junior forex question

most of the junior Forex trader think only $5000 is more enough to bring any kind of amount you want , but in practical this is not true , balance is not a big deal in there , need a long time experience with powerful trading strategy.
 
Crash101 said:
Risk Management Andras,

You can place your entire account on a trade. 100%. Your account is likely to get terminated if it goes to 50% in debt. This method of trading is completely unsustainable because at the end of the day, the trade could go up or down. Do you want to risk your full funds if that was the case?

The alternative strategy you have is to risk 1% of your account each trade. If you look for High probability trades, then the odds for you to pick the right direction is say increased from 50/50 to 70/30 in your favour.

Looking at 10 trades talking in terms of the amount of capital you have risked if you risked 1% each time
Your winning trades
7 wins and you gained 1% x 7 = 7%

Your loosing trade
3 losses and you lost 1% x 3 = 3%

Your net will be 7 -3 = 4%. This is a net gain. Ok.. good stuff.

Neat isnt it. The task therefore is to identify the opportunities that you can put your capital to work where the odds are stacked in your favour and present this opportunity. Do not be worried about loosing. Its all part of the game.

Hopefully this helps you understand where you have to get to. This is not some get rich quick strategy but will compound very nicely to a point that you can earn a very good living from it.

Tricks are not to think of the money, I am not a trader but a risk manager and I am actually trading in fun bucks. Do you want more of these fun bucks? then you become a risk manager. This is what I do.

My account went last week from negative -10% to a plus 5% meaning I made 15%. I then have lost 4%. I tried a couple of ideas and it didnt work. I had a good rationale for doing so but I dont have the experience to know yet what works and what doesnt exactly. But I have learnt something and my account is still in tact.

My risk management is a journey and its every single small gain I can make 0.1%, everything will improve. Dont beat yourself up when you make a mistake, there is no point, just the next trade. You might think its easy, but its a mindset. "DO NOT QUIT"... keep striving to get better.

I hope this makes sense.

All my best

Crash.
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Great strategy.
 
You can not just directly sum and substract %
If you lose 10%, you will need to make 11% to be back where you started.
Loss of 25%, need a 33% gain to recover... Loss of 50%, need a good round 100% gain to breakeven.

Leverage in FX is a killer, and without it you're often looking at paint dry when compared to other markets.
 
generally we the traders when making losses try to recover this losses by over trading , its a very bad dedicated decision and at the end of the day we lost whole equity.
 
Ahmed Solaiman said:
generally we the traders when making losses try to recover this losses by over trading , its a very bad dedicated decision and at the end of the day we lost whole equity.
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Exactly, when over-trading arises then a trader only faces loss, it is better to be patient while placing trades.
 
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