well...anoder confusion...in above trade...$2.93 profit was when u entered with a $1000....if u enter with 1/2 a mini lot(meaning $500), ur profit wud have been 2.93/2= $1.465
Thus, on one mini lot, a 20 pip movement(approx) would fetch you $1.465 for EURGBP.
In order to make 5% of ur account..that is 5 % of $500,which is $25, u wud need to make approx 20 such trades....which means 400-500 pips a day!!!!
I am not saying its not possible and all...so many currency pairs etc....it is very well possible....
All I am saying is, its much much more difficult without leverage...I think leverge is a double edged sword in Forex....If you can use it well, u can trade in huge profits...if not, it can kill u in very short span of time....
Happy Trading
Thus, on one mini lot, a 20 pip movement(approx) would fetch you $1.465 for EURGBP.
In order to make 5% of ur account..that is 5 % of $500,which is $25, u wud need to make approx 20 such trades....which means 400-500 pips a day!!!!
I am not saying its not possible and all...so many currency pairs etc....it is very well possible....
All I am saying is, its much much more difficult without leverage...I think leverge is a double edged sword in Forex....If you can use it well, u can trade in huge profits...if not, it can kill u in very short span of time....
Happy Trading
But then, I said 1/2 mini not micro so it is basically $5000 trade.
For easier understanding lets start over. This would follow an example of a scalp trade.
My account size = $1000
My risk appetite = 2% = $1000 * 2 /100 = $20
My preferred lot size = 0.1 (This is a $10000 trade and -20 pips move would be well enough for my risk appetite)
Leverage used = 10:1 (As, I am opening a $10000 trade on $1000 a/c)
Daily target: 5% of $1000 = $50
My trade: Sell EUR/USD @ 1.3394
SL: 1.3414
TP: 1.3474
TP achieved. 1.3394 -1.3374 = 20 pips = $20
So, I can achieve my 5% a day target by 2-3 trades.
Please ignore the ever changing account sizes. I am not very good at examples.
and Yes, it would be difficult to achieve those targets without leverage but that is the reason you need solid MM rules in addition to high probability setups to win you 70% of trades.
I use leverages only in a very high probability conditions like RSI crossovers when I am damn sure about the move.