How much pips i can withstand with USD1000?
i’m new to forex. i plan to open a mini account with USD1000. what leverage i should use? i plan to gain little by little. 6-10 pips per trade.
How much pips i can withstand with USD1000?
i’m new to forex. i plan to open a mini account with USD1000. what leverage i should use? i plan to gain little by little. 6-10 pips per trade.
Actually the leverage is not automatically set. You can choose your own leverage anywhere from 1:1 to 200:1 with most brokerages.
The main thing that you should be determining is the MARGIN that you want to trade. This is how much of your $1000 that you want to position into your trade when you first execute it. Your margin is the amount of risk you want to expose yourself to when entering a trade.
If you decide to be a directional trader where you are simply trying to guess which way a respective currency pair is going to move, you would be best to keep your margin very low perhaps 3% or so (it is up to you).
If you decide to employ a hedge strategy to reduce the risks associated with market movements you can consider a slightly higher margin of perhaps 5% or 6%.
Keep in mind two important points. First, never invest money in the Forex market that you cannot afford to lose and secondly get a firm understanding of the risks associated with the Forex market and employ strategies that will reduce these risks to improve your potential for success.
Good and let me know if you would like any additional information.
Paul
pupp52@yahoo.com
You should start with an mini account. The leverage is automatically set. Don’t forget to set your stops.
yea, it is automatically set. Just make sure you research before you make a move otherwise it will be painful.
I would like to first welcome you to the interesting world of Forex. Opening a mini account is a very effective way to get you going if you had already tested out the demo accounts. I would suggest using a leverage of no more than 50:1. The leverage you choose largely depends on the currency pairs you trade and your own risk tolerance level. You might want to put less money into a very volatile market unless you know very well what you’re doing.
Advices I can offer you are very limited. I have been trading for approximately a year now and has even worked in a Forex company. I trade small. Maybe like a $.50 – $1. I treat them like poker chips
I would not recommend aiming for 6-10 pips per trade. If the pip-spread is already 1-2. You’re already at a 20-30 percent loss just for getting into trade. In order to succeed in trading, you must keep a few disciplined concepts in your mind. 1) Look for set-ups. 2) Only trade in set-ups that can give you the number of pips you seek. 3) Try to lose no more than 30 pips a trade.
I have on and off success with Forex until lately. I am finally getting the hang of elliot waves, pivot levels, random price movements, long-term trends vs short-term breaks. If you have further questions, my email is nliang@luc.edu. Only email me, if you are serious about Forex please. I’ve seen too many quitters.
Depends on how much spread is between currencies. Different brokers have different spreads. The broker makes his money from these spreads. Different currencies cost different amounts per pip.