Hi again,
except "feeling the market" or "following the flow" all other elements of trading are pure maths. Managing your risk ist just math.
I'm always vey surprised, when I get in closer contact with some FF members, how small their knowledge is about the trading maths.
I'm talking about very basic things like:
except "feeling the market" or "following the flow" all other elements of trading are pure maths. Managing your risk ist just math.
I'm always vey surprised, when I get in closer contact with some FF members, how small their knowledge is about the trading maths.
I'm talking about very basic things like:
- what effect on my equity has a move of x pips against me, when I have y troops deployed?
- How many troops do I have at hand, when I only wnat to use 30% of my margin?
- How many pips do I need to bring my positions back to BE when I deploy next level? How many do I need when I skip one level?
- After how many pips do I have reached my daily limit of y% loss?
And into the same category I count the leverage thingy. It is just maths ....
Nothing magic.
Nothing mythtic.
Only math.
I strongly recommend to set up an excel sheet and play a little with the numbers that are related to your account, like Acc. Size, leverage, Tick value according to position size, your max. Level of pain, possible skews, etc .....
Not sure if I find some time to prepare such an Excel sheet.
But doing it by yourself are the best invested 2 or 3 hours you can spend on ...
All the best,
Niels