My Advice for Beginners

Beginner Questions
21

I prefer to trade using the 15 minutes charts and I think that for the 1 minute it�s too difficult to find reliable indicators as the time is too short and market changes and is hard to set the TP and SL for the one minute period

22

Hi Johnny FX,

Your post on the calculating risk ratio sparked an interest in me. However, i don’t really understand. 1% of what? Acct size? and divide by 50? So does that equate to how much my stop loss should be? Kindly clarify. Thank you! Still a newbie…

Regards

23

1% of your available equity if you are trading multiple pairs.
If you are trading one pair at a time always, 1% of your balance.

Avoid the high risk/reward lot size calculation now becoming
popular among newbies that uses stop/loss margin spread
ratio nonsense convoluted BS method. These newbies only
look at the reward portion and never consider that they
are actually risking more than using the normal lot size
calculation used by PROFESSIONAL TRADERS and use that
calculator mostly pushed by other brokers funny enough eh?

Use simple lot size calculations.
Take a percentage of your balance/equity.
Divide that by 1000 if on standard 1:100 account.
Divide that by 50 if on mini 1:200 account.

And I do not set a stop/loss. I have a mental stop/loss
that I only rarely execute.

24

Yes, you have to practise a lot with a demo-account to have an experience and also you must learn basic trading rules.to have profit you must know a lot of different things, not easy things.don’t be in a hurry to do trading steps, it’s better analyze before do anything!;);):wink:

25

Thanks meggi I will conserve your advice. But sometimes this people here get off the subject I don�t understand, by the way where can I get a demo account to practice on?

26

Thanks meggi I will conserve your advice. But sometimes this people here get off the subject I don�t understand, by the way where can I get a demo account to practice on?

Oanda
alpari
fxpro
hotspotfx
interbankfx

27

Check out our brokers guide and you may come up with another questions or two to help you choose the right broker for your needs:

How to Choose a Forex Broker - BabyPips.com