A few of the confusing scenario when you are into making decision to start trading live in forex trading are the following stuffs; leveraging, size of your account, and the size of your position in trading the market.
Here is the following
recommendations by the Trading Zone team as these are tested in live trading.
1. For $200 dollars account - Do not go over 300:1 with your leverage as a beginner.
2. For $500 dollars account - Do not go over 200:1 with your leverage as
3. For $10K dollars account - Do not go over 100:1 with your leverage as a beginner.
4. For $50K dollars account - Do not go over 50:1 with your leverage as a beginner.
5. Above $50K dollars account - Do not go over 30:1 with
your leverage as beginner.
Simple Logic: The bigger the leverage in your account, the bigger lot size you can afford to trade and your account will have heavy exposure in the market in the period that the movement of the market is against
your projections. Therefore, having lower leverage is much safer for your account while you are still searchiing your edge into this risky and volatile market.
Below are recommendations to your lot sizing, your Stop Loss (SL) and your Take Profit (TP)
based on the provided level of investments you can afford as stated above.
Recommended lot size for a $200 Account - $0.02, SL at 20.0 pips and TP at 80.0 pips
Recommended lot size for a $500 Account - $0.05, SL at 20.0 pips
and TP at 80.0 pips
Recommended lot size for a $10K Account - $1.0, SL at 20.0 pips and TP at 80.0 pips
Recommended lot size for a $50K Account - $5.0, SL at 20.0 pips and TP at 80.0 pips
Recommended STOP LOSS is 2%
of your equity and recommended TP is 6% to 8% of your equity. Rinse and Repeat this formula.
Final words: You have to find your edge into this market. Keep on grinding things, don't stop searching strategies, systems, and methodologies
that actually fits to your personality. Once you have a system that relates to your time and personality, focus on it, familiarize that system and develop that system into a productive one. There's no single formula in forex trading to become profitable and
consistent in performance. It takes hard work, perseverance and determination to succed into this kind of business. Based on the survey, 90% of the Forex Traders population in the entire world are belong to the losing category simply because they are lazy
to start from scratch. They think forex trading is as easy as taking peanuts from its pod. If you think like that, then this kind of stuff is not for you. Wish you luck my friend, in your journey to the Forex World.