Video by Rob Booker
I'm new to trading forex and hope to quit my job since forex is the most profitable business which i have encounter. However i like to start trading with only USD $3000 and i heard that its best only to risk 3 - 4% of my account per trade. But if that is so, do my take profit amount always have to be greater than my stop loss amount? Because i can only effort to lose $70 - $100 per trade if i follow the 3 - 4 % rule. Hope you could help me with this :)
It depends on your trading style scalping or intraday...and what pair you traded.. how many pips SL will be placed... if intraday should take Risk:Reward ratio at least 1:3 or 1:5
Thanks for your reply :)
he is soo right. i started 3 months ago with a $3000 USD account. i tried to be the trader i thought i had to be and lost it all. I am best at scalping and love it, so now i just do that and with just a $1000 USD account now have it up to 5 grand in just a month.
Thank you for all your wonderful help and tips Edward, your the man!
Can you elaborate by what you mean by 'scalping' 8).
I am new to this and want to be realistic about my expectations.
what is scalping??
Scalping is act of buying and selling stocks quickly in order to earn quick profits
I would just like to pass something along with everybody since this website has given me so much. A great money management system is a 3:1 profit to loss ratio. I tend to use a 30 pip stop loss and aim to pick up at least 90 pips. A low risk way to catch large pips while using a small stop loss would be to look for trend line breaks and patterns. This way, you would have to be wrong three times in a row to give back what you already took from the market. Even if you lost once and won once, you already made back 2 times what you lost. Combine this with a 50 percent profitable trading system and pyramiding (averaging into a position) and you will become a millionaire in a few short years.
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