I am very new in trading, I have no experience but i wanna know if it is possible to trade 10$ with 500$ account? And also there is any broker account that are available in my Oceania region? Becaue i have tried some broker account but theu don’t allow Vanuatu citizen to be member in.
First of all worth is of your experience just investment will not bring profit to you until you are not good to use it in managed way. When one does practice on demo he also need to face live market he can invest little or reasonable amount as $500 is quite enough you can take $10 risk easily with this investment.
Australia based and regulated. I haven’t tried them live yet… only demo. Looks good. Low spreads and commisions
First of all I want to welcome you to our fraternity and sorry that I could not suggest any broker in your region. But I will answer your first question. Although taking 10$ risk from 500$ account seems legit I think as new trader you should start taking risk from 1% which is 5$. And slowly when you become enough confident in this market you take more than 1%.
Show me how set SL and TP
, if I invest in my account $500
You work out your necessary stop-loss distance from your trading-plan with its proven edge and from the chart, and then calculate your position-size by working out what size fits with your risk-parameters.
Example: say you’re trading EUR/USD (which has a pip value of $10 per pip) with your account of $500 and 1% risk (maximum of $5 per trade, and you need a stop-loss of 20 pips. That 20 pips on one full lot would be risking $200, and you want to risk only $5, which is 2.5% of $200. So your position-size therefore needs to be 2.5% of a full lot, and that’s 2.5 microlots, So that’s what you should trade. (At places like Oanda, you can trade “half a microlot” but you can’t everywhere, and with some brokers you’d have to round that down to 2 microlots, for that reason).
The important point to understand is that the distance (in pips) to the stop-loss should be determined by your trading-plan (with its proven edge) and by the chart, NOT by the amount of money in your account.
Until you know how to do all that confidently (and until you have a trading-plan with a proven edge) you’re not ready to trade an account funded with $500 or with any other amount of money.
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