All good traders follow this rule. Why continue to lose on five
lots (contracts) per trade when you could save yourself a lot of
money by lowering your trade size down to a one lot on your
next trade? If I have two losing trades in a row, I always lower my
trade size down to a one lot. If my next two trades are profitable,
then I move my trade size back up to my original lot size.
It’s like a batter in baseball who has struck out his last two times at bat. The next time up he will choke up on the bat, shorten his swing and try to make contact. Trading is the same: lower your trade size, try to make a tick or two ‐ or even scratch the trade ‐ and then raise your trade size after two consecutive winning trades.
It’s like a batter in baseball who has struck out his last two times at bat. The next time up he will choke up on the bat, shorten his swing and try to make contact. Trading is the same: lower your trade size, try to make a tick or two ‐ or even scratch the trade ‐ and then raise your trade size after two consecutive winning trades.
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