Forex: What Are The Best Pairs To Trade With A SMALL Account? and you’re starting out with a smaller account and also some of the pairs you should avoid, like the plague, if you were a beginner, starting with a small account before we get started to do some really scary math. So let’s take a look at the board.
Let’s say you’re a beginner, starting out with a 100 dollar account. Let’s say you’re trading on a currency pair that moves a ton. You’re making this mistake. AND trading on a volatile currency pair with a small account and you’re just starting out. You’re trading let’s say that pair is the pound yen.
1. Forex: What Are The Best Pairs To Trade With A SMALL Account?
Let’s say the pound yen is moving. One hundred pips on average on the four hour chart. You’re a normal trader. So you enter the close of a candle, you put your staples safely below that candle and that gives you a 100 stop loss. Here’s the scary part for most brokers on a minimum, allow you to trade zero point zero one. Most brokers minimum size for you to trade is a micro lot.
get to know me ai marketing website explanation
So what is a microblog that’s 10 cents per pin now for that 10 cents per pip, about 100 pips. That means that this trade is a ten dollar risk on your account. And I know ten dollars doesn’t sound that scary for most of us, but on a one hundred dollar account, ten dollars is a 10 percent risk. risking 10 percent every time you place a trade, you are setting yourself up for an absolute disaster.
Best forex pairs to scalp
And that is why in today’s video, I want to talk to you about the pairs you should be avoiding. If you’re a beginner with a small account and some of the pairs that are more safe to trade, that can help you avoid this type of detrimental situation for your account. That sounds interesting.
2. Forex: What Are The Best Pairs To Trade With A SMALL Account?
Make sure you subscribe. We come up with content like this each and every week. Is the red button below the video. Click the notification bill and make sure to click the like button for me while the intro disclaimer role to help out with the YouTube algorithm. I’ll see you on the other side of the disclaimer to talk about the best currency pairs for a beginner, starting with a small account using.
Welcome back to the video and let’s do a quick example to prove this point. So let’s say we have a really simple strategy. Our strategy is we train when a candle closes above the 50 day moving average. We put a stop below the low of that candle. And it doesn’t matter what our target is for the sake of this example. So let’s go ahead and do that here on the pound. Yet right now, we’re on the Paonia, and that’s the paper we were talking about earlier. We have our entry. Our stop loss goes below below that candle, let’s say about 10. Fifty seven.
3. Forex: What Are The Best Pairs To Trade With A SMALL Account?
That would be a sixty seven pips topples at this point. Do less use the same example. Let’s say that you have a 100 dollar account your broker makes you the minimum you can trade with is a zero point zero one, which is normally equal to about 10 cents per pin. If we have a sixty seven BEP stop loss, then what we have to do is multiply sixty seven pips times our ten cents. And what this is going to do is give us our risk on this trade, that means that we’re risking six dollars and 70 cents on this one trade. This is on the pound yen with this particular situation. Right.
And with this being the case, six dollars and 70 cents, I know again, does not sound like a lot of money, but on a 100 dollar account, that’s a six point seven percent risk. And to give you context, personally, I never risk over two percent on any trade. Sometimes I risk much less than that, depending on how confident I am on that trade. And I’ve been trading for a decade. I’m on my tenth year right now. So if you’re starting out as a complete beginner, you’re probably going to lose a few more trades than I do.
And if you’re losing at six point seven percent instead of at two percent or lower, your chances of blowing that account are very high. This is the reason a lot of traders blow accounts. So pound yen is going to fall under the category of the pairs you want to avoid if you are starting out with a very small account. Now let’s switch roles. Let’s flip the coin and land on the other side and talk about some of the pairs that are better for this type of situation.
4. Forex: What Are The Best Pairs To Trade With A SMALL Account?
And then I’m going to dive into what you need to be looking for, specifically on currency pairs to fall under the category of the pairs that you should be trading as a beginner with a small account. So let’s jump over now to the Canada with let’s say we have the same exact strategy. But the last time here on this bear was a bearish version of the strategy. We have a market that closes below the 50 day moving average. Our entry is the closer that candle or Stop-Loss is above the high of that candle. So let’s go ahead and set that up.
