feel confident enough to open your live account. Now I show you how easy it is to calculate your position size. Would you open a 20,000 live account? A 1:200 leverage is acceptable. Accordingly, when you find a short trade setup, you should be able to find the next support level that may prevent the price from going down. Money management money management tips Money management has a vital role to become a successful trader. This means that you need to concentrate on your currency pairs and each trade the more trades you have open, the more likely it is for you to lose track of them. Avoid trading the same currency in the same direction. One lot is 100,000 units of a currency in forex world.
Again, we should not risk more than 2 of our capital. Pip value can be calculated but you dont have to learn how to do it because it is a little complicated with some currency pairs. If there is a trade that hasnt been unsuccessful, its often better to cut your losses and run rather than try to recapture profit. Setting a proper stop loss for each trade, is a different story. Download Our E-book For free and Don't Miss Our New Articles! That might seem like a good idea, but its really a loss of control, because you now have too much money tied up in a single trade. If your trading strategy is a weekly one, you need to make sure those trades are closed at the end of the week.