Trading forex? Stop gambling with your capital! This video exposes the massive mistake new traders make - using inconsistent lot sizes. It's a recipe for disaster, blowing accounts and crushing dreams.
But there's good news. Discover the secret weapon of successful traders: consistent lot sizing.
In this actionable video, you'll learn:
Why fluctuating lot sizes...
What is position sizing & why is it important?
Position size refers to the amount of risk - money, contracts, equity, etc. - that a trader uses when entering a position on the financial market.
We assume, for ease, that traders expect a 100% profit or loss as a result of the profit lost.
Common ways to size positions are:
Using a set amount of capital...
Example:
The account size is $4500.
We risk 2%, 90 cash, for this 2R trade.
If the trade idea is a success
we would now have 4678 cash in our account
a profit of: 178 cash
And if loss, a total of 4410 cash, 90 cash loss)
Is this correct?
Explanation:
The example seems correct but only without the fees in calculation.
Even small fees like e.g. 0.04% Taker...
Position sizing is determining the correct size of the position based on the amount of money you risk on the particular trade.
Before you can do that, you need to figure out what is the maximum acceptable risk of the trade.
That risk is usually expressed as a % of your balance, that you are willing to lose.
To make sure you don’t lose more than this amount...
This script can be used to approximate a strategy, and find optimal leverage.
The output will consist of two columns, one for the median account size at end of trading, and one for the share of accounts liquidated.
The script assumes a 100% position size for the account.
This does not take into account size deviations for earnings and losses, so use with a grain...
Yet another degenerate bites the dust.
In the markets, there is a once every 100 years 5 sigma event every few months.
Some of you may remember the James Cordier of optionsellers dot com emotional apology video, after he got wiped out by a short squeeze on Natural Gas in 2018.
I looked into it back then and this guy was an out of the money naked option seller...
If you like my ideas and the work I do, please check out the links in the signature and give me a like ;).
As I tend to get a lot of questions about this topic, most traders don’t seem to understand basic risk management in trading! From my experience capital protection and risk management are probably the most important part of any trader's skillset. So that is...
CAUTION : EXPERIMENTAL
Hello friends.
Whale trading system has been developed and placed on a more reasonable ground.
So this publication is an improved version of the educational idea : How do "Whales" Trade?
Before Starting
In related ideas, you can see the first version and the script I used to create this idea.
And there is an intermediate version...
Hey! Now calm down and erase all of your coffee fortune-telling stories, throw the pump and dump signals you've been waiting for!
You can only draw trend lines and long-term channels.
If you're still not mad at me, we're starting now !
Trade is a relative concept and the buyer meets the seller relatively.
Therefore, trendlines and channels can provide little...
