Lot Sizes / Strategies

[ForexVerified]

0.1 lot is too much I think When I was newbie I was using 0.02-0.04 at REMOVED and never break that rule. That's why there is no a single wipeout in my trading history, just 40% drawdown..

This equals gamble. You better go to a casino, at least you'll get a free drink.

 

[EuroTrader]

This equals gamble. You better go to a casino, at least you'll get a free drink.

Yes i would agree that we have to refrain from doing gambling in our trades. As we all know that if we will gamble then the chances of a loss will start increasing for us

 

[ishan agarwal]

Lot Sizes:

• Standard Lot: A standard lot represents 100,000 units of the base currency. It is commonly used by institutional traders or those with significant capital.
• Mini Lot: A mini lot is one-tenth the size of a standard lot, equivalent to 10,000 units of the base currency. It allows for smaller position sizes and is suitable for traders with limited capital.
• Micro Lot: A micro lot is one-tenth the size of a mini lot, equivalent to 1,000 units of the base currency. It enables traders with even smaller capital to participate in the markets and manage their risk effectively.

Trading Strategies:

• Scalping: Scalping involves executing numerous short-term trades to take advantage of small price movements. Traders utilizing this strategy often prefer smaller position sizes (micro lots) to capture quick profits.
• Day Trading: Day traders aim to open and close positions within the same trading day. They may utilize various strategies but typically focus on shorter timeframes. Position sizes can vary depending on the trading capital and risk tolerance.
• Swing Trading: Swing traders hold positions for several days to weeks, aiming to capture larger price movements. Position sizes can be larger (mini or standard lots) to accommodate potential profits over an extended period.
• Position Trading: Position traders hold trades for more extended periods, often weeks to months, based on long-term market trends. They may use larger position sizes (standard or multiple lots) to capitalize on substantial market moves.