Originally Posted by
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ok let me attempt to enlarge upon this. First off, allow me to say this...
YOU SHOULD NEVER TRADE 1 LOT
this doesn't necessarily mean that you should over trade. It means that if you're trading 1 lot you're doing something wrong as you ought to be moving into smaller increments (if you're trading 1 miniature, you need to be trading 10 micro so that you get better resolution).
In case your account is 5k or less you ought to be on a micro account, 100k or less you need to be on a mini account. This is to maintain your posture size flexible.
So that your about to place on a commerce, EURUSD short. You figure you want a 30 pip stoploss for your trade. Your account is at 10k and you're risking 2% per trade. You would then try this calculation...
($10,000 x .02) / (30 x $1) = 6.66
what your prepared to risk split by what every lot will cost you if a loser = 6.66
where ...
$10,000 is your account balance
.02 is the risk per trade
30 is the stoploss in pips
$1 is the pip value on the EURUSD
. . .so you would trade 6 miniature lots, or 66 micro lots if you'd like to get fancy.
Dialist, can you venture a guess as to why you would go through all this trouble of sizing your transactions? Ill give you a clue, it has to do with holding something constant.