Sizing of the Position

What size should your role be？

This is the easiest of the three. Your position size must be determined based on your risk management guidelines in your forex trading plan.

You will be able to determine your maximum risk as a result of this.

What is the maximum amount of money you are willing to risk per trade？

1 percent of what？

2 percent of the population？

5 percent of the total？

10 percent？!

20 percent？

Or are you going to take a chance and bet the farm？!!!!!

Yes, that's correct. Make it happen. The farm is a good bet.

Don't put your money on it!

You don't want to be a gambler; you want to be a trader!

And, unless you're a true farmer, you're unlikely to possess a farm in the first place.

The importance of position sizing is that it keeps your account healthy and ready for the next opportunity.

It's crucial to keep track of how big or tiny your trades are.

You can determine whether you are comfortable trading huge position sizes by keeping track of position size in your journal.

Alternatively, if you want smaller lot sizes with broader stops.

Fortunately, we have a present for you!

We have a Position Size Calculator in our Tools section to help you do the math and figure out how many units you should be trading