please start with as small leverage as possible in whatever you do trade whether it be forex or ? see if after a month your methodology is able to make money without blowing up and without too many attempts to overtrade or self - sabotage keep a journal good luck
Exactly, leverage of 100:1 or even 200:1 is not recommended, you can blow your account quickly. So 50:1 is sufficient, don´t believe the advertising of FXCM and others.
a lot of people got blow up by 2 : 1 stock margin trading , it's not the high leverage it counts , it is depend on how you use the leverage .
With 200:1 newbies think they can trade more lots, so higher risk with an undercapitalised account -> margin call. But you are right, if you use the same lot size it doesn´t matter.
yes. it's all about the risk management . but higher leverage gives you the more buying power in case you have some losses in a row . you are right about the newbie , it is only good for the person with good money management and experience .
I agree. Many brokers try to irritate their potential customers with high leverage, but there are other things which are more important, like fills, stability, reliability, no freezing during news a.s.o.
- Open an account with an ECN. Hotspot, MB, IB etc. as earlier posts state. Also, having lower than 100/1 leverage isn't a bad thing. Professionals will often only trade 15/1.. sometimes less. I personally trade 20/1 and it is working out just fine. The last thing you want is to use 45k and lose large chunks because you are putting too much into your trades at 100/1 . 45k x 20 = $90/pip with one trade. Splitting that into 5 different open trades at a time is still nearly $20/pip. That is certainly enough. Of course this $ figure changes depending on pairs that you trade. You get the idea though . Just my opinion. I would certainly not suggest using all your money though. 1/5 even 1/10 will be sufficient to grow your account substantially if you are a decent trader.
Only thing I have to mention is the broker. Cannot speak for Hotspot or MB, but forget about IB Interactive Brokers for Forex, thats crab. As I mentioned in other threads you get no good fills, but worst of all, they don´t pay for their own faults, they are waisting YOUR money, so keep away and be warned!
You made money on the demo so now you feel confident that you can make money for real? Open a very small real account ($2000) and see how it works out. You'll find that the decisions you made with the demo are probably not decsions you'd make with real money on the line.... As far as trading against you is concerned, brokers are allowed to do that as long as they disclose that fact to you. I never worried about brokers competing against me because if I know what I'm doing, then they can't beat me. Don't throw your $45,000 into the currency market just yet. I'd hate to see you post a message on here in a few weeks like the one I posted a few months ago: http://elitetrader.com/vb/showthread.php?threadid=68647 Losing money is probably necessary for any eventually successful trader. But I dont' think you need to go through what I have gone through. Don't get me wrong, I wouldn't trade the experience for hte world givent he fact, now, that i've made most of my money back because I've learned so much from the experience. I just don't think everyone can handle what I've been through.....it's not for the faint of heart... Then again, not everyone is cut out to be a trader either....
for my personal experince , i have account with oanda ,fxol , gft ,fxcm, adm and odl , i'll recommend them in order odl adm-currenex oanda fxol gft fxcm or may be oanda before the odl and adm for the interest they paid . but compare to trading and other things....