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Lotsize

Best Lot Size for Scalping Forex For Any Account Size In this article, I will teach you how to calculate the best fixed lot size for Scalping Forex for any account size in 3 simple steps. 1. Build Up a Trading Watch List In order to accurately calculate a proper lot size for scalping Forex, you need to know the exact Forex pairs that you trade. You should create a list of trading currency pairs. For the sake of the example, imagine that you trade only 4 major USD pairs: EURUSD, GBPUSD, USDJPY, USDCAD 2. Do Backtesting Backtest every forex pair in your watch list and find at least 5 trading setups on each pair based on the rules of your trading strategy. Also, remember that the more setups you will find, the more accurately you will calculate the best lot size for your scalping strategy. Here are 5 trading setups on EURUSD that meet my entry criteria. After that, you should calculate a pips value of a stop loss of each trade. Below, you can see 5 trading setups on GBPUSD pair. And here are the stop losses of each trade in pips. Now, USDCAD pair. Again, here are 5 trading setups, meeting the entry rules. You can see the stop loss of each trade in pips below. And finally, 5 setups on USDJPY pair. And here are the stop losses of these trades. Among these 20 trading setups, you should find the trade with the biggest stop loss. The biggest stop loss is 15 pips on USDJPY pair. 3. Measure a Lot Size Open Forex position size calculator. You can take any free position size calculator that is available. Fill all the fields. In currency pair input, the forex pair with the biggest stop loss - USDJPY in our example. Account currency - your account currency, let's take USD. Account size - your account size, let's take 10000$. Risk ratio - that will be the risk % of your trading account per trade, input 1.5%. Stop Loss - input a pip value of the biggest stop loss that you found - 15 pips. And click calculate. That will be the best lot size for scalping Forex with your trading strategy. The idea is that our maximum loss will not exceed 1.5% of the trading account balance. While the average risk per trade will be around 1%. Before you start scalping Forex on a real account, it is very important to know how to properly calculate your risks. Trading with the fixed lot, this technique will help you to calculate the best lot size for your trades. ❤️Please, support my work with like, thank you!❤️
Education
by VasilyTrader
14
BTCUSD CHART ANALYSIS ON MID & HIGHER TIMEFRAMES! Firstly, on bitcoin note the bullish Cup & Handle pattern that sure has been in formation for a long time. On the 1HR & 4HR charts price is getting support on the 200 EMA & 50 EMA respectively. Ideally on the 1HR chart we want the 200 EMA to form underneath the 50 EMA. Digressing a bit, my feeling is that next week precious metals like Gold will not perform as well as they have this week. Gold in particular is overextended and overbought on the higher timeframe Stochastics. Silver to a lesser extent which will still shine over Gold in the short term. Notwithstanding, the Gold price will go through the roof next month when the USA finally moves on reducing interest rates which is almost a certainty IMO. I think that the recent blunt price action in Bitcoin as the focus has been on Gold the last couple of weeks, it could be a bullish run for Bitcoin coming up from this Monday. The 1HR chart looks very bullish to me.
EIGHTCAP:BTCUSDLong
by Easy_Explosive_Trading
How to Apply a Position Size Calculator in Forex Trading In this educational article, I will teach you how to apply a position size calculator in Forex and calculate a lot size for your trades depending on a desired risk . Why do you need a position size calculator? Even though, most of the newbie traders trade with the fixed lot , the truth is that fixed lot trading is considered to be very risky . Depending on the trading instrument, time frame and a desired stop loss, the risks from one trade to another are constantly floating . With the constant fluctuations of losses per trade, it is very complicated to control your risks and drawdowns. A lot size calculation , however, allows you to risk the desired percentage of your capital per trade , limiting the maximum you can potentially lose. A lot size is calculated with a position size calculator . How to Measure Lot Size for Trades? Let's measure a lot size for the following trade on EURUSD. Step 1: Measure a pip value of your stop loss. It is the distance from your entry level to your stop loss level. In the example on the picture, the stop loss is 35 pips. Step 2: Open a position size calculator Step 3: Fill the form. Inputs: Account currency, account balance, desired risk %, stop loss in pips, currency pair. Let's say that we are trading with USD account. Its balance is $10000. The risk for this trade is 1%. Step 4: Calculate a lot size. The system will calculate a lot size for your trade. 0.28 standard lot in our example. Taking a trade on EURUSD with $10000 deposit and 35 pips stop loss , you will need 0.28 lot size to risk 1% of your trading account. Learn to apply a position size calculator. That is the must-use tool for a proper risk management.
Education
by VasilyTrader
8
Avoid Forex Mayhem with Good Risk ManagemenTrading forex? Stop gambling with your capital! This video exposes the massive mistake new traders make - using inconsistent lot sizes. It's a recipe for disaster, blowing accounts and crushing dreams. But there's good news. Discover the secret weapon of successful traders: consistent lot sizing. In this actionable video, you'll learn: Why fluctuating lot sizes blindfold you to risk and leave you exposed The simple formula to calculate safe and sustainable lot sizes How consistent sizing fuels confidence and boosts profits Bonus tips to maximize your forex trading performance Say goodbye to trading nightmares and hello to controlled growth! Watch this video now and take control of your forex future. P.S. Don't be the trader left behind. Watch before it's too late!
