RISK MANAGEMENT OF YOUR TRADING ACCOUNT

Attention! For successful trading, it is very important to follow our recommendations for risk management of your trading accounts. Do not exceed the margin leverage, which we define as 1:20. It is important to remember that excitement and madness have never made anyone rich or happy. It is important to understand that investment and trading activity in financial markets is not a casino where they bet on “Zero” or red-black all the money “make or break”. Our activity is a normal business activity designed to make a profit, but there are also losses. At least 30 percent of our trades will be unprofitable. But we are confident that the remaining transactions will cover losses and produce profits.

But you always need a reserve. You always need a reserve. You should never exceed our trading position size requirements, which is based on the amount of money you have in your trading account with your broker.

We recommend having a minimum trading account balance of 5000,00 USD or the equivalent in other currencies. But if you really can’t get that amount, then 2500,00 USD, no less.

Risk management of a trading account 5000,00 USD. 

The amount of orders placed or carried out on the market – 100K. Do not exceed! For example, a recommendation: Limit order Sell EURUSD – 1,1350; SL1-1,1405; SL2 – 1,1425. Your actions: You place a limit order with your broker to sell 100 thousand EUR/USD at the rate of 1,1350 and place two STOP orders. The first – in the amount of 50000 at the rate of 1,1405; The second for the amount of 50000 at the rate of 1,1425;

Very often we work at half the standard amount. Example recommendation: Order BUUSTOP CBPUSD (0,5) – 1,2245; SL – 1,2190; In this case, you place an order to open a position not of 100 thousand, but of 50000,00 and put a STOP for the entire amount – 50K at 1,2190. But if the recommendation indicated two STOP LOSSES, then it would be necessary to place two, each at 25K.

But we also work in the “quarter” position. Example recommendation: Limit order BUY USDCHF (0,25) – 0,8970; SL – 0,8915; Therefore, you set the purchase amount – 25000,00 and STOP for the same amount.

So, the basic trading amount for accounts of 5000,00 USD is 100K.

Trading account 10000,00 USD

The basic trading amount is 200K. Half (0,5) – 100K. Quarter(0,25) – 50K

Trading account 20000,00 USD

The basic trading amount is 400K. Half (0,5) – 200K. Quarter(0,25) – 100K

Trading account 30000,00 USD

The basic trading amount is 600K. Half (0,5) – 300K. Quarter(0,25) – 150K.

Trading account 40000,00 USD 

The basic trading amount is 800K. Half (0,5) – 400K. Quarter(0,25) – 200K

Trading account 50000,00 USD

The base trading amount is 1,0 Mio. Half(0,5)-500K; Quarter(0,25) – 250k

Trading account 100000,00 USD

Basic trading amount is 2,0 mio. Half(0,5)-1,0 mio; Quarter(0,25) – 750K

And so on down the list. I am sure that you have already understood how much to trade if you have one million dollars in your trading and investment account.