Hey traders,
In this post, I will share with you my tips for trade management.
But first, let me elaborate on what is exactly a trade management.
Trade management is the set of rules and techniques applied for managing of an already active position.
Trade management is a very important element of any trading strategy that should never be neglected.
1....
Hello traders,
Remember when you just started trading, almost everywhere you could hear about the 1% per trade risk rule? While this is not too bad, I think in most cases 1% risk is too much. Here's why:
1. If you're trading a 100k prop firm account, 1% is $1000. Imagine you have a very usual losing streak of 3-4 trades. Now you've lost 3-4%, and $3-4k in...
Position Sizing
Traders spend much of their time looking at charts and analyzing using technical or fundamental analysis, or a combination of both. While this indeed is a very good thing to spend time on, not all traders take their time to focus on risk management, and more specific position sizing. I see a lot of new traders or old traders which trade only to...
Lower RRR = Low drawdowns (Lower consecutive losers)
Higher RRR = High drawdowns (Higher consecutive losers)
To not go against the prop firm's drawdown rule of > 10% rule, You should risk..
risk per trade = 10/consecutive loser
Example.
risk per trade = 10/7 = 1.4285%
So you should risk < 1.4285% per trade.
