How much risk per trade?

[Joseff]

Hello. I have $500 live account.I have a profitable strategy.

Stop loss: 50 pips.

Take profit: 100 pips.

Profit Factor: 4.5

Currency pairs: GBPUSD and EURUSD

1 trade per day.

Leverage: 1:100

Trade duration London and New York sessions.

Thank you for advices.

 

[kimo'sabby]

Hello. I have $500 live account.I have a profitable strategy.

Stop loss: 50 pips.

Take profit: 100 pips.

Profit Factor: 4.5

Currency pairs: GBPUSD and EURUSD

1 trade per day.

Leverage: 1:100

Trade duration London and New York sessions.

Thank you for advices.

Depends wot u r trying to prove to yourself. Lump the lot on, it's fun for a day. Or, frustrate yourself for 3 months. I mean, how serious can you be about 500 dollars?(not intended to sound arrogant, but realistic)

 

[anley]

I'd risk no more than $10 a trade. You can risk more but chances are you'll pay the price at sometime in the future. Good luck.

 

[ronblack]

I suppose you trading a mini forex account, right?

10% risk per trade is way too much. The, to have profit factor 4.5 and R:R of 2 you must be at least correct 7 out of 10 times. With forex that is hard. Not even bank traders are correct that often. However, nothing is impossible. This is a good paper about position size and risk:

http://tinyurl.com/2c2gzq6

 

[Joseff]

10% risk per trade is way too much. The, to have profit factor 4.5 and R:R of 2 you must be at least correct 7 out of 10 times. With forex that is hard. Not even bank traders are correct that often. However, nothing is impossible. This is a good paper about position size and risk:

http://tinyurl.com/2c2gzq6

I suppose you trading a mini forex account, right?

With standard account you can trade with 10% risk per trade?

Thanks for advices.

 

[anley]

Risk 10% a trade and you'll go broke. Could be today, next week or even next year, but that day is coming.

Plus, if you're just starting out you're going to make mistakes so trading tiny means a mistake won't be hard to handle.

 

[Mata Nui]

anleys advice of $10 would be about 2.5% which is pretty much optimal for a small account. You wont go bust very quick if you get it wrong but a good r:r should see your account grow by a very nice % rate over time. Patience really is the key. Watch the smallish wins drip,drip into your account then every month check the % growth and smile thinking about what that would be if your account was $100000 instead of $500.

You have to win first of course. just trying to point out that small risk = small win over a long time will always win over big risk = big loss.

 

[Joseff]

anleys advice of $10 would be about 2.5% which is pretty much optimal for a small account. You wont go bust very quick if you get it wrong but a good r:r should see your account grow by a very nice % rate over time. Patience really is the key. Watch the smallish wins drip,drip into your account then every month check the % growth and smile thinking about what that would be if your account was $100000 instead of $500.

You have to win first of course. just trying to point out that small risk = small win over a long time will always win over big risk = big loss.

Thank you. Yes, Patience - is the source of success. But I have no Patience at all