How much should I risk on this trade?
The question I get a lot in trading group.
When I hear it I ask a question back to that person.
How much you can afford to lose?
When I enter a trade I always think about how much I will be losing, and can I afford to lose that amount. We are small planctons here and nobody cares about us, so losing one can arrive very fast.
So I am always asking myself very simple question. How much I can afford to lose on this trade if my desired stop is hit!
I want to go in this trade with 100 lots I calculate the amount at SL level, and if I see that it is too big and I cannot afford to lose that much, I need to reduce the lot size till the point where I can say hey, if my SL is hit I can afford to lose that much, won't be a big deal!
Is how I determine the size I should be taking the position with.
Especially when working on profit goals.
Simple but yet helpful tip.
Always ask yourself that question and it will be easier for you to enter!
Good Luck.
Profit Goal Idea:
The question I get a lot in trading group.
When I hear it I ask a question back to that person.
How much you can afford to lose?
When I enter a trade I always think about how much I will be losing, and can I afford to lose that amount. We are small planctons here and nobody cares about us, so losing one can arrive very fast.
So I am always asking myself very simple question. How much I can afford to lose on this trade if my desired stop is hit!
I want to go in this trade with 100 lots I calculate the amount at SL level, and if I see that it is too big and I cannot afford to lose that much, I need to reduce the lot size till the point where I can say hey, if my SL is hit I can afford to lose that much, won't be a big deal!
Is how I determine the size I should be taking the position with.
Especially when working on profit goals.
Simple but yet helpful tip.
Always ask yourself that question and it will be easier for you to enter!
Good Luck.
Profit Goal Idea:
