Hi there babypips nation,
I have a question regarding risk management.
I have a 1000$ account. If I trade with one currency pair at a time with 0.05 lot size in 4H charts will I be able to trade without having a risk?
Thanks…
Position sizing is indeed critical when trading with such a small amount of capital.
Regardless what timeframe you’re trading and how many instruments you’re watching, you will never be able to completely eliminate risk trading FX. Unless you completely hedge every single position…which is just pointless.
Please read this, and understand it 100% before you place a single live trade.
Losing money is a part of trading. It’s all about managing how big your losses are which directly correlates with longevity.
Before you ever place a dime on the line, you need to know exactly where you’re getting out of the market (stop loss and limit orders) and you need to stick to those prices.
As for trading only one currency- if you have a solid/tested strategy then yes, you can trade only one pair. But, just know that limiting yourself to a single instrument can lead to over-trading very easily if that market is not giving you the signals you need to enter/exit. Over-trading is a primary killer for newer traders.
There is no such thing as trading without risk my friend.
Jake