No matter how good you are at trading and how much experience you have, risking 50% of your trading capital per trade is a big deal. Remember that no one wins every trade. Like everyone else said, by sticking to the 1% rule, you can protect your capital from declining significantly in unfavorable situations.
I agree with everyone over here because we are all on the same page. Risking 10% of my trading capital in one trade with avatrade proved harmful for my trades. And the icing on the cake was the leverage that I used that put more burden on me.
The next time I was in the market with turnkeyforex, I decided to never risk more than 1% of my trading capital to withstand a long string of losses because that is something that is not in my hands. I mean it is better to gain a few percentage points on my account each day than losing all of my capital in one go.
They have private lessons too, 1 to 1, any better?
Ya but following the rule would mean that you are restricted with nothing but more than 1% of the account value on a single trade. So, if I’m to have a $30,000 trading account, I can only invest $300. Where does that leave me with the profits?
The guy who runs it has done plenty of zoom sessions with me for free, as well as answers all my questions on telegram. So I have had no need to pay for anything other than the original course.
Making less but also losing less.
You’ve missed out the whole idea behind this strategy. It’s one of the risk management steps to prevent the losses of more than 1%.
Personally, I’m inclined towards using a system that comes with a high reward to risk. I look for the turning points at SR levels just because they make it easy to identify and measure the risk.
Whatever suits you man. If it’s bringing in money in your bank, why change your strategy? I’m sure if it’s good, you must be having a good set of strategies intact. Would love to hear about them.
Reality check @Rafael - support isn’t always strong to hold a falling market, and resistance on the other hand isn’t strong to turn around the price rise.
Yes, of course. You can go down to the school of pipsology provided by babypips on the website. It is free of cost. You can read various books written by Jim Brown on forex trading. You will learn the basics in very simple term. You can also see other books for experienced traders, if you already know the basics. Investopedia is another amazing site that I recommend to you. I know it is gonna take a lot of time to master it but will be worth learning.
That’s in fact not a bad strategy. Build a system around the support and resistance concept for an edge necessary to make some profit. I’ve designed a system with turnkey forex and measured it’s expectancy in numerous time frames. If it has a positive expectancy, which usually it does, I easily time the entry and exit in the market.
Absolutely, in fact by risking 1% on a single trade, you can easily make a profitable trade of 2%. This can be possible even when the market moves only a fraction of a percent.
I rather risk 1% of my account even when the price moves from 0.5-5%. I do this by using targets and stop-loss orders.
I hope you’ve given a thought to slippage especially when you’ll be unable to get out of the stop loss. This would mean you’ll end up taking a bigger loss than you anticipated.
You can be 100% certain. High chances are that the price breaks the levels.
Also @Neal, you need to know that there are different S&R levels like the minor and major. It’s the minor levels that can be broken. The strong or major levels on the other hand hold and make the price move in the opposite direction.