How to use proper money management in trading let's find out

Gold_scalper1

Trader
Nov 23, 2023
5
0
7
Lot Sizing Tips (Money Management)

$50 Capital
High risk = 0.10 lot
Mid risk = 0.05 lot
Low risk = 0.01 lot

$100 Capital
High risk = 0.20 lot
Mid risk = 0.10 lot
Low risk = 0.01 lot

$200 Capital
High risk = 0.40 lot
Mid risk = 0.20 lot
Low risk = 0.02 lot

$500 Capital
High risk = 1.00 lot
Mid risk = 0.50 lot
Low risk = 0.05 lot

$1000 Capital
High risk = 2.00 lot
Mid risk = 1.00 lot
Low risk = 0.10 lot

If you have different amounts from what is shown above, take the closes amount & follow through
 

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fargana

Active Trader
Nov 14, 2022
139
20
29
34
Lot Sizing Tips (Money Management)

$50 Capital
High risk = 0.10 lot
Mid risk = 0.05 lot
Low risk = 0.01 lot

$100 Capital
High risk = 0.20 lot
Mid risk = 0.10 lot
Low risk = 0.01 lot

$200 Capital
High risk = 0.40 lot
Mid risk = 0.20 lot
Low risk = 0.02 lot

$500 Capital
High risk = 1.00 lot
Mid risk = 0.50 lot
Low risk = 0.05 lot

$1000 Capital
High risk = 2.00 lot
Mid risk = 1.00 lot
Low risk = 0.10 lot

If you have different amounts from what is shown above, take the closes amount & follow through
What about strategy of setting stop losses depending on deposit size or equity? Is there some guide for this trading aspect?
 

Enivid

Administrator
Staff member
Nov 30, 2008
18,622
1,367
144
Odesa
www.earnforex.com
What about strategy of setting stop losses depending on deposit size or equity? Is there some guide for this trading aspect?
That's generally a bad idea. Your stop-loss should depend on the market conditions (chart levels, fundamental factors, sentiment analysis, etc.), and the position size should depend on the stop-loss. Not vice versa.
 

Fisher Tow

Trader
Jul 3, 2021
6
1
14
28
Lot Sizing Tips (Money Management)

$50 Capital
High risk = 0.10 lot
Mid risk = 0.05 lot
Low risk = 0.01 lot

$100 Capital
High risk = 0.20 lot
Mid risk = 0.10 lot
Low risk = 0.01 lot

$200 Capital
High risk = 0.40 lot
Mid risk = 0.20 lot
Low risk = 0.02 lot

$500 Capital
High risk = 1.00 lot
Mid risk = 0.50 lot
Low risk = 0.05 lot

$1000 Capital
High risk = 2.00 lot
Mid risk = 1.00 lot
Low risk = 0.10 lot

If you have different amounts from what is shown above, take the closes amount & follow through
Smart money management guide! Tailor lot sizing to your capital for effective trading. Adjust ratios for personalized risk levels.
 

fargana

Active Trader
Nov 14, 2022
139
20
29
34
That's generally a bad idea. Your stop-loss should depend on the market conditions (chart levels, fundamental factors, sentiment analysis, etc.), and the position size should depend on the stop-loss. Not vice versa.
Generally I have ideas about direction where the market will go, but not about the size of the move. What should I do in this case?
 

Maverick

Master Trader
Apr 3, 2014
453
6
79
Bournemouth UK
A gambler (who believes they are always right) will want to bet the maximum their wallet will stand

With that in mind, I created an equation based on current market conditions that calculates the absolute maximum bet size currently available ... I then decide what percentage of that I want to risk

If you bet with pennies you will only ever win pennies
 

Maverick

Master Trader
Apr 3, 2014
453
6
79
Bournemouth UK
Based on the close of the market on 08/12/2023 for US500

£24 Capital
Max available 0.10/point (min for this broker)

£50 Capital
Max available 0.20/point

£100 Capital
Max available 0.40/point

£500 Capital
Max avalable 2.10/point

£1,000 Capital
Max available 4.30/point

£10,00 Capital
Max available 43.30/point

£23,250.00 Capital
Max available 100.00/point (max for a retail trader) ... (professional trader can bet upto 500/point)

Starting with 0.10/point and making 30 points a day in 60 days you could be betting 100.00/point

Don't believe it ... check out [URL deleted]Tom Hougaard who made a million before Christmas BUT lost 90k on Boxing Day :(
 
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