How to Open a Forex Trade and Calculate Position Size (For Beginners)

Поделиться
HTML-код
  • Опубликовано: 14 дек 2024

Комментарии • 93

  • @IFANKII
    @IFANKII 5 лет назад +1

    A question regarding trading with leverage. Do you calculate that 1-2 % from the amount of money with leverage or without?
    Maybe an example will clarify my question.
    Let's say I have an account with leverage of 1:50 and I deposit 1000 USD in my ongoing trade I want to risk 1%. Would I now calculate 1% from that 1'000 USD or from the 50'000 USD?

  • @ВикторГапонов-ц5г
    @ВикторГапонов-ц5г 7 лет назад +2

    I actually don't have idea what forex is but with your video presentation, I somehow got inspired and wanting to learn more. Thank you.

  • @brandonreser5809
    @brandonreser5809 6 лет назад +3

    Thank you. I had to watch this video a couple of times, but I finally understand.

  • @DemiGodsMusic
    @DemiGodsMusic 8 лет назад +1

    Really appreciate you taking the time to make this. I am sure more advanced traders soon forget how baffling this was in the early days. I feel I've made good progress in my understanding this week and am enjoying using the demo account. This video has really helped make perfect sense of calculating the position size. Thanks!

    • @Duomoinitiative
      @Duomoinitiative  8 лет назад

      You're welcome! There are many 'advanced' traders who also don't calculate their position sizes properly.

  • @fxslayer3
    @fxslayer3 3 года назад

    You explained it well. Thanks

  • @billfred_tg
    @billfred_tg 6 лет назад +1

    Thanks for the explanation. From this I created a google sheets document that will calculate the position size from my stop loss and show the P/L ratio and help me decide if a trade is worth going into. :D

  • @sabahresearch
    @sabahresearch 8 лет назад +1

    regards from Turkey , your video was so helpful

  • @ffrealestatezome
    @ffrealestatezome 7 лет назад +1

    Awesome Nicholas nice video!

  • @shahrinalam6994
    @shahrinalam6994 4 года назад

    Thank you bro.. That was very nice and well explained. Thanks for your good works..

  • @kareemismael6153
    @kareemismael6153 7 лет назад +1

    Exactly what I was looking for. Thank you!

  • @ffrealestatezome
    @ffrealestatezome 7 лет назад

    How do you take out the dotted lines of the tp and the sl from the chart in metatrader 4?
    Also, the MA that you use in this video or in general is exponential or simple? What value?

  • @meghanworkman6449
    @meghanworkman6449 6 лет назад

    Total newb here...thank you so much for this clear and detailed explanation!

  • @arjunrajesh8697
    @arjunrajesh8697 7 лет назад

    Hey Nicholas I really enjoy watching your videos as I am able to comprehend with them and also the interest you have invested in helping people in times of doubts also makes me really happy.This is also something I am willing to recommend to those who are new to the market and are keen on learning.
    My question about this video is when you opened the "new order" feature to open a trade,you executed the trade by clicking on the "Sell by Market" option why is that you didn't click on the "buy by market" option.Can you please tell me how and when each of these option have to be used.

  • @annap4991
    @annap4991 5 лет назад

    Thanks for the video!
    Which software are you using?

  • @arjunrajesh8697
    @arjunrajesh8697 7 лет назад

    How do you generate the number of points info using the crosshair feature.I tried it on my platform but I can't seem to generate the info.Please help.

  • @tresornadoumngar7881
    @tresornadoumngar7881 7 лет назад

    Thanks for this video, is as helped a lot!How does the leverage affect the risk percentage and how is margin calculated per leverage and risk taken?

  • @peiwei3873
    @peiwei3873 7 лет назад +1

    Excellent info. I notice that when I open a trade (going long) it opens at a higher point usually in the chart than where it was when I first clicked. I.e. the location where I got in is higher numerically on the y axis making it potentially more difficult to profit. Sorry if my terms are not correct I'm new to trading. Is there a way to limit this or make it more precise?

    • @babyucon
      @babyucon 6 лет назад

      That's because of the spread. The spread varies depending on the currency pair and your broker. I use Tradersway because they have the lowest spreads I've seen. Never use FXGLORY as their spreads are High as hell!
      Also, I'd discovered it's better to enter trades 2 hours AFTER the 2pm (west coast time) Daily candle open.

