Best explained impossible! Excellent your analysis. He helped me a lot too. It is always advisable to close sales at the end of the day. Do not let the market surprise you.
Thanks I’m not offended I have to learn from the best that’s the reason why I joined the forum
Coming to your homework let me elaborate it
I Googled buy limit, sell limit, buy stop, sell stop
Now I know the meaning of them how the works.
Coming to the risk percentage that department I’m covered thanks to the babypips, position size calculator. Pip value calculator etc
With 10 000usd
1%risk it means you will be risking 100usd
Teach me how to fish
I think is because of many trades opened at the same time
- I guess is because of s\l its wider from the entry price.
NB
Setting s\l and t\p requires any calculations or you just guess and enter numbers because what I know is that the profit target is set above the entry price and stop loss below
Because here your entry price is 1.3377
S\L @ 1.3332
T\P@ 1.3457
Did you guess or you made calculations if you did which method you used to allocate both your t\p and s\l
It seems I’m asking for a lot truth should be told I would also skip my accounting class hope you understand me
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Excellent…
Now you can calculate how to set up a trade and put a pending order down
so that it executes where you want it to be.
as for
$10,000 USD
yes
1% of that amount (as your risk means) YOU WILL BE RISKING A MAX OF $100 USD
GOOD…
AND YOU SAID
- You are covered for risk because you have a pip calculator
- and you know that you can’t risk more than $100 in this situtation
OK. LET ME TEACH YOU TO FISH
LET’S SEE IF YOU CAN ACTUALLY USE YOUR TOOLS PRACTICALLY
so…
i Made $541.37 , Now what’s wrong with that trade
CAN YOU SEE THE PROBLEM ?
Working this out will teach you to fish
No I can’t see the problem. 
ok mate
THIS IS WHAT YOU KNOW SO FAR
ACCOUNT BALANCE = $10,000
RISK = 1% of Account Balance
you also know that my trade plan (that i purposely created to be stupid) was as follows :
You also said that you know how much $$$ you are prepared to lose aka 1%
we calculate it like this…
0.01 (1%) x 10,000 = $100
VERY GOOD,
so you know YOU MUST NOT LOSE MORE THAN $100 - NO MATTER WHAT YOU DO , PER TRADE
HERE IS WHAT YOU DON’T KNOW
and what you have missed
RISK MEANS - Where have you Put your Stop Loss
RISK IS STOP LOSS
REWARD IS TAKE PROFIT
now there are more things to consider in risk, but let’s just stick to saying that
The Further you put your stop loss away from your entry
THE MORE RISK YOU HAVE
Meaning… the More money you’ll lose
SO LET’S CALCULATE THE AMOUNT OF PIPS FROM MY ENTRY TO MY STOP LOSS
ENTRY = 1.3377
STOP LOSS = 1.3332
Since this is a BUY
it’s calculated like this 3377-3332
of if you like, you can just do 77-32 (you get the same result)
ANSWER = 45 PIP RISK
NEXT PROBLEM
a pip means nothing unless you know how much 1 Pip is worth
LOOK AT MY LOT SIZE FOR GODS SAKE
I Told you that i made $541.37
Doesn’t that seem like a lot ?
Now, this is a trick question, because if you say YES
i could say, it’s not because if my risk is managed and my lot size is appropriate to my balance, then the risk is ok
if you say NO, then i would raise an eyebrow as to why you said that
the correct answer is NOT NECESSARILY
let’s move to the trade history of that 1 trade
let’s put aside the $21.00 commission
FOCUS ON THE LOT SIZE…3.0 LOTS
NOW THAT’S $30 PER PIP
i purposely put this in there to make it stick out like a sore thumb on top of sore thumb
YOU DIDN’T PICK UP ON IT
THIS TELLS ME
IF YOU TRADE LIVE, YOU ARE FIRETRUCKED (if you get my meaning)
let’s Look at how much you would lose
so $30 Per Pips x 45 Pips (Stop Loss) = $1,350
now remember on $10,000, IF WE RISK NO MORE THAN 1%, it means MAX RISK = $100
yet , IN THIS SCENARIO, I would have just lost $1,350 (10x more) which is a bit more than 10% of your entire account
WHICH THEN MEANS THIS…
IF IT’S 10%
and your entire account is 100%
YOU CAN ONLY STUFF UP 10 TIMES BEFORE YOUR ACCOUNT IS BLOW
10 TIMES… OK
I’ll say it again… ONLY 10 TIMES
10% doesn’t sound like much to newbies, but regardless of whether you start with $100 $10k , $100k is irrelevant
10% is a lot
now, let’s see what i SHOULD HAVE TRADED IN LOTS TO BE SAFE
so 1% Risk = $100
SO OVER 45 pips
YOU DO THIS CALCULATION
100 / 45 = 2.22
SO YOU ARE ONLY ALLOWED TO RISK $2.22 PER PIP
so you need to round this down to $2 per pip which = LOTS SIZE OF 0.2 Lots
BUT WAIT THERE’S MORE
NEXT TRAP YOU’LL FALL INTO
Remember how i said PLAN YOUR TRADE and stick to it
