BASIC TRADING LIVE RECOMMENDATIONS

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 a beginner.

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.

TEN COMMANDMENTS FOR NEWBIES IN FOREX TRADING

TEN COMMANDMENTS FOR NEWBIES IN FOREX TRADING

1. Make sure you are mentally, emotionally, and financially ready when you begin to trade on live account.

2. Make sure you understand the basics in forex.

3. Do not do other stuffs while you are on the trade.

4. Adjust your leverage to the level of your personality.

5. Accept your losses and take care of your profits.

6. Do not trade with bigger lot size to avoid exposure in the market during volatiliy hours.

7. You have to set your SL and your TP  all the time. 

8. Always have a trading plan before you sit in front of the computer, or before you tap your smartphone to trade.

9. Do not add position to your negative ones and make sure to maintain in cutting losses at 2%-3% of your equity.

10. Do not trade when you don't have a set up plan and when you don't fully understand.

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