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Post of the Day: Trading a Smaller Account

By Richard Krivo, Trading Instructor
23 February 2009 05:50 GMT

Power Course Instructor's Response:

A swing type of strategy, as noted below, might be th emost favorable.

Also, trading less volatile pairs such as the AUD/NZD, EUR/GBP and CHF/JPY would be the best as opposed to more volatile pairs such as the GBPJPY or the GBPAUD. From the Money Management side, and this would be true no matter what the account size, never risk more than 5% of your account at any one time and have a 1:2 risk reward ration in place on each trade.

Entering off of smaller time frame chart, say a 1 hour, would be preferable to taking trades off of the daily or teh 4 hour chart as they would require deeper stops than a smaller account might allow.

You may find the information below to be helpful as well..
chart 2 22 09

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23 February 2009 05:50 GMT