Lot Sizes You Should Be Using While Day Trading

okay welcome back to the swag Academy I am your host your trader swaggy C himself and in this video I plan on talking about risk management and position sizing which is probably one of the most important things in trading aside from psychology and you know knowing the strategy before I even start the video I want to give you guys you know a few announcements tomorrow secure this wide episode 5 drops it's a very very good episode very crazy episode we plan on dropping you know a lot more videos per week we've actually partnered with Eric Thomas and a lady named Tiffany Haynes more information on that will be revealed soon and shortly you got to see how tall unfolds on security swag up so 5 & 6 and even 7 as well we got a lot of things in store new team new direction new website new course like just a lot of things that I'll definitely explain and more detail a little preview is we are creating a whole bunch of new content for secure the swag my name's give us why excuse me for the swag Academy the actual course so all the content that's on there right now we'll be getting deleted and we'll be throwing new content on there a lot of people been acne on Instagram because it's like a month wait should we just wait under the new content releases no because of the new content releases that price is going to be I'm not gonna say so high but it is going to be way higher than it is now whereas if you're already in my Academy no matter if the price is way higher when I do my new course you're just gonna be transferred over you know I mean so I'm working on a bunch of new videos for the the new and improved Academy is about to be insane but if you can't obviously get in while you can while this you know this price this cheap learned the content I have already so when it switches over you see like I cool this is the level this is a new level this is a new level you just followed the whole journey in the process but as for today we're talking about risk management and the reason why risk management so important is because this is the number one reason why you guys are blowing accounts because you guys think you guys can make so much money that when you start an account with it with $300 you risk 50% of your account but the wrong the standard lot size or too lot no reason because you're just like you know I want to make money I want to make money and you guys sort of realize that in my first year I was using point oh five lakh sighs playing oh for lot size a point ten if I was you know aggressive I didn't start out with standards and you know to lots and in five and ten lots I didn't start out with none of that so I want to break down exactly you know what this video entails which is you know rich management stop loss take profit where you should you know how you should base your a lot size which is based off the stop loss if that makes sense you guys should enjoy this video this is actually you know a little bit of one of the videos that's on the Academy already like I said all of it is again deleted not necessarily it means that it's gonna get deleted and put it on YouTube this is just a second video out of the 120 that I'm putting on YouTube I'm probably only gonna put like maybe three or four on YouTube and the rest is literally getting deleted which is good information in there but I'm just pushing it up such an obsession up there I mean so um like I said when you watch this video understand that you must keep your rich management in your psychology and check I don't care if 0.5 you know a lot size is you know it's slow profit I don't care if 40 pips or 50 pips there's a lot of you know pips and you only make $20 you know I don't care like you got to learn the skill set before you go up in the reason why you guys fail is you guys start with high lot sizes and you got a go an account blowing account blowing to kind of say it's not for me know your psychology is not right and you may be right it is not for you because you don't know how to be patient for a year and you small a lot sizes not focus on the wins or the money I understand you have bills but not focus on that and focus on learning higher trade and this video breaks down exactly what a lot sides you should use the risk management you should have in place in a psychology should have in your mind when placing a trade so I hope you guys enjoyed the video and that's the Curtis white devil so five worlds out tomorrow Austin roll the intro [Music] be mindful of your position sizing like you don't want to overly risk you know what you're willing to lose what I mean by that is that let's go to this pair for example back to a part a proper was down here right remember I had this in one of my old videos and prices this break below retest and comes down right let's say you got in right here take my foot there I'm in drawing low that's why okay pause right here stop-loss is right here you see the difference and what the stop-loss is so six seven eight seven eight two six seven one six six six so that is a 30-foot stop-loss so takes it up thirty pit stop loss so you have 30 pit stop loss right here this would be six seven eight two six seven zero so I said 80 pip yes ain't good profit okay 850 profit so you got a 30 pips top loss to 80 pip take profit which is obviously two 12.8 to restore ratio so you look at you you basically play a place your position sizing based on your stop-loss 30 pips stop-loss so if you did a standard which is you know a standard contract which is one point zero zero Lots okay one live size right that means for every 10 pips that is $100 so 30 pips table loss with a standard contract and a one and a lot size like obviously one point zero zero that means if this trade goes haywire you will lose $300 are you okay with losing 300 hours if you are place the trade with a standard if you're not scaled down maybe use a 50 if you use a 50 stop are 50 point could be lot size right 4:35 stoploss that is 150 dollars now 50 because you gotta understand every 10 pips would equal this so if you had a 30 point 30th point 20 point 15 then 10 pips will be you know negative 30 dollars or negative no 20 in 1815 with a negative 50 or point 50 10 pips in a negative direction will be negative 50 dollars so if it goes all the up here and get you out you will lose one hundred and fifty dollars are you ok with that are you not if you are place to trade if not scale down let's go down to a point 25 point 25 lot size right 30 trip stop-loss if you've got a point 25 lot size on 35th outlaws that means the most you could Lula this trade is $75 because 10 pips will be negative $25 20 pips will be negative $50 and then 30 pips would be negative 75 all your new really is multiplied this by like the first number and your best to get exactly what your stop loss would be simply just a profit 25 last sides with a a tip take profit would be $200 so you would you're risking $75 to get 200 with this one with this one you're risking 150 to get 400 with a 50 lot size because obviously a point 50 would a 80 to take profit point 50 times 4 would be $200 and then obviously times 8 would be I was supported else total so this would be a $150 risk and 400 our take profit but a standard it'll be a $300 risk what an 85 take profit or what an $80 a profit so like I said be mindful look at your position size like look at your stop loss look at your take profit of the trade that you're about to get in see the distance measure to stop losses and then take profits then based on that you choose your