PDA

View Full Version : Does having adequate account size help make a success?



cristinaez69
02-07-2016,
Hello Friends,
Especially Professionals.

Do you think having a good account balance helps alot in the long-run ?
Do you think its better to trade small with good account balance..
than rather trading huge with less account balance.

I would appreciate your advises.

CurtisMug
02-09-2016,
In times of micro/nanolots and Oanda (http://www.forexfactory.com/brokers.php?broker=oda) where you can trade entirely every size, account size doesn't matter.
Whats more important than the actual account size, is how much do you risk per trade in percentage (%).

Thats the only thing that matters. But remember the larger your account the larger are you profits.
Assuming you have a trading system with R/R = 1 and you take a risk of 2% per trade.

If you have an account of 200$, 2% equals to 4.00$, hm not that much.

But if your account is 50.000$ than 2% equals to 1000$ . Sounds much better, right?

And your question is a no-brainer if you think about it for a minute

crystapiccinichcqp
02-09-2016,
U have to understand what is ur main objective and goals first.
If ur a employed trader, lets say trading an account size of 2M, that's helpful, because if ur target is only to achieve 500k-1m per annum 25-50%. or even a 100-200%. We are talking about dollar over risk%

If ur a lone trader, a retail trader doing for urself primarily, if u want to live a comfortable life but only have 5-10k to trade with, then u have to be realistic in ur risk/money management, u can't possibly target $200-$400 everyday on a 5K account, as u may also be extending ur risks for gains. A sizeable account for 200-400 per day can be from 25-50k.

25k account - 2% risk is 500. 50k, 2 % risk is 1000.

200x20 = 4000 per month x 12 = 48k . 48 k /25 k = near 200%
400x20= 8000 per month x 12 = 96k . 96k/50k = near 200%

is 4k per month a good income? for general. yes.
is 8 k per month a good income? yes ofc.

czburtt
02-10-2016,
Money has nothing to do to with success in forex.
There is only one thing which makes you to be successful in forex.