How many lots would be ideal for a 5k account? I have been using 0.01 lots as I could not handle the risk and adrenaline of this at first as a beginner but I gradually moved forward and began using 0.1 lots.
I am more of a day trader/scalper and I feel 1 standard lot would be the most suitable, but I would like to get some idea from more experienced members beforehand.
My R:R ratio is usually 1:1, sometimes higher, and accuracy is probably 60%
i would say 1 standard lot aswell. i think some people may find that 10x too high, i read somewhere professional traders will trade 1 lot for every 50k they have. may i ask when do you cut your losses? at which point when a trade is going against you do you close it for a loss, thanks.
Hi
Your lot sizte depends of many factors:
If you have an account of 5,000, and trade pairs like : EURUSD, GBPUSD, AUSD, and only want to risk 2% per trade, then you can use the following lot size, depending on the size fo your stop loss:
stop loss of 10 pips: 1 lot
stop loss of 12 pips: 0.8 lot
stop loss of 15 pips: 0.7 lot
stop loss of 20 pips: 0.5 lot
stop loss of 30 pips: 0.33 lot
if you have a stop-loss of 10 12 15 pips you are going to get stopped out a lot, like warren buffett says all thos small losses add up.
Read the first post when he says he is scalper/day trader
While learning, best not to lever up over 5:1. 3:1 is even better.
My suggestion, it’s better to start trading with lower capital because if you don’t know to trade with smaller capital then it is too risky to trade with higher capital so I think you should know how to trade well with $100 before you’re using $5000 as capital for trading. It is possible to use same percentage of your money management when you’re using smaller capital then you can use it with $5000.
Hi Zizoforex17,
FOREXunlimited made a great point about leverage and Gasanvill made a great point about modifying your trade size based on how many pips you intend to risk on a trade.
The only thing I would add is that you can risk even more pips with your stop loss if you trade with micro lots (AKA 0.01 standard lots). That’s because you’re risking only 10 cents per pip on a micro lot trade which allows you to set a stop loss up to 100 pips away.