We have an injury at the close of the can stop loss above. I will do the same 10 pitstop balls above the high of that candle, which would be 18 bits. And again, for the situation. The target doesn’t matter. But in this case, say you’re in the same exact position, right? Hundred dollar account microlight, zero point zero one. You’re risking 10 cents per trade. Thom’s your 18 pip stop loss.
That means you’re risking a dollar eighty six in this case and nothing really has changed. You’re trading the same exact strategy. The only thing that changed was the currency part of your trading that strategy own. And because of that, you were able to put yourself at a one point eight percent risk, which is much, much safer than your six point seven percent risk you had on the pound yen. And the only reason for this difference is because of the volatility of each of these markets.
5. Forex: What Are The Best Pairs To Trade With A SMALL Account?
Some peers trade at a very high range, meaning like on the pound yen, the range of those candles is very large on an hourly chart, whereas on the candidates with you’re a lot safer with your stop loss of your trading with a small account.
And let’s talk about now, since you have a good example of what I’m talking about, let’s discuss how we actually find out which pairs we should trade. So in order to find out which pairs you should trade, you need to get really familiar with the 8R or average true range indicator is available on all platforms on trading.
Best forex pairs to scalp
You just go to indicator’s type in average and it will be there is the second one down average free range. Apply it on your chart. And the reason we need this indicator is because it measures the volatility. What does indicator does is gives you the average.
I don’t know why I started with the avg average of the last 14 candles. So what that gives you is a good idea as to how much that market’s moving. And if you’re trading with a really small account and you have a minimum lot size of zero point zero one, a micro lot and you’re trying to reduce the risk you have, the best idea is to start trading currency pairs that have a smaller 8R because at times the volatility in the markets change. And you already know that, I’m sure.
6. Forex: What Are The Best Pairs To Trade With A SMALL Account?
And with that being the case, what we need to do is be able to measure the volatility of the market that we’re going to be trading in so we can manage that risk and manage our stop loss. And with a small account, if you’re a beginner with, let’s say, one hundred dollar account, this is something that’s going to be very important to your trading. It’s something that’s going to help you stay away from blowing your account and hopefully ultimately help you to stay in the markets long enough to learn what you need to learn and become eventually a professional and profitable trader. So that’s the whole point of this, is to stay in the market longer.
You’re going to make mistakes as a beginner. You don’t want to be risking six point seven percent, 10 percent per trade on these really volatile pairs in that case. And the way we find out if a pair is volatile is, of course, the 80 hour indicator a good rule of thumb.
Best forex pairs to scalp
Would be to tell yourself that you’re not going to trade on a pair that has over a 20 8R if you’re trading on the hourly chart, you can find a few pairs that that is the case with some of the pairs that you might think about are the euro dollar, Canada, Swiss. The euro pound normally has a very small 8R or small range, those candles in, so those are kind of the top three in terms of small ranges where if you have a smaller account.
you can make yourself safer in terms of risk. And some of the ones to avoid would be any pair with a 8R above 20, up between 20 and 30 and higher that those are the types of pairs you don’t want to be trading. If you have a tiny account and you have like a 100 dollar account, you’re a brand new trader, you’re going to make mistakes. You’re going to blow in that account.
7. Forex: What Are The Best Pairs To Trade With A SMALL Account?
If you consistently try to trade those highly volatile markets, especially if you don’t know what you’re doing it. And as a beginner, I didn’t know what I was doing. So you probably fall under that category at the moment if you are a beginner trader, someone that’s just starting out. So use that 8R indicator when you start to trade, if you have a small account and it’ll help you stay away from blowing your account, ultimately help you stay in the market longer, learn what you need to know and become a professional trader. Hope you enjoyed that video.
If you did, make sure to subscribe by clicking the button down below. Make sure you include that like button for me to help out with YouTube’s algorithm. Me a comment. If you have something that you have questions about in terms of what currency pairs to trade and also leave a comment letting me know what you want to see next out of us here at the trading channel. Hope you have a great rest of your week. Trey Greene and I will talk to you next time.