Stop losses, lot sizes and position sizing

[oxrcomx]

I just cant get my mind around place sizing, as I am on a #1000 account should be trading Micro lots, (1000 units/0.01 ect),
-So if I was to have a maximum risk of 1% does that mean my stop loss should be #10?
-I currently utilize the BabyPips place calculator is that this okay or should do it ?
-My trading style is a more of a swing trader/long term (typically 1D/1W charts so my stop losses appear to be quite high, in the hundreds is this okay?
Thanks its one of the few things I get my mind about!

[Pandegamba_]

I cant get my head around place sizing, as I am on a #1000 account I should really be trading Micro lots, (1000 units/0.01 ect), '' So if I used to have a maximum risk of 1 percent does that mean my stop loss should be #10? -I currently use the BabyPips place calculator is this alright or if I do it ? -My trading style is much of a swing trader/long term (typically 1D/1W charts so my stop losses appear to be quite high, in the countless is this alright? Thanks its one of those few things I get my head about!

Yes in 1% risk, 10# is your greatest stop loss. I use my calculator that is I don't have any idea concerning Babypips calculator. Yes you are in right direction. For newbie greater time frame is very good. Incidentally I trade on D1. But the problem is really for D1 nit every time you will discover entry with 100 pips stop loss. If that's the instance you can improve your risk just a little bit. But don't increase the lot size.

[Loox]

I cant get my mind around place sizing, as I'm on a #1000 account should be trading Micro lots, (1000 units/0.01 ect), -So if I was to have a maximum risk of 1% does this mean my stop loss should be #10? -I currently use the BabyPips place calculator is that this alright or if do it ? -My trading style is a more of a swing trader/long term (typically 1D/1W charts so my stop losses seem to be quite high, in the hundreds is this alright? Thanks its one of the few things I ant get my mind about!

Hi, oliverfxldn
The combination of cease placement and position size would be the key blocks of your risk management. You must do this well if you hope to survive any length of time.

First, determine where the stop is about the trade you are considering. This should be the point where the trade is the most likely incorrect, according to your analysis. If you put the stop nearer you risk closing out prematurely what could be a good trade. If you put it further away you are risking extra for no extra likely profit. You shouldn't just be sticking on an arbitrary stop level - though any stop is far better than none at all!

Once you've got the stop you can determine position size. Let us say your stop is 100pts off for your swing trade and the risk on your contract is 1 per point of market movement. You determine your risk level is 1% of their account on the trade, i.e. #10 in cash terms on a #1000 account. For 100pts of market movement to be #10 cash your size thus needs to be #0.10 per point. You're ready to go! I would do so myself rather than use a calculator, it can help you know better what and why you are doing this.

Do trade small and only risk really tiny amounts of your account as you are learning. You're most likely going to be rubbish and lose money but don't be worried about that. It'll be trivial quantities in real cash terms, your focus should be on good analysis, good execution of trades and good risk management. The profits will come as you collect experience and comprehension however, the risk management, discipline and good habits are the bases that you simply must acquire original.
Best of luck!

[pkninnnet]

I cant get my mind around position sizing, as I am on a #1000 account should be trading Micro lots, (1000 units/0.01 ect), -If I used to have a maximum risk of 1% does that mean my stop loss should be #10? -I currently use the BabyPips position calculator is that this alright or should do it myself? -My trading style is much of a swing trader/long term (typically 1D/1W charts so my stop losses seem to be rather high, in the hundreds is this alright? Thanks its one of those things I get my mind about!

Hi oliverfxldn,

You ask a good and affordable inquiries, but I cant comprehend how you intend to win in the event that you just believe abount loses and how you can be a swing trader with 0.01 lots...
I mean if you really do your own analysis at W or D and have just #1000, are always going to hit SL. Or you are going to be waiting too long for profit trading just with 0.01 lot.
I do not want confuse you or tell you how things ought to be, this is the egy, you have the correct and ought to work on it on your own.
I am only trying to work out when you're doing so for earnings or are you try trading Currency Market? Green and thanks pips to you.

Cheers, Matt

[oxrcomx]

quoteI'm just trying to work out if you're doing so for earnings or are you try trading forex? Thanks and green pips to you. Cheers, Matt

Hi thanks for replying the trading itself would not be for earnings, but ideally I would like to acquire a little percentage per week/month and compound it, maybe not to get earnings hence the small starting capital.
As for your small lots, I read someplace that people with a capital of around #1000 should just exchange with microlots (0.01) so thats what I followed.
Thanks!

[duraportaesther]

Discipline is very vital if you discuss prevent loss, lot size and position sizing. But if you're really a conservative kind of traders and don't want to drop much $$$ in your account you then do simple math. If I'll be the one in your case I will do such as this to maximize potential outcome and decrease risk.

Example:

Capital: $1,000.00
Leverage: 100 to 500
Lot Size: 0.03
Pip Value: $0.30
Account Pip Capacity: 3,333.33 pips
Available Position: 111 place to Lose or Win
Account Survival / Fatality: 5.55 Months, on Daily Basis Goal
Time Frame: Employed 1 hour to endeavor the Daily market motion because it provides average daily range of 80 to 100 pips daily at EURUSD markets, same too with other currencies.
P/L Ratio: 1:2
First P/L Indior: 1.1.50, shield floating profit
=========================
Stop Loss: 30 pips
Take Profit: 60 pips
Initial Floating Profit Protection: 45 pips
==========================

To control the risk:

Consider the Market Cycle as launching and overlap closing can bring some PIPS variable to your projected goal.

1. Launching Asian Market (Less Active )
2. Launching European Market (Moderate Active)
3. Launch US Markets ( Most Active)

Apply your egy: Straightforward support and resistance is going to do. .

Do straightforward Math:

3 Losses 2 Wins = Break-even, in a week or 5 business days. This is going to be your basis in 1:1.45 ratio

Best time to trade: Opening or Overlap of the markets as it contributes PIPS of the entire construction of your targets.
If your using 1 Hour then trade after the next hour . .

Hope that this will help you buddy and stay profitable

[pkninnnet]

quote Hello thanks for responding the trading itself wouldn't be for earnings, ideally I want to acquire a little percentage per week/month and compound it, maybe not for earnings hence the tiny starting capital. In terms of the tiny lots, I read someplace that those who have a capital of around #1000 should only trade with microlots (0.01) so thats exactly what I followed. Thanks!

I see today. In case you have leverage of 1:500, therefore normal for trading is 0.1 lot, 0.01 lot too tiny. IMHO

[Evaalba198]

I just cant get my mind around position sizing, as I'm on a #1000 account I should be trading Micro lots, (1000 units/0.01 ect), -So if I used to have a max risk of 1 percent does this mean my stop loss should be #10?

Yes, if you are eager to shed 1 percent, it means 10 of those 1000 pounds. A micro-lot equals to 0.1 currency units per pip to get a 4-digit-quoted currency. I.e., in case you have a GBP cross (i.e. EURGBP): this means a stop-loss of 10 pounds divided by 0.1 pounds per pip (10/0.1 or 10*10), equal 100 pips (stop-loss).