A Tool to manage position sizing
Simple calculator to calculate position size for each trades. It’ll help you to manage risk like professional. Using correct position size according to your allocated risk percent is very important. In-fact most professional traders may say using correct position size the most important part of risk profile.
Some novice or those who doesn't care about proper risk management may say something like "I always use 1 mini lot for each trade with Risk:Reward 1:2"
Consider the following and see how wrong is such statement:
Trader A is using proper position size while trader B is using fix position size. Both using same Risk: Reward 1:2 and same risk percent. Lets assume both took same 2 trades, one winner one looser each.
Trader A Trade 1:
S/L pips: 50 - According Trader A risk percent trader A maximum position size is 1 lot. Target hit and 100 pips won = ($+1,000.00 - lets assume pip value is $10.00)