Hi
I am a new forum member and have been doing lots of reading, there is some fantastic information here and thank you to all who have contributed.
Just so this is clear, I have no intention of trading live until I believe I have grasped all the basic concepts and am comfortable trading demo.
One thing that I have found plenty of information about in these forums is leverage and pip price. I am still having problem joining all the dots together to completely get a grip of how this works, so I have several questions in an attempt to bring this all together:
1) Let's assume what seems to be an average starting account between $500 & $5,000. From what I have read the only way to go with an account less than $30,000 is micro lots, could somebody please explain why this is prefential to mini lots please?
2) Following on from above, I have looked at various brokers but the only one that seems to offer micro lots is Oanda, however they have very ugly java based software, is that a problem? or are there other broker options?
3) Staying with the same theme, when opening an account, one is asked what leverage to select, what should a beginner select? and can this be altered later?
4) I have also seen that there are 2 kinds of leverage, one is broker leverage and one is actual leverage? Explain please.
5) I have been playing around with demo trading and it seems I have no control over what leverage I use after the account is set up on a per trade basis, is this correct or just lack of knowledge of the software?
6) The last question is rather more involved: I would like examples of how various traders approach a trade, not signals for a good entry or whatever, that is seperate - let's assume that you have found your perfect entry point, now how do you calculate how many lots to buy/sell, where to set stop loss, how much trade will cost, potential profit and potential loss based on where you place your TP and SL, now it seems to me that this calculation is going to involve leverage, account value, which pair etc. How doesone figure all that stuff out quick enough to make a timely entry and set SL and TP correctly?
I know I am new and am asking a lot and will no doubt ask more and also that this information is probably all available here already, I am just having a hard time bring it together and would appreciate all the help you are willing to give.
Thank you in advance
I am a new forum member and have been doing lots of reading, there is some fantastic information here and thank you to all who have contributed.
Just so this is clear, I have no intention of trading live until I believe I have grasped all the basic concepts and am comfortable trading demo.
One thing that I have found plenty of information about in these forums is leverage and pip price. I am still having problem joining all the dots together to completely get a grip of how this works, so I have several questions in an attempt to bring this all together:
1) Let's assume what seems to be an average starting account between $500 & $5,000. From what I have read the only way to go with an account less than $30,000 is micro lots, could somebody please explain why this is prefential to mini lots please?
2) Following on from above, I have looked at various brokers but the only one that seems to offer micro lots is Oanda, however they have very ugly java based software, is that a problem? or are there other broker options?
3) Staying with the same theme, when opening an account, one is asked what leverage to select, what should a beginner select? and can this be altered later?
4) I have also seen that there are 2 kinds of leverage, one is broker leverage and one is actual leverage? Explain please.
5) I have been playing around with demo trading and it seems I have no control over what leverage I use after the account is set up on a per trade basis, is this correct or just lack of knowledge of the software?
6) The last question is rather more involved: I would like examples of how various traders approach a trade, not signals for a good entry or whatever, that is seperate - let's assume that you have found your perfect entry point, now how do you calculate how many lots to buy/sell, where to set stop loss, how much trade will cost, potential profit and potential loss based on where you place your TP and SL, now it seems to me that this calculation is going to involve leverage, account value, which pair etc. How doesone figure all that stuff out quick enough to make a timely entry and set SL and TP correctly?
I know I am new and am asking a lot and will no doubt ask more and also that this information is probably all available here already, I am just having a hard time bring it together and would appreciate all the help you are willing to give.
Thank you in advance