lot size so let's go to any other page so see again it's one of your SD right my tech-talk was down here like obviously if I were to sell madam said it was too close there but father got him right here my first day crop would have been here your brace here my next day properties here go from the bodies down and you see this while I'm doing I'm putting my take puppet like this specifically in the Advanced section but that was the case and it comes down up and down it up let's say it does this first down bricks above bricks down and slowly does that that little thing right gets down there they probably in a short position and I get in right let's not get in right here it's a little bit later take profit means that losses up here to poppers down here right this is only a 25 pitch pit stop loss let's just say 20 just a biggie easier for you guys to understand and this would be uh this is a hundred cryptic profit cool 110 actually but I'm just gonna say 100 so this yeah 100 won 9-8 no it's not when I ate to an awesome party comes out okay this is a 45th loss to a hundred okay cool so right here the same thing applies 42 stop-loss basically 100 hundred 10 pips a profit right cool so you got this in hand now just look at it if you have a standard which equals one point zero zero lot size the most you could lose on this trade if it goes bad is $400 the most you to make on this trade if it goes all the way well it's a thousand and a more goes lower and lower lower you'll be six hundred seven hundred eight hundred nine hundred thousand you can clothing tell you one but that's just emotional hat you'll make a thousand based on your stop your lot size and your take profit let's say you did two lot sizes me up to Annie a little bit because you so more confident but you got your account shows it like you've been consistently profitable the most you lose on this trade princes forty pick what's to get multiplied that would be eight hundred dollars you would be losing eight hundred dollars if the trade goes home can you afford to lose that if you can get in if not get out the most of the make on this trade would be two thousand dollars in that one trait because 22.000 stop-loss times 100 kids it's $2,000 so be risking 800 I get to 2,000 you never want to risk 800 to get 800 or risky under to get 600 you want gonna risk double it or triple or quadruple I wanna get a lot more reward for your risk and if you can handle that great let's look at a pair a pair such as that I weigh more exotic that make pre-cool out such as yet where the the pit count is so much different ta let's see this right here let's say you get in right here right long so you gonna write him stop lost down here right right here cuz you got to put the little last lower high I mean higher low take profit could be not the first one cause it's lower it has to be up here like I originally envisioned it could even be here one nine one five hundred I know like it stops right here which is why I have this blue and make it bigger if I can so I had this blue line here so I knew it was like the kind of resistance over there I could have in the first uh take profit attack type in a second let's keep it right here for now so since GA moves a lot differently it's gonna be a way bigger stop-loss so one eight eight is zero basically two one 875 that is a 130 pip stop loss can you handle that be mindful of your position size until you from start loss and how you determine it visually like we look at this one eight eight nine to seven let's just say one eight eight nine zero zero so I'm breaking down real quick one eight eight nine zero zero and then it got so one eight seven six sucks gonna sleep in stop-loss I know so I'm doing cool all right you just basically subtract this to eight ninety seven sixty and it won't be thousand it won't be thirteen hundred clip stop loss because it's very you know freaky but you know with pigs they necessarily count the last number really like a pipette whatever it may be but it's really this is our parents are really useful to be drawn out like we know what banks and all the extra stuff so you just subtract 890 - 760 they just give that extra decimal or an extra number and value because you can track it by one one nine three zero zero one when I'm 1000 so you can see clearly and how small and how fast these markets can move but it really moved by it in you know increments of ten so you subtract that and it's 130 pips I mean the price goes from one point three zero zero zero to one point three zero one zero zero that's only 10 pips it's not a hundred pips it's ten because the last value really doesn't count so it's really this zero to ten ten picks all this so that was kind of maybe confusing to you but that's how it works brilliant so understand next hundred thirty from stop loss like I said and then up here would be one eight nine zero to move one nine one five that is a 250 pip tape profit so you gotta measure I'm not going to do math on this one because it's a lot to do right now but if you had a standard I can do a standard at least cuz Claire's is one point zero zero side of standard one point zero zero standard right the most I can make on this trade or lose on a straight beat $1300 the most I can make on this trade is 2500 is this a trade your wounds and enter like if all else fails and this doesn't go up and it goes just right here and down could you afford to lose another album yeah you can main enclose that 600 but you gotta trust your trade you have to trust that you put your stylus at the right place let it play out can you took the entrusted if you can great saying if not scale it down let's say you just like 2.15 I know based on not based on the math but based on like just doing this in half you'd be risking 650 I believe 650 I believe versus 1300 at the point 50 can you afford losing that much look at don't look at the take profit because that doesn't matter stop loss matters if you make this great coup but this is what you got to understand you can always lose your stop like your stop-loss price and that money at any given trade news can come out anything I'm happy the more you can move however they want the moves can you afford that if not scale it down again go down to this like the smaller side points in what pairs like this like you'd understand pairs like GA like these exotic pairs that's not a major pair and major currencies they have different pit counts they you know they move faster they're more volatile point 10 with this I'd only be losing 130 dollars versus this are only making 250 this may be you know what a point in a much slower can you afford this if you can get in use that but if you want to get more aggressive and higher up the lot side this is a position you know size like this is how you use side your positions up and decide which one and what stop-loss what take profit what a lot sides you really want and what what you really need once you're able to do that then obviously it's you know smooth sailing from there but always going to a trade with the monitor debt might raking gold against me at any point in time and what am I willing to risk so hope you guys enjoyed that video but that was very informative I believe

Channel: Chris "Swaggy C" Williams

Views: 118,835

Keywords: forex, stock market, forex Swaggy c, the swag academy, forex the swag academy, forex market swaggy, forex market the swag academy, lot sizes while trading, blowing accounts while trading, forex trading

Id: bmY85ccvub4

Length: 16min 46sec (1006 seconds)

Published: Mon Jul 13 2020