MoneyTec 2.0 - Online Forex Traders & Brokers Social Networking Community » Trading Talk » Beginners Forum

[issi1206]

Hi there, I know I´m being pretty optimistic when I say 10% month but I´m still trying to get hold of the leverage thing and the pip value.

Let´s say you have a 100K (Standard Account) Leverage 1x1, How many pips per month do you have make to return 10% of your investment?

Warmest regards, Ásgeir

[firedave]

Originally Posted by issi1206

Hi there, I know I´m being pretty optimistic when I say 10% month but I´m still trying to get hold of the leverage thing and the pip value.

Let´s say you have a 100K (Standard Account) Leverage 1x1, How many pips per month do you have make to return 10% of your investment?

Warmest regards, Ásgeir

Well, if you have 100K standard account, 10% mean 10K. With leverage 1:1 mean you trade 100K lot size so the pip value is 10$ per pip. We just divide 10K with 10$ equal to 1,000 pips. Hope this help

[issi1206]

Yes indeed.

Well about the leverage. I see some offer 400:1 which is pretty dangerous. What would you guys think that the average trader uses for leverage. 5:1? or?

[fxmkt]

I wouldn't say average trader, because that all depends on your own risk tollarance.

[capsmart]

The lower the leverage the longer you last....
I would suggest that you set a longer target (year).
If you make 10% a month then the result after 12 months is .... 313843 since you will certainly "reinvest" your profits.
Do not fool yourself.
Regards

[forexc]

Originally Posted by issi1206

Yes indeed.

Well about the leverage. I see some offer 400:1 which is pretty dangerous. What would you guys think that the average trader uses for leverage. 5:1? or?

It depends always on your trading system, and as a general rule I prefer to avoid extreme leverage

[jezek5]

I do not understand why so many traders are so against high leverage,400/1
yes thats a bit mad but if you use say 100/1 on a mini account and your discipline is good you can do well.
Just my 2 pence worth.

[ddtrade]

the important thing is the average net pips earned per trade.

high leverage is risky

but you may trade 8 lots for 1:50 leverage or 4 lots for 1:100 or 1 lot for 1:400 leverage all makes the same p/l

[gyda62]

Originally Posted by issi1206

Hi there, I know I´m being pretty optimistic when I say 10% month but I´m still trying to get hold of the leverage thing and the pip value.

Let´s say you have a 100K (Standard Account) Leverage 1x1, How many pips per month do you have make to return 10% of your investment?

Warmest regards, Ásgeir

Hi Asgeir
Interesting to see someone from iceland, send me an email on gyda62@bigpond.com .

Regards Helgi

[mishak]

Originally Posted by jezek5

I do not understand why so many traders are so against high leverage,400/1
yes thats a bit mad but if you use say 100/1 on a mini account and your discipline is good you can do well.
Just my 2 pence worth.

Well, if your money management is good you'll probaly discover that you Real Leverage is 1:40 - I mean you do not open positions for the full strength.