  • @anthonytaylor2524
    @anthonytaylor2524 6 лет назад

    What kind of indicators do you use?

  • @ryandraper1503
    @ryandraper1503 7 лет назад

    Hi man, probably a simple question, when looking at a exchange rate is 1 pip always valued at 10? But that then changes when you use it in your own formula due to the amount you trade?

  • @zoloob8839
    @zoloob8839 4 года назад

    thank you , learned something...

  • @DenzelLN936
    @DenzelLN936 7 лет назад +1

    So was this 0.2 mini lots or 0.2 standard lots?

  • @Hexarmin
    @Hexarmin 7 лет назад +1

    Thank you for this good tutorial. You are shorting. I was once at a workshop, where the teacher said that most profits are made by shorting (among experts), is that true?

  • @vertyTrades
    @vertyTrades 7 лет назад

    What do you think about Trading 212? I have a demo account and have been studying for a couple of months but kinda feel they may be sketchy to go live with. I also question how accurate their demo account is. I'm really profitable on it. Understand this is play money and the real physiology in Trading isn't applied but at the moment I'm using the demo account to learn about lot sizes, different currency pairs and see how the markets move every day with my EMAs and other indicators. I would like to go live soon but not sure if they are really very reputable

  • @mailsidney
    @mailsidney 6 лет назад

    thank you.very informative

  • @alanmv5
    @alanmv5 8 лет назад

    Nick do yo think we should close out positions before the trump ignaguration speech on Frida even though i dont have usd positions open only eurgbp and audcad.

    • @Duomoinitiative
      @Duomoinitiative  8 лет назад

      Depends on the expected time horizon for the trades. If you're talking intra-day or a few days, I would stay safe and exit the trades (I always exit before the weekend anyway). If you're looking at weeks/months, I wouldn't worry about it.

  • @mogalejohn2864
    @mogalejohn2864 7 лет назад

    This lesson was super fantastic

  • @Nico448
    @Nico448 8 лет назад

    Thank you It's was very helpful as you usual . I can't wait to watch more of your upcoming videos.

  • @muzzygully3144
    @muzzygully3144 8 лет назад +1

    Hi so how would you work out 1 pip in a currency would it be just working out what 10 dollars is in the currency chosen and that would be 1 pip.

    • @Duomoinitiative
      @Duomoinitiative  8 лет назад +1

      Hi there, this answer is copied from my answer to someone else:
      Simple answer: search for an online pip calculator and see the value there (some brokers have it built into the trade order window or trade terminal).
      Not so simple answer: Multiply the trade size by the pip value, then convert to your own currency. For example, in EUR/USD a standard lot is 100,000 USD, a pip is calculated as 0.0001. So 100,000 USD * 0.0001 = 10 USD. If your account was in GBP (for example) you would then convert this by dividing by the current exchange rate (1.23371) which in this example would give £8.11
      Most currency pairs have a pip value of 0.0001 but the JPY pairs are 0.01.

    • @muzzygully3144
      @muzzygully3144 8 лет назад

      The Duomo Initiative - Learn to Trade Oh okay Thank you do you have a Course or videos on RUclips on different forex trading strategys and can the Forex market make you a fortune with the right amount of capital and the right amount of risk management?

    • @Duomoinitiative
      @Duomoinitiative  8 лет назад

      The earning potential in the forex markets is unlimited, but it's better to be realistic about it. Even if there's no limit to what you can earn, most people will earn small amounts if they become profitable. Obviously a big part of this depends on how much capital you have.
      If you want to get started, it's best to sign up for our free mini-series www.duomoinitiative.com/freetradingtools

    • @muzzygully3144
      @muzzygully3144 7 лет назад

      Hi
      I'm Sorry to bug you but I don't know how to calculate the pip calculator can you either make a video or tell me on here.
      Many Thanks
      Gulam

    • @Duomoinitiative
      @Duomoinitiative  7 лет назад

      There are many online through brokers, e.g. this one I just found: www.fxpro.co.uk/trading/calculators/pip if you follow their guidelines, it should be quite self explanatory

  • @ramonparchment7
    @ramonparchment7 8 лет назад +1

    Thank you this was very helpful :)

