I am picking up and learning the art of trading.
A question on risk management and how to trade “safe” (of course I understand that there are risks involved in trading). A way I have tested is to open several trades on the same pair a few pips from each other, i.e.
Say that I have 100000 USD, I am going long on EUR/USD I want to open 5 positions:
2000 USD - 1.3598
2000 USD - 1.3603
2000 USD - 1.3608
2000 USD - 1.3613
2000 USD - 1.3618
Would this count as I have invested 2% on each trade or should I in fact take this as one trade and in this case taking a to high risk with 10% of my capital?
It´s probably very clear to a experienced trader but not to me, in the above example each opened trade would confirm the bullish trend.
Hi webguide,
In this case you are risking 10% of your equity. General rule of risking 2% means that you risk max. 2% per position. If you trade highly correlated pairs as EURJPY or USDJPY and your are both pairs long you risk more than 2% as well.
Here’s a calculator you can play around with.
Forex Money Management
I use account balance.
OK, but it is actually 5 positions, should I count any positions taken “in the same trend” as one position?
All trades on one pair is considered one position. If you open 5 trades, it is still only one position…
What i don’t understand is if your willing to scale in with 5 trades why not just split them together and combine them into just two trades of 5000 each that way you will have tighter stops and less work to do. if your goal is to minimize risk putting on more positions doesn’t do that since you have to beat a spread every time you put on a trade plus slippage and trader erros etc etc. The only time you put on multiple positions is if you are putting on a new trade from out of the profits or you are scaling into a larger trade or scaling out because your covering.
Hmmm, thanks for that advice. Its logic when you out it like that! 
Lesson learned, I have started to get my S/L´s right as well.