Original subtitles

this will ever happen so it's not something you need to spend

should contact your broker with the if it is an error on their

error, so this is a human error made in the risk management

yeah that wraps up this lesson hopefully by now you should

nowadays brokers are you know they're pretty good in this

broker error and this is when you're triggered out for a loss

the broker fills your order for a different price than what you

final common cause of excess losses can just be down to

difference between you being profitable or not sometimes it

set in the initial order form so it's pretty much what can

27 right rounding down always helps with that because it's

order and closes you out for a more favorable price than you

which you set in the original order. So, make sure you avoid

than you had risked on a trade and this is something that

if you've got any questions as always about this or you need a

you may notice that you've actually lost slightly more

that's everyone's thing I want us cover so pretty simple yeah

really really can add up over a large series of trades and the

lower unfortunately it's just an unavoidable part of trading

had actually originally targeted. Now, if you're ever

pairs are one of the major eight. Sepage so this is when

calculator that we just looked at and it says to use nought.

your probability of a loss greater than what you

exposes you to $3 10 per pit for example so if you use a

that exposes you to $2 90 per pip rather than a size that

stop again that's just what you would punch into your position

Now, here are some of the most common causes of excess losses.

all I really kind of wanted to cover now in terms of this is

that. Now, sometimes when you log into a brokerage account,

value is three dollars. It's best to to select a trade size

your balance or you know sometimes you put 5% instead of

275 lots if you cannot enter a lot size to three decimal

but it's just the cost of doing business and it will not be the

click it and go into style you can play around with all of the

know how to correctly size your positions so that your trade

predetermined is increased due to the high spreads and the low

we just want to risk nought. 5% right so you just put in your

any time really being concerned or too worried about okay so

side they will often refund your loss but again this is

fear so when prices moving a stop loss you know it can make

very very rare so as long as you're using a reputable a

risking slightly less rather than risking slightly more than

remember just to round down just so you know you end up

we'll get into a bit later but essentially I prefer to have a

sometimes this will give you three decimal places then

where your entry is this would be where your stop is and as

settings in here and just pick what yeah whatever you like and

you you know if you can't go down to a certain decimal place

has the compact stats mode and not but yeah we'll get into

stuff but if you are skeptical about a certain trade then you

quickly check this this kind of this row here just as a quick

just swap this and you can put money there instead of risk but

details and they should be able to confirm it for you. Rounding

curious as to why particular trade may have lost more than

there's not really too much as I can add you can obviously

here this is a good little censure check because you

I would just keep it this way and that'll be it so then you

size down instead of up. So let's say your required pip

places with your broker and just round it down to nought.

when you should not have been so it's rare especially

you had risked, you should Email your broker with the

reputable and regulated broker it's extremely unlikely that

can even work a favor if price slips past your take profit

your your blood pressure in your heartbeat rise a little

process. So to be safe, you should always round your trade

have a three pip stop loss size so what that means is if you

see it on the screen there and blue you can if you double

from a news event where liquidity can often be much

your broker the majority of brokers still use lots but some

Trading exotic pairs. So, if you're trading an exotic pair,

little bit more help with the trading view or any position

use units I believe Owanda does use units but you know there's

lot more sort of neutral colors just you know you can barely

below the video and I'll see if I can give you a hand with

exotic pairs by ensuring that both currencies in your chosen

a few out there that do but yeah lots isn't the most common

happen when you trade exotic pairs there can be a number of

needs to be monitored closely in your journaling process.

size calculators then as always feel free to drop a comment

do we put on the trade right how much do we bet what lot

cause your order to be filled at different prices to that

size calculator and it will give you you know a slightly

causes for this usually happens if there's large volatility

volume that is associated with those pairs because it could be

calculates your position size when you kick calculate and

loss size in pips and then that's it it basically just

size do we use so this is where we then use a lot size

$500 on your dollar then you need to use 16. 67 lots if you

sense check because sometimes you can put an extra zero on

one and this obviously tells you that if you want to risk

so ticks is essentially I guess ten times bigger than your pips

risking right so that makes sense half a percent of 100

primitive sort of decisions and mistakes so I've saved a

we're already now to enter this into our broker so we would put

different lot size and that's it and then yeah yeah I think

obviously for our entry 1. 1735 and for our stop we put in 1.

