Here is a very simple excel spreadsheet which calculates your risk.
You can enter your stop/loss size in pips and the percetage of capital you’re willing to risk to get how many lots you should be trading.
Alternatively, you can put in your lot size and risk% to get what stop you can use (not really recommended).
As a guide, for daily charts I like to keep risk in a range 1.5-3%. For news trading, 5-8%.
I calculate my stop size first and that determines my lot size, not the other way round.
Hope this helps some newbies. I learnt the hard way how high exposure on a few trades is all it takes to wipe you out or set you back so far you’re always playing catch-up.
Okay, but now i have come across this in 2015. I have downloaded your excel sheet. This looks very simple, just got few ideas to develop the same for better money management.
“Move with the times”? LOLOL. Sure, if you mean “the times” are dumber than they used to be.
Excel is a much, much more powerful and flexible application than the little toy apps you’re linking to. Get with the times! Learn real tools!
You’re right, excel is much more powerful & versatile tool & I use it quite a lot. That said within the context of this thread & position sizing, the simplicity of app beats excel hands down. The user interface & simple generic inputs make it super easy & a lot more pleasant on the eyes than staring at a spreadsheet.
I also don’t keep excel on my phone so a Position Size Calculator is always at hand.
Therefore in relation to this thread, I stand by my comments: move with the times!
