Correction needed here. The common advice is to risk 1% of your account. That does not automatically mean trading a certain lot size.
Anything I am missing here? I know 1000$ is not alot for some of you, but that’s what i can manage to invest. Any recommendations for someone starting out with 1k?
Try not to focus on the $$. Focus instead on % returns and concentrate on making good trades. Develop your skills. That way later on when you have more capital you can put it to work effectively and maybe make enough profit to feel like it means like something.
Not so much a recommendation as an observation, from me …
The proportion of aspiring traders who ever manage to get as far as making a steady-ish average of 5% monthly profit on their accounts is [I]very tiny indeed[/I]. It follows from this and from other realities of trading that the primary purpose of trading with a $1,000 account shouldn’t be “to make money”, [I]per se[/I], but to gain screen-time experience with real-money trading and to develop further as a trader.
Long-term, successful trading isn’t about profit-maximisation: it’s about risk management. If you can trade it steadily for a few months [U]without losing money[/U], then you’ll genuinely be becoming a trader. If you try flat out to withdraw significant profits from it while also growing the account, you’ll be stacking an already-tricky deck significantly further against yourself.
With apologies for offering a perhaps depressingly realistic perspective … :8:
Thanks for the detailed replies, I really appreciate it!
Even if the fact that I won’t be making money for a good while is a little depressing, I will focus on creating a risk management strategy and a trading plan, to become a better trader as adviced.
I think you make a brilliant point. Trading should be thought of as something you will be doing for a lifetime. Your 1000 is no small investment by your eyes. Think about how hard the 1000 was for you to save. The point ii’mbtrying to make is risk management is key to your success right now. If you get anxious and start trading with larger percents of your account you will risk too much and potentially lose it all. You want to create good behavior in the beginning. Discipline yourself to stay with in your risk management perameters and before long you’ll be managing a 10k account. Remember crawl before you walk.
Better to use proper amounts in thousands or millions when discussing.
The original complaint was that with 100 pips at 0.01 the person gets $9.
That 0.01 is the same as the 0.001 that you are familiar with Lexys and Carlos
Some platforms use the amounts incorrectly and it seems our friend here is using one of those.
Daggyvalvik they mean you should trade with 10k lot size, your original post was for 1k lot size.
Lexys and Carlos thought NorisFx was asking you to trade 100k lot size which is too big, but if you read his post he also actually just means 10k.
I don’t know why some trading platforms mix the amounts around instead of using the standard (correct?) amounts.
With 1000$ you can do that if you trade 0.01 lot it’s never make you scare. But you should manage account maximum 5% with each transaction and 20% in all, that mean 200$/1000$.
At first I don’t recommend choosing a high leverage, it’ll most likely just kill your depo. It’s best to start trading with smaller lots and with a smaller lots and a smaller leverage.
Yes, I totally agree with this. You must have to learn risk management if you don’t want to lose your money without any reason. I also do not want to recommend starting with 1K.
