Quote:
Originally Posted by koolit
Thanks, Archer.
10 lots = $10,000 out of $50,000 (20%). So I thought I was being safe for drawdowns. Correct? If I open an account with $1,000, and buy .2 lots ($200), would it give me enough margin for any drawdowns?
One more point, as my account grows and if I still buy fixed lot size, I would have more margin for large drawdowns. Correct? e.g. Account balance now is $79,000 and I am still buying 10 lots.
I am still learning, so would appreciate any feedback.
Thanks.
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You are protected. But -500 pips will kill your account. Every 100 pips is 20% of your account and GBP/USD moved 300 pips last time.
I trade 2,5% per trade or 5% per trade. You trade 20%.
I'd make it 5% if I were you. I don't feel comfortable losing half of my deposit because of my own greed.