That's it!
Especially if your broker allows you trade any size. Imagine your method with Rirk-Reward ratio of 1:1 [use any other numbers if you like]
Trade account $1000
After one loss then one gain:
first trade: $1000 - $10 = $990
second trade: $990 + $9,9 = $999,9
After one gain then one loss:
first trade: $1000 + $10 = $1010
second trade $1010 - $10,1= $999,9
Maringale says - after each loss enlarge youru position
1% says - after each gain enlarge your position
in fact both are bad.
Why does it wipe your brain?
In my opinion if last trade while going in red was loosing $10 per pips and now it loses $11 - it may cause some discomfort that finally may affect your psychological side.
What instead?
Befor any trading first of all pick, your trade size. This will make you to pick max SL you can accept [so if given setup demands bigger SL, skip the trade].
Than whatever setup you spot, enter always same size. One day you may say, ok I made lots of profit, I would like to trade bigger sizes than so far [1% bigger, 10% bigger, 50%, all depend on how much did you make so far, and what would make you feel comfortable]. So from new day, new week, or new month, you can start with bigger amount.
If you skip between trade sizes on a daily basis this in my opinion may hardly drain your mind.
If you like this guys, just let me know, so I will blow couple other myths I encountered on FX market, like fibs, candle setups, Risk-Reward ratios and so on
Especially if your broker allows you trade any size. Imagine your method with Rirk-Reward ratio of 1:1 [use any other numbers if you like]
Trade account $1000
After one loss then one gain:
first trade: $1000 - $10 = $990
second trade: $990 + $9,9 = $999,9
After one gain then one loss:
first trade: $1000 + $10 = $1010
second trade $1010 - $10,1= $999,9
Maringale says - after each loss enlarge youru position
1% says - after each gain enlarge your position
in fact both are bad.
Why does it wipe your brain?
In my opinion if last trade while going in red was loosing $10 per pips and now it loses $11 - it may cause some discomfort that finally may affect your psychological side.
What instead?
Befor any trading first of all pick, your trade size. This will make you to pick max SL you can accept [so if given setup demands bigger SL, skip the trade].
Than whatever setup you spot, enter always same size. One day you may say, ok I made lots of profit, I would like to trade bigger sizes than so far [1% bigger, 10% bigger, 50%, all depend on how much did you make so far, and what would make you feel comfortable]. So from new day, new week, or new month, you can start with bigger amount.
If you skip between trade sizes on a daily basis this in my opinion may hardly drain your mind.
If you like this guys, just let me know, so I will blow couple other myths I encountered on FX market, like fibs, candle setups, Risk-Reward ratios and so on