200 characters left Include your email address to get a message when this question is answered. Assume a winning percentage of 50 (you are winning 50 trades out of a 100 4 trades a day, an average stop loss of 5 pips and an average target of 8 pips. Using the same example as above, with micro lots you can fine-tune your position so youre risking almost exactly 1 of your account. Forex trading allows you to control your position size precisely, and utilize leverage, both which aid a small trading account.
With stop losses of 3 to 5 pips on most of these tradesplaced on the forex haram apa tidak opposite side of the consolidation or engulfing pattern all these trades would have hit.5:.6:1 target, and in several cases a 2:1 target. If trading a 1000 account, that means your stop loss cant be more than 100 pips away from your entry price (100 pips.10 10, your maximum risk when trading a 1000 account). You wont, but your upside potential is greater by taking more trades on a shorter time frame. Micro lots give you the ability to really fine-tune your position size and risk on a small account. In forex trading, you sell one currency to purchase another.
Blueprint for Forex Day Trading with 1,000 (or less) Vantage Point Trading Forex Swing Trading with 1,000