Yeah sorry EddieB, i was just stickin up for a kid.
But it all got pulled out of context, i am done with it now though.
Returning to the regular programming now;)
Too bad, rlt but without any hypocrisy I really, genuinely hope that you
can make it in your trading , big or smallâŚ
We (men) have a habit of beating our chests and get all âsilverback gorillaâ
with other (men), which is a shame because instead of an exchange of ideas
the insults and power posturing take over the conversationâŚ
This is how wars start.
Being a newbie myself, I got a few question.
Iâm lost. Letâs say, $100 account, trade 0.01 lot, how much is 1 pips, not taking leverage into account?
What is the difference between a $100 account and a micro account?
I personally think that $100 account is a great start for all newbie to get the feeling of live over demo but be prepare to lose it all if and when you get greedy and raise the lot size. As a matter of fact, be prepare to lose it all regardless of any situation.
Target 1 pip per day, more realistic is 20 pip per month and move on from there.
If at the end of the year, you make some, congrats. Time to raise your equity, or perhaps just keep muddling on if youâre still not confident enough.
Take it as a fee for the experience or a price to pay for the thrill you get on your journey of you lose it all.
By the way, all the figure that i stated was plucked from thin air. I am new and I hope someone here can enlighten me on that figures.
Hello siangmimi,
you can use this:
Pip Calculator: Free Online Forex Pips Calculation Tool for Traders
I had a look but Iâve no clue what itâs all about? Haha, I am a newbie.
What is position size? Does that mean lot size?
What is ask price? Sell/buy price?
What about equity? Does that matter for the lot size?
For you to understand an accurate answer on your question you need to educate your self about forex trading. Otherwise, what ever answer you will hear will not give you any realistic understanding.
I think $100 is a good amount to start forex trading however it might be kept in mind that forex might be easy but earning from forex requires a lot of hard work, so it will be good if traders learn forex trading before investing in it.
Not quite, but theyâre closely related. âPosition-sizeâ refers to the maximum amount of money you can lose on a trade if the price goes against you and hits your stop-loss, and the proportion of your account that that money represents. âLot sizeâ is just the number of lots/minilots/microlots you can afford to trade on each individual trade, and is calculated from knowing your position-size and your stop-loss size for that trade.
Example: you have an account of $1,000 and want to expose no more than 1% of it to risk on each individual trade (which would be wise), making your position-size work out at $10 per trade: if youâre buying EUR/USD with a 10-pip stop-loss you need the price movements to work out at no more than $1 per pip, so you can afford to buy one minilot; if youâre buying EUR/USD with a 20-pip stop-loss, you need the price movements to work out at no more than $0.50 per pip, so you can afford to buy only 5 microlots (half a minilot).
Youâd be well advised not to try to trade with real money unless and until you understand the above example fully and are familiar (from practising on a demo account) with working the equivalent arithmetic out accurately for your own trades!
These and your other questions are all answered in the âSchoolâ pages here: [B]School of Pipsology | Learn Forex Trading[/B].
Thank you, Lex. That help heaps. Yes, I realized that itâs very important to understand my risk in $$$ not pips, thatâs when my equity come into play. Until I understand that completely, I wonât be getting into live. Seriously, Iâm still in the dark, haha, but I will take time to understand. Also with such small equity, profit is going to be very small which will only frustrate. At the end of the day, it all end with $$$ not pips and that is bound to throw one off the track to gamble away instead or trading.
I hope Iâm talking sense, lol.
You donât want to lose money? Hmm⌠itâs simple - donât trade.
:rolleyes::rolleyes::rolleyes: hahahaâŚis babypips being trolled? Haha
if my account is $100 what leverage ratio should i use if every pips i gain is equivalent to $1 per pip?
While learning, try to stay under 10:1.
Reduce your lot/order size to not more than 10 cents a pip, youâll be lucky to last a month at $1 a pip with $100
It varies a bit, according to what the currency-pair is. If youâre trading EUR/USD, say, then 1 lot represents $10 per pip, so youâd want to trade 1 minilot ($10,000-worth) to make each pip represent $1.
[U]Nobody with a $100 account should be trading at $1 per pip[/U].
Allowing for exposing no more than 1% of your account to risk on any individual trade (which would be a wise starting-point), that would mean risking no more than $1 of your account on any trade - and you clearly wouldnât want to be doing trades with a 1-pip stop-loss (even if that were possible anywhere, which it isnât)?!
With a $100 account, this would be [B][U]hugely[/U][/B] excessive position-sizing, no matter how much or little leverage you use.
$100 is too little even to trade a microlot at $0.10 per pip.
Leverage and position-sizing are explained in the âSchoolâ pages here: [B]School of Pipsology | Learn Forex Trading[/B]
It might be a good thing to use a demo account, until youâre confident that you can avoid the five classic mistakes?
So, Iâve seen this claim made many times on many forums.
Iâm working on something to combat this, as I feel itâs a falsehood.
I do believe that an under-funded FX retailer, with a decent strategy, could actually make it > 6, 9, 12 months and make money, while depositing incrementallyâŚ
Itâs actually the SOLE reason behind the thread I started hereâŚjust, need to give it 3-6 more months to play out.
Yes, [I]possibly[/I]. â[U]Could[/U]â. But I also think that realistically, the odds are hugely stacked against each individual person trying to do it. I guess that out of 100 of them, only a [I][U]very[/U][/I] small handful will ever succeed, that way. (I suspect weâre probably less far apart in our positons, really, than the conversation suggests?)
I think a more experienced trader could do it. Someone who understands mm, r:r, leverage, someone who would be patient, choose pairs with care and not go chasing after the money.
Harder for a new trader, no experience, little knowledge of fx, trusting.
Iâd be happy to open a $100 account and post my progress if you think it might benefit othersâŚmind you, it would be embarrassing if I blew the account, wouldnât it!
For sure ⌠no question: you or I could do it. But I donât think thatâs quite the real issue, is it? We donât need to do it. You and I are not undercapitalised, and know what weâre doing, but weâre really talking (I think?) about the potential for people [I][U]without[/U][/I] our experience?
Yes, youâre right. In fact, the majority of new traders would fail even with a much larger account. Theyd still make the same mistakes but on a larger scale.