In my advanced researches on how not to lose my entire account each week, I’ve eventually learned that I should use a risk management technique.
Here is what I came up with this weekend.
Wouldn’t mind for someone to look into it and say if I make any big mistakes in my calculations. If I you consider it good enough for you too, please feel free to use it at your own risk.
Short description on how to use it:
- First carefully enter your account details: Account - your total account value, Leverage = 1/100 = 0.01. 1 lot = 100000 (You can change it to 1 lot = 10000 if this is what your broker/you use)
- Enter the Entry Price (make sure you include the spread in it too)
- Enter the Stop Loss Price (make sure you include the spread in it too)
- Adjust the Risk 2% = 0.02 (however if you went to school you should know that is not such a good idea)
- Let the spreadsheet calculate the Volume of your trade based on your Risked amount and the Take Profit Price
Let me know what you think about it!