Thread by @delbert_trades

For all Traders > Must Read even you are a good profitable trader > I bet you gonna learn something new which is too simple but you never thought that way .

A thread 🧵on Position Sizing & It's basic calculation ⤵️

Almost Everyone knows TA,FA and lots more stuffs and everyone has a style & strategy to trade .

I am not gonna teach uh all these here in this thread but the secret of staying profitable is here ⤵️

Lets dive into it 🪂

1/

Everything depends on your Position Size > Position Size means margin used X leverage used .

For an example , you have 1000$ in your wallet , you used 10X leverage , your position size will be 10,000$

2/

we sometimes face big profit or big loss > want to keep your loss and profit ratio same ? (eg. always 50$ for each trade ) >

Then we need to understand this simple calculation ⤵️

3/

Suppose you gonna take a Trade like this > SL 5% > just decide a amount u can lose > let's say 50$ , so your position size would be 1,000$

lets get another example >

4/

Let's say ,we gonna play this chart where SL is 0.5% > u accepted to lose on this trade 20$ > position size will be 4000$

Calculation :

Position Size = SL amount you decided X 100 / SL % on chart .

5/

If you can fix your lose amount same for each trade >

🎯Your RR gonna be more effective .

🎯End of the day or week your fund will increase as per your RR achievement .

🎯If u even 4/10 trade with 1:3 RR get success , U Will be in profit 2R , no loss .

6/

So to be successful in trading you don't need to be too good in technical analysis . You can be profitable always if you follow my simple math and apply it .

Even a gambler can use this and stay profitable 😂Just saying .

7/

If you like this thread > like, retweet, comments below & follow must .

If u read till now, from tomorrow u not gonna lose.

I will bring more interesting contents which is practical and helpful for all which I personally use in my trading and learnt after losing money🎯

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