hi to all traders..

wanna ask bout Money Management.. altho simple math but make me confused

lets say the example like this:

Lot size: 1 lot = 10,000 unit
Capital: $5000
StopLoss: 50pips
Risk per trade: 2%

so, Risked Capital = $100 and max Pips Value = $2 per pips... right?



so for xxxUSD (EURUSD, GBPUSD etc):

50pips x 0.0001 x LOT x 10,000 = $100

LOT = $100/(50pips x 0.0001 x 10,000) = 2.0 lot

right?




and for USDxxx (USDCHF, USDCAD etc): *SL = 50 @ 1.5000

50pips x (0.0001/1.5000) x LOT x 10,000 = $100

LOT = ($100*1.5000)/(50pips x 0.0001 x 10,000) = 3.0 lot

right?



and how about for cross pair? letsay GBPJPY..

from what i read, i need to determine 2 exit price, GBPJPY and USDJPY.. but how to know the price of USDJPY?

in all major pair other than EUR/GBP, most 0.1lot (10k) 1 pip = ~$1 (bout $0.98 for UJ). EG 1 pip = +-$2

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Added on July 16, 2008, 4:18 pmdamn it...everytime when a position got opened, i got so paranoid and closed it after getting few pips..was shorting on UJ just now..8pips i closed already...if let it just alone..should have already hit my TP at 30 pips...damn it...

should i walk away, or should i stay?

This post has been edited by small-jeff: Jul 16 2008, 04:18 PM

erm leverage 1:100 got wat difference with 1:500?
which one is smaller?

It is drawn by hand, manually drawn.

Here's something i can advice, nonid to follow too tight to the money management. MOney management should be somthing more simple like this. Example :
You always trade GJ 0.10 lot , 1 pips = USD 1.
If you have equity of USD 10,000, 2% will be USD 20. Mean for all trades you want to do, you will only risk USD 20 of your account.

So USD 20 = 20pips. Mean SL is 20pips lor.

Money management might differ from person to person, method, holding period and so on.

It's ok la, at least still earn. But for me, i always gain big pips when i not in front my PC, but today my buy limit activated but i end up wif big loss 60pips.

Means, you can gain big, but you also can lose big. If you feel more comfortable to not be infront PC. Then juz go aside, smoke eat drink and so on.

Leverage got relation to margin.
If you want buy USD 10,000, wif 500:1, you only need to have USD 20 in your account.
While 100:1, you need to have USD 100 in your account.

em.. actually.. my strategy is to have SL fixed.. so lot must change everytime.. not like lot alwayz 0.1 and SL change..

for example.. when i have USD 1,000.. 2% = USD 20.. my SL = 40 fix.. so i have to open 0.05 lot..

when i have USD 2,000.. 2% = USD 40.. so can open 0.1 lot... something like that...

plus, im working or custom script so need exact calculation

This post has been edited by ableze_joepardy: Jul 16 2008, 05:22 PM

Then you calculate the in reverse way,
You wish to risk USD 30, then the SL you want is 15pips. Then you can open up to 2 lots.

anyone trading on EJ? seems like it might continue to go south after the small correction..but RSI has been staying rock bottom since yesterday...hmm...gonna set a short limit at 165.48..

@kevler
You are the best. GJ south-ing.

currently shortin UJ.. eve n eve / cup n handle formations...

any1 open any positions?

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Added on July 16, 2008, 6:35 pmddats d powaa of EW... too bad.. its kinda difficult to master it...

anyway, robert balan's book seems vry nice... talkin EW based on his experience in forex..

This post has been edited by low yat 82: Jul 16 2008, 06:35 PM

Anyone can tell you where it's going to go.. but who can tell you for how long ?

onli GOD knows..

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Added on July 16, 2008, 7:54 pmif UJ can close above 103.95 n reductions of volume for down bar b4 d news, d probalility of goin up is high...

m already put my SL at 104.19..

today tradin chart formation in shorter TF has given me abit of money.. around usd 19... huuhhu

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Added on July 16, 2008, 7:56 pmgood luck to all... m goin out... ^.^

This post has been edited by low yat 82: Jul 16 2008, 07:56 PM

then i opened the wrong account.
becoz i wan a 20USD account.need to set it to 1:500 rite?

1:500 = 500 x 20 = $10,000 account = $1/pip IINM


This post has been edited by wodenus: Jul 16 2008, 08:18 PM

IINM means?
sorry newbie here.

anybody can access forex factory now?

nope...whats next news?

next big thing is..."USD Fed Releases Minutes, Forecasts from Meeting (JUN 24-25)" around 2am tonight

i think aa for time being US market not good time for trading... its move up alot and then down alot.. up and down...

hahaha..volatile = good for scalping...so..you got look into oil?

yeah.. seems oil price going down..