I’ve been successfully trading demo for about a year now. However, whilst demo trading, I’ve been taking unrealistic risks and making unsustainable profits. As a result, I’ve recently opened a live account to force myself to take it more seriously - regardless of how quickly I blow the account (though I obviously aim not to), I believe it will be worth it for the education and experience.
Anyway, whilst demoing I’ve paid little attention to money management, lot sizes or stop losses. All that I’ve been concerned about is whether or not my analysis was correct (which it usually was!). Having opened a live account, I’m no longer able to ignore these factors.
My first issue is that I don’t have a trading plan (though my trades are primarily based around similar lines of analysis). This means that my expectations are different with every trade (e.g. I may expect one trade to make 2-3 pips profit in the next 30 mins, whilst for another trade I may be expecting 40+ pips over the next few days). Obviously, scalpers, day traders and swing traders will all ploy very different money management rules, so my money management rules must be flexible to accommodate for different types of trades. My live account has only been active for a few days and in that time I have only traded lots of size 0.01. I feel that 0.01 is too small, but I’m not really sure what the best lot size would be.
What lot size should I use?
Where is the best place to start when developing a money management strategy?
What are the most important aspects of your money management strategy?
Would it help if I uploaded my live activity so far? I’ve only made a few trades, but it may still help you in advising me?
Thanks 