What is the single most important thing that is required to be a successful Trader? Keeping your losses small and your Profits large. But the vast majority of Traders do now know how to achieve this. This is where Position Sizing comes in.
Position sizing is a way to adjust the number of Lots, Contracts or Shares so that you take the same % Risk on all your Trades, this then keeps your losses small. But then, and this is the important part, your Profits must also be large, but not just large in monetary terms, they must also relate to your losses. Let’s take a look at an example:
In this example we have a Short Trade on a US Stock, where we calculated the number of Shares to Trade based on a specific % Risk on the Trading Account. In this example 0.5% of $20,000. The Profits was then +5.9 times greater than the initial risk. This is important because the Profits then relates directly to any losses.
Whether you Trade Stocks, Shares, Futures or Forex, Position Sizing is a key part to any successfully Trading plan, so come an join Steve Griffiths, of MTPredictor Ltd (www.MTPredictor.com) at 3pm London time, Thursday 15th October, where he will be discussing how to apply Position Sizing in your own trading, Register now.
About Steve Griffiths
Steve Griffiths started as a Private Trader 28 years ago, dissatisfied with the Technical Analysis Software available at the time, Steve developed and then released MTPredictor in 2001. For the last 14 years MTPredictor has continue to help Traders across the World in their own Trading, in particular in keeping their losses small and Profits large by using Position Sizing built into the software.
Register here to join Steve on his LIVE webinar at Round-the-Clock-Trader, 3pm 15th October 2015
Contact Steve
Email: Admin@MTPredictor.com
Website: www.mtpredictor.com
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