||Forex Training - Risk Management||

How much should you trade from your free margin?

First of all, no more than 50%. I know that your free margin are not large amounts of money, so the only way to increase earnings is that you increase the amount put into the trade. Doing so and losing will only make it even harder to get back the money which you lost with whatever remaining margin. I Suggest the following stratergy to guage how much u are willing to risk.

Since we make average 100pips a week, u can double any percentage of your free margin. This is the percentage of your margin you would trade each time until u reach the 100pips for the week.

(For all examples, my free margin is $100)

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I want 20% returns every week (expecting $120 at the end of the week)

Trade 20% of $100 ($20) per trade for the week

Exponantial earnings for the month : $120 - $144 - $173 - $207

Risk - Low

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I want 40% returns every week (expecting $140 at the end of the week)

Trade 40% of $100 ($40) per trade for the week

Exponantial earnings for the month : $140 - $196 - $274 - $384

Risk - High

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The % you choose depends on the risk you are willing to take. You can choose any % from 20% to 50%, i do not recommend anything more than that. I myself use less than 10% (cause i have a larger margin duh)

Hope this helps and i expect to see a reduction in the amount of times you guys top-up your account because of insufficient margin