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[FOREXFORKAREN]

I often read that trading off of longer time charts requires deep pockets and larger stop losses. So, for a mini account holder with an opening balance of $3000.00USD, would a 2 hour time chart be way too long for me to trade off of? EJ

[ampris2000]

i never heard of that. i don't want to either, i'd rather stay ignorant.

anyways, your account balance doesn't matter. It's the trading that matters. Whether you trade on the 1 minute or 3 hour. I myself trade on the 3 hour and my account balance is less than yours (soon it will be bigger) but I have found that I can make one trade and get 50-100+ pips a week on the 3 hour.

It shouldn't matter if you have 100,000 in your account or 3,000. The account balance doesn't effect (it shouldn't anyway) your trading strategies.

If you look at it it will. What I have done is turned off my account balance so it won't affect my decisions.

"Forget the money. Focus on being a good trader and the money will follow."

[mishak]

Hi FOREXFORKAREN, your are absolutely right and look mature with your approach to money management.

You may do the math this way:

1. determine what will be the typical stop-loss for your trading method - in pips (for example 30 pips). This may depend on your time frame.

2. calculate your loss in this case - multiply by pip value for your open position size (for example 1 mini lot, pip value = $1 approx., typical loss = $30). This depends on your leverage.

3. calculate the risk = what share of your initial capital do you loose in this case - divide by it. ( $30 / $3,000 = 1% ).

Conclusion - if your risk is less than 5% - you are OK.
if your risk is greater than 10% - you are in trouble, very risky.

(in our example if your open position is 1 standard lot, than your risk will be approx. 10% per trade).

Summary: $3,000 is sufficient for mini-lot trading.