Hi all.

I have enjoyed this forum.

I have been reading for about a month and joined a few weeks ago.

I may get heavy critizism for my fews but they are my views nevertheles.

There is a lot of "consensus" advice that traders should not risk ore than 2 - 3% of their account. That is fine and dandy if you have an account of $10,000+

If however you have a micro account of say $100 - $1000 that advice simply not valid for those accounts.

THe goal in my opinion for every trader trading below standard lots should be to get to that level of trading standard lots.

Why? To take proper advantage of leverage that Forex trading offers!

One standard lot that moves 100 pips in your favor will produce $1000!

Micro lot however with the same move would only produce $10 or less IF you follow the 2 - 3% percent of your account advice.

Achieving 20 pips a day is not too hard. There are many systems on this forum alone that can produce that and more.

So you will really need to take on more risk. I say 10% to 20%

Then as soon as you can you should be trading standard lot sizes.

Some pointers:

If your broker does not offer 100 - 200 leverage find one that does.

If you have an account smaller than $10,000.00 I would advice to stay away from EA robots.

I personally don't use them.

So how do you take on this risk?

You should pick a daytrading system from this forum that fits your style.

Get comfortable with it! Very important. You need this to trade with confidence and you need confidence to take on more risk.

Avoid jumping from system to system.

Be very picky and only choose the vey best setups before enteing a trade.

One of the best tools in your aresenal is learning to interpret candlestick patterns as it releates to turnaround points as well as basic chart patterns.

What I do agree with is that you should not trade with more money then you can afford to lose.

Demo trade until you are comfortable with your system.

Again, one of the key ingredients is getting confidence in whatever system you are using. This will spare you in moments when fear would for example cause you to move out of a position prematurely.

anhyhow just my $0.02

There is NO such thing as increasing your reward without increasing you risk.

People with very small accounts have the tendency to increase their market exposure so they think they would make more money. But before you start to trade you need to concentrate on what you can loos and not what you can earn.

If you take positions in such a way that you will increase your profits by a factor 10 or 20 (as you do by going from a 2% market exposure to a 20% market exposure) you will automaticly increase your risks or drawdowns by the same factor 10.

If you have 1000$ to trade from or even 100.000$ to trade from you calculate how much % loss you want to take with the MaxDD.
And that never changes and will never depend on how much money you have in your account.
That is why R/R ratio is THE most important ratio you need to look at when you trade a certain system.

Newbies or amateurs have the tendency to increase their profits with a small acount but forget that they increase their losses with the same factor.
Again there is no such thing as doubling up your profits without doubling up your losses ( and as you suggest you will have losses or drawdowns that are even 10x times as big).
That means if a system would give you ONLY a 10% loss on your account when the biggest drawdown occured during a year with a normal 2% market exposure, that with your aproach one will loos 100% of the account ( in other words burning the account).

Or do you think that there is a system out there that will look to your account size in such a way that when you have a small acount that if it makes profit they will be big if you make losses they will be small?..
Or when you make a profit that the value per pip will be 1$ and when you loos that the value will only be 0.1$ per pip?...
If a system would exist for small accounts that can make big profits with small losses one would use that same system on big accounts.


Regards...iGoR

__________________
Success comes with knowledge. Knowledge comes with experience. Experience comes with time and hard work... (iGoR)
Price moves in a 100% random way so build yourself a system that is not affected by trend or consolidation...(iGoR)

If you trade with a system you have confidence in, you can start with a small account, take more risks and make it pay off.

If you are the type of person that likes a lot of action than it will probably not work for you.

As your account grows, take on less risk.

How do I know you can do ths?

Because I am doing it.

I will post a journal of my trades when the time is right.

I don't use any special trading system. It is a simple price trend system.

Just some basic ema's , SAR, RSI & Stochastic.

Some basic knowledge of candle patterns & chart patterns.

I do not trade against the trend.

I usually make 1 trade a day at the most two.

My time is New York time and I quit when the London session closes because i have found that the market is a bit more predictable when US & Euro are in session.

Again the key is that you must be confident in whatever sustem you are using and be patient to wait for your setup to line up.

Yes it is more risky to trade with a higher percentage of your account. But very few successful business people achieved their success without taking risks that the average person was comfortable with.

No offence dojyguy,
My posting I only ment as help.

You trade in a discretionary way. I did the same when I started to trade fully professional in 1997. I made loads of money and became bolder and more arrogant and increasing my market exposure more and more.
The 23th of fabruary 2001 I lost everything I owned in my life. I did not have a pot to piss in anymore. I was on the edge to commit suicide. My luck was that I had 2 children. I realized I could not do that to them because they needed me.

What I try to say with this personal story is that one can encounter a point of serious drawdowns that you never expected.
If your journal is more then a couple of years long then you can indeed build conclusions on it. When it is only a couple of months then you are asking for trouble.
Believe me you will encounter that hughe drawdown. As the cliche says: one does need to ask the question will it happen but when will it happen.
If you are over-leveraged it will burn you. If you stay prudent and conservative you are going to survive it....
The more reward you seek the bigger the risk you will encounter. No secrets on that one.

regards...iGoR

__________________
Success comes with knowledge. Knowledge comes with experience. Experience comes with time and hard work... (iGoR)
Price moves in a 100% random way so build yourself a system that is not affected by trend or consolidation...(iGoR)

Hi all,
is there any reputable MT4 broker with 4 digits that offer microlots? (0.01)

thanks for advice