For the demo traders and beginners…you may get small amount of profit continuously.
A very simple calculation:
Consider that You have capital of 200 USD. You need to set your mind first:
- Which currency pair you shall select?
- What will be your trading volume?
- How many trades you shall open simultaneously?
For example:
step-1. Think that you have selected eurusd pair.
step-2. Find out the highest and lowest rates of this pair in a selected period of time. Imagine that since
last 10 years this pair touched 1: 1.6000 at the top and 1:1.3000 at the bottom. The difference between
top and bottom is 3000 pips. Keep in mind that 3000 pips is the safety margin of your calculation.
step-3. Calculate your plan
Balance= Safety margin x Vol x Number of open trade
in your case with the balance you have it will look like this:
200= 3000 x Vol x Number of open trade
As balance matters in forex trading, consider that you have planned to trade with Volume 0.01 (1 cent).
Now find out how many trades you can keep open without risk as a beginner.
200= 3000 x 0.01 x Number of open trade
Number of open trade=6.66
So, you can open 6 trades at a time. If all these 6 trades move opposite to your wish (buy/sell), even
then you will survive in the forex field. Because total loss will not be equal to your equity.
step-4. To cover the entire safety area with your open trade, you need to calculate the interval. If you place buy
& sale trade together, you can open total 6 buy and 6 sell.
step-5. Smile & Trade. Read various strategies, forex articles. Profit less at the beginning and make it a habit to
win big in the days to come.
Best wishes.
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