What is the perfect % of total equity should I use per trade?

A lot of traders have no clue how to use proper trading sizes per trade especially when they are trading live markets. That is the exact point of mistakes done by most of the traders. These cause them loosing money in Forex. We have to know proper money management & trading plans.

Every trading strategy must be taken into consideration of the maximum percentage of total trading capital that risk should be taken on any one single trade. They shouldn't risk too much money on any given any single trade which is very essential for a trader. The following rules are very important in order to survive financially in Forex trading. Your trading size should not be grater as 1/10th of your account size.

For instance, If your account size is 10.000 Dollar than your trading size can be 1 Lot, (or 10 Dollar per Pip)
On an 1000 Dollar account your trading size should not exceeded 0,1 Lot (or 1 dollar per Pip).
On an 100 Dollar account your trading size should not exceeded 0,01 Lot (or 0,1 dollar per Pip).

To keep these things into simplest form, I repeat:
1 Lot buying/selling are 100.000 Units of a currency. Pip value = 10 Dollar
0,1 Lot buying/selling are 10.000 Units of a currency. Pip value = 1 Dollar
0,01 Lot buying/selling are 1.000 Units of a currency. Pip value = 0.1 Dollar

With an account size of 100 dollar and you trade with pip value of 1 dollar, only 100 pips are needed and your account is empty. You lost all! As you can see to adjust the trading size to your account size is very essential.

But why they are doing this? Here is a psychological effect on trading. First they trade with lower as 1/1000 of account size. Than some losses occurred. Account size melt down to 70%. At this level people changed there risk and trade with 1/300 ( that mean trade size is 3 times now bigger as before) and they loss again. After account size is 50%, suddenly the risk grows exponential, and they trade with 1/100 or less from account size.

Let us see this as an example now with numbers. Suppose we have an account size of 1000 dollar. As I said above, we should not trade more than 1/1000 account size, that's 1 dollar /pip. (0,1 Lot). If we loose 300 dollar and have now an account size of 700 dollar. (70%). At this point we start to trade with 1/300 of account size.2,33 Dollar/pip (300 pip lost and we blow our account). We trade it & and make loss 200 dollar. Account size is now 500 dollar. Now we expanded the risk and trade with 1/100, that's 5 dollar/pip. Now we can't loss more as 100 pips, because at this level our account is going to be empty.

On a 50% account size the chances of losses are so strong for most traders and they will now attempts to recover the lost money with 1 or 2 trades. That's the reason why they blown up their accounts. I will not call this greediness, its only fear of loss. These traders can't accept losses anymore

psychologically. If they really want to survive, they must have to work on proper trading strategy and modify it again! If it's proved, than start trading with very small sizes and tries to win more trades. After winning a bunch of trades they would increase trading size easily.

Delphi Scalper Review

Delphi Scalper is the recent forex scalping machine to be released via Forex Impact and Jason Fielder of Triad Trading Formula, Correlation Code and Forex Executor Pro.

The Forex market scalping strategies were available for fairly a while in the market. Alternatively, a majority of these scalping strategies are deemed high risk as traders are practically out and in trades quickly starting from a couple of mins to a few hours. Some traders will also jump into trades hoping for speedy profits whilst the market is trending all of the way up or all of the way down and got stuck whilst the market retraces or reverses earlier than they realize it.

To be successful in scalping the foreign exchange market, a few conditions should be met to qualify the trade setup to be high probability of success. We want to recognise which trading hours of the day have essentially the most pip movement to lock in enough pips profit and we additionally need to establish which currencies are gaining or losing in potential as they make excellent choice for scalping. When we obtain affirmation from price action and key make support and resistance ranges, we will be able to make certain of higher likelihood trades.

Examining the marketplace for each and every currency pairs and going through all of the indicators to spot potential trades can be tedious and time consuming. By the point a trade is being identified, the remainder of the opportunities might be lost on other possible scalping pairs.

On the other hand, Delphi Scalper is a system that identifies high probability trades for us via their custom indicators and easily presenting potential trade setups by indicating entry on the trading platform. All that needs to be done is to look forward to the sign to go into the markets for various forex pairs.

All that is done by way of choosing the trading hours with essentially the most price movement, picking which forex is gaining in potential against the rest of the currencies so that this is a excellent forex to scalp. Technical indicators will assist to make sure the probability of the trade and price action with corresponding key support and resistance ranges will make sure that all conditions should be met prior to issuing a sound setup notification.

With the Delphi Scalper machine in place, we will better predict the trading hours to focus our efforts on and at the same time quickly establish all conceivable forex pairs available for scalping any given day. The primary benefit of the Delphi Scalper is that it takes away our emotions while scalping knowing that the highlighted setups are top probability trades with obviously outlined rules of engagement.

Delphi Scalper method is presented in a simple to apply structure in order that it's easy to understand methods to implement it. Jason Fielder is a good instructor and mentor and he provides a clear training series with video and webinars so that the system can be learned fast and applied effectively. The customized indicators are easy to use and can narrow down the most profitable trade setups.