Importance of trade sizing in currency trading

Discussion in 'Forex Trading Signals & Forecasts' started by Adam Smith, Aug 28, 2017.

  1. Adam Smith

    Adam Smith Member Trader

    Mar 7, 2016
    Likes Received:
    Knowing and setting your trading size is very important. Trading size is the amount of money that you are going to risks in your trades. Before we go any further explanation, we cannot but help you to give one wonderful explanation of why setting the size of the thing is an important thing. When you go out to eat with your friends, do you order all of the items on the menu or you order only the things that you can eat? The items that you can eat is your trading size. The items that you are ordering is your trade. If this example you can understand, you have understood what we want to tell you. All the people in Switzerland are now fascinated with Forex trading but those who really know the perfect way to size their position are making money. And without learning the perfect method to size your trade, it will be nearly impossible for you to make money.

    Trading size is important to keep your money safe
    If you want to trade the market only to feel like big traders, you will make mistakes. If you need to trade the market depending on your money and trading size is going to tell you how much you can afford. Most Forex masters who have large amounts of money in their accounts, their common trade is of hundreds of thousand so f dollars. They do not only trade in their accounts, but they also trade on behalf of the other investors who have given them their money to make it double or even more. You should only risk such a portion which can you lose without any mental pressure. You need to keep yourself relaxed to find the best possible trading opportunity. Without learning all the details of this market don’t consider trading as your full-time profession. Many experienced traders are now trading with a high class broker like Saxo as their part time profession. It's not like that they can’t become full time traders but it’s their risk tolerance level which forced them to consider trading as you’re the second source of income.

    How to set?
    If you are a new trader in Forex but you do have a lot of money, we not advise to start your career by depositing huge money in a real online trading account. You should always follow the principles of Forex that less is more. If you can trade the market with a small amount of money consistently, you will also do the same in large accounts. Experienced traders always say to start with small trading size because when you are taking big risks, there are chances that you will make bad decisions. If you are risking only 2 dollars, you will be much more relaxed in your trading knowing that you are not going to lose 20 dollars. Your mind will be focused and you will be making more quality trades. If you are not sure on how to set your trading size, take advice from professionals in the industry. Many traders have their paid education available to the market and you can take these educational resources only for a small amount of money. Think of it as an investment in your career. You need to find a valid way which will help you to save your investment from the wild volatility. Never get carried away by seeing a golden trade setup rather remember that this market is all about probabilities.

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