Misunderstanding on how I should invest my money

[Guest Edhem]

 

Hello everyone

I have a capital of 2000 Swiss francs and I wish to trade the mini USD/CHF. When I take out a contract with 10 stop loss points, I see that you need to have a cover of .... 92.18 francs! It means that you must have a capital of 9218 francs if I want my position to be 1% of my capital? Me I thought that it was necessary to have 2000 francs minimum because on the mini USD/CHF 1 point is worth 1 francs and therefore with 20 points I accept a loss of 20 francs which represents 1% of my capital and I try to get ratios of 2.5 or 3 (I do DayTrading).

So my question is as follows: Should I base myself on the cover that my position requires to know how much I will invest my capital or should we base ourselves on the value of the point in francs?

Thanks for reading. I hope to get clear answers :)

[dmedin]

Can you copy and paste in plain text so that it does not veer off to the far right of the screen?

[Caseynotes]

3 minutes ago, dmedin said:

Can you copy and paste in plain text so that it does not veer off to the far right of the screen?

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Posted 3 hours ago

 

Hello everyone I have a capital of 2000 Swiss francs and I wish to trade the mini USD/CHF. When I take out a contract with 10 stop loss points, I see that you need to have a cover of .... 92.18 francs! It means that you must have a capital of 9218 francs if I want my position to be 1% of my capital? Me I thought that it was necessary to have 2000 francs minimum because on the mini USD/CHF 1 point is worth 1 francs and therefore with 20 points I accept a loss of 20 francs which represents 1% of my capital and I try to get ratios of 2.5 or 3 (I do DayTrading). So my question is as follows: Should I base myself on the cover that my position requires to know how much I will invest my capital or should we base ourselves on the value of the point in francs? Thanks for reading. I hope to get clear answers

[Guest I reposted]

Hello everyone

 

 

I have a capital of 2000 Swiss francs and I wish to trade the mini USD/CHF. When I take out a contract with 10 stop loss points, I see that you need to have a cover of .... 92.18 francs! It means that you must have a capital of 9218 francs if I want my position to be 1% of my capital? Me I thought that it was necessary to have 2000 francs minimum because on the mini USD/CHF 1 point is worth 1 francs and therefore with 20 points I accept a loss of 20 francs which represents 1% of my capital and I try to get ratios of 2.5 or 3 (I do DayTrading).

 

 

So my question is as follows: Should I base myself on the cover that my position requires to know how much I will invest my capital or should we base ourselves on the value of the point in francs?

 

 

Thanks for reading. I hope to get clear answers

 

[dmedin]

LOL

Okay my advice is, don't do day trading.  Try investing first.

There you go.

[Caseynotes]

3 minutes ago, dmedin said:

LOL

Okay my advice is, don't do day trading.  Try investing first.

There you go.

☹️

[Caseynotes]

3 hours ago, Edhem said:

Hello everyone

sorry if I've misunderstood the question,

account = 2000, will risk 1% on a 10 point stop trade = 20 CHF risk (stop loss).

On the platform you can see that 20 CHF risk is equal to 2 mini contracts trade size.

To cover the trade you need 653 CHF margin in your account.

So start with the amount you are willing to risk then work backwards to see what trade size that equals.

https://www.earnforex.com/position-size-calculator/