NEVER risk more than 2% of your account per trade. And never more than 10% at any one time (all trades combined). My average size trade is .5% - 1% per trade.
Karma
i trade with risky that i allow.i allowed 3 % . i will base on it to calculate volume. it is effective we calculate lot before we has risky limit.
I mostly try to trade with 1 or 2 lots, not more than that. I want to remain focused on on one position . I can manage it easily. bog lot seems attractive to gain profits but new traders should avoid to take this risk.They should get practice on low lot.
Nice , You mention good point high lot is attractive but not easy to handle for beginners. Only professionals can do good with it . They choose best time to take high risk with big lot or more use more than one lot . They also make plan before how to deal with it. Then big lot can become profitable to them. I also trade with 1 lot normally.
The reason to trade with more lots is this that pipcrawler refered. You can cut down some of the position, for example if its profitable you can save some of your profits. Otherwise, you can use the method high risk high return.
U want to give it full shot
C’MON market price now gbpjpy 141.40
Take profit 140.35
I entered now
I recommend training yourself to trade profitably
Without exposing 5% margin at any point in time.
I have been trading for more than 12 months now and I only trade on micro lots i.e. 0.01 lot size. I am sure that it helps me to make tortoise profits.
Surely it depends on the account balance and the profit target/stop loss? For example, If i am seeking to get 50 pips, I will adjust my lot soze to only risk around 10% of my balance if its a high confidence trade. 5% if its a low confidence trade,
This is the correct approach to have, all be it I disagree with risking 10% on a single trade, the theory is however correct. As mentioned, the size of your account and the chosen SL will determine the number of lots traded. The currency pair may also play a part in the equation should it not align with the denoted account currency.
The profit target however, has no influence on the size of the trade - or at least it shouldn’t
“[B]only[/B]”?! :o
Personally, I don’t take “low confidence trades” at all, and the maximum I ever expose to risk at a time is just under 1% (and that’s only for the occasional trades of my [I]very[/I] highest win-rate method).
I’ve never yet seen or heard of any system or method that can indefinitely withstand 10% position-sizing without blowing most or all of the account.
Respectfully, Davy, I [U]urge[/U] you to read a beginners’ book such as Van Tharp’s [I]Trade Your Way to Financial Freedom[/I] and gaining some perspective on the realities and statistics of position-sizing, before trading with real money. I have [B][U]no[/U][/B] wish to offend you or to sound rude, but the idea of having 5% position-sizing on a “low confidence trade” will make anyone’s hair stand on end, if they’ve been trading for a while … this is “dreamworld stuff” … :o
That’s a quite a nice article you have shared there, thanks for sharing it here, it will help us to learn Forex More better.
I think 1 lot at a time is enough for average traders. When you are good in trading you can try more than 1 lot but multiple trades are making confusions for most of the traders. They should open that much lots which they can easily manage.
Why do you think that?
Your maximum lot size should be proportional to your account size