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Risk management and position size
Jan 18, 2021 at 16:50
Member Since Nov 19, 2017
39 posts
Just curious to see how others manage their risk and position size
Do you trade a fixed Lot size of lets say three lots and then determine if the trade setup is within your risk % parameter? If not, you don't take the trade.
Or do you trade with a fixed risk percentage and adjust your lot size accordingly and take every trade thrown at you?
Do you trade a fixed Lot size of lets say three lots and then determine if the trade setup is within your risk % parameter? If not, you don't take the trade.
Or do you trade with a fixed risk percentage and adjust your lot size accordingly and take every trade thrown at you?
"Formal education will make you a living, self education will make you a fortune"
yana hansen (78678676)
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Aaron Countee (FaintToasted)
Member Since Jun 19, 2021
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Sep 30, 2021 at 09:11
Member Since Jun 19, 2021
49 posts
kc8yty posted:
Just curious to see how others manage their risk and position size
Do you trade a fixed Lot size of lets say three lots and then determine if the trade setup is within your risk % parameter? If not, you don't take the trade.
Or do you trade with a fixed risk percentage and adjust your lot size accordingly and take every trade thrown at you?
I have strict rules I follow:
They are in categories based on how powerful I believe the trend will be.
Weak/ sideways ranging markets (quick pop/drop and that's it) I will have several positions open for only 0.01 lots over 10 pairs.
then when I see one pair that stands out and have NEVER gone back to negative in the past hour during premarket, when the market opens I increase position size to 5-10 lots, then close the trade within the first 10 minutes. This can make me a quick $800 to $1,000 in 20 pips.
On a moderately strong or mildly probable trade, I will pick up 0.1 to 0.2 lots and then watch to see if my timing was correct. If it is I will increase to 0.8 to 1 lot.
High probability/ strong trend These I will get in around 0.1 lot and then when it hits 5 pips to 7 pips I will increase to 1 lot and then if it hits 10 pips I go in 2.5 lots total. Get out at 20 pips minimal. I have held all the way to 300 pips before... then held as if fell all the way back to 157 pips and closed the trade. That's a $15,000 profit. I average between $1,400 to $1,600 profit per trade.
*I kill pips for fun.*
Member Since Mar 17, 2021
536 posts
Oct 11, 2021 at 06:06
Member Since Feb 20, 2021
78 posts
@SteveHanks It can be the toughest but it is very important. Limiting the use of leverage and using a stop loss can be really helpful while applying risk management to your trade.
Member Since Mar 16, 2021
477 posts
Member Since Mar 16, 2021
477 posts
Oct 18, 2021 at 01:29
Member Since Mar 16, 2021
477 posts
Unellene posted:Trading is a risk, but it is not possible to work with 100% probability. So you have to try to manage the risk ratio.LukeRachel posted:you need to take risks from time to time, here I completely agree with you
The trader succeeds only when he manages the proprietary risk and trades. I must learn this experience. As much as I don't know about strategy, I have to manage risk.
Oct 29, 2021 at 10:48
Member Since Dec 12, 2019
18 posts
As far as I concerned, position size should be directly depended on your risk management strategy. Every trader knows how is it important to have a proper risk manegement strategy and some traders wonder why the strategy can be variable. I know that novices think that risk management strategy is stable and everybody uses it. However, the vast majority of traders create their own risk management strategy according to their needs in trading activity, their deposit and other vital things. Hence, I believe that if you're unsure how much money yu can invest in a certain deal, then you should think about risk management. Decide which amount of money you an afford yourself to lose.
Oct 30, 2021 at 01:26
Member Since Jul 19, 2020
788 posts
Major Forex crosses, minor pairs as well as the most popular cryptocurrency pair. From this place traders calculate risk percentage ($ 4, $ 20, $ 50) etc. Professional traders do not risk more than 2% of their investment. And this is their position and risk calculation.
Member Since Jul 23, 2020
759 posts
Member Since Jul 23, 2020
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