Risk Management and Position Sizing for Beginners - Trading Tutorial
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- เผยแพร่เมื่อ 5 ส.ค. 2024
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DISCLAIMER: None of the information communicated in this video is financial advice, I am not a financial advisor and this information is for entertainment purposes only.
Lesson Contents (0:00)
Why Risk and Position Size Matter? (0:53)
How Much To Risk Per Trade? (5:00)
How Much To Risk Per Trade? Complex Answer (6:13)
Calculating Position Size Per Trade (13:13)
Putting it all Together (17:36)
![Position Sizing Controversy [Algo Trading 2021]](http://i.ytimg.com/vi/gJ_NCiRnTuM/mqdefault.jpg)
![Position Sizing Controversy [Algo Trading 2021]](/img/tr.png)
Khoroush, I just want to say the way you breakdown concepts and deliver them is phenomenal. You’re a natural at teaching. Good stuff, and thank you!
Koroush, you are a fabulous teacher/trainer..
Exeptionally clearly/concisely explained
*a Top Tier channel 🎯
Besides learning, I’m keen to put this one into work, thanks for all the positivity!
Great course that you have made KoroushAK. I have watched you grow from about roughly 150-250 subscribers on YT to now over 15k. And it happened all organically because you provided value and quality content each and every time you produced a video. Keep up the phenomenal work bro
Hey Carmen thank you for your support! Appreciate you :)
@karoush you are simply the best. This video and others are superb!
Finally. I bet I saw that video up a few days ago and it just got re-uploaded now :D
@Koroush AK wow. That does sound intriguing!
Loved your way of presenting things! 🙌🏿
another great tutorial. can't wait for the next one
Thanks for this !
Very educational videos, thank you.
thank you so much!!
It will be nice to see how to use stop loss with leverage? Leave absolute risk amount or trail it with leveraged position size? Anyway as always @kouroush ak thank for the video!
the formula given is where there's no leverage.
how to compute position size when we have leverage?
leverage does not affect your position size. leverage affects the capital you need per the position size you are entering the trade with. honestly, if someone can't be profitable at 1x, why would they be at 10x?
please release the next video soon
eagerly waiting.
thanks for being such a good teacher for noobs like me.
Hey Koroush, I was wondering; is there any other calculation that has to be added to the position size formula when using leverage?
Love the content & value you provide btw!
This series is fantastic, will you be releasing the next video soon? Thanks!
How to calculate position size when going short
Another great video Kroush! One question: in the screenshot of your to be placed order at 16:12, the cost say 0.0231. This is more then your calculated risk if stoploss is hit, do i understand right that if you take on this trade you stand to lose 600 bucks?
this was great thnx
is there an app that can help you start investing? Like one with fake money, just to try and see how it works for begginers
Hi Koroush - great video! Is Phemex available for UK users to use?
Are they any free spreadsheets or apps that you'd recommend for managing position sizing?
Hey Koroush, thanks a lot for this incredibly helpful guide! Really enjoyed it so far. Does the max position size change when you trade with a certain leverage multiple?
Furthermore, I just wanted to let you know, that the last part of your video starting at 13:14 seems to have some type of audio issue. I got multiple stutters or other weird noises in the last part. I am not entirely sure if it's the video or my hardware, just wanted to let you know.
Additionally, I hope you'll be able to reply to my question on the Invalidation Stop Loss in your previous Stop Loss tutorial ^^
Cheers :)
It will be interesting to see
what about sizing using the Kelly Criterion formula?
Confused, sorry if this has been covered. You say to keep your max risk to about 4-5% of your total portfolio per trade. Ok but how many trades should you have with open risk. ie if I have 20 trades with 5% loss I could get completely wiped out. Are you suggesting that as long as each trade is within 5% loss I am fine?
how to calculate leverege? I mean I enter with 2.01 contracts, but how much leverage I use?
So if I have a 100,000 account i would risk in 2000 dollars.
And by using the formula my position size comes to be 17, I would put in 17 x entry price?? I would be losing 2000 on a trade, right?
has the next lesson been released yet?
Hi Koroush, amazing content, thank you so much. I have a question (maybe I made a mistake in this exercise, but I cant figure it out):
Portfolio size: 1.000$
Risk per trade (low) would be 2%, meaning I'm willing to lose (or gain) 20$
Using 15.000$ as an entry point (like in your example)
Setting the stop loss at 14.850$.
Calculation of the position size = 20/(15.000-14.850) = 0.13
Calculation to dollars = 0.13 x 15.000 = 1.950$
So the quantity lands above the total portfolio size. Where did I make a mistake?
He made the same mistake or miscommunication in his video. He said if we have a starting roll of 10k, are willing to lose 300 then after the calculations our position size is 30k. How can we have a position size of 30k if we have 10k? Never traded before so if I didn't make sense just explain rather than saying something stupid.
Your position size should be higher than ur max risk. You need to recalculate
@@OptimusPrime-dz9md yeah exactly
That's when you need to use leverage.
Did u get a solution yet??
could you please try to get your volume levels sorted , love your content but soooo annoying when listening with headphones on !!
4:26
This last formula is way too confusing to understand. how can you have position size larger than your whole bank roll... Guess need to do more research
I don't understand it either. I tried the calculations myself and it says my position size needs to be 1200 when I only have 1k. I'm only risking 50 dollars which is 5% so I don't understand how it says my position size needs to be higher
Mrs Mary is legit and her method works like magic I keep on earning every single week with her new strategy.
I receive my profit every 5 day's thanks so much.
Wow I'm just shock someone mentioned expert Mrs Mary I thought I'm the only one trading with her, She helped me recover what I lost trying to trade my self.
Yes I'm also a living testimony of expert Mrs Mary.
Mrs Mary is obviously the best, I invested $3,000 and she made profit of $28,000 for me just in 15 day's, Her success story is everywhere.
Who's this professional, everyone is talking about? I always see her post on top comment on every TH-cam video I watched.
Shidot