Hi guys looking at opening up a $15000 MFGlobal CFD account need some info on this can you tell me 1st would $15000 be sufficient capital to fund and trade a CFD account?
Okay for starters i'm not going to be doing analysis myself i'll be learning (as i'm a beginner) but trading on trading recommendations from a reputable website.
So let's get into some calculations to see if i've got this right i understand +EV and risk management i just want to see if i have done the calculations correct.
Let's say i want to use 1% risk per trade to start this is $150 i'm willing to lose per trade and as i've seen i'll be losing majority of the time however the winning trades profit will outweight the losses provided analysis is correct.
Let's say i want to take a trade on 1000 JOE BLOW shares at $3 a share it's going to be a $3000 trade on a 10% margin 10:1 i'll be up for a $300 deposit correct so far?
Now if i have a 1% risk per trade i'm only willing to risk $150 on this trade as per my risk management strategy i'll be looking at putting a stop as i entry on this trade at $2.85 as 1000 x $2.85 = $2850
ie $3000-$150 =$2850 is this the correct way to calculate this?
Now as stated before i WILL NOT be punting i will be trading from a very reputable trader's recommendations AND stops will be used for risk management the plan is to follow the plan, yes slippage can occur. Is a margin of 10% as i quoted above to high with this capital ($15000) even with stops in place (as i feel the risk has been calculated for?) if so please advise.