Voila ! Advice Needed From BabyPippers!

Good Evening to all the baby pippers !

I had a question in mind and I would love to gather some insightful answers to this question. So, the question is, if a trader started to deposit a sum of money (USD100) to his/her trading account.

What do you think is the right amount of risk he should be risking?

My Personal Opinion = 3% with 1:200 leverage to start. Sounds good?

P/S: I had received quite an amount of answer to this which is as listed below
1: Leverage = 1:500 / 5% risk / 0.03 lots sizing (3 orders position allow to be placed in this trading account)
2: Leverage = 1:200 / 3% risk / 0.01 to 0.05 lots sizing (3 orders position allow to be placed in this trading account).
3: Leverage = 1:500 / 3% risk / 0.05 lots sizing (Only 1 orders position allow to be placed in this trading account).

What is your thoughts? What is your perception? What is your point of view? Let’s discuss :slight_smile: ! :slight_smile:

On a side note, in other forums, some professional traders had given me advice such as

USD100 = 0.01 lots
USD1000 = 0.10 lots
USD10000 = 1.00 lots.

Leverage (According to above)
1: 1:500
2: 1:200
3: 1:100

What do you think? Let’s enhance this discussion so we can sort out the best risk management plan for all the traders here ! :slight_smile:

I’m neither a professional nor a veteran trader.

I’m comparatively a newbie, been learning and trading and practicing for a year or so, and turned the corner to become profitable only in April 2017, since when I’ve been doing much better.

So I’m not really among the people you’re asking, but my thoughts and perceptions are that 3% is really terribly, terribly high, and if any real experts or successful traders endorse that figure as sensible, I’ll be terribly surprised.

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Hola ! I am glad someone commented on this thread. Amazing ! I believed those professionals had their own approach in trading so as you too :smile: So, what is your opinion? You can shared it here, as much as I want everyone to :wink:

Hello Reaper

Im not a pro or an authority on trading by any means, but I do consider myself an experienced amateur with many lessons learned from the many losses ive taken.

If you dont mind the suggestion, I recommend a 1% max risk per trade. Maybe .50% on average and 1% when you feel like swinging for the fences.

I know the initial thought is that 1% or less risk will make for small gains. But the important factor is it will make for small losses. Reducing risk is much more important than trying to maximize profit imo. I also believe that one of the best ways to maximize profit long term is by aggressively minimizing losses.

I consider capital preservation the foundation of my trading philosophy

3% doesnt sound like alot, but to me 3% risk per trade is not something I would be willing to do.

And be careful using high leverage when your a new trader esp with a small begining balance. Thats a recipe for a quick margin call.

Thats just my opinion, and I know there are many different view points on this subject.

Good luck and happy trading to you

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Amazing advice ! I appreciate you taking your time off to write such a value adding advice to this thread I’d created and I also believed that your advice and other’s peoples advice would definitely be as of great help to any newbs/babypippers whom came across reading this thread !

On a side note, capital preservation (Sustainability) is definitely significant in the long term. May I asked you a question if you don’t mind me asking? What is your position lots sizing per trade and leverage used based on that 1% risk per trade? Hmm.

Lot size varies depending on size of SL but risk is always 1% max. Leverage is 1:10.

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Impressive. That amount of leverage though, I’m quite surprised !

Your thoughts and perceptions are definitely right, Tacita.

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Hey there !

It doesn’t necessary mean everyone perception is right. If you were to agreed to the “fixed” amount allocated, it would be right for you. To note that, if you had a working strategy with an 80% edge in the market, the risk would be differently allocated too !

This should be the prime objective.

I consider what is my risk of loss if the trade doesn’t work out.

Also, want to make sure there’s no confusion between leverage and percent of account at risk they’re two completely different animals.

FR&L

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