SCENARIO
Let’s say you have $10k in your account
you plan your entry
you put your Stop Loss 45 Pips away
YOUR LOT SIZE = 0.2 lots
ALL GOOD
your risk is managed at 1% of your total capital
THEN THIS HAPPENS
The trade goes the wrong way - You are still ok
You’ve researched the trade
YOU ARE CERTAIN IT’S GONNA COME BACK UP TO THE TAKE PROFIT
****************** READ THIS VERY CAREFULLY ***************************************
Now Because you are sure , YOU MOVE YOUR STOP LOSS DOWN BY ANOTHER 10 - 15 PIPS
YOU THINK IT’LL B OK
but it won’t
because something like this will probably happen
either
- You’ll move it another 15 pips (so it’s at 60 pips loss instead of 45) and then it goes into profit,
so it works out ok
Make no Mistake (THIS IS NOT A GOOD THING)
or
2 Your stop loss gets hits and you end up losing the following
$2 per pip x 60 pips = $120 instead of $100
it might not seem like a lot, BUT IT IS
or
- the trade goes against you, You move it 15 pips lower (to 60 pips)
the trade continues to go lower and you realize you have only 2 options… 1. Close the trade and lose or 2. let it run and stick to your guns and hopefully win
SO YOU LET IT RUN
it goes lower again and you MOVE YOUR STOP LOSS AGAIN by another 15 pips (now 75 pips)
it goes lower again, you then move it by another 15 pips (Now 90 Pips)
YOU ARE GOING TO GET TO A POINT WHERE ONLY 1 OF 2 THINGS HAPPEN
- You have no more funds and your account is blown up
or - YOU ARE GOING TO REALIZE, IT’S NOT TURNING AROUND AND… YOU WERE WRONG
at this point
IT WILL HIT YOUR STOP LOSS
it will look like this
$2 per pip x 90 pips = $180 LOSS
you just lost 80% More than you planned to lose
before too long, you lose your entire account
shortly after that , you’ll get depressed
you’ll bottle up in inside and won’t tell anyone
IT’S NOT A GOOD THING
THE LESSON IS THIS
- PLAN YOUR TRADES
- STICK TO YOUR TRADE
- DO NOT MOVE YOUR STOP LOSS once it has been placed
the idea is this
If you don’t move the Stop Loss and You Win - YOU DID THE RIGHT THING - LEARN FROM IT… REWARD YOURSELF.
if you don’t move the stop loss and YOU LOSE - ACCEPT YOUR STUFF UP - LEARN FROM IT… do not get depressed or sad
TRADING IS MATHEMATICS AND STATISTICS… ok
so Remember
DO THIS
- DETERMINE WHAT DIRECTION YOU ARE TRADING IN
- DETERMINE WHAT A GOOD ENTRY POINT WILL BE
- Based on the Entry Point DETERMINE YOUR RISK in %
- Convert the % Risk to $$
- DETERMINE WHERE YOU WILL PUT YOUR STOP LOSS (Regardless of your take profit)
don’t worry about lot size yet, Just figure out how many pips you think the price WILL NOT GO to - Now, Based on your Stop Loss
use the formula
TOTAL RISK IN $$$ / (Divided by) AMOUNT OF PIPS for the trade = MAX AMOUNT OF $$ PER TRADE
- once you know how much money you can risk in that trade, CONVERT THAT AMOUNT TO LOTS
follow this guideline
0.01 Lots = 10 cents per pip
0.1 Lots = $1 per pip
1.0 Lot = $10 Per pip
when you know all this
you can place a MANAGED TRADE where your risk is managed
BUT REMEMBER
It only remains managed if YOU DO NOT MOVE YOUR STOP LOSS
DO YOU SEE THE PROBLEM WITH MY TRADE NOW ???
Hope i have taught you something here
I’ve got more homework for you
I want you to go open a demo account
Account Balance $1,000
LEVERAGE 1:500 or higher
Trade with no less than 0.1 lots $1 per pip
Try to make $50 per day
now open another demo, same thing
but AT THE SAME TIME
trade with no less than 0.5 lots $5 per pip
Try to make $50 per day
SEE WHAT HAPPENS
LOL
YOU’LL SEE, don’t worry
then come back here and tell me i was right… ok
see you soon
3 Likes
Mmmh you covered everything its now up to me to go back into my demo and do the dirty work. I guess I’ll come back as soldier stronger, smarter and faster.
What more should I ask for??
My task is to go and imply what I have been taught.
Thank you for your support I guess if I need anything I’ll hala @ you homie 
Notedstrong text
No… Your task is to go and APPLY what you have been taught
by saying this i am IMPLYING that you have used the wrong word
see the difference
that aside
Yes, you will come back stronger and smarter Hopefully
Manage your risk my friend, don’t get caught with your pants down
and yes if you have questions come back and ask
BE COOL
Shot mate.
I’m kinda stuck in the bush
I have 2 questions
- Before i enter a trade bid & ask price are high
Bid
0.88014
Ask
0.88038
38-14=24 pip
But immediately after I entered a trade the bid & ask tend to change yet I haven’t yet decided to go long and short
Bid price
0.8804
Ask price
0.8807
Which is 3pip
So now my confusion is which pip should I use??
