indextrader7
Registered: Apr 2012
Posts: 75 |
04-14-12 10:39 PM
Quote from Zr1Trader:
Thanks for sharing,
Would you mind sharing how you calculate your position size?
Do you usually give yourself 1 add per trade?
I think this will turn out to be a good journal .
Regards
Pretty simple position size calculation. How far away will the stop loss be? Based on that, how much money am I willing to lose on the trade? Then just do the math for the proper position.
If my stop will be 10 ticks, and I'm comfortable risking $500, then I know I can trade 5 TF contracts @ $50/tick to make it work.
Sometimes I trade a little more or little less on intuition, but still always want to stay within acceptable levels of risk for the trade.
ANYTHING can happen on ANY given trade. Any single trade should not matter. An edge is only a ---higher probability--- of A happening over B. (quoting a lot here from, "trading in the zone" by mark douglas)
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