Re: Bankroll for Forex
It depends on how actively you're planning on trading. If you're planning on making several trades a day I'd say plan on losing maybe 0.5% of your investment capital on any given trade at most, and hopefully you'll figure out what you're doing before you go broke. If you are planning on trading less frequently you could bump it up to 1% max loss/trade. Losing 1% of your IC on a single trade my sound like nothing until you figure out that a bad streak of say 20 losing trades/7 winning will set you back 13%, and that could accur in 3-5 days depending, like I said, on frequency. A bad month at 1% will demolish half of your entire investment capital, less if you scale down as your br diminishes. Plan accordingly.
Also, in the beginning focus on accumulation of knowledge/experience more than immideate paper profits which seriously will mean less than nothing in the long run.
Kirk
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