Position sizing is very important in Forex. It is not a strategy but it is a thing that you need to set when you are trading in Forex. Every trade is not the same and you will see that you will have different levels of confidence in trading. There will be some trades that you know you can make money and you want to trade with bigger position size. There will be many trades that you know has risks and you will set your position size small. This position size varies and it can also tell how much profit you will make in Forex. This article will tell you how you set your position sizing in Forex. People are greedy and they set a big position size for all the trades. They lost the money when they lost their trades.
Position sizing is the most crucial thing for your trading success. Most of the novice traders are blowing their trading account due to improper lot size selection. They are always biased with the profit factors in the Forex market. But you need to understand the fact that losing is just a part your trading career. No matter what you do, you will always have to face losing trades. So if you don’t trade with proper risk management, it won’t take much time to lose your investment.
Professional trading course
Do you really want to master the art of trading within a short period of time? Do you want to secure your financial freedom? If the answer is YES, you need to take some professional trading course. The professional traders will give you a clear guideline about the options trading industry. Most importantly you will understand the associated risk in trading. The expert traders always believe that trading is all about risk management. If you place any trade make sure that you are not risking more than 3-5% of your account capital. Always try to trade the high-risk reward trade setups in the options trading industry. Last but not the least make sure that you are trading the market with a reputed broker like Saxo so that you can enjoy the best possible trading environment.
Position sizing of trades when you do not know the market
If you do not know the market of Forex, you need to set your position size small. You will find that the market is changing and trading with the previous position sizing will make you lose profit. Traders with skills know every market is different and it will not help you how professional you are. You need to trade the market with small position sizing when you do not know the trends and patterns of the markets.
Position sizing in your favorite markets
This is your favorite market and you need to set a big position size. If this is what goes in your mind, you need to take the break from your trading. People think they will take small position size in markets they do not know and big position sizes in their favorite markets. When you cannot make the profit in your favorite market, there is no use of trading with a big position size. You need to set your position size to a standard size and trade the market.
Position size also risks your money
Bigger position size not only give you the chance to make the big profit but it also makes your money risky in Forex. When you set your position size big, do not only think of the profits you will be making in Forex. Also, think of the money in your account. Traders are not successful in Forex and they need to set a small position size. If you think you can take a big risk, trade the market with big position size. The size of your position in trading can tell the market how much risk you are willing to take to make the profit.