Lot Size for a newbie

[Archgecko]

i have been trading options and stocks for a while now …just started forex a couple of weeks ago …been doing some paper trades here and there i have decided to pursue only forex from now on I am low on capital I was wondering as to wh at should be my lot size given that I am gonna use 1:200 x leverage, capital: 80 $…please advise.
thank you.

[ProfesorPips]

My suggestion, finish the BP school of pipsology

[Torchwave]

If you don’t know the impact of different leverage sizes on your equity you need to finish the babypips school of pipsology like the professor suggested. You will make mistakes that are easily avoidable. Besides, you should practice with a demo account until you are consistent enough in your profits and familiarity of trade executions, and only then should you trade a live account.

[tommor]

Hi @Archgecko - This is a great site to ask questions. Keep posting as you advance through your trading efforts.

It’s not unusual for new traders to ask how large their positions can be. But don’t be driven by how much money you think you will make, instead focus on how much money you could lose.

For you at this stage, every trade must have a price at which you would like to get out of the position, because you do not want your losses to get any bigger. Before you open your trade, use the chart to help you find a sensible level where you would put a stop-loss order. Then calculate what size your position wold have to be so that you will only lose 1 or 2% of your capital if the stop-loss order is triggered. Then enter the trade by either make a live buy or sell or setting a buy or sell order.

[S_Jane_M]

@ProfesorPips

finish the BP school of pipsology

This is exactly right and is the best advice you can possibly be given, here.

@Archgecko

I am gonna use 1:200 x leverage

This would be a very big mistake. A broker offering 1:200 leverage cannot, by definition, be properly regulated, because proper regulators with the power and ability to help customers are not allowed, by law, to regulate fake “brokers” offering such leverage. Such “brokers” are either unregulated or regulated only by fake regulators (of which there are very many). It’s explained here (and in many hundreds of other posts made on the subject by experienced traders):-

Finding scam brokers

only if they’re brokers who have chosen to be “regulated” somewhere like Vanuatu or the Seychelles or St. Vincent, where there isn’t any proper regulation and the customers aren’t protected at all this is why it’s SO important to use only brokers who are regulated by ASIC, FCA or CFTC, so that they can’t mess with your funds easily it’s not about being “regulated”, in other words - it matters where and by whom they’re regulated but as long as people think it’s a clever idea to be “going offs…

@Archgecko

capital: 80 $…please advise.

This would also be a very big mistake. You need a minimum of $250 to trade 1 microlot safely. It’s further explained here:-

Margin Call Example: Trading With Just A $100 Deposit