Position Sizing

Forex Position Sizing

This is the easy one. You must decide, based on your risk management rules in your forex trading plan, what your position size will be. This allows you to know your maximum risk.

How much are you willing to risk per trade?

1%?

2%?

5%?

10%?!

20%?!!!!

Or are you going to bet the farm?!!!!!

Yeah that’s right. Do it. Bet the farm.

No silly!

Don’t bet the farm!

Position Sizing Insanity: Bet the Farm

Haven’t you been paying attention?

You want to become a trader, not a gambler!

And unless you’re really a farmer, you probably don’t even own a farm anyway.

Position sizing is important because it helps your account stay healthy and ready for the next opportunity.

It important to take note of how big or small you are trading. By keeping track of position size in your journal, you can see whether you are comfortable trading large position sizes, or if you prefer smaller lot sizes while using wider stops.

Luckily for you, the FX-Men have decided to give you guys a gift – in our Tools section, we have a Position Size Calculator to help you do the math and find the right number of units you should be trading! Sweet eh?

Save your progress by signing in and marking the lesson complete!

  1. Why You Need A Forex Trading Journal
  2. 5 Reasons To Keep A Forex Trading Journal
  3. 5 Things You Must Have In Your Trading Journal
  4. Potential Trading Area
  5. Entry Trigger
  6. Position Sizing
  7. Trade Management Rules
  8. Trade Retrospective
  9. Trading Journal Statistics
  10. Reviewing Your Trading Journal
  11. Keeping A Trading Journal Is Hard But It's Worth It
  12. Summary: Keeping a Trade Journal