Size Position and stop losses (what’s the effective way?)

20 de mai. de 2019

what’s more effective having tight stop losses with bigger size position ,or having a smaller size position with a wide stop loss? Well as you know in trading every day is not the same. So you can do either or depending on how the day is going.For example if instruments you’re trading is very volatile it would’t be such a great idea to have a big position with a tight stop loss.You may have thoughts of doing it because if you’re able to pull it off you might make some good money fast, but you will have a very high chance of being stopped out. Then that’s when disaster happens most likely your emotions will take over and you will start to revenge trade. For this reason it would be better to trade with a small position and wider stop losses. Now, if the market is a little bit slow you might do the opposite depending on the situation. It really all comes down to the chart pattern, volatility , trends , and so on.



Quote: “It’s critical for the crocodile to understand its prey and to know where to look for it and remain calm and patient until it arrives. As traders, we have to know what our trading edge looks like and where to look for it and then control ourselves enough to not over-trade before it arrives. “- Nial Fuller





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