Tips and tricks!
Členem od Sep 12, 2015
1948 příspěvků
Dec 11, 2015 at 16:25
RSTrading posted:
@togr
That is a very debatable subject, but can be determined by your account size (not going to go in it - traders can google it).
What I meant was, make sure you are trading 0.1 lots if that is what you wanted not 1.0 by accident. It happened to me a couple of times. The terminal is set to use 'default' lots (own input) if terminal is reset, or for some unbeknownst reason it loses this setting and uses 'last used' .Maybe you entered a trade that you were very confident about and used a bigger lot size.
Trading the correct lot size depends on what you can stomach if it goes into a losing trade,your account size and your experience will tell you. What kind of trade it is,high risk~low risk etc.One is not going to trade micro lots with a 10k account.That is also a problem with platforms,their designed by computer geeks not traders,this adds to confusion for new traders,the platform I use first I have to select currency Im trading in ,change the lot size,click stop loss and select amount,click buy or sell ,then click confirm,there are no save settings.I first traded with plus500,so easy to trade on,great for beginners.Low lot sizes.
"They mistook leverage with genius".
Členem od Dec 17, 2015
3 příspěvků
Dec 22, 2015 at 11:04
togr posted:RSTrading posted:@RSTrading
Make sure your lot size is right when entering a trade..I have had some nasty (actually they turned out to be good, but could have been nasty) trades - and they were pending orders that triggered during my sleep.
Rihan and what lot size is the right one? :)
the lotsize is being calculated on the basis of your risk management.
lets assume your capital is 1000 XXX (XXX = currency EUR or USD or whatever)
so, if your initial risk is 2% .... this would mean 2% of Capital = 20xxx of money
so, when entering a trade you should place a stop loss. you now need to calculate a lot size LOT.
1.) count the points/pips of the stoploss distance
2.) how big in money would your loss be if the price reached that stoploss? Exactly - it must not be higher than those 2% or 20xxx money
3.) so what you need to know is how much money is one pip / point. You can find out by viewing the website of your broker.
4.) so, the final way to calculate would look like this: Lotsize=NormalizeDouble(Cap*initialr/StopLo/tickvalue,2)
CAP = is your capital, initialr is the 2% initial risk (you need to write 0.02), StopLo = Stoploss distance (in ticks), tickvalue (find it at your broker)
you can also do the math in MS - Excel
good luck
Peter
Take the ATR, combine with Bollinger and EMA SMA and learn. Then the grail shall be yours!
Členem od Nov 01, 2015
120 příspěvků
Dec 22, 2015 at 11:41
PetziK posted:Very good explanation my friend. One thing you failed to mention is the use of leverage. The thing is finding the right balance of leverage to use will dictate in many ways how long your account will actually last. Here is how:togr posted:RSTrading posted:@RSTrading
Make sure your lot size is right when entering a trade..I have had some nasty (actually they turned out to be good, but could have been nasty) trades - and they were pending orders that triggered during my sleep.
Rihan and what lot size is the right one? :)
the lotsize is being calculated on the basis of your risk management.
lets assume your capital is 1000 XXX (XXX = currency EUR or USD or whatever)
so, if your initial risk is 2% .... this would mean 2% of Capital = 20xxx of money
so, when entering a trade you should place a stop loss. you now need to calculate a lot size LOT.
1.) count the points/pips of the stoploss distance
2.) how big in money would your loss be if the price reached that stoploss? Exactly - it must not be higher than those 2% or 20xxx money
3.) so what you need to know is how much money is one pip / point. You can find out by viewing the website of your broker.
4.) so, the final way to calculate would look like this: Lotsize=NormalizeDouble(Cap*initialr/StopLo/tickvalue,2)
CAP = is your capital, initialr is the 2% initial risk (you need to write 0.02), StopLo = Stoploss distance (in ticks), tickvalue (find it at your broker)
you can also do the math in MS - Excel
good luck
Peter
Say you have a 1000 usd account and you open the recommended 2% position. Which of course is 20 usd. The reality is if you use to low of leverage, then those 20usd won't be worth nothing worth writing home about as to earn 2% on two low leverage may very well require a profit of 1000 pips.
To high of a leverage and it may only take 10 pips for you to be in red 2%
So the question should be this.
1) How accurate is your system?
2)How many pips on avg do you float in a loss before you tp is hit?
By answering those who questions, you then would be able to pick a leverage which best suits the system you are using.
Členem od Sep 12, 2015
1948 příspěvků
Dec 22, 2015 at 20:22
Thanks for your input guys,FXCM has research on the above topics,but its not independent research.
"They mistook leverage with genius".
Členem od Dec 17, 2015
3 příspěvků
Dec 23, 2015 at 07:35
ad leverage. I think the leverage is being implemented / shown in the 'tickvalue' - if you go with 1:100 EUR/USD one tick will be 1 USD per one Lot.
So if you change leverage you will need to adapt the tickvalue or add a factor - like 2x for 1:200
So if you change leverage you will need to adapt the tickvalue or add a factor - like 2x for 1:200
Take the ATR, combine with Bollinger and EMA SMA and learn. Then the grail shall be yours!
