Calculate your lot size based on risk
Position sizing is the single most important factor in protecting your trading capital. Without it, even a winning strategy can blow your account.
The 1-2% Rule: Professional traders typically risk only 1-2% of their account per trade. This means with a $10,000 account, you'd risk $100-$200 maximum per trade.
Why it works: If you risk 2% and have 10 losing trades in a row (it happens!), you'd still have 82% of your account. Risk 10% per trade and those same 10 losses would leave you with only 35%.
Pro Tip: Always calculate your position size BEFORE entering a trade. Never adjust your stop loss to fit a larger position - that's how accounts get destroyed.
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