These days I don't get enough of these posts that help me to put different sizes of trades into charts via this dialogue over Risk Management. It's the center of all trading no matter what.
Please take a look at my PDF detailing the range of sums listed, in proportions of 40 - 60 - 80 and pip sizes. This is your Self Esteem eye and desire appetite calculated in the middle of the Chart in the form of your position size I am in agreement that this math is for determining the maximum LOTS Please also test your own calculations with this Money Management Calculator: I predict you will hit margin call within 2 weeks or you will be stopped out many times until your account is dead.
I don't know what pair you are trading, but you must do some research on what average daily, weekly and monthly ranges are and base your stop-loss accordingly.
Furthermore, a stop-loss in the range of pips may be entirely appropriate for a swing trade, depending on the pair you are trading and your entry rules.
Therefore, the statement that "Your stop-loss is way too close" should be ignored. This is your Self Esteem eye and desire appetite calculated in the middle of the Chart in the form of your position size. This looks like something from a language translator If it is I think the translation is bad.
If its not I don't know what you are trying to say. The stoploss is the week part of any system. Like Clint and Xtremeforex I dont know the metrics of your method of trading so saying the stop is to big or small is pointless.
I will say that if it is to big or small for your system then you will lose your account. You can not make money in the long run with a SL that does not fit your system. From reading other posts by xtremeforex it seems he uses huge stops or none at all thats fine it works for him and his method. What about the psychological impact? We all know that almost ALL the major pairs have an average weekly and hourly ranges well beyond that. My method is very dynamic, there are situations in which I use a stop-loss as an alternative to a trailing-stop to lock profit.
Never to close a trade at a loss. Here is an example: Your risk is WAY too high. You are severely under-capitalized for that risk.
Your stop-loss is way too close. Your stop-loss is the weakest link in your strategy. I have no idea what you're talking about, above. As for your math, I have added some notes in red, below. You have made similar errors in your math throughout your pdf. Regarding the previous post, I don't agree with xtremeforex. This is your Self Esteem eye and desire appetite calculated in the middle of the Chart in the form of your position size This looks like something from a language translator If it is I think the translation is bad.
The man would get stopped out within an hour or two. You're basically setting him up to lose 40 pips first and get stopped out. His stop-loss is within the average hourly range - bad! Mental stops - yes, sometimes. Depends on my mood.More...