That is the number one killer for most traders; they open a position size much larger than they can handle or much larger than what is appropriate for their account size.
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A trader’s position size is a very sensitive topic because it should be not too small and not too large; there is a perfect balance between the two that a trader must achieve in order to be able to trade fearlessly. The proper position sizes will allow you as a trader to not only “set”, but to also “forget” and move on with life without being tied to a screen. The most elite traders on the planet allow time, money, and the market to do most of the heavy lifting and they give very little time to sitting on a screen compared to the average retail trader. Any professional trader knows that “less” is “more” in this game, and trading for longer hours does not necessarily equal to “more profits”.
Few traders calculate their exposure, and those who do calculate it typically calculate it wrongly. But from those who do calculate their exposure properly, even fewer traders accept their exposure. the acceptance of your exposure, is an entirely different and separate step, and it is a psychological step. You Must find the balance between
MyFXbook has a great tool (free) to determine your lot size. You enter your account size, the pair you are trading, the level of risk (percentage wise), your currency, etc. and it spits out the ideal lot size you should be trading.