A proper risk and money management can really be helpful for any trader.
They have two account types, one with raw spreads and the other one with the mark-ups.
Alright, thanks for replying, what’s the commission structure on both the accounts like?
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Yes, I believe that too and there are so many benefits of risk management that go unnoticed most of the time. Shouldn’t take it so lightly.
I kind of agree with you on this one. A broker with low commissions works best in most cases and especially if you want to scalp more. No point paying them through spreads in the name of zero commissions, right?
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Better to set the risk reward ratio in the beginning of your trade. Keeping it more than 1:3 is usually considered to be a smarter choice. Pairing it with an appropriate stop loss can be a perk.
A spread can really make some difference and I don’t want to take that so lightly. Since I usually have to trade some major pairs, it is quite important for me to get some tight spreads. The commissions are fine by me if they are not so high, like with Fxtm or Fxview. I mean it doesn’t really make much sense to me if I’m getting a zero commission broker and then getting wider spreads as I’m anyway paying for both in a sense. I don’t care if a broker is regulated or not, as long as I’m getting the right spreads and the commissions are minimal.
That approach seems fine to me.
The 5% rule is so far the best that’s helped me. This is a reminder to the traders to never risk more than 5% of their account balance across the trades.
There is commission is quite high though, $7 on the raw account and $0 commission on the another one but they are charging through spreads on the same. That is what I am trying you to understand that no commission accounts will ultimately charge you through spread mark ups.
Shouldn’t it be 1%? This is what most of the scalpers suggest.
@Harleniapeter That’s what I surely would suggest. Suppose your starting balance is 10 Grands to trade on 5 different open positions. Following 5% risk, your balance at the end of the day should be $9500. This works well for the brokers too
That’s way too much imo, I’m hearing of brokers that charge $4 RT or even less, AND spreads are supposedly lower.
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Someone is understanding my point here!
For scalping you need raw and tight spreads.
That’s right. Zero spreads peak up commissions and vice versa so better if you find the balance with low spreads & commissions. I always go with this approach while choosing a broker, so far I found fxview and IC offer quite good combo.
Rightly put. This strategy helps stay away from losing money with revenge trading and accruing.
No matter what your strategy for risk tolerance is, obviously it’s gonna be different with each trade and broker. Like me… I follow different strategies with fxview and avatrade. I might even limit scalping to just one. Regardless of this, always remember to scalp with a stop.
Both offering spreads less than 1 pip ?
Risk management is important as well as beneficial for all the trading process. It helps you manage your losses.
I follow the 2% rule so that I don’t end up risking more than 2% of what I have. 5% is a little more and the losses I may get from this would not be manageable.