- Modifying an order
Sometimes I enter a trade with confidence, let me say I am bullish I’ll set my stop loss and profit target but when I modify my order it doesn’t want to be modified. I guess the is something I miss if I can put it that way.
In advance I use my android smart phone not a desktop
hi mate,
i want to clarify something here
you said YOU ENTERED THE TRADE
then you said, YOU HADN’T DECIDED TO GO LONG OR SHORT YET
MY QUESTION IS THIS…
if you didn’t go LONG or SHORT how did you place the trade ?
When you place a trade (A Criteria is, YOU MUST go either Long or Short)
if you don’t , the trade won’t start
if you are selecting Buy or sell, you are still going long or short
if you are selecting BID or ASK, you are still going long or short
it can’t be any other way
i think maybe you are clicking on Bid or Ask but you don’t realize that you are actually making a Long or Short Decision.
Prices can change dramatically depending on volatility, on the broker , Market conditions etc
24 pips is a big spread, no question about it
3 pips is relatively normal at most times[quote=“Gabriel1, post:17, topic:125116”]
So now my confusion is which pip should I use??
[/quote]
this is a weird question
There is only 1 type of pip
You don’t use them,
THEY TELL YOU THE CURRENT PRICE
perhaps this will help
if i was to click on SELL MARKET the price would be 1.17482
now notice how that is the same price at the top if i was to click SELL
RED generally means YOU ARE GOING SHORT
now if i was to select BUY MARKET the price would be 1.17483
which is the same as clicking BUY at the top
i don’t know if this helps clear things up or not
RE Modifying an order
if the order refuses to modify it means THE PARAMETERS ARE WRONG OR THE BROKER DOESN’T ALLOW IT
example
if you are BUYING but your TAKE PROFIT is BELOW your entry point - it doesn’t make sense, so the platform doesn’t allow it
if you are SELLING and your T/P is Above the entry, same thing
now lastly
if your broker has a restriction like, it has to go +10 pips before you can put a stop loss
then that would happen as well if you only were +3 pips in profit
does this help ?
EDIT: as per what @Drekieyja reminded me, i made a stupid mistake because i was doing too many things at once while reading the post
it’s important to make a distinction between PIPS and POINTS
you have 2.4 pips, not 24
Look at my chart My Sell is 1.1748 then 2 (is small)
and my Buy is 1.1748 then 3 (is small)
so the calculation is (IN PIPS) 1.1748*1.1748 = 0 pips
(in POINTS/PIPETTES) It Would be 1.17483 - 1.17482 = 1 point or 0.1 PIPS
Technical point - its 2.4 pips, not 24. Pips are the 4th decimal place (second on Yen pairs). The 5th decimal place are typically refered to as ‘points’ or sometimes as ‘pipettes’.
2 Likes
Well, don’t i feel stupid
i totally missed that
i was doing a few things at once hehe
Yeah, that’s correct
2.4 Pips Not 24
Mark you are a wonderful son. God will Bless all your trades .Entering and exiting.
You are a a wonderful human all around. THANK YOU.
1 Like
There are many ways most of the traders look at Support and Resistance levels. Some use Pivot points, some employ Fibonacci and some use Moving average based Stop Loss or Target levels.
Well explained thank you sir may god give you strength and more blessings
Im back. Mate
I did my homework thanks to you.
I decided to follow USDCAD
Entry price= 1.28431
Since I was long
Take profit= 1.28494
Stop loss= 1.28412
Lot=0.04
I made 1.96usd but I’m the one who decided to close the trade because of the fear.
So my question is should i have let the trade carry on or I did the right thing by closing it??
Or after modify i just have to go to the gym, the trade will automatically close itself after it has hit target and loss??
Hi
I struggled as well until I played around on a spreadsheet and I figured the following: 1% of $90,66 is $0.9066. If using lot size 0.05, 0.9066/0.05/10=1.8132 pips!
However if you use 0.01 lot, 0.9066/0.01/10=9.066 pips. Personally I never use less than 10 pips on stop loss. Am also new in Forex and use 20 or 30 pip stop loss and 0.01 lots. I aim for 30 to 50 pip profit
Trades close automatically after hitting TP or SL. However you must develop a trading system. Entry at 1.2843 and TP at 1.2849 gives you 6 pips. SL at 1.2841 is 2 pips. That sounds like gambling. Please develop a system while trading a Demo account. If you don’t do that it won’t be long before you blow your account. I blew mine from $250 to $20 in a few minutes because I didn’t know what I was doing. Now am back on Demo and paper trading
Hi mate, let me just make a quick comment on that, since you are new.
Even though i understand what you mean, you should know… where you put your Stops is not determined by a number like "i put mine at 30 or 50 pips"etc
it’s determined by the instrument you use
Example
if put a stop at 30 pips on US2000 it would probably be ok
if i did the same thing on EUR USD it’d probably get taken out too frequently and a stop of 60-70 pips may
be more appropriate
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