Very genuine. Good Job Rayner.
Position Size Calculator, Forex Position Size Calculator
Rayner you said it best Risk management is the golden key to trading. One cannot stress the importance of Position sizing. Myself after going through my account not paying attention to it I just decide to read about it, and boy did I learn a lot. Hi Rayner, Nice post on position sizing and money management. I am currently figuring out whether it will be good to scale down my risk during bad streaks and scale up during good streaks. Hi Rayner, I enjoyed reading your articles and videos , and i am truly appreciative of your generosity to share among others.
I would like to understand something abt stocks. Often, i heard people saying Buy stocks traditionally. Today, i can hear Sell stocks. How is this different from the traditional method of buy and owning a stock vs trading? Can you enlighten me? I suppose buying stocks traditionally adopt a buy and hold approach whereas trading involves buying and selling within a short period of time.
What if the company blows up. Sounds not good for me. What you do? The answer is yes and no. Someone with 20 pips stop loss has a better chance of getting a risk reward ratio in a day compared to someone with pips stop loss. This means with a 20 pip stop loss you can put on a larger position size for the same level of risk compared to someone with pips stop loss. The closer it is to your entry, the better your win rate. But whether it has a positive expectancy is a different story. As I trade, we know that we had to put a valid stop loss, mean each trade will have a different amount of pips to lose.
Mean that we need to adjust the lot size each time we trade as well? How can we be sure by adjusting the position size for each trade will help to enhance profitability? Your winners have too small position size, losers have too larger position size, and etc. Because your risk on each trade is not consistent. You would need an account size of over k to trade this product. You mention in other articles that you should be able to trade about 60 markets from these 5 sectors. Agriculture commodities 2. Currencies 3.
Equities 4. Rates 5. Non-Agriculture Commodities. I will check that out. Have you ever traded spreads calendars with futures? Do you have a preferred broker or platform? I am in the US. Thanks, for all you do. Hey Rayner! I got a question! What if the recommended position size is 50shares but the normal boardlot requires at least shares how do you overcome that problem? Do you buy oddlot then?
Which way is best to calculate risk 1. Calculate using equity 2. Calculate using balance 3. Calculate using deposited amount. We are using position sizing to avoid loss of capital in loosing trades. But if the trade is winning trade then how to add more capital so we can get maximum out of it. Hey Rayner, I have some confusion , please help me to understand the position sizing concept.
As a trend follower I will trade every winning position till it is in trend. If I took 5 trades from that 3 are winners and 2 are looser. I suggest trading a variety of markets to increase your odds of capturing a trend like fx, commodities, bonds, indices, and etc. Bro, your articles is one of the best I read. It has helped me greatly in the perspective of trading. Always come back to review my mind and skills when I read this article. Keep inspiring us and I will definitely follow u!
Rayner, thank you so much for the article. It helps us a lot. When it comes to trading spreadsheet we can use Excel functions to calculate profit and loss if we are to enter pip value as an input. In this case should we use pip value of the closing moment of the trade to calculate profits or loss?
What are Lots
I tried to used the Risk Management Calculator, but my question is that it seems it only allowed me to buy few stocks? I mean not enough volume to get huge gains? Thanks Mr Rayner I have learned a lot. Hi rayner , a question do you dont take in consideration the fees when you calculate your position size. Thanks a lot for teaching. Do you know it? Gracias Rayner. Hello Rayner From your explanation does it mean that there are two methods in calculating stop loss 1. That is through position sizing 2.
And through locating where your initial trading idea is invalidated. Thank you very much, Rayner.
Your contents are very rich and easy to understand. I pray and look forward to learning your styles and trading like you as well. Thanks so much Rayner. I took time to read through ur article. Pls sir, i need ur sincer answers for these questions of mine: 1. With ur experience in forex trading, will u encourage ur loved one to become a forex trader?? Can someone make a living with trading forex,i mean is it lucrative?? Is it possible to trade without blowing up ones account over a period of time?? Thanks in anticipation.

Please log in again. The login page will open in a new tab. After logging in you can close it and return to this page. If you answered NO to any of the above… Then good luck to you.
Position Size Calculator
Of course not. Then let me prove it to you… Imagine: There are two traders, John and Sally. Now… To further manage your risk, you can avoid trading during major economic events. The price pattern will also be clearer when there are no major economic events. Example 1: Your trading account is in SGD. You long , units of it. To determine the value per pip, look at the quote currency. Step 2: Determine the spot rate between the currency of your trading account and the quote currency The currency of your trading account is in SGD.
The quote currency is USD. Step 2: Determine the spot rate between the currency of your trading account and the quote currency The currency of your trading account is in USD. The quote currency is GBP. Is there a faster way to calculate it?
Position Size Calcualtor FAQ
You want to long Mcdonalds at Preview Reset. Display tool title. Open price You must enter a valid number. Stop loss pips You must enter a valid number.