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29th January 2018
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What happens when your position size is too big?

Many people think that their position size is their reason for failure. They were too protective in the market and they trade with the small position size. It decreased their risks also it had decreased their chance of making profits. When you think that trading in Forex is not easy and you are going to make a lot of money, position size is important. Small position size can make you safe in markets and you will have no risk. If your trades are lost, you will not lose much money. If you set your position size large, this article is going to tell what is going to happen to your account. It is not good and you will find that you have no money in the market. Many people trade with big position size and they do not believe this news. They think it is not right and it has been spread by the professional traders to discourage them from making the big profit. They want to make a good amount of profit and trade with big position size.

Big lot size trading

Some retail Aussie traders often say that big lot size trading is one of the easiest ways to make a profit in the financial market. But the expert traders always says the opposite. They believe in quality trade execution with managed risk. If you trade with a big lot than at times you might have some big winners but in the long run, you will have to lose your entire trading capital. You need to act smart to become successful in Forex trading. Without learning advance money management technique it will be nearly impossible for you to make money in the long run.

Understanding the lot size calculation is very crucial to your trading success. Just by seeing the formation of the candlestick pattern in your trading platform you have calculate how much risk you will take in that certain trade. If you believe that you have the most profitable trade setup then always think about the probability factor. No matter what you do, you can never make money in the online trading industry. Be more concern about your trading investment and try to learn more about the dynamics of the market. Make sure that you use the leverage in a most efficient way.

You begin to start over worrying

When you set a big position size, you begin to start over worrying about Forex. You know that it is out of your control and you cannot afford to lose the money. You will not be rational before you have placed the trades but you will take many wonderful decisions after you have placed your trades with big position sizes. You will start with worrying and it will make you think what is going to happen to my money. Many traders start to place more trades to get their money and to be safe in Forex. This makes them riskier in markets.

You take wrong trades

When you worry about your trades, you place wrong trades. We know that you can say you will not trade the market, you will use your analysis to analyze the market but we know that it is the only thing that you will do in the market. Many traders could not stop themselves from overtrading and it happens when you have big position size trade opens in the market. If your position size was small, you would not have worried much as you have nothing more to lose. Too big position size can clean your accounts in Forex.

It is not good for your career

Finally, trading with too big position sizes is not good for your career. You will trade the market and you will not learn anything that you can use in your career to advance in markets. Trade with small position size and it will make you a good trader.

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