Lot size should be maintained according to risk management. To maintain the stop loss properly, you have to maintain the lot size along with the stop loss.
On the contrary, pyramiding is adding to the position to benefit the most from the high-performing assets, that’ll maximize the returns. This is one strategy that I’ve been working on the demo account with fxview and xm and realized that it works well in the trending market. Not just this, there will be better profits without you having to increase the original risk. My live is on XM. For that, withdrawls usually just take 24 hours so that’s also realy great. Though, you should some explore brokers on your own as well before creating a live account.
I won’t give it much credit since it’s got the tendency to gap in the price from a day to the other. Let’s not deny that a large gap means a very large loss.
Not a problem. Simply avoid the markets that you think are prone to gaps in the price and ensure that the additional positions and stops guarantee you make a profit.
I think it is very important to create a trading plan by following money management.
If I have more deposits, I will be able to trade with bigger lots and make more profit. But if I want to trade without maintaining risk, it will be very risky for my investment.
There is no particular time when you should increase the lot size. When you trade in the live market, you know it on the basis of your experience.
Has nothing to do with the pips gained. I could gain the same % growth on my account with 15 pips as you could with 150 pips or vice versa. Lot size should be based on risk %, SL in pips and pair being traded.
Start with the micro lot and when you get a better idea of the market, increase the lot size.
There is no particular lot size that you should trade.
I choose lot size depending on a profit target (in pips) and risk/reward in money terms relative to equity. For example if my profit goal in particular trade is 20 pips (stop loss 10 pips) and I want to risk no more than 1% of equity and want to earn 2% of equity and assuming my equity is 1000 USD, the preferred lot size 0.1 lot. A change in price by one pip will yield 1$ profit or loss, so 10 pips loss will be 10 USD and 20 pips profit target will be 20 USD.
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