Is your Position Sizing Keeping you from Becoming a Profitable Trader?
Keep it Simple
Should you trade live or demo? Should you risk a certain percentage per trade? If so, what size should you be trading?
This video breaks down the ‘straight-forward’ approach I recommend to position sizing. Regardless of the strategy you use, if you’re not yet profitable, this position sizing will apply.
To summarize: 1 Micro Lot Per Trade until you have 3 months of consistent profit trading an actual written trading plan.
If you are not consistently profitable then trading anything over 1 micro lot per trade will not make you a better trader, it will only cause you to lose money faster while learning.
By sticking to 1 micro per trade you can start to handle the psychological challenges every trader must learn to overcome, while doing so with as little risk as possible and therefore an easier environment to succeed in.
Additionally, learning to trade takes time and using a smaller position size (1 Micro) along with a proper forex education, will help you stay in the game much longer. The longer you can persist in learning anything, the better you will get at it. Learning to trade forex is no different!
-Sterling