Weekly goal = 20% or $2,000 if your account balance is $10K. (I know…a 20% weekly increase is a pretty big goal. However, with the trading signals that you now have, this number is very doable!!!) Anyways, you should always, “Shoot for the moon. Even if you miss, you will still be among the stars.” — Kermit the Frog.
Percentage of account value invested in lots at any one time = 10%. ($10,000 X 10% = $1,000)
Maximum risk at any one time = 10% ($10,000 X 10% = $1,000)
Are you with me so far? (If I can figure this out on my fingers and toes then surely you can do it with a calculator…) Pretty simple, huh?
Now here we are with a mini-account balance of $10,000. We are going to invest 10% of our total account balance in 1 trade on the EUR/JPY. (If you are running more than 1 trade at a time, you should adjust accordingly.
Example: 2 trades = 5% each, 3 trades = 3.33% each, 4 trades = 2.5% each, etc.) In our case, 10% of our $10,000 account = $1,000, and we are buying the EUR/JPY. How many mini-lots of the EUR/JPY can we buy with $1,000? If we can buy 1 mini lot for $82.58, then we divide $1,000 by $82.58 which equals 12.1094 mini lots and we round down to 12 mini lots. (Always round down just to be on the safe side.)
Now you are asking, “Where do I find the current prices of the lots?” There is a link at the end of this document “currency-pair-information”. Click this link and you’ll find the pip value and lot cost, in both standard and mini, listed there. This information slowly changes as the market moves but the link will be updated at least twice a month. I’ll also explain how you can figure this for yourself, some time in the not too distant future. Now, let’s find out what your MAXIMUM STOP LOSS should be.
