for 20K account as a beginner , what lot size are good to start with?
Hello ish1927. Welcome to this forum.
I’m sorry to nit-pick your question, but…
Here’s the problem:
$20k is an appropriate starting balance for a trader who has demonstrated proficiency in trading generally, and in trading the forex market specifically.
A “beginner” in the forex market is, by definition, someone who is just starting to learn the basics of this market. A beginner cannot be considered a proficient forex trader. In fact, it’s actually a stretch to refer to a beginner as a trader, in any sense of the word.
With all that as a preface, if you are in fact a beginner, then here’s my advice –
If that $20k you mentioned is real money in a live account, then it’s almost certain that you will lose most of it in your first 6 months of fumbling around, trying to find a consistently profitable strategy to apply to forex trading. Whether you are wealthy and can afford to lose $20k, or not, it makes no sense to throw that amount of money down a rat-hole.
Keep your $20k in the bank, until you know what you are doing. You don’t have to lose real money learning how to trade this market. That’s what demo accounts are for.
If that $20k you mentioned is play-money in a demo account, AND IF (and only if) you honestly intend to fund a live account with $20k when you have learned how to trade, then trade your $20k demo account AS IF it were real money. That means strictly limiting your risk on every trade, thereby limiting your position sizes and your actual leverage to levels you can handle – so that, when things go south, and you suffer a string of losses, you can live to trade another day.
As a rule of thumb, limit your risk on every trade to no more than 2% of your account balance. Use the Position Size Calculator to determine the maximum position size corresponding to those metrics.
If that $20k you mentioned is play money in a demo account, but you will not be funding a live account with that large a sum in the future, then do one of two things: (1) adjust the balance in your demo account down, to match the sum you will (realistically) be depositing into your first live account, or (2) if you can’t actually adjust the balance, then pretend that the balance matches the sum you will deposit to open your live account, and trade that pretend balance accordingly.
Understand that the purpose of a demo account is not to see how quickly you can grow your balance.
The purpose of a demo account is
to learn the mechanics of this market,
to test various trading styles and various trading strategies, in order to find out what suits your temperament and your time availability, and
to develop consistent profitability trading your preferred style and strategy.
Until you have accomplished all of that, don’t even think about opening a live account and risking $20,000 of real money.
For beginners 20k is not an ideal amount to trade with. Even not in demo. Start with 200$, once you make it into 600$ with a systematic approach not by random trading. After that you can think about big investment.
Investing too much capital can not be an ideal decision for a newbie like you. You can invest $50 at first to check your knowledge and ability of trading.
I think you can use up to 1-3 lots size for that capital, depending on your leverage.
20K keep it the bank, start a live account with a maximum of 1k to 2k, also be pretty sure you can afford to lose even that amount.
If after a year and you’ve kept the original amount at least, and even better still made a profit on the original investment, then consider topping up.
thank you very much for your input , really appreciate
good advice , I will take note
thank you very much for your advice ,
For every $100 trading account I recommend using 0.01 lot size, for a $200 trade, to use 0.02 lot size max. Trading with high lots sizes are very dangerous for small capital trading accounts and will blow up your account after some trading.
thank you for the advice