Category: 3. Position Sizing

After journeying across the globe with Newbie Ned, and through some basic position sizing examples, you’re well on your way to becoming a competent risk manager. Now knowing how to set the correct position sizes is only a part of what it takes to become a pro at risk management. The other part is discipline. Stick… Continue reading Summary: Position Sizing

Let’s say you want to buy EUR/GBP and your broker account is denominated in USD. In this trade, you only want to risk USD $100. But you’re not trading US dollars, you are trading euros and pounds. How do you calculate your position size? In this lesson, we’ll teach you how to determine your position… Continue reading How to Calculate Your Position Size in Different Forex Pairs and Account Currencies

To make things easier for you to understand, as usual, we’ll be explaining everything with an example. This is Newbie Ned. A long time ago, back when he was even more of a newbie than he is now, he blew out his account because he put on some enormous positions. It was as if he… Continue reading Calculating Position Sizes

Now that we’ve learned the hard lesson of trading too big, let’s get into how to correctly use leverage using proper “position sizing.” Position sizing is setting the correct amount of units to buy or sell a currency pair. It is one of the most crucial skills in a forex trader’s skill set. Actually, we’ll go… Continue reading Position Sizing