I have a quick question…basic math…I want to see if I am calculating correctly. I am trying to stick to the 2% trading rule off the balance. If I have a 25,000.00 balance I then should trade only 500.00 of my balance…correct?
So, I am thinking I am shorting myself on bidding units. On a recent trade of USD/CAN here is the following info:
9.71( or is it 9,711) units make 1 Pip USD
I purchased 5000 units
1 Pip then = .5121 usd
my profit would be 28.42
Did I purchase too low? or Am I misunderstanding the 2% rule? I am on the cusp of understanding money management here but I don’t want to sell myself short, it could swing the other way and my losses would be .51 cents per pip, but I do want to make money on this the smart way.
Please let me know…I have been having many successful trades on my demo account but want to nail this down before I go live in two months.