Formula for risking X percentage on a position...
Hey ,
That is my very first post in this forum. I wish I knew enough about what I was doing in order that my very first post was not in the kind of a quesiton, but it's what it is.
I'm new to Forex in that I have not gone yet. I have taken one FX online course that I believe now to have been a complete waste of cash. I have read Forex Made Easy by Dicks and'm in the process of reading Trend Following.
All this, and that I haven't discovered a formula to the following:
I want to risk X% (1,3,5,10) on a place. If every pip is worth Y (8-10, 1 on a mini) dollars, my risk reward is 1:2, but my trading range will be a stop at -10 pips and a limit at 20 for example, what leverage needs to be used and how many lots?
It looks like there ought to be a simple equation for this, but it seems evident I simply don't have the understanding of the workings of lots and leverage.
All help would be extremely well appreciated.