I met up with a friend the other day who was asking me how do I do my positions sizing when I trade. I have always told him for years that I will risk 1-5% of my capital per trade, depending on the nuances of the trade. However my words have fallen on deaf ears, as he always asks me what risk do I take per trade – the answer has always been the same (for absolute beginners I recommend to start with 1% maximum). He always asks how I position size my trade etc.. ever since stumbling upon the Easy Order MT4 Script, whoever asks me about positions sizing, my answer is a straight up use position sizing with the Easy Order MT4 Script.
It’s one of the easiest things to do ever. Let’s call my friend, XYZ. XYZ has always been using fixed lot sizes to trade. He thinks it is rocket science to calculate your position size and allocate a percent % risk of your capital per trade. If you are trading, use a position size that is allocated with a percent % risk of your capital per trade. Ideally keep it between 1-2% to begin with, and as you gain more confidence you can increase / decrease as per your individual trade rules. It couldn’t be anymore simpler and there are now an array of position size calculators out there, and the majority of them are for free! =D
Sangmane has done a wonderful job at offering an automatically calculated position size trade calculate for free. Thank you again, sir. You can download it here (Easy Order MT4 Script) and find the instructions as well.