Obviously every broker is going to be different, but from experience I know that Interbank FX (IBFX) allows up to 50 lot trades per click in their mini accounts.
So after you are placing more than 500 mini lots at a time, you will need to do 2 orders instead of 1… not a huge deal. You don’t have to worry about that until you’re placing $50,000 trades… and at that point you are probably going to move up to a standard account anyway right?
Good question? Maybe switch to ECN. I know most bucket shops hedge their posistions by going to the market, but leave many posistions from certain trades un-hedged in speculation that those trades will be losers.
So If you are trading 50 full lots a trade and the broker’s in house liquidity is 50 million, you have just used up 10% of their inventory in one trade. They would be smart to take that one to the market. Do things get more difficult at that level logistics wise.
Indeed a very good problem to have if you can trade this much. I guess I will wory about it when I get there.
Indeed. As soon as I hit the $1,000,000 mark, I’m withdrawing and starting back at $10k. 
Hey, a guy can be optimistic 
I attend daily live trading sessions with forex coaches; however, I don’t want to step on baby pips’ toes by posting the name of the service I use here, but in that service there are many traders there who trade full time and are enormously profitable and they use mini lots.
I use GFT as a broker, and they do not have a problem with it. I set up my account so that I could trade mini-lots, but everything else is set up like a standard account.
Trading mini-lots gives you much more flexibility with your risk management than trading standard lots does. You cannot trade 1.5 standard lots, but you can trade 15 mini lots.
The number of pips is not relevant. Even with one pip per day you will become very rich.
Personally I make about 10-20% per month, but it took years to get there…
Regards - Xaron
are you still in the fxstreet contest? what happened?
I kind of agree with that assessment. I didn’t get a good intuitive feel for financial management until I stopped demo trading and started trading a micro account with $250 in it.
It wasn’t much, but I needed to get a good feel for financial management, plus it helped me to concentrate on pips and trading strategy first before approaching returns on investment, because I wasn’t wiping out my balance every time I had a failed trade. Good financial management can atone for a lot of trading sins.
Just my 2 cents…
I also agree with opening a small micro account and start trading with REAL money. And then ONLY RISK UP TO, I REPEAT [B]UP TO[/B] [B]2%[/B] PER TRADE. Demo trading is not trading with real money and therfore real emotions are not going to get in your way. Trading with real money is a complete different ball game.
I wouldn’t really worry about finding a trading system based on entrys and exits. Find one that really digs into money management. That is your bread and butter, trust me. Entrys and exits don’t even account for 20% of a GOOD trading system.
One can make a decent living on a small investment. I opened my first account with $300.00 usd. I still trade that account to this day. Making anywhere from 8% up to 45% a month return.
People wander why 95% of traders fail. 95% of them are looking for systems that tell you when to get in or when to get out, putting money management on the back burner…hmmm…
Best of luck to you in your journey.
Trade well.
Is it really possible to make consistently over 5% per month trading forex …?
Do you trade the news…?
Support - resistence, - trendlines,
Scalp …?
What SW do you use …?
It will depend on too many variables, like the strategies, the national economies of the pair traded and how they compare to each other, will depend on happenings that result being fundamental etc… even luck�
I have seen many techniques to keep an average profit, it could work for sometime but if was just matter of that there won�t be losers in the forex trade, but if we are realistic the loser are considerably more than the ones who make profit
Keyword…‘consistently’. It is hard, but IT can be done. Thats the joy of the Forex. I only trade the news every once in a while. And that is 5 mins. after the news release, never before or during the initial spike. I always wait 5 mins. I do use support, resistance and fib. levels in my trading, with some moving averages. The important ones like the 200 for example.
I hardly ever scalp. Depends on what the market is doing that day. Mainly if its in a range. Not sure what you mean by SW, could you explain?
Trade well
All depends on your system of trade
Trading 8 full lots with only 5000 equity, adding 50% to your accounts each month???!!! It does not smell 5% risk at all. I really don’t understand the math behind this miracle. Well, you can afford this lot size if your 5 pips mental or hard stop loss is never met.
This might be a bit out there but most guys that can’t stand a desk job won’t have the persistence/patience/discipline and resultant consistency needed for this. In fact the reason 95% of traders lose is probably because 99% of traders fall into that category, the ones that want an easy/different way out including myself. If you’re like me it’s that psychological makeup that can easily push us to a desperate drive and accentuates our greed&fear to remarkable levels. At any rate your return will be -100% of the initial account if not more if you jump in with a serious live account too soon. (As opposed to a demo demo, an actual demo account; or live demo, a small live account you’re using to demo).
I’ve been trading forex in a demo account for over 2 months now and I’ve had relatively good results. I started with a $10,000 balance and some days I can be up $1,000 or more… of course I got a margin call and went broke once, but I’ve learned from my mistakes
Thanks for the input!
When I started I traded with real money right away, scalping cfds, forex, S/R was no problem. Then I made every mistake in the book and lost it all. Then I traded a demo account from 5k to 10k. After 2 months, I learnt from my mistakes too, but it wasn’t long before I made every other mistake in the book with real money. Even after another 10 months I find that every now and then I’d make a mistake from a lesson I thought I’d learned before, costing me seriously each time.