this case we're already on Euro dollar as that is the pair that

calculator so quite a common one and one I'll post a link

example let's just stick with a three pip stop loss and yeah

let's just say this is how we want to size the trade up and

so when it says 30 ticks well that actually means is three

this thing is I've never really used it to be honest with you

obviously you can you can get around with you know whether it

into Google you know Forex position calculator there are

entry is going to be and this is where your stocks going to

you can see as well you know it shows you the different size of

pips so if you wanted to put a ten pip stop in for instance

your stop in pips so let's say you know you had a four pip

you had intended so yeah that's pretty much it you know play

1732 so the point of this video right is to know well how much

template for different kind of time frames and stuff which

like if you still have the default settings on your risk

are literally psychologically designed to invoke green and

calculator to use in a minute I'm not even sure how accurate

bit faster and can lead to those you know impulsive

you might not think it makes a big difference but those colors

risk ratio however much you want to risk and then our stop

would punch into your broker yeah 16. 67 knots yeah and if

should know in the back of your mind you know roughly how much

rid of this red and green you know just like a casino thing

nought. 5 or whatever. If you make a mistake or anywhere in

risk reward and profit targets a little bit later but that's

position so if you haven't done so already I would highly

to a raw tools and essentially what this represents is this

below this video is for a position size calculator on my

then let's say we have a $100, 000 account and then let's say

actual trade example so you can see just how easy it is to size

$500 loss so yeah whenever you kind of get your lots here just

be your stop loss so what you can do is just adjust this to

dollars you are intending to risk and yeah that's it really

lose those three pips with that lot size that will equate to a

then what this shows you is the amount of money that you are

wherever you want so let's say our stop is going to be just

your account is denominated in so only does the major eight

we're trading and then you need to put in the currency that

we're going to discuss in a a hell of a lot more depth in the

you know extremely simple process to be honest so when

wouldn't recommend it I'll show you a much better lot size

over here on the toolbar if you open this up you will see

you making it super easy and quick and almost fully

grand is $500 so yeah that's exactly how much I want to risk

obviously select the currency pair that you are trading so in

effects book but if you literally type into calculate

let's say we're going to take a long position so we'll click on

will add it to your favorites toolbar wherever your toolbar

exact same thing you can adjust the the price level of your

will use that is in line with our risk parameters.

is within your chart so I always have it up here now

around the settings one thing I would advise as well is to get

can only move so far before the trade is taken off the table

you can also play around with these in here to get it super

on anyone trade but how do we actually make sure that we cap

tons on there so the first thing you need to do is

currencies here but let's say we have a US dollar account and

and then this tells you your sizing so this will depend on

adjust it by the price there or this is the the size in ticks

echo or obviously type it in manually and then the again the

profit target right which shows you up here and then this will

you would just put in one 00 but for the sake of this

profit level your take profit or your stop level you can

but if you want to adjust your entry price just a little bit

Position sizing or trade sizing is just a fancy way of saying

whatsoever and some brokerage platforms even do the work for

order. That way, if the market moves against your position, it

around with the settings a lot more I don't use any of this I

it moves against you and then reaches a predetermined price

and you obviously know where you want to get into the

trading and edge module so essentially this is where your

be you can double click it and open it up and you can play

target for now and risk reward ratio as this is something that

below here and then we're not going to worry about the profit

line here in the middle is your entry price right so show the

there's two options one for a long position and 1 for a short

stop loss so what you can do here's on the left hand side

recommend that you click to start on each of these and I

enter down here right now this is probably what it will look

designed to stop any loss after a certain point. So each and

price on the right hand side and then this will be your

our risk at 1% on each trade that we execute well we use

the long position tool and then let's just say we wanted to

something called a stop loss order the stop loss is simply

have identified an area in which you want to take a trade

position and then you know where you want to place your

you're on your when you are on your charts and let's say you

have to do a quick calculation to work out what lot size we

between these two concepts. Every time we enter a trade, we

Fortunately, are some online calculators and apps that can

level that you set As a name indicates, a stop loss is

just an order placed with your broker that closes a trade if

this so we understand the importance of the golden rule

automated. So let's hop on the charts and run through an

up a trade. Okay so position sizing in reality it's a pretty

how much money do I put on this trade so in the short lesson

for a small calculated loss. Position sizing is the link

help you do this so it does not require any math skills

every time you place a trade, you must also enter a stop loss

by now that we never risk more than 1% of our trading account

we're going to look at exactly how you accurately calculate

risk is always capped at 1% or less