Opening big lot

Most amateur traders jump to open big lot size as it brings immense profit. But a big lot size can transform into a bad dream. You can get a margin call. Don't risk more than 2% of your capital.

UweMoench posted:
Most amateur traders jump to open big lot size as it brings immense profit. But a big lot size can transform into a bad dream. You can get a margin call. Don't risk more than 2% of your capital.

It is essential to follow proper risk management in order to set or increase lot size.

Every trader should work according to plan and discipline. At the same time, it is very important to follow money management. If a trader does not follow money management, he will never be able to make a consistent profit.

personally i am not in the favor to open big lots as i believe it leads to slippage which can actually disturb the plans or the targets

I agree with you. It is better to avoid getting a margin call and not risk so high. Keeping it to 1 or 2% is safe and sound in my opinion.

Gracewilson1995 posted:
personally i am not in the favor to open big lots as i believe it leads to slippage which can actually disturb the plans or the targets

Exactly how i am feeling about big lots, but setting the margin call will make it quite good but I can see how slippage can get worse

As long as you keep your risk to 2%, this is fine

robindude posted:
As long as you keep your risk to 2%, this is fine

New traders should not take more than 5% risk per trade.