#437: How to Easily Calculate Your Position

How to Easily Calculate Your Position  Podcast: Click Here To Learn More About Blueberry Markets Click Here to Download my Free Lot Size Calculator #437: How to Easily Calculate Your Position In this video: 00:23 – Most traders do not understand lot/position sizing 00:45 – The way most people trade 01:43 – Each pair pays a different amount per pip 02:36 – I’ve made it easy and quick for you 03:00 – How the heart and the mind affect your trading 05:15 – High reward:risk trading strategy 06:40 – Download the calculator today 06:57 – Are you looking for a good Forex broker? What lot size or position size should you take on all of your trades? Let's talk about that and more right now. Hey traders, it's Andrew Mitchem here at The Forex Trading Coach with video and podcast number 437. Most traders do not understand lot/position sizing Now unfortunately most traders out there do not understand the importance of position sizing or lot sizing. They don't understand the importance, they don't understand how to do it, and they don't really understand why they should do it. But if you don't understand that, it's going to make a huge negative effect on your trading. And let me explain what I mean. The way most people trade You see, most people focus on making pips and they really don't understand the importance of low risk controlled trading. And someone would generally place a trade, it doesn't matter what the currency pair, what the timeframe chart, what the size of the stop-loss is, it doesn't matter what their own currency account is. They'll just place a trade at one standard lot per trade, or 0.1 or 0.01 depending on the size of your account. But they'll just go and place the same lot size on every trade. In fact, most people will just go and place the same stop-loss on every trade regardless of the trade or the market conditions or anything. And when you think about that it's just utter madness. Why would you do any of those? But that is probably what 90% of all traders out there are likely going to be doing. Now if you're listening to this thinking, "Yeah that's what I do." Then you really need to listen to this next bit because it's highly important. Each pair pays a different amount per pip You see the issue with the Forex pairs is that each currency pair has a different payout per pip. It depends on what the currency is. It also depends on what your account denomination is. So if you've got a US Dollar account, then your payout per pip, let's say the Euro/US Dollar, will be different to my account that may be in New Zealand Dollars, or someone else's account that may be in Euros or Pounds or Canadian Dollars. It's all different. So you really need to understand that. Now the problem is, for most people that's just too difficult to work out. It's like this sort of big calculation that you need to figure out. So most people don't do that. They'll just go, oh I'm just going to put 0.1 lots on this trade. And the next trade? I'm just going to put 0.1 lots on the trade. That's the problem. I’ve made it easy and quick for you Now I've made it very easy for you. I have a free lot size calculator that works on MT4 and MT5. Just select the right one, by the way, when you download it. It's freely available on my website. I'll put a link to it on this video and podcast post so you can find it. If you don't have it, definitely download it. It is invaluable and you should be using it on all your trades. How the heart and the mind affect your trading Now, what you have to think about is this: when you have variable losses, it starts to play with your emotions. The two things in trading that affect you, one's your head and one's your heart. You have to control your emotions. Now, the way I trade is I have a maximum risk of half of 1% of my account per trade. So what that means is this: let's say I had a $10,000.00 account, it could be $10,000.00 or £10,000.00 it doesn't matter.