Hi,
I want to know how much balance should i have if i want to trade 5 to 10 lots per trade with safety? I was thinking $50000 to cut my risks. Your suggestions would be greatly appreciated. Thank You
When trading, I look at it from the stand point of how much you are leveraging your account balance. If you’re going to be trading 5 to 10 standard lots (500k - 1000k) then you are leveraging your $50,000 account 10-20 times.
10-20 times leverage turns a 1% currency move into a 10-20% change in your account balance. Are you comfortable with that? If not lower the trading size or increase the account balance.
If you’re talking about 5-10 mini lots, then that would only be 1-2% change in your account balance. So much less extreme than the 10-20% for the standard lot example.