#494: How to Calculate the Correct Lot Size

Online Forex Trading Course

How to Calculate the Correct Lot Size Podcast: TFTC Lot Size Calculator Script Find out more about Blueberry Markets – Click Here Find out more about my Online Video Forex Course Join my webinar for new traders Join my webinar for the more experienced trader #494: How to Calculate the Correct Lot Size In this video: 00:27 – What lot size should I use? 01:04 – Doing it all wrong 02:30 – Get a copy of my Lot Size Calculator script 04:35 – Losing trades will be equal money now 05:08 – Blueberry Markets is my broker of choice 05:50 – Future discussions Calculating the correct size for your trader is vitally important to your trading success. It can make or break you as a trader. Let's talk about that and more right now. Hey there, traders. It's Andrew Mitchem here at the first trading catch with video and podcast number 494. What lot size should I use? So a lesson for you for this week. I was approached by somebody via email a couple of days ago, not a client. And he said to me, Andrew, can you help me out? I'm really struggling with my trading. And he was just tearing his hair out, couldn't really figure out what was going wrong. Yeah, low win rate and was just losing trade after trade. And I said, look and show me some of your trade results. Maybe like export your trade history through to me and I'll take a look at it for you to see if there's anything obvious I can see to assist you. Doing it all wrong Now the thing that stood out so obviously, and of course I didn't know his strategy, I didn't know why I was entering the trades or anything like that. But the obvious thing, the first thing that I looked at is that every single trade that he was taking had the same size and he was this placing 0.1 lots and he was placing on every single trade. It didn't matter what the currency pair is, what the direction, what the stop loss size was, and or even different markets. Every single trade had the same 0.1 lot size. And I went back to him and said, here's an obvious flaw in your trading, because have you noticed that some of your losses are enormous and some of your gains are really tiny and when you have losses, they're all over the place. There's, you know, some big losses. There's smaller losses. And same with your gains. You know, you might have a profitable gain, but it's tiny. And compared with the loss that you just take him on the last trade. And he said, oh, the reason I do that is because it's easy. I put 0.1 lots on every trade. And I said, So what's the reasoning? You know, apart from being easy? I said, Well, that's all I've ever thought to do. And I suppose it's easy. And when you look online, people calculate their pips and they think that they're doing well. If they have positive pips. And he just put the same size on every single trade. Get a copy of my Lot Size Calculator script So I said to him like, here's the first thing you can do. Go to my website and download my lot size calculator. It works on MT4 or MT5 and it's freely available to you. And if you don't already have it, I strongly suggest if you use the MT4 or MT5 platform, you go and download it. It's a script and it's been downloaded tens and tens of thousands of times over the last probably been on my site about 12 or 13 years. Now, unlike some calculators which are really slow and cumbersome to use, this is fantastic. It's a script and all you do is drag it onto the chart that you are trading right now. So let's say you're trading the EUR/USD. You drag the script on. The script knows your account size, the balance. It knows that denomination of your trading account, such as if you're trading in the USD or JPY or NZD or GBP, whatever CAD, whatever it is that your account or denomination is, it knows and all you're doing because you're dragging it onto the EUR/USD chart. It knows you're trying to trade the US dollar, so therefore it knows the dollars per pip that you get paid on tha...