Risk management

Hi guys im new in forex which leverage should I use on the micro lot account with $40

Hi, this topic should help you Hello, Babypips Regards Greg

Managing risk is very important for every trader. Consistent profit is impossible without proper risk management. So I try to work by maintaining risk after doing technical analysis.


Talking about risk management with a $40 account seems rather irrelevant in my humble opinion.

My advice to you if that’s all you have for trading is to click withdraw & wait until you have something more viable to trade with.

Sounds a lot like gambling to me and that wont take you very far in these market conditions.

Your call…

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I’d tend to agree with @FxBrokersEmpire here.

If $40 is all you can start with, I’d say you’d be better putting it in the bank, in a stock such as Amazon or maybe even bitcoin and save cash for later.

I’d say you are better to get a demo account, set it to $1000 and trade with that at LOW position sizes until you are consistently profitable. say 2-3% a month without any losing months.

Then you should have hopefully saved a few hundred bucks you can put in a real account, and just move your exact trading strategy into that account and carry on with real money.


While I appreciate and agree with the posters below, on the assumption that $40 is not going to change your lifestyle, aim to get 500:1 on a 0.01 micro lot, and pray it’s your lucky day.

Whatever the outcome, you’ll eventually learn how one bad trade - or a few consecutive losing trades - blows your account. That’s the reality with small accounts.

fingers crossed…

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risk management is really important for avoiding unfortunate losses but the main problem is any kinds of trading plan and risk management not works for all time , its all about short time trading approach

what you think guys there is any difference between money and risk management ? its all about same or any major difference between two ?

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the main issue its all bout to avoid unfortunate risk and losses , so i can consider both as same issue , no major difference.

I hope you practice trading on demo well. If you are confident then go for high leverage. Well, there is no trading without any risk.

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IMO the simple difference between risk management and money management is as follows:

MM & RM is deciding your lot size and where your stop loss is set to give you a maximum of 1% risk, then MM is cutting a losing trade before it hits the S/L, or letting the trade run into profit, then taking a new position, while moving the S/L towards breakeven to keep RM at 1%.

MM is also used to limit risk exposure to a maximum amount per day, not to risk trading more than two correlated pairs at one time, etc, etc.

I hope that helps define the main differences. Of course, the capital size affects actions taken by both MM and RM. So in essence, manage your money and keep risk to a minimum.

Yes, that’s right. However, I think if there is a plan, even if you lose in one trade, you can make up for it with another trade.

I always manage risk and trade. Even if it ever hits a stop loss, the winning ratio works according to my plan.