Help w risk/money management strat..plus stop loss, etc

Beginner Questions
1

I had a good risk/money management strategy when paper trading futures…but Im confused w/ forex. still in school of pipsology…but right now I need an idea of what to do about stop loss, risk and money management, etc…forex seems quite different than futures…and Im kind of stuck as far as strategy goes…

when I was paper trading corn futures I compounded by buying more contracts every 4 weeks…I used 25-30% of total profit already earned to buy more contracts. IOW… I bought as many contracts as 25-30% of my profit from trading I could afford. but how do I put the same risk strategy in play w/ forex…any similar examples would be very helpful.

also…and if memory serves me (I dont have my notes handy)…I would set my stop loss 10 points above or below entry point depending on if I was going long or short…what is a good rule of thumb for stop loss when trading forex that is similar?? (like how many pips above or below entry??)

also…if I was trading 4 december corn contracts, I would get out for the week if I made $2000 (2 trades), so if I only traded twice and made that, I would stay out for the rest of the week to avoid losing trades…ie… hitting stop loss. I need an example of this strategy but w forex…I think if I can implement these strategies I’ll have a much better understanding of what Im doing…I just need some examples of similar strategies but w forex… not futures.

sorry if Im coming off like a retard…but this part is baffling to me for some reason…

2

Typically you don’t want to risk more than 2% of your account per trade. If you’re new even less… maybe .5 to 1%. You should also aim for a 2:1 reward to risk ratio, meaning that if you stop out, you lose say $5, but if you hit your profit mark, you make $10.

If you have an account balance of $5000, 2% would be a maximum loss of $100. You can use this number to determine your lot size based on the trade.

If you’re aiming for a projected profit of 50 pips on a trade, you could risk 25 pips, meaning you would open a position for 4 mini lots (or 0.4 standard lots). This means if you slide 25 pips in the wrong direction, you only lose 25 pips x $4/pip, which is $100.

If your original x% account balance risk trade goes well and you’re able to move your stop loss to break even while still in the trade, you have essentially removed all “risk” from the position, and could theoretically open another trade for x% and only be risking that percentage once, not twice, even though you have two trades of the same size open. This way if a trade is strong and you want to have more money behind it, you can without exposing yourself to double the risk.

This is my understanding, anyway. I’m sure others here can help you even more. Check out ICT’s thread in this sub-forum. Tons of good information in there.