How to Find the Right Trade Size and Trade Risk Free

Do you want to know more about trade size and how to find the right one? Watch our latest video to find out how to approach the size of a trade to get profitable trading results and trade risk free.

How to Find the Right Trade Size – A simple guide

One of the most important things that you can do as a traitor is protect your account. One of the most dangerous things you can do is to trade sizes that are just simply unacceptable for the amount of risk capital that you have. Trade size is something that a lot of traders seem to have to learn about the hard way.

There are several ways to approach the size of a trade, but the most common is to base it on a percentage of your total account size. For example, if you believe that an acceptable amount to risk per trade is 5%, then you just simply take 5% of your account size and risk that much on the trade. So, if you need to have 50 pips as your stop loss, you need to do the math and figure out how much you can trade.

A lot of this comes down to cover, but the reality is that there is a certain amount of mathematics involved. Simply put, the more you risk on a particular trade, the more likely it is to do severe damage to your account. Yes, you can make large amounts of money at fairly quick manner, but at the same time you can lose drastic amounts of your account in one swift move. Having said that, it’s vital that you find the right trade size.

Most traders in the Forex world seemed to risk anywhere from 1-2% per trade. Ultimately, the right sized position is up to you but if you risk half of your account on one single trade, you could cause quite a bit of trouble. On the other hand, if you risk very small amounts per every trade, you can stay in the game much longer, and let the concept of compounding interest take hold and accelerate your profits.

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