Hello everyone, in many forex trading books and in forums(also at babypips school) I read that we shouldn’t start forex trading with small money say $100,200 etc
unfortunately I don’t have big money to invest so my question is
“If I open two trades with same stop loss and take profit
in 1st trade I invest $200 and in 2nd trade I invest only $20 so which trade will be closed in profit”
does invested amount affect the winning/losing of a trade?
pls someone clarify
You need to learn about [I]Leverage[/I] and [I]risk management[/I], just search around, it’s all been answered already. …and trade demo for a while.
No, the invested amount doesn’t affect the percentage probability of you winning or losing a trade… YOU affect it, and the best way to affect your own trading is to study.
As petefader wrote you need to understand risk management, where to put your TP/SL.
Well, If you did stock trading instead, these numbers would definitely matter, as commisions would eat up both these trades. However, I find that with forex, the spread (comission) i small.
I advice you to look more on leveraging and money management though, as suggested before me.
If you start with big money, you can end up with small money.
If you start with small money, you can end up with big money.
It’s however more likely you start with small or big money and end up with no money.
Very true, especially last sentence.
Exactly. Demo trading is essential before you even think of entering live trading.