Forex - EUR/USD stop loss policy?

[Mr Newbie]

Hi I've been demo trading and have done well and am cautiously considering the move to a small live account (although I'm aware of the psychological differences). I'd like to open a £200 5,000 lot size account. I'm aware that even if I use leverage of 50:1 it is still going to be a few strikes and I'm out with such a small deposit if I'm not very careful.

Does anyone have advice on where to place stop losses and take profits trading on the EUR/USD in the context of such a small account?

Any help would be much appreciated

 

[shadowninja]

Sign up with Oanda or Alpari. 5p/pip or less.

 

[Rhody Trader]

Does anyone have advice on where to place stop losses and take profits trading on the EUR/USD in the context of such a small account?

It's quite simple. Set the stop where your trading system/method/strategy says you should put it. If that's too much risk for your small account, don't make the trade.

 

[Mr Newbie]

Sign up with Oanda or Alpari. 5p/pip or less.

Thanks for that, good advice, I can then develop a strategy that will keep me in the game for a while (I'm very conservative anyway - at this stage I just want to 'stay alive' and learn - not actually silly enough to think I can make big bucks as a learner)

 

[Mr Newbie]

It's quite simple. Set the stop where your trading system/method/strategy says you should put it. If that's too much risk for your small account, don't make the trade.

Thanks John,

what you've said confirms my golden rule - If in doubt leave it out,

cheers

 

[rtsurvivor]

There are about as many S/L theories out and about as there are traders. I used one where I set an EMA to 20 and then did some back checking to see where spikes would have closed out the trade. If the bar went over the EMA to many times I'd increase the EMA. This also requires a bit of money management too. Demo money is easy to lose. Real money will cause you to sweat a river with each tick.

One other thing needs mentioning. Trade with the trend and not against it.
ie: 30 min = UP.. 15 min = up then an up move in the 5 or 10 min is a pretty good trade.

Take a look at the 30/15/5 min charts (8/14/09) of the GPB/USD. The 30 & 15 have a strong up move in play so the 5 min will probably follow after a brief pull-back tomorrow. 8/17/09)

I wish you well. If you haven't practiced money management with a demo it would be a good idea to do that before you go live. Imagine a $300 - $500 account and work with that and not the virtual thousands they give you.

Good trading
RT... :clover:

 

[Mr Newbie]

There are about as many S/L theories out and about as there are traders. I used one where I set an EMA to 20 and then did some back checking to see where spikes would have closed out the trade. If the bar went over the EMA to many times I'd increase the EMA. This also requires a bit of money management too. Demo money is easy to lose. Real money will cause you to sweat a river with each tick.

One other thing needs mentioning. Trade with the trend and not against it.
ie: 30 min = UP.. 15 min = up then an up move in the 5 or 10 min is a pretty good trade.

Take a look at the 30/15/5 min charts (8/14/09) of the GPB/USD. The 30 & 15 have a strong up move in play so the 5 min will probably follow after a brief pull-back tomorrow. 8/17/09)

I wish you well. If you haven't practiced money management with a demo it would be a good idea to do that before you go live. Imagine a $300 - $500 account and work with that and not the virtual thousands they give you.

Good trading
RT... :clover:

Thanks very much, I obviously have to research EMA. Comments regarding money management appreciated too - I'm a bit mean with money - lol, and anyway, I only open a trade (demo), if I'm pretty sure of it - I never ponder which way it'll go, if I don't immediately think I know where its heading I don't bother with it. I've only done about 10 or so trades so far (paper) - haven't lost one yet, and average out at 50 pips up (but I will research EMA, and not live trade for a while yet). Thanks v. much

P.s, I'm also aware of the complete BS that demo accounts are - offering demo lot sizes that don't even exist on their live platform (etoro 5,000 - "erm, we are sorry sir but it doesn't exist yet") - I think I'll probably go with alpari when I go live