Dear Diary,
Who would have believed Money Management was so important? That was real revelation for me and I cannot wait to try it out on some trades in my Demo account. So far I have just been opening and closing demo trades with a set position size but now I should practice calculating position size using MM before, so I can enter the position quickly with the right size lot. From the looking around I have been doing, almost all brokers let you have a position size that is not restricted to individual lot sizes. That makes it a lot easier to get some account growth going and be more flexible.
I will use the Excel spreadsheet that the StraightForex guys gave me - all I need to do is select the pair and put the latest exchange rate in as well as my account size and it tells me what position size I want – easy! I have it set at 1% for each pair with a maximum exposure of 3% of my account as do not want to risk too much too early before I really get the hang of the new system. Not that it really counts as it is in a demo account but I think it is important to keep it as close to real life as possible so the jump to a real account is not so hard.
Going to do some trading now as the Euro session is just starting. Will look at the mapping levels we heard about in the last lesson but will leave you with the usual joke
One day a stockbroker was riding in his limousine when he saw a guy eating grass. He told the driver to stop. He got out and asked him, "Why are you eating grass?" The man replied, "I'm so poor, I can't afford a thing to eat." So the stockbroker said, "Poor guy, come back to my house." The guy then said, "But I have a wife and three kids." The stockbroker told him to bring them along. When they were all in the car, the poor man said, "Thanks for taking us back to your house, it is so kind of you." The stockbroker said, "You're going to love it.
Who would have believed Money Management was so important? That was real revelation for me and I cannot wait to try it out on some trades in my Demo account. So far I have just been opening and closing demo trades with a set position size but now I should practice calculating position size using MM before, so I can enter the position quickly with the right size lot. From the looking around I have been doing, almost all brokers let you have a position size that is not restricted to individual lot sizes. That makes it a lot easier to get some account growth going and be more flexible.
I will use the Excel spreadsheet that the StraightForex guys gave me - all I need to do is select the pair and put the latest exchange rate in as well as my account size and it tells me what position size I want – easy! I have it set at 1% for each pair with a maximum exposure of 3% of my account as do not want to risk too much too early before I really get the hang of the new system. Not that it really counts as it is in a demo account but I think it is important to keep it as close to real life as possible so the jump to a real account is not so hard.
Going to do some trading now as the Euro session is just starting. Will look at the mapping levels we heard about in the last lesson but will leave you with the usual joke
One day a stockbroker was riding in his limousine when he saw a guy eating grass. He told the driver to stop. He got out and asked him, "Why are you eating grass?" The man replied, "I'm so poor, I can't afford a thing to eat." So the stockbroker said, "Poor guy, come back to my house." The guy then said, "But I have a wife and three kids." The stockbroker told him to bring them along. When they were all in the car, the poor man said, "Thanks for taking us back to your house, it is so kind of you." The stockbroker said, "You're going to love it.
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