of demo on live . Your performance will be different from here. I think this much earning in just 3 days is not possible until you are not experienced trader. Be slow and spend more time in trading then review your results.
Yikes! It might be tempting to jump from demo to live from here but you have to remember that these results aren’t usually replicated on a real account, mostly because there’s a greater psychological effect of having to trade - and possibly lose - actual money.
I suggest working on your risk management first since you risk 5 times as much as you are gaining. Losses are bound to happen at one point or another, which means that you could wipe out your wins in five trades with just one losing setup. And yes, having a stop loss is definitely a must. This can be based on nearby inflection points or on the pair’s average range.
You just reminded me of my initial trading days where in just three weeks i had doubled my account and then on the fourth week i busted my entire trading account. This made me realize that its not the right way to trade and make money. Simply trading with bigger lot size doesnt assure you the profits. Think logically and implement ideal money and risk management in each and every trade. Do not invest the money which you cannot afford to lose.
You are going to face a tremendous battle with yourself. Because you made money when you over leveraged the temptation to do it again will always be there, especially after you make consecutive losses and use a lot of leverage to get your money back. If you start with a higher amount you don’t stand a chance against yourself, not the market. I would start with a small amount like $500 and stick to small trades only. Once you see you can get a grip of yourself and not overleverage you can deposit another $500. If you use too much leverage again I just saved you $500. Don’t rush to reply to this, think about it first.
Hi everybody.
This is how i was thinking at the begining. Everything looked so easy. I started trading demo account. I was making profit but didn’t understand what moves the market. And at same time i started reading a lot. By just looking at the chart and not understand why price is going up or down made me really causeous. So i got lucky i found this site. I finished pipsschool (Thank you very much for this school). Now i have some knowledge. But still after finishing studing i feel like we all noobs need more practice. i will start trading in 4- 5 month. Anyway good luck everybody
Instead of trading real money with that system just give it to me! the result will be the same but you won’t have to deal with the pain of losing trades as well.
In all seriousness the worst thing that happened to me was when I did something similar to you but I turned $10 in to $46 that’s a 460% profit!!! I was trading a 400 to 1 leverage account and I had $50 capital i was trading(gambling) on indices. I figured I was going to be richer than Warren Buffett next year… it cost me $AUD3.6k to learn how wrong I was.
I hear about traders all the time targeting 50%, 60% or 100% profit per year, or even per month, but the risk they are taking on is going to be pretty similar to the profit they are targeting. In other words, in order to attempt to make 60% profit in a year, it’s not unreasonable to see a loss of around 60% of your account in a given year.
Open a small account with money you can easily afford to lose.
Trade micro lots (0.01) so you still feel 90% of the emotions and trial a simple trading system, nothing too complex, and NOT scalping or trading news events as neither of these will give a noobie sufficient time to learn from the trade as it progresses.
Best of luck
Sorry? What? No SL, high leverage…that’s a recipe for disaster. I would advise you to dial down the leverage to more reasonable levels of 1:200 or even down to 1:100…
I remember as a newbie winning 8.5 out of 10 trades and making a small profit, thinking I ruled. The truth was that I was moving stop losses and got lucky I did not get a bad spanking from the market. DISCIPLINE is key, not overleveraging and the ability to lose, accept drawdown and trade with rules, even if you are a discretionary trader, having some rules that you do follow, is better then any short term doubling of equity.
Before you fund your account with $1000, $10000, or $100000 you should be aware that those money are lost money. I want to tell you that the most successful traders are making somewhere from 15%-25% profits per year. What you have done is a beginning luck and nothing else.
Do not waste any more money before you educate your self.
If the newbie wants to start off again, with a live account this time around as well…would suggest a cent account…it is the perfect one for newbies, the losses don’t amount to much and frankly, it should give all the newbies the lesson they need in money management…