How do people make enough money, daytrading Forex, while using proper position size?

How do people make enough money, daytrading Forex, while using proper position size?

I have opened up a demo account and I had 100 000 dollars in that demo to begin with. If I take two or three trades per day that are profitable, for example in the EUR/USD, I make perhaps 30 dollars a day, because the moves intraday are quite small and I am using maybe a tenth of the account for every trade.

Now If I would to do that for one year, supposing that I would also have some losing days, that would not amount to very much money on a yearly basis.

So I wonder how do traders make those really big returns from intraday trading on a yearly basis? Do you use large poisition size and a lot of leverage or something?

To me it seems that the moves in the Forex market are so small intraday that If I would want to get a return like 60-100% a year or more I would have to increase my position size and leverage substantially. Is that right? Or how do you make enough money intraday on a yearly basis to make it worth the extra time and effort?


You going to put 100.000 into your broker ?
If so use 1:5 or 1:10 leverage and open 1Lots then you get more profit.


How do you mean one lots? For example if I have 100.000 dollars. Should I open positions of 10.000 dollars each, with leverage of 1:5? Is that how you mean?

I am not that well versed in the lingo yet, so I am not exactly sure what you mean by one lots?

Why not just open positions of 100000 dollars each? Why should I use leverage and smaller position size when I could use no leverage?

Ok :slight_smile:

Now I think I know what you mean by lots. You mean the smallest unit of a security right?

But why use leverage in that case? Is it not better to use a bigger positions size with no leverage?

1 standard lot so say gbp/usd is 100.000 and you get roughly $10 a pip so if it moved 30 pips like in your example you would earn $300 not 30.

Most people use the leverage because they can’t afford it. But if you used no leverage you have more margin and wouldn’t get margin call so quickly .

Do you understand how leverage and margin works ?

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Many people will say you should only risk 1% of your account capital, in your case, a maximum of $1,000 per trade.

If you only win 2 trades per day you are making $15 per trade. Assuming you are using a r:r of 1:3, that means you are risking $5 per trade, or 0.005% of your capital. There is simply no point wasting your time for this.

Ok A1lenTrader :slight_smile:

So you mean a position size of 100.000 and then 1:5 leverage on this? So about 500000?

Is that right or am I getting it all wrong?

Ok Tommor

How would you size your positions if you were me?
Yeah Tommor that is really the crux of the issue which I cannot get my head around. When people say they don’t risc more than one per cent per trade, they must have a lot of money right?
Because it is very difficult to make lots of money using only one percent of the account size the way I see it.

If you put 100.000 in at 1:5 leverage you got 500.000 to use.

Yeah is this usual among Forex traders? :slight_smile:

I mean that is a lot of leverage :slight_smile:

But since my account is so small that would be the only way to increase the account basically right?

Or maybe if I use no leverage but my whole account then I could at least see good increases on a daily basis right? Is that how some people go about this?

Say broker gives margin Call at 50% of your balance and Margin stop out at 20% when so when trade is going against you they will let you know when 50% of you balance has gone then at 20% they close your trades biggest one first. So if i had more money i could take more loss as leverage magnifies profit it also magnifies loss. We’ll realy it magnifies buying power

How much will you start with for real.?

I am actually thinking around 10000 or so to start with. But I don’t get how people make money in Forex intraday on so small swings. Do you think I should use my whole account balance on every trade in the beginnig? So that I could at least see it increase a bit over time?

I am profitable maybe 7 out of ten trades I think

Mainly banks, hedge funds that make the money . Most traders are waiting for high probability low risk trades to get into a trending market but markets dont trend everyday the move sideways. I would not put 100000 in to start with 10.000 at 1:10 or 1:30 leverage then you have 100.000 or 300.000 to use and open 0.50 lots or maybe 0.25 lots then you not risking all you money .and see how that goes for 1 month.

Sorry thought you said 100000 can see now 10000. But dont forget the more trades you have open the less margin you will have left and risk getting margin stop out…!

Maybe you could try using 3000 @ 1:500 leverage = 1.5million to use it depends on how you are winning your 7 out of 10 trades say you open a 1lot with 10 pip stop loss and 30 pip take profit your risking 100 to make 300 on every trade. Or open 0.50 Lot with 20 pip stop loss and 60 pip take profit = 300 on every trade

All the trades I take are of the same risk size, which is currently 1% of the total in my account. I don’t trade intra-day but wold follow a parallel rule - i.e. that there is a max amount at risk and every trade is always the full max amount at risk.

Profits are added into the account so whatever you make today, you will start with a larger account tomorrow. Compounding is a relentless way to create wealth once you are consistently profitable. So, let’s say you take 5 trades per day and 3 are winners, and let’s suppose your winners are exactly the same size as your losers, 1%. So, you will make roughly 1% profit per day. If you do not withdraw any profits and trade on 250 days, which is about 1 year, and you start with $100,000, how much will you have on New Year’s Eve?

So your risking 1% of you balance a day $1000 on 5 trades
1000/ 5 = 200 per trade 3 are winners 600 2 losers 400 = 200 profit so that’s 20% of you 1000 or 0.2 % of your 100.000 new years day = 150.000 total balance. So is that 1lot with 20pip SL and 20pip Tp…?

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Or 5 trades with 100 pip sl 100pip Tp and to that would = 1% a day but unrealistic to get that everyday ??

Tommor. How do you make one percent profit per day if you are only riscing one percent on every trade?

That means you would have to double your money every day. Is that what you mean? Because otherwise I don’t see how you could make 1% every day if you are only riscing 1% of 100.000(for example).

1% of 100.000= 1000. One percent of the entire account would mean I would have to double my money every day. To make a 1000 dollars from 1000 dollars I would have to double that amount. That seems a bit unrealistic. But maybe I have misunderstood you.