Just like Ned, the newbie used as an example for us,
So I did my calculation and my units trade resulted to 2,500
Now does it mean that the is going to cause me $2500 to carry it out? or what hence it be 1% 5000 that I wanted to risk,
Or does it mean, that I can use 2500 mini lot? ,
I am a little bit confused here please
When you open a standard account, 1 lot size gives you $10 per pip. 0.1 lot size gives you $1 per pip, 0.01 lot size gives you 10 cents per pip.
How I calculate my lot size is that I pick a pair and determine how many pips that pair moves in a month. It works for me.
e.g. I started with $600 this month and I want to trade GBPUSD only. GBPUSD moves roughly 300 pips in a month. If I trade using 0.1 lot size it means I can take a trade without stop loss and have GBPUSD move 600 pips against me before I get margin called.
The maximum lot size I decided to use is 0.2 which means GBPUSD has to go against me by 300 pips before a margin call.
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Hello nu_bee, pls for this my irritating question. I what is pips? Like u said 300pips does it mean 300$?
Check out this lesson from the School of Pipsology
gotta love forex newbies that are trying to trade FX profitably by some math formula
You cannot deny there is some math to this. Forex trading involves numbers and how do we trade it? poetry?
You will need some math so get ahead in forex no matter how you look at it.
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Easiest way to think of a Pip is it is the second to last number of a symbol.
For example EURUSD: Current âBuyâ Price is 1.13115. The number 1 next to the 5 means 1 Pip (with the 5, it would be 1.5 pips)
If you were to have a 300 pip movement, youâd be looking at that price moving to 1.16115, which could equate to a $300 gain, however, it depends on the lot size youâre trading, as well as your account currency.
So if I was trading 30 standard lots of EURUSD, and my account currency is USD, then I would be looking at a $300 USD profit. But if I was trading only 0.30 mini lots of EURUSD, Iâd only be looking at a $30 USD profit.
Hope this makes a bit more sense.
Thanks so much⌠But the calculation is a bit confusing. u added the 300$ to the figure after .1 to 311 that gives u 611, and why not sum up the whole figure. I thanks for your reply once again
First of all you should understand what pip means. A unit movement in price, can be upward or downward, it referred to as pip. Do know exactly what 300 pip would mean, you have to know your pip value. If your pip value is $1, then 300pip is equal to $300. You can use a pip calculator if you are not good at math. Makes it easier.
Remember pip value is determined by lot size.
1 lot = $10 per pip
0.1 lot = $1 per pip
0.5 lot = $5 per pip
Itâs pretty easy. Take your time, youâll get it.
Thanks for your reply. There is something that is confusing right now. I trade EURCHF sell at resistance and Iâm losing same thing to EURUSD and have been watching the trade from date: 2019.06.05., time: 19:45. Till 2019. 06.12. It on my demo account. pls padon my typo errors
You must have entered after that huge bearish candle. Do not worry I also took a short trade that day but my decision was based off the bearish daily pinbar of 5th JUNE 2019.
If you switch to daily chart you will see how a lot of sellers (me inclusive) got wreaked. What happened was that a news release for USD (PPI or PMI?) came out the following day and completely changed my bearish trading plan. As you can see the following candle was a bullish engulfing type and it signifies strong bullish activities.
The market is in an uptrend now and it appears the bulls have run out of steam. A reversal is imminent but it will take some days before price gets to your entry and hits your take profit.
Thanks for your kind reply. I donât really know how to read the chart well still studying it. I will be glad if u can help me with any well understanding video link to study candlestick pattern properly. I switched to daily the trend goes down and I switched back to 1hr the goes up Iâm confused there too. How can I identify the sellers and the buyers on the chart? What am seeing on the chart is the hammer, star, dogji and the rest of them. And to be sure pls the bullish is the back color while the bearing is the white color? Am I right? Iâm sorry if my question is cumbersome, like I said earlier Iâm new and willing to learn with patience. Thanks once again for your reply
The daily chart will give you more information as the information in one completely formed daily candle represents data over a longer period of time (24 hours) than data from hourly candles.
Daily charts usually give you the âbiggerâ picture when compared to smaller timeframes. Those ones sort of âzoom-inâ to the market picture.
Search for âcandlestick patternâ on youtube. There are tons of videos that would give you an idea of the concept.
Thanks for your reply⌠I really appreciatedâŚ
you will need math, but not a nailed math formula. you gotta admit that most of the 90% are searching for holy grails, be them magical expert advisors, always winning forex signals or a math formula 