What is the complexity of the selection of position sizing in Forex
The science of choosing the position sizing is a task as complex as the art of entering the market. In addition, because only a few people are interested (or clearly understand) in the amount of the position, the software developers ignore it or completely ignore the problem. As a result, if you want to practice selecting the size of a position in today's computer world, you will have to do it yourself, in the table. From research and other sources, we know how various "market wizards" work. They have good systems with strong positive expectations. But these systems are not very different from what an average trader can get. The difference between the luck in the markets that most of them have reached and the average profitability only to determine the size of the position.
Importance of choosing the size of the post
The big traders apply clear rules and forex profit calculator to choose the size of the position for good systems and have the discipline to fulfill them. All of them in their interviews talk about the importance of choosing the size of the position. Most operators find that the simplest solution when choosing a position size is simply to change a contract. This solution for traders with small capitals (that is, for most traders) means that you can not choose the size of the position, since they will have to at least double their capital before they can increase the risk. Therefore, most do not generally think about the most important factor in trade: how much to invest, because they trade too much. If they remain in the market until their account begins to grow, they begin to think about the simplest way to choose the size of the position. "I currently have $ 20,000 in my account, maybe it's time for me to negotiate two contracts."
Most traders do not have enough capital
Endangering more than three percent of the capital in a separate transaction is playing with fire. Your risk in this transaction is the difference between your entry price and your level of detention. For example:
• Open a gold position at $ 400 with a stop at $ 390, then $ 10 stops represent a risk of $ 1,000.
• If you have a $ 25,000 account, then your contract risk is four percent. They would call him playing with fire.
• Most merchants come to markets with accounts of $ 10,000 or less. They operate immediately for everything and all their transactions are very risky because the size of the account is too small.
• Of course, it can operate in some agricultural markets and with $ 10,000 in the account.
In fact, you can operate in many other markets if your stops are close and your system is designed for nearby stops. But most people who come to the markets simply do not have enough capital to do what they are trying to do.
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