Is your Position Sizing Keeping you from Becoming a Profitable Trader?

Описание: Forex Bank Trading Strategy - https://www.DayTradingForexLive.com

One of the most important aspects of becoming a profitable trader is position sizing. While learning to trade, however, you don't want to use the same risk as a profitable trader might. In other words, just because a particular risk might be 'correct' for one trader, doesn't mean it's going to be right for you.

The key is position sizing is something that people often leave out of the equation, that is the trader's skill level.

It is my firm belief that everyone who is currently learning to trade forex should start with 1 micro per trade until they have at least a few months of profitable returns.

If you cannot make money while using 1 micro per trade, then you will not be able to turn a profit using 1 mini, or 1 standard. The larger size you trade, the more challenging trading becomes. You learn to deal with the added stress with time, experience, as well as a profitable track record you can mental lean on.

The bottom line is trading larger size is much more difficult than trading a smaller position if you lack the experience to do so. Therefore, stick with 1 micro until you're profitable and only then would I look to increase the size being traded.

What is the proper position sizing once someone you're profitable?

I like to keep things simple, so I recommend a basic 2% risk per trade or SMALLER. The only caveat I would add is that I do not adjust the position size down after a loss, and I would only adjust the size being traded at the end of the month. This principle requires some explaining so be sure to watch the video for the most important aspect of this process which revolves around your trading accounts 'high water mark.'

-Sterling