You see, every person is different and therefore has various needs, expectations, etc. For some, starting with just a few hundred bucks may be enough. For others, a more substantial amount may be necessary. Overcome with excitement you head over to your trading platform to check out your newly minted money. Most traders would be thrilled to make that in a month much less a few days.
Also, as I always say, you should focus on the process of becoming successful rather than the profits. Consistent profits in any financial market are just the byproduct of a well-established process. At the end of the day, there is no single correct answer to how much money you need to trade the daily time frame. The most important thing when deciding is to consider your risk tolerance as well as the amount you deem to be psychologically meaningful. That goes for both profits and losses. Before making any decisions about what size account you need, you should ask yourself this one question.
- How Much Money Do You Need to Trade the Daily Time Frame?;
- What is the Best Time Frame to Trade Forex?!
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- How to effectively Trade Daily Timeframe in Forex – Trade Revenue Pro.
- What Time Frame Should I Trade? - .
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- How Much Do YOU Need??
It should be money you can afford to lose. Attempting to trade a real account with money you need to survive is one of the quickest ways to blow the entire sum. As traders, we need to be on the defensive at all times. That goes for everything from choosing your starting account size to the position size of a single trade. It all begins and ends with a defensive mindset. The advent of the micro Forex account makes it possible to trade the daily time frame with just a few hundred dollars. However, one of the most important questions when choosing a starting balance is how much money do YOU need?
What is a meaningful amount to you?
Daily Time Frame Forex Strategy Guide - Video
Even more significant than that is how much can you afford to lose if the entire account gets wiped out? So stay defensive and only trade with money you can afford to lose. Save my name, email, and website in this browser for the next time I comment. Everything under this amount is gambling. Purpose of trading is to become a full time trader and to make a good income from that activity.
After all trading is an economic activity based on profit like any other business. And there is no one-size-fits-all percentage to risk per trade. It all depends on several factors unique to each individual, including personality. I absolutely agree that we should only trade with money we are prepared to loose. Instead, I use a blend of a percentage and dollar amount. I have another question. Do you trading in Monday? I mean when do you setting orders after the weekend? Between Friday and Monday there is a huge time gap and often leads to different price levels.
Excellent question, Tomek.
What is the Best Time Frame to Trade Forex?
Thanks, Cam. When trading the weekly time frame, should one seek volatility and liquidity? One or the other? Any other tips? I did not understand the difference of account types. I use micro and a friend use standard but our pip value are the same. Please do explain the advantage of micro with small capital. Any example of pip value I can give is fiber with 0. Does levarage affect pip value? Hi Justin, l am a newbie to fx and would like to learn more. Would you mind to guide on where to start. I have been doing self study and would like to know more in a structured form.
Hi Goitse, the free site has a ton of information, but I also offer a paid course and community. Hi Sifiso, thanks for the question. Hello Justin. What can a trader do to secure this trade and account with as little pain as possible, rather than close the whole trade, gaining nothing. Hi Carol, thanks for the question. Hello Justin, Firstly, thanks a ton for all the useful info and weekly forex forecast e-mails. They are excellent and have a helpdesk here in North Sydney, very contactable.
The Advent of Micro Accounts
I found that cleaning up my charts and looking at fundamental announcements, for my situation is best done on Sunday evening Aust eastern time, as the markets are closed and start running when NZD open up in the morning. I would like to make a sustainable living and trade for a living, but need to have a couple more years in my trading apprenticeship to start trading bigger lots based on my learnt strategies. It is the same principle big all small. In closing the most important thing for me is placing my stop loss on every trade I commit to.
Hi Mike, thanks for sharing. Can you please help. I just decide to go with a higher time frame and have the peace of mind. Fewer trades, but I feel more in control so far the results are better Thank You. Swing trader with some position trades — allow a swing trade to run… but I trade agrressively… Only take a trade that looks high probability and take a very large position. If trade does not go in my favour within an hour or so after entry I exit trade do not wait for stop loss.
As a not the greatest thing that helped me was reviewing my trades.. I followed all the other rules but did not really review. The first detailed review I ever did was after a 5 month period of trading and it was an eye-opener.
Thanks Rayner for sharing this useful article, God bless you and give you much years to live and give you more power to produce more helpful articles. Hy Rayner, am just new in trading. I trade the daily charts for two years now and I can say it helps me a lot. I have noticed that my stops are usually over pips on most markets but I can accommodate that with good risk management.
Thank you very much for your ever insightful guides. What is Trade View? Is it a special software and if so, how do i access it? Thank you very much Rayner. This information was very usefull for me. Could you share some tips, how to create and update watch list of stocks or markets? I am the follower of your you tube channel and now reading the articles in your website to improve my Forex trading knowledge. So If I want to open and close the position in a day, what is the time frame is best suited for me. Which Time frame I need to use for analysis and trade.
Because I try to use the MA as you suggested, but when the Time frame is changed the results are confusing. So please need your advice.
Actually I was doing trading in my live account and lost the money, so now spending my time to understand my mistakes. Till that time I am planning to invest the money for Copy trading so that I can earn decent margins, Is there any possibility please advice. Hi Raynor- Great stuff like usual! I watch all of your youtube videos… so I feel like you are one of my best friends.
I use a hybrid strategy- trend follower leaning a little toward swing trading. Two words… Heiken Ashi!!! If your readers are having trouble finding or exiting trends tell them to try looking at the charts with some Heiken Ashi glasses on. It has helped me to find a really strong trend easier and stay in the trade a little longer.