Should be trading Sim at first... until trader has a "workable plan" in his mind.
What leverage should be good for a newbie to use?
- Thread starter Coner1980
- Start date
Should be trading Sim at first... until trader has a "workable plan" in his mind.
algoseek
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That is even better.
Don't focus on leverage, focus on potential loss per trade.
If you're anywhere but the US, you can trade micro lots, with a 10-20 tick stop you'd be looking at a few USD in losses when wrong. Continue to trade that amount till you get constantly profitable, bearing in mind that can take years...
If you're anywhere but the US, you can trade micro lots, with a 10-20 tick stop you'd be looking at a few USD in losses when wrong. Continue to trade that amount till you get constantly profitable, bearing in mind that can take years...
And as others have said, it's a good idea not to risk any money so use SIM trading at least for the first few months.
Many say SIM is no good because no money is on the line. That's true to a certain degree but then why do pro sports people practice the whole time when there's no pressure? The reason is obvious and it should be likewise obvious with trading SIM.
Many say SIM is no good because no money is on the line. That's true to a certain degree but then why do pro sports people practice the whole time when there's no pressure? The reason is obvious and it should be likewise obvious with trading SIM.
Risk 1% of account per trade. The stop loss determines what leverage you will want on the trade. Nonetheless, please cap the used leverage to a maximum you're comfortable with. Stop losses can be gapped through during extreme events and leverages above 10x can have very ugly consequences. To be clear, it's instrument dependent. If you are trading crude oil, even 2x overnight is plenty...
Look up historical extreme events, for instance what happened to traders in CHF. From there you should have a good idea where my numbers come from. Or, as many do, you can completely disregard what could happen and settle for a random lottery like outcome where if you were lucky you survived long enough to make a big account...
Look up historical extreme events, for instance what happened to traders in CHF. From there you should have a good idea where my numbers come from. Or, as many do, you can completely disregard what could happen and settle for a random lottery like outcome where if you were lucky you survived long enough to make a big account...
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The primary benefit to Sim is to show things that do not work.... then, back to the drawing board. Even when you have something that appears to work in Sim, it may not work with real money... as real financial risk carries other variable a trader needs to learn about. Therefore, once you transition to real money, trader should "go slow... trade small". There's plenty of time to make a LOT of money, but only if you trade well. Gotta learn that first.
Leverage in forex is great, sounds counterintuitive right. But think about what other market can you put 100 in the account and see pnl real enough that you pay attention and learn to trade. Real money emotional experience at the same time virtually no real risk because it’s $100. Liquid enough to have a stop in place to keep you from going negative.
The risk is you do well for a while, and grow your account from say $100 to $10k, then hit a tail event and end up in the negative. As long as you realize the absolute sums at stake and reduce leverage accordingly, it's fine though. Most likely that $100 lottery money will be gone before any of that happens however.
If you're going to take a lottery approach, why not buy OTM call options? A lot safer. That's what the WSB guys are actually getting right.
To be fair, it goes quick, Trading is a great way to make the time go really fast.
Watching charts live is like the hypnotoad, 6 hours goes by, without doing anything at times.
It depends on the volatility of the trading pair and your stop loss.