[jf2000]

Yes it is possible but make sure that you set very tight stops.

[sevensa]

Originally Posted by jf2000 »

Yes it is possible but make sure that you set very tight stops.

I think this is one of the biggest misconceptions to think that you should adjust your stops based on your account size. The market doesn't care that you have a small or large account. If you determine that a good stop would be 20 pips away from your entry, there is no point placing it 10 pips away just because you have small account. You might think you are more conservative, but in reality this is much riskier and you have a higher probality to get stopped out of a good trade.

[BlowFish]

What Svensa said. It is arguable that the only thing account size should influence is position size.

With mini lots and micro lots its absolutely feasible to start with $1k. Just don't expect to be making a living with 10p bets! Having said that compounding will get you there albeit later than if you start with more.

[SwingTradinJay]

If you're a young and tough trader who's already learned the "lessons" then 1-2k should be enough to make some spare money, but it would be very hard to live on the profits (unless you can get by with 12k a year!).

If an edge works with 100k there's no reason why you cant rack up profits on a smaller amount. It actually takes more composure and skill to trade smaller amounts (because there is no luxury of losing 500-2k a day).

It's like Limit Hold em, you need strict rules on your betting size. Short stacks only play good hands and shouldn't go all in unless the hand is likely the best at the table. Keep your bets limited to THE LEAST AMOUNT OF LEVERAGE! 1k can get you 100k lot in FX, but I wouldnt go over ONE 10k mini lot.

20 points is a good enough range for stops.

You will make mistakes, but you don't want to pay much for your errors, you'll need to be able to take the next trade without flinching.

Edit: This all assumes you've "learned" the key lessons and mental approach. The limited working capitol means all the ODDS are HEAVILY against you. As Bob Parsons said in the April Playboy,

"My experiences have taught me to be flexible, not to accept what life gives you at face value and never to make decisions out of fear. You come up with something you think will work, then you put everything you have into it. When times get tough you judge what your worst case scenario is, assume it's going to happen and get back to work. Anything you get on top of that is gravy, baby."

That will help to accept the risk in any business venture and thus succeed.

[sevensa]

Originally Posted by SwingTradinJay »

If an edge works with 100k there's no reason why you cant rack up profits on a smaller amount. It actually takes more composure and skill to trade smaller amounts (because there is no luxury of losing 500-2k a day).

Why do you say that? If you have a solid trading plan, why would it take more skill and composure to follow your plan with a small account instead of a large account?

20 points is a good enough range for stops.

Based on what? Wouldn't that depend on your style of trading?

[masonmorales12]

Though Variable spreads snowball limits and protective stops inadvertently and if the gap between Bid and Ask reach a stop or limit level, this may cause a conditional order. The trader is faced with an extra variable to be considered. This does not happen with fixed variables as there is synchronization between Bid and Ask. Fixed spreads are steady allowing the trader to be aware of levels and parameters giving way to specified money management and strategic planning to better the situation.

[SwingTradinJay]

Originally Posted by sevensa »

Why do you say that? If you have a solid trading plan, why would it take more skill and composure to follow your plan with a small account instead of a large account?



Based on what? Wouldn't that depend on your style of trading?

Why are you quoting me? Those questions are easy enough to figure out...I said it takes more composure, which is separate from having a technical edge...It means you're under even more control and emotional constraint.

I said 20 pips for stops because that's based off of my style. So whatever floats your boat dude and its all dependent on your style and time frame. What I should have said was, have a ratio around 1:1-1:4 in that range, If you REALLY wanna get technical...So a scalper may risk 10 to make 20 or 30. Swinger may risk 100 to make 300 etc etc.
Figure it out for yourself svensa. No need to be a Donkey.
There's no right way to trade, my advice is merely my opinion after 3 years of being in the market(s).

OP should know it is possible, but you DO need to play it tight and very controlled. Get the most bang for your buck.

[sevensa]

Originally Posted by SwingTradinJay »

Why are you quoting me? Those questions are easy enough to figure out...I said it takes more composure, which is separate from having a technical edge...It means you're under even more control and emotional constraint.

I said 20 pips for stops because that's based off of my style. So whatever floats your boat dude and its all dependent on your style and time frame. What I should have said was, have a ratio around 1:1-1:4 in that range, If you REALLY wanna get technical...So a scalper may risk 10 to make 20 or 30. Swinger may risk 100 to make 300 etc etc.
Figure it out for yourself svensa. No need to be a Donkey.
There's no right way to trade, my advice is merely my opinion after 3 years of being in the market(s).

OP should know it is possible, but you DO need to play it tight and very controlled. Get the most bang for your buck.

I have quoted you because I was responding to you and because you made blanket statements without providing any context. Making a statement that 20 pips is enough for stops, without providing any context, or considering the trading style, makes no sense and does not help anyone. You have only provided the context in saying that this is how you trade in your response to my post.