Trading to provide for your family: what's the pressure like?
When the household depends on the trading, every loss has faces attached. The pressure is the heaviest version of trading psychology, and the honest conversation about it is rare.
Share what you can:
- how family responsibility changes your decisions
- the pressure's effect on your risk-taking
- how you keep the responsibility from distorting the trading
The position sizing guide is the responsibility's best friend.
Background: Position sizing: how to risk a fixed percentage per trade
How much you trade matters more than where you enter. A step-by-step method for sizing positions from your stop-loss and the amount you are willing to lose.
How do I calculate lot size from risk?
Divide the amount you are willing to lose by the stop distance in pips multiplied by the pip value per lot. For $50 risk, a 25-pip stop and $10 per pip per lot, that is 0.20 lots.
What is the 1% rule in trading?
A guideline to risk no more than 1% of the account on any single trade, so a losing streak doesn't cause a drawdown you can't recover from. It is a starting point, not a guarantee.
Comments
Log in to join the discussion. Comments follow the community guidelines.
Log in to commentLoading comments…