  • @kpsunilkumar7070
    @kpsunilkumar7070 6 лет назад

    Thank You

  • @Duomoinitiative
    @Duomoinitiative  8 лет назад

    🔹 Get FREE access to the Duomo Trader Development Program: duomotrading.com/FreeDuomoTraining
    🔹 Add us on Instagram: instagram.com/duomoinitiative/
    🔹 Our second channel for financial news and analysis: ruclips.net/user/MarketMoversFinancialNewsandAnalysis

    • @mariaportugall1933
      @mariaportugall1933 6 лет назад

      +The Duomo Initiative - Financial Education This is just superb, been searching for "forex pips striker indicator no repaint" for a while now, and I think this has helped. Ever heard of - Menabeth Pips Parapraxis - (Have a quick look on google cant remember the place now ) ? Ive heard some incredible things about it and my neighbour got cool results with it.

  • @robprokop8036
    @robprokop8036 7 лет назад

    great video. thanks for your time. ;)

  • @jethrocerezo3667
    @jethrocerezo3667 7 лет назад

    Hi i was wondering .. i have a Demo account of 100,000 usd , my leverage is 1:1 , and i want to risk 1% . ive used a calculator btw . BUt im having problem , the calculator says that i should enter 2 Lot cus i my stop loss is 50 pips. BUt when im entering in the volume : 2 lots , it says that " NOt enough money " ?? is 2 lots not 200,000 ? so i guess thats his reason? but ive watch your video , you have a balance of 10,000 usd and you enter 0.2 lot , isnt that means (20,000) ? please help thanks

    • @Duomoinitiative
      @Duomoinitiative  7 лет назад

      Hi Jethro, if your leverage is 1:1 the most you can open is 1 standard lot. You can open less than that but not more, if you open more you would need leverage.

    • @jethrocerezo3667
      @jethrocerezo3667 7 лет назад

      Oh okay thank you for responding immediately! Really Appreciated you guys! btw , what is the leverage that you recommend ? and i thought leverage is a bad thing ? isnt it ? cus it might double your profits and also risk?

    • @Duomoinitiative
      @Duomoinitiative  7 лет назад

      Leverage isn't necessarily bad, as long as you are sensible with it. As a beginner we would recommend going no higher than 1:100 and if you are a more experienced trader then 1:200 can be acceptable. We would still only recommend risking 1-2% of your account per trade.
      This video may help: ruclips.net/video/WRL9HRs3wTk/видео.html

  • @irmzgracie
    @irmzgracie 7 лет назад

    How do I actually take my profit - is it by closing the trade?

    • @Duomoinitiative
      @Duomoinitiative  7 лет назад +1

      Yes exactly. At that point the profit will be added to your balance (or loss deducted from your balance).

    • @os2841
      @os2841 7 лет назад

      Yes

  • @Emadaln1st
    @Emadaln1st 8 лет назад

    I am also using the MT5, but I don't know how to remove the arrows that came out when i put an order and exit.
    So how can i remove it
    And really thanks your channel are the best and u also 😁👑

    • @Duomoinitiative
      @Duomoinitiative  8 лет назад +1

      Tools > Options > Trade ... then untick the box that says "show realtime history of deals on chart"
      If you have existing trades being shown on your chart then you'll need to remove the arrows manually. Right click on the chart and select "object list". The arrows may show up in that list, if they don't then you may have to click "list all" and they will show... then just delete them all.

    • @Emadaln1st
      @Emadaln1st 8 лет назад

      Man you are the best and thank's for providing all that helpful information to all of us

  • @muzzygully3144
    @muzzygully3144 7 лет назад +1

    Hi
    How would you find the current rate exchange of a currency.

    • @Duomoinitiative
      @Duomoinitiative  7 лет назад

      It depends which currency you are looking to exchange against. If you want the live prices, you can find them through your broker (e.g. EUR/USD is just the exchange rate between euro and us dollar, so it depends which currencies you want to exchange between). If you want the retail exchange rate or an approximation, you can use a site like XE.com

  • @bitcoincrypto2405
    @bitcoincrypto2405 7 лет назад

    Want to learn more

  • @phenyosebogodi2603
    @phenyosebogodi2603 2 года назад

    why 1pip equals to 10usd?

  • @rosswalther2538
    @rosswalther2538 6 лет назад

    I've been trying to find a book that breaks this calculation process down. So far no luck. Does anyone know of one?