Education
by fxtraderanthony
LOT SIZE, PIPS AND LEVERAGE WHAT IS LEVERAGE Leverage is a tool that increases the purchasing power of the trader’s deposit. The mechanism is funded by the broker, or rather the liquidity provider working with the broker. The leverage mechanism is very simple. The higher the leverage is, the more funds we can invest in trading. Simply put, leverage is kind of a bank loan. But it is much cheaper, and the borrowers usually risk only their own funds on the account. WHAT IS A PIP A pip (percentage in point) is the minimum unit of measurement to express the change in value between two currencies in the Forex market. In currency pairs, 1 pip is often one hundred-thousandth, that is, the fifth decimal place in a currency quote (0.00001). For the derivatives, one pip is usually one hundredth (0.01). Simply put, a pip is the last decimal place in a quote. The pip cost is directly affected by the lot size. LOT SIZE IS The lot size is the number of currency units expressed in the quote currency that compose one whole contract. The quote currency is the currency that used to value the asset price. In the EUR/USD currency pair, the base currency is the EUR. Common lot types are: Standard,Mini-lot (0,1 of a standard one), Micro-lot (0,01 of a standard one), Nano-lot (0,001 of a standard one). LOT AND LEVERAGE RELATION The relation between these two concepts is that both these figures affect the total trade cost. The difference is that this influence is made in opposite directions. The larger is the lot size, the larger is the transaction volume, and, consequently, its value (I mean the security deposit you must have to open the position). However, the higher is the leverage, the less money is required for the trade margin and therefore, the less is the trade cost. CONCLUSION Forex lot size and leverage are the basic concepts for every forex trader. It is of key importance to understand them. Experiment with the calculator and the table to understand how the lot size and leverage affect your position size in particular and your trading in general. This practice will help you develop your own strategy and determine the “best” leverage for your trading goals. Dear followers, let me know, what topic interests you for new educational posts?
BITSTAMP:BTCUSDEducation
by SignalProvider
11
Deciding Lot Sizes (My Method)A crucial decsion traders must make on each and every trade they take is lot sizes. What's the ideal lot size to take? What's the metric in which a trader uses to solve this ordeal? Here's my method: 1.) Start off with a high lot size. Say....7 normal lots. 2.) At this point, when imagining trading with this lot size you should feel a sense of anxiety, nervousness or even excitement. 3.) Bring down the lot size by 1. 4.) At 6 lots ask yourself, "Do I still feel any sense of anxiety, nervousness or excitement? If you do, bring down the lot size by 1. 5.) Repeat this process until you don't feel any "slight" sense of anxiety, nervousness or excitement. 6.) Using the above mentioned process, if you reached 3 lots, further bring down the lot size by 1. 7.) The outcome is 2 normal lot sizes. - Using this process to find the ideal lot size eliminates a host of unwanted phycological issues that can deter how you : analyze price, decide targets/stop loss, and how you manage an open trade. - I've read and heard various methods over the years, but after close to 20 years of trading, this is the method I currently use. That's it! I hope it helps! Ken
Education
by TradingForexPriceAction
3
LOT SIZE, PIPS AND LEVERAGE WHAT IS LEVERAGE Leverage is a tool that increases the purchasing power of the trader’s deposit. The mechanism is funded by the broker, or rather the liquidity provider working with the broker. The leverage mechanism is very simple. The higher the leverage is, the more funds we can invest in trading. Simply put, leverage is kind of a bank loan. But it is much cheaper, and the borrowers usually risk only their own funds on the account. WHAT IS A PIP A pip (percentage in point) is the minimum unit of measurement to express the change in value between two currencies in the Forex market. In currency pairs, 1 pip is often one hundred-thousandth, that is, the fifth decimal place in a currency quote (0.00001). For the derivatives, one pip is usually one hundredth (0.01). Simply put, a pip is the last decimal place in a quote. The pip cost is directly affected by the lot size. LOT SIZE IS The lot size is the number of currency units expressed in the quote currency that compose one whole contract. The quote currency is the currency that used to value the asset price. In the EUR/USD currency pair, the base currency is the EUR. Common lot types are: Standard,Mini-lot (0,1 of a standard one), Micro-lot (0,01 of a standard one), Nano-lot (0,001 of a standard one). LOT AND LEVERAGE RELATION The relation between these two concepts is that both these figures affect the total trade cost. The difference is that this influence is made in opposite directions. The larger is the lot size, the larger is the transaction volume, and, consequently, its value (I mean the security deposit you must have to open the position). However, the higher is the leverage, the less money is required for the trade margin and therefore, the less is the trade cost. CONCLUSION Forex lot size and leverage are the basic concepts for every forex trader. It is of key importance to understand them. Experiment with the calculator and the table to understand how the lot size and leverage affect your position size in particular and your trading in general. This practice will help you develop your own strategy and determine the “best” leverage for your trading goals. I Hope you guys learned something new today✅ Wish you all Best Of Luck👍 😇And may the odds be always in your favor😇 Do you like this post? Do you want more articles like that?
