Risk management practices

What’s the best lot size to start with as beginners?

Try out 0.05%

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Here is a great article to help you out

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RIsk is a common thing in the forex market. If you can make deal with the risks you can make huge money from this market. So make a good risk management strategy to make money from this market.

0.01 lots, that’s what I started with on etoro and have found a fair amount of success. I found micro lots to be best for tweaking my position size to arrive at the most suitable one for me. Even if you see in terms of managing your risk, micro lots are better. It is good for small balances and as a new trader I learnt about margin without having to undertake huge leverage, just by watching prices vary on my account. So it was like an extension of my learning but on a live account. With my next broker fxview I started trading more confidently with higher leverage because of my prior learning on smaller lots.

Thank you so much

The lot size that you should use must depend on the investment that you are making. As you are a beginner, I don’t recommend making big investments and when you are making small investments, you must use the micro lot that will be much safer.

For beginners start with micro lot size then go for mini or standard lot size.

0,01 :slight_smile: step by step

If you can’t trade at 1: 2 risk-reward, you can’t cover the loss. Therefore, risk rewards should be maintained in every trade.

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Every trader should have risk control first. Trading is impossible for him if he cannot control the risk.

One risk management practice I stick to, is to never have open positions with pairs that have a similar currency. For example, if I already have an open position for EURUSD, then I will not open a new position that has either EUR or USD in the pair.

One must know the risks that can occur and the ways to manage it. It is advised to practice on demo accounts first and get aware about the platforms and the risks which might occur.