Understandably not everyone’s frame of mind would have been as randomly desperate or inconsistent as mine but from hearing other people’s stories and the 95% failure rate it’s gonna take way more than 2 months and not just with a demo account to figure out what you’re made of especially if you’ve managed to get margin called and go broke already (demo or not). Not that going broke within the first two months is unusual, but point is that there are a minority out there that start off humble and really put in their all into taking the foundations seriously before starting off even on a demo - you don’t seem to be one of them. It’s good that you’ve stumbled early (I know I’m glad I did) to (try to) concrete lessons learned to prevent mistakes made later but again if you’re anything like me you’re gonna have to run into more or the same ones again several times before it REALLY sticks.
Well according to my point of view your two month demo practice is nothing …You need more experience… Take your time , Do any Job and meanwhile learn also in your free time… Forex is not so easy as you are thinking…It’s a deadly dangerous business… Just two months practice will never truns you out to be a full time successfull forex trader…You May blow out your account while doing experiments and testing new & new stratigies and techniques on real as your experience is of just two month’s…
If I were you, I’d believe this guy.
I’m no expert but I’d suggest a) using a demo account to experiment with everything out there and get your foundations set in stone (money management, emotional stability/consistency, reliable system etc., what all the beginner friendly guides tell you) before b) opening a small live account to test not only the system you’ve found reliable but yourself as well.
If you survive past b), just bear in mind that the more you start dealing with in terms of lot size, the more emotional impact it’s gonna draw.
After 12 months I’ve tried to jump from experimental with small lots and stable with large lots at least 5 times and fell short every time, only recently have I found myself satisfied with anything remotely reliable and even I’m still experimenting with improvements & additions
Hope you don’t have to go down the same rocky road as me & best of luck
Hi Nev,
Thanks for sharing your thoughts. Could you tell, what is the approach to money management you are comfortable with. For example, I sleep well when my each micro lot of 1K (0.01 lot) is supported with 200 USD, 10K with 2000, etc. With this I can face quite significant move against me without closing my positions. Yes, I don’t make 50% each month, but 10-20% up suits me well enough. What would you recommend re MM?
Cheers,
Max
First of all i advise you not to make forex a full time job
So you must do some office job in day time. Now you can set time
in the evening or afterwards for forex trading.
You can really make great money but for that you have to practice a real account. You will have to focus on the following:
1. Trends: how they are generated
2. News : How they affect the marktet
3 Currency pair: Choose a currency pair that suits your time
Now stick to these rules and practice a real account. You will soon
learn how much you can make
Also note that profit in forex market depends on market situation. So it is best for a trader to specify a particular time and then stick to it.That sounds pretty similar to what I’m doing at the moment, even with a 1k account for the trades I’m a little hesitant about I’ll use 0.01 or 0.05 lots just to test the waters and even then I’m usually not adding new lots unless I’m REALLY sure about the move.
I’m not sure I’m in any position to recommend much to someone who’s fairly well acquainted with this but I’m getting a hint that you’re not using stop loss orders and rather use psychological ones; unless you’re up against an incredibly brave stop hunting broker I’d definitely recommend one even at maximal distance while you still manually cut a loss - we all know but probably don’t keep an as active caution as we should for random adverse news events, power outages & internet disconnections during those, etc. Of course if you do then disregard all that.
As I’ve only ever really been comfortable with short retrace/breakout runs (~10 pips) for more confident trades I very very rarely go above 0.1, SL sits around 10-20 pips away on the other side of the closest S/R zone, and moved to break even or trailed in if things are looking profitable (or unprofitable -> exit at break even time). Since I look for burst price action I generally don’t tp, either I’ll partially close the lot (if possible) or let the trail take me out. I’ve had issues with initial sl’s being too close when I was really looking to minimize losses and put them 5 pips away or disregarded s/r zones - we all know this leads to more losses. But all in all as long as you’re sleeping well with it that’s what matters the most (with 0.1 and a 1k acc, 20 pips of breathing space for 2% risk is plenty*). I can imagine someone waking up blurry-eyed the next day and throwing in 20k lots at the least tradable hours to get the 10% lost overnight if their mm is out of whack lol. (Come to think of it I’ve probably done something similar before)
If you’re relatively fresh like myself (~1 year or less) imho anywhere above negative (okay, maybe +2-5%) each month consistently is an achievement. It only takes one deviation from your system’s risk management; one bad set of scalps, one desperate news anchor, one randomly followed signal for ‘easy’ pips etc. to find yourself working toward break even again
*Obviously if you’re going for longer targets and think a bit more space is needed you’re going to have to size down that lot, 0.05 for 40 pips and 0.02 for 100 pips etc. Personally I can’t really sleep well on overnight trades in general unless the bias is really clear
its so funny every now and then I see pple posting of how they started becoming profitable within 2 or 4 months…yet while chatting or reading the posts of pros dy will say averagely 2 to 3 yrs of continous practise would make u profitable…lol lol lol lol…I guess all newbies always wanna take over d world of 4x…same as the the difference between the young and the old
It will depend on too many variables, like the strategies, the national economies of the pair traded and how they compare to each other, will depend on happenings that result being fundamental etc… even luck…
I have seen many techniques to keep an average profit, it could work for sometime but if was just matter of that there won’t be losers in the forex trade, but if we are realistic the loser are considerably more than the ones who make profit.
The problem with this sort of question is you can never rely on the answer,thers a lot of dreamers out there among the real traders ,also alot of people tell downright porkies(thats lies to the non brits),but Im fairly sure that a few people make a lot of consistant money,but they only get there by hard work and lots of good education,you soon get to know who are the good ones and I think theres a few good genuine people on these forums,but also one or two iffy ones as well.