Hello,
From what I understand, a stop loss should always be used or after putting a trade on sit and watch. I have read on this site never to risk more than 1% of your capital. So if I started with $2000, a stop loss should be positioned or if watching the trade should be exited if $20 down ? Would 2% be ok ? How many lots should I buy and at what leverage with this starting capital ?
work out where to out your stop first, (this should be part of your trading plan) and then from that work out what your 2% is for your position size.
Not the other way around!!!
N
A basic Stop loss is a loss that will never risk 2% of yur account. for 2000 dollars, 2% = 20 dollars. If u r into mini lots, each pip is $1, so your SL will be 20 pips the price u enter. If u r trading micro lots which is 0.10$ per pips, ur SL will be 200 pips instead. Got it?
Best Reg
Chin Liang
Your math is off. 2% on $2000 is $40.
lol my bad… 