Členem od Sep 12, 2015
1948 příspěvků
Dec 27, 2015 at 15:50
More to the point ,what are we doing with those losing trades,are we holding them way to long!Not letting those winners run!
"They mistook leverage with genius".
Členem od Sep 12, 2015
1948 příspěvků
Dec 28, 2015 at 15:21
Here's a web site that might be useful its called Chasingreturns,it measures your trading ability and its free for a short period, or contact Ann Hunt.
"They mistook leverage with genius".
Členem od Jul 16, 2013
92 příspěvků
Dec 29, 2015 at 02:14
(Upravené Dec 29, 2015 at 02:19)
Hi guys, there has been some talks about lot, volume sizing and risk management and how to actually calculate it. There is a site who is explaining this in a very good way. RMMRobot.com Also there are robots to download if you would like to try them out.
" Lock in the profit and minimize the draw down "
Členem od Sep 12, 2015
1948 příspěvků
Dec 29, 2015 at 13:46
@kricka thanks,I will take a look,I'm actually reading a book called Machine Learning.
"They mistook leverage with genius".
Členem od Sep 12, 2015
1948 příspěvků
Jan 12, 2016 at 17:42
snapdragon1970 posted:
Hi everyone!
some tips for new traders,I hope it helps to improve your trading and to be more professional.
this stuff is free online you just have to know what is right!
2:1 or 3:1 risk reward
Max 2% of your total capital on one trade
wait for spike downs or spike ups
watch out for support and resistance levels,these are targeted by the big boys!easy pickings.
don't trade before data releases
technical trading is only a guide,not set in stone.
remember that the market learns quickly of any mispricing
You might find this link useful.
https://www4.dailyfx.com/forex/education/trading_tips/daily_trading_lesson/2011/12/08/What_is_the_Number_One_Mistake_Forex_Traders_Make.html
be lucky!
"They mistook leverage with genius".
Členem od Jan 19, 2013
251 příspěvků
Jan 12, 2016 at 23:09
Look at what happens when you get comfortable with using low lot sizes and you keep listening to people who talk about support/resistance. How would you feel if you bled out like this account has.
Přílohy :
Členem od Sep 12, 2015
1948 příspěvků
Jan 13, 2016 at 00:19
You have to know when to use support~resistance and when to ignore it.what kind of trading is going on around the support area,is it strong or weak,strong spike through or just by a few points,plus many other factors,plus get to know one product and how it behaves.
"They mistook leverage with genius".
Členem od Jan 19, 2013
251 příspěvků
Jan 13, 2016 at 00:20
snapdragon1970 posted:Well in theory it sounds good, but doing it, is another monster. How many traders of all who are on this site, has made more then 50% this month alone?
You have to know when to use support~resistance and when to ignore it.what kind of trading is going on around the support area,is it strong or weak,strong spike through or just by a few points,plus many other factors,plus get to know one product and how it behaves.
Členem od Sep 12, 2015
1948 příspěvků
Jan 13, 2016 at 08:19
That's practice,not theory,take for instance the relationship between bonds and FX ,I never see any posts on here about the subject,yet it is a key indicator.Who would believe if I made 50% or not,around FED announcement I made more.
"They mistook leverage with genius".
Členem od Jan 19, 2013
251 příspěvků
Jan 13, 2016 at 08:35
snapdragon1970 posted:
That's practice,not theory,take for instance the relationship between bonds and FX ,I never see any posts on here about the subject,yet it is a key indicator.Who would believe if I made 50% or not,around FED announcement I made more.
I say it is theory, because you don't have any proof to support your claim.
Členem od Sep 12, 2015
1948 příspěvků
Jan 13, 2016 at 09:27
If you didn't make money around the FED meeting that's not my fault,go and get some professional training .
"They mistook leverage with genius".
Členem od Jan 19, 2013
251 příspěvků
Jan 13, 2016 at 09:28
snapdragon1970 posted:
If you didn't make money around the FED meeting that's not my fault,go and get some professional training .
Ok, now where is the proof that YOU made money around the FED meeting?
Členem od Sep 12, 2015
1948 příspěvků
Jan 13, 2016 at 09:39
Go and read my eur/usd blog you will see I had a straddle trade on that day,I actually shared it with some of my friends on financialjuice.
"They mistook leverage with genius".
Členem od Jan 19, 2013
251 příspěvků
Jan 13, 2016 at 09:41
snapdragon1970 posted:I understang that you might of had a recommendation, but that is very different from taking the recommendation yourself. I'd also like to point out that straddle trading during high impact news, is by far, the most dangerous thing anyone could ever do. I take it that is why you don't have any accounts to share with us here, because it will reveal how much of gambler you are.
Go and read my eur/usd blog you will see I had a straddle trade on that day,I actually shared it with some of my friends on financialjuice.
Členem od Sep 12, 2015
1948 příspěvků
Jan 13, 2016 at 10:00
Trading a straddle during high impact news is a basic trade you learn as a professional,Not for beginners.
"They mistook leverage with genius".
