Leverage and Lots

Hi all!

I’m thinking about opening a live account. I have 1000$ to start with, and that puts me in a micro account, and if i follow recommendations i should trade 0.01 lots per trade. This gives me 5$ used margin per trade, but the pips i need to make any money is just…depressing. 100 pips is about 9$ with this lot size.

Anything I am missing here? I know 1000$ is not alot for some of you, but that’s what i can manage to invest. Any recommendations for someone starting out with 1k?

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Correction needed here. The common advice is to risk 1% of your account. That does not automatically mean trading a certain lot size.

Anything I am missing here? I know 1000$ is not alot for some of you, but that’s what i can manage to invest. Any recommendations for someone starting out with 1k?

Try not to focus on the $$. Focus instead on % returns and concentrate on making good trades. Develop your skills. That way later on when you have more capital you can put it to work effectively and maybe make enough profit to feel like it means like something.

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Not so much a recommendation as an observation, from me …

The proportion of aspiring traders who ever manage to get as far as making a steady-ish average of 5% monthly profit on their accounts is [I]very tiny indeed[/I]. It follows from this and from other realities of trading that the primary purpose of trading with a $1,000 account shouldn’t be “to make money”, [I]per se[/I], but to gain screen-time experience with real-money trading and to develop further as a trader.

Long-term, successful trading isn’t about profit-maximisation: it’s about risk management. If you can trade it steadily for a few months [U]without losing money[/U], then you’ll genuinely be becoming a trader. If you try flat out to withdraw significant profits from it while also growing the account, you’ll be stacking an already-tricky deck significantly further against yourself.

With apologies for offering a perhaps depressingly realistic perspective … :8:

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Thanks for the detailed replies, I really appreciate it!

Even if the fact that I won’t be making money for a good while is a little depressing, I will focus on creating a risk management strategy and a trading plan, to become a better trader as adviced.

Thanks again, see you around the forums!

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I think you make a brilliant point. Trading should be thought of as something you will be doing for a lifetime. Your 1000 is no small investment by your eyes. Think about how hard the 1000 was for you to save. The point ii’mbtrying to make is risk management is key to your success right now. If you get anxious and start trading with larger percents of your account you will risk too much and potentially lose it all. You want to create good behavior in the beginning. Discipline yourself to stay with in your risk management perameters and before long you’ll be managing a 10k account. Remember crawl before you walk.

Completely agree!

If you have deposit 1k, you may trade about 0.1 lot - max. (leverage 1:200) this is 5% from dep.

If you want to trade on forex, pls focus on the trades, and limit you risks, use S/L - stop loss.

No,no,no!
Not sound advice, please ignore this post, 0.1 lots are far too big for you, 0.01 or possibly 0.02 is appropriate

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I [B][U]hope[/U][/B] you meant to say [I][U]0.01[/U][/I] lots, and it was just a typo. :o

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Better to use proper amounts in thousands or millions when discussing.
The original complaint was that with 100 pips at 0.01 the person gets $9.
That 0.01 is the same as the 0.001 that you are familiar with Lexys and Carlos

Some platforms use the amounts incorrectly and it seems our friend here is using one of those.

Daggyvalvik they mean you should trade with 10k lot size, your original post was for 1k lot size.
Lexys and Carlos thought NorisFx was asking you to trade 100k lot size which is too big, but if you read his post he also actually just means 10k.

I don’t know why some trading platforms mix the amounts around instead of using the standard (correct?) amounts.

How do you conclude that? 0.01 is one hundredth, 0.001 is one thousandth

.
Lexys and Carlos thought NorisFx was asking you to trade 100k lot size .

No I didn’t.
I know exactly what he meant by "If you have deposit 1k, you may trade about 0.1 lot "

I didn’t either.

(I suspect Nyad mistakenly imagined we were failing to distinguish between “pips” and “pipettes”, or something.)

Sorry folks. I reread the thread and saw my errors :37: embarrassed.
I think OP meant to say 100points (pippets?) When they said 100 = $9 at 0.01

I was thinking of some old platforms I have used where 0.01 meant 1k instead of 10k.

Apologies for the above post Lexys and Carlos.

No worries

With 1000$ you can do that if you trade 0.01 lot it’s never make you scare. But you should manage account maximum 5% with each transaction and 20% in all, that mean 200$/1000$.

… or more like 1%, if you actually want to survive for the long term. :wink:

0.01 is and ALWAYS will be the best form of lots to trade with.

lots of ppl start with 1k. i think thats normal. if it’s not for u than u wont lose a lot

At first I don’t recommend choosing a high leverage, it’ll most likely just kill your depo. It’s best to start trading with smaller lots and with a smaller lots and a smaller leverage.

1:100 leverage.

USD100 = 0.01 to 0.03
USD1000 = 0.10 to 0.15
USD10000 = 1.00 to 2.00

Varies upon the transaction you had. If you are a pro, probably you’ll embrace the risk really well based on the trades you’d taken.