Education
by ProSignalsFx
6
Learn How to Apply a Position Size Calculator Hey traders, In this educational article, I will teach you how to apply a position size calculator and calculate a lot size for your trades depending on a desired risk. First of all, let's briefly discuss why do you need a position size calculator. Even though, most of the newbie traders trade with the fixed lot, the truth is that fixed lot trading is considered to be very risky. Depending on the trading instrument, time frame and a desired stop loss, the risks from one trade to another are constantly floating. With the constant fluctuations of losses per trade, it is very complicated to control your risks and drawdowns. A lot size calculation, however, allows you to risk the desired percentage of your capital per trade, limiting the maximum you can potentially lose. A lot size is calculated with a position size calculator. It is integrated in some trading platforms like cTrader. If it is absent in yours, there are a lot of free ones available on the internet. Step 1: Measure a pip value of your stop loss. It is the distance from your entry level to your stop loss level. In the example on the picture, the stop loss is 290 pips. Step 2: Open a position size calculator Step 3: Fill the form. Inputs: Account currency, account balance, desired risk %, stop loss in pips, currency pair. In the example, we are trading with USD account. Its value is $20000. Trading instrument is EURUSD. Step 4: Calculate a lot size The system will calculate a lot size for your trade. 0.069 standard lot in our example. Taking a trade on EURUSD with $20000 deposit and 290 pips stop loss, you will need 0.069 lot size to risk 1% of your trading account. Learn to apply a position size calculator. That is the must-use tool for a proper risk management. ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
Education
by VasilyTrader
5
BASIC MONEY MANAGEMENT - LOT SIZE VS REVERSAL AND ACCOUNT SIZEWe see too many new traders trade with random lot sizes with no understanding on the impact it has on account sizes, which result in not only losses but BLOWN accounts. This post is by no means a risk or money management strategy but more so just basics on the movement of reversals and how the lot sizes impact the value of your account during this reversal. Trading with the right lot sizes allows a trader to manage their account/money when the trade goes against them. The right size allows a trader to move a range without blowing their account and without seeing their account reverse to the point of no equity. This type of trading gives traders anxiety and in return this anxiety impacts trading psychology. This then has a ripple effect and impacts your trading decisions and analysis. The example we show on the chart is an entry of SELL that reverses by 380 PIPs. This movement happened in literally 2 candles (1hour candles) , so in two hours the price from entry reversed by 380 pips. This example then shows what this equates to in monetary value dependent on lot sizes. The example shows that anyone with a £500 account trading this movement with a lot size of 0.20 would have blown their account. Lot size usage should be based on the size of your account for example; £500 size account - we will only use 0.01 size lot sizes with maximum deployed total no more than 0.05. This will allow an account to survive volatile movements. Also using stop losses ontop of this setup further strengthens the risk management. £1000 size account - we will use 0.02 lot sizes with maximum deployed total no more then 0.10 any given time. £2000 size account - we will use 0.03 lot sizes with maximum deployed total no more then 0.30 any given time. £5000 size account - we will use 0.06 sizes with maximum deployed total no more then 0.50 any given time. Basically 0.10 for every £!000, as the total deployed usage allows us enough flexibility of movement on the chart and then using stop losses ontop of this, gives us further control of our money management. We hope this quick basic insight helps some of the newbies better manage their lot size usage. Please like, comment and follow us to support our work, we really appreciate it! GoldView
OANDA:XAUUSDEducation
by Goldviewfx
16
OIL UKOIL BCOUSDPlease find information in the chart bubbles. good luck and have fun trading! always focus on money management. you can take a lot of 1% losses but your account can only handle a view big losses, right? when you lose 10% e.g. 1000$ of your 10k account then you have 9000 left. the next 10% risk trade is only 900$, so the potential winning gets smaller, too. after that 2nd one being stopped out again you have some 8100$ left! risking again 10% of that is 810$ risk for the 3rd trade. now this one needs to be more than -more- than a 1:2 winner to get you back to breakeven. if lost you have some 7300$ left. with again risking 10% (730$) in the 4th trade this one need to be a 1 : 3.6 winner to get you close to breakeven... hope you see the point. in addition: think of your psychology. what does it do to your trading style when you started with 10000$ account and you only have 5000$ left? are you panicking? are you still trading your proven strategy? are you averthinking things and switching markets or strategies or rules? a good chance you will do stupid tings like that, right? ;)
OANDA:BCOUSDShort
by ernstschwarz
2