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It is wise to decide on the size of the trading lot and exposed risk in advance.


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It is wise to decide on the size of the trading lot and exposed risk in advance.

Do a simple math: calculate the worst possible situation, e.g. 10 consecutive losses in a row; then see if your account will survive and if there be something left to move on. And, although 10 losses in a row is a very unlikely scenario, you cannot deny it...

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johnstarks,

 

I agree with you but in my opinion you need to test the worst possible scenario and multiply by 2 or 3 always in order to survive on markets. You don´t know how market will behave in the future, and is most likely that worst scenario will repeat and with more losses in a row. That is a fact, and this is a reason why manual traders will survive and automated trading don´t.

 

regards,

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johnstarks,

 

I agree with you but in my opinion you need to test the worst possible scenario and multiply by 2 or 3 always in order to survive on markets. You don´t know how market will behave in the future, and is most likely that worst scenario will repeat and with more losses in a row. That is a fact, and this is a reason why manual traders will survive and automated trading don´t.

 

regards,

 

Yes you are right right about that and I agree with you also..

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