How to determine the position sizing?

Discussions about Money Management and Risk Control.
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oem7110
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How to determine the position sizing?

Post by oem7110 » Tue May 10, 2016 5:30 pm

For trading forex, it usually offer 20 times leverage. I would like to know on how to determine the position sizing for each trade.

Does anyone have any suggestions?
Thanks in advance for any suggestions

sluggo
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Re: How to determine the position sizing?

Post by sluggo » Fri May 13, 2016 8:56 pm

Many people seem very happy to pay Dr. Van Tharp a consulting fee to help them decide their position sizes. Have you investigated this possibility?

Roger Rines
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Re: How to determine the position sizing?

Post by Roger Rines » Sat May 14, 2016 11:00 am

Order sizing is one of the critical aspects of trading. It is critical because it is the process that decides your account's risk exposure. Position size and position count determine your account's gain and loss rate and amount. How to calculate risk sizing is a process of discovery you'll make over time.

To find the methods you will like, and that don't cause you to loose sleep at night is a process of discovery Trading Blox testing can reveal. A lot of what you need to know for applying risk can come from reading about what others show in their books and postings on the web. When you find an approach, test the idea with your symbol selection and entry and exit ideas. If it looks good or bad, go find more ideas and test those. The more you test, the more you'll understand how you'll find your sleep comfort numbers.

If the early ideas don't work, keep looking until you find one that does work. To have someplace to start, consider this information in Trading Blox Builder's Guide -> Order Sizing as a first step towards your discovery.

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