    • @elconejito99
      @elconejito99 5 лет назад

      If you find one Lmk plz 🙏🙏🙏

  • @aa-om2dt
    @aa-om2dt 4 года назад

    i dont understand how do you calculate postion size if the price is moving constantly

    • @ibrahimdogaraalebura688
      @ibrahimdogaraalebura688 4 года назад

      I've just discovered a great BROKER on ¡Nstagram he trained me and I got double my profits in 3 days I invested $1,000 and got $3,500 in 3 days this (Walhackk) has a. Perfect investment plan

  • @dook2317
    @dook2317 7 лет назад

    Very easy.. why don't you take a stop loss at 135 pips, and a 10.000 USD account. With a position on the GBP/NZD..
    That would really teach us something..

  • @prakash2360
    @prakash2360 6 лет назад +1

    bro...always 1pip = 10usd ?

    • @Duomoinitiative
      @Duomoinitiative  6 лет назад +1

      No not always, it depends on the currency pair.
      - Nicholas

    • @babyucon
      @babyucon 6 лет назад

      PRAKASH RAJ He's talking about "1 Standard Lot" position size which usually equals $10 a pip
      Example
      $1 a pip = $.10c lot
      $2 a pip =$.20c lot and so on.

  • @time8101
    @time8101 8 лет назад

    Dont even trade yet i'm watching you but dont regret it ether have a great day

    • @Duomoinitiative
      @Duomoinitiative  8 лет назад

      Time... to start trading!

    • @time8101
      @time8101 8 лет назад

      do you have a video for small about of money trading ? because i get money here and there but thats about it

    • @Duomoinitiative
      @Duomoinitiative  8 лет назад

      If you check out some of our live trade videos: ruclips.net/p/PLnLi8MK-orCGtcm7DewBrdaN4DJ5vzsa5 some of these were done on small accounts, or aimed at small accounts. There will be more videos about that topic in the future.

  • @kyte_96
    @kyte_96 7 лет назад

    how did you know it was 50pips??? i was trying to find out how many pips but idk how you did it?????

    • @assassinboym
      @assassinboym 7 лет назад

      Da MATT ATTAK he used that crosshair tool

  • @Injabsful
    @Injabsful 6 лет назад

    hi man i cant subscribe for your free trading videos it showes like submiting for 15 minutes allready :D

  • @AM-cp5vk
    @AM-cp5vk 7 лет назад

    I wish I was old enough to trade

  • @AussieGirl235
    @AussieGirl235 4 года назад

    Why are you talking about contracts??

    • @ibrahimdogaraalebura688
      @ibrahimdogaraalebura688 4 года назад

      I've just discovered a great BROKER on ¡Nstagram he trained me and I got double my profits in 3 days I invested $1,000 and got $3,500 in 3 days this (Walhackk) has a. Perfect investment plan

  • @2012SIAMAK
    @2012SIAMAK 5 лет назад

    Wrong pip value
    Should be $1 not $10

  • @rickstacy22
    @rickstacy22 6 лет назад +1

    this is for beginners and you say we know 1 pip is $10 dollars , but we dont know this , why is 1 pip $10 us dollars

  • @honeytherat2017
    @honeytherat2017 4 года назад

    Im petrified of doing a trade

    • @Duomoinitiative
      @Duomoinitiative  4 года назад

      The fear will go away with experience, just focus on progressing one step at a time, you don't need to know it all straight away. You're going to do great!

  • @syedhaider4951
    @syedhaider4951 7 лет назад

    so what is the outcome of the trade. You should basically demonstrate the live market movement. such explainations have got no value at all. Its just waisting the time of views. If you are so confident then a practical and live trade set up is required. Not just this type of demo demonstration. Time is very precious and if the people give you respect and allow some time to dedicate you then come up with concreate demonstration. this demonstration trust me has got no value at all.

    • @Duomoinitiative
      @Duomoinitiative  7 лет назад +4

      The video is called "How to open a forex trade and calculate position size". I think the video quite accurately shows that, so I don't think I've wasted anyone's time. If you already know how to open a trade and calculate position size, this video is clearly not for you, but as you can see from the comments section this video did have value for beginners.
      The example chosen in the video wasn't necessarily a trade opportunity, it was just a situation used to explain how to calculate the position size. If you want to see live trades, we have plenty of videos that show that on this channel too.