I’ve seen a great deal of education on only risking 1% of your total capital when trading, thus limiting how much you can loose if the trade goes bad.
This is all well and good, but I have no idea what that translates to in terms of actual amount.
So…
For example, I have $200 in my account. One would assume I would want to trade micro lots? 0.01? Is this the correct lot size for my account? And how many lots should I be buying?
So it appears from the Position Size Calculator on this site that it all comes down to the currency pairs, risk %, account balance, and stop loss. So I guess this answered my own question.
In my example, $200 with 1% risk, SL of 1 is 20 micro lots (.01). But if we move the SL to 10, we get 2 micro lots. And if we move it to 50 we get even less micro lots (0.04). So it appears that it is heavily based on your level of Stop Loss. I guess I will have to play with how much SL I am willing to use.
This exactly my point on another thread,
but with consistency you can put the odds in your favor, its called an edge.
one way to help with that is keeping your spreadsheet diary of your winners and losers in a row and their respective values.
I’v never been to a Casino but the blackjack players that did this are not allowed back into Vegas.