How do I set the size?
I would like to introduce it to you today.
Position yourself so that you don’t lose more than 1% on any trade.
If I have 100,000 in my account, I can’t lose more than $1,000 on a single trade.
To know your stop-loss level, first imagine the level you can live with if you lose money on this trade, and then set the size of your position.
For EXAMPLE: 1. A position of 20% of the total capital, plus a potential stop loss of 5%, or 1% of the total.
2. A position of 10% of the total money, plus a potential stop loss of 10%, or 1% of the total.
3. A position of 5% of the total capital, plus a potential stop loss of 20%, or 1% of the total.
The Average True Amplitude (ATR) helps you understand the range of daily price movements and help you position yourself based on your time frame and stock movements.
If your position price is $105 and your stop price is $100, then the ATR is $1 and 5 days of volatility can be used to stop the loss.
Position BASED ON YOUR STOP-LOSS LEVEL AND MARKET volatility. Your NEED for STOP-loss space determines the size of your position.
If you control the risk of losing just 1% if a trade fails, each of the next 100 trades will be a trivial one and your mood won‘t be affected much.
Even if you encounter a series of failures, you still have a chance to survive and strive for success.
The New Year will be the market holiday, the Fed is about to start trimming.
Please pay attention to the specific operation, the market is changing rapidly, investment needs to be cautious, the operation strategy is for reference only.
