What is the Perfect Trade Size?
Have you ever had problems sleeping because of your trades? Or having a really hard time closing a losing trade? If that is the case. then you are trading way to big for your account.
When trade size gets out of hand and too large, all the analysis in the world is worthless. The risk can quickly outweigh the benefits. So what then, is a propper trade size for my account?
The answer to this question is pretty easy, how small can you go. When you minimize your trade size; something magical happens. You actually start to earm more, at least that is my experience, and the experience of other traders that I know.
Small trade size makes it a lot easier to keep calm and follow your trading system. When trading to big, it is easy to break the rules of your trading system, and when you break the rules, you no longer have a trading system. You can have done all the backtesting in the world and it will not help you a bit if you break the rules of your system.
When it comes to trade size, I never risk more than 2% of my capital on any trade. If a losing trade eats up 2% of my capital, I close it. So go ahead and try out a smaller trade size; and watch the magic happen in your trading account.http://rubio.no/2016/02/01/what-is-the-perfect-trade-size/http://rubio.no/wp-content/uploads/2016/02/size_matters.jpghttp://rubio.no/wp-content/uploads/2016/02/size_matters-300x300.jpgTrading