Alan Solarsh advises a trader with a $1,000 account that 0.4 lots is too large. Start with 0.01 lots to learn how real trades feel and affect your account, then move to a live account early to experience actual emotions instead of practicing on demo.
Morning from one of my traders and he asked me how do I manage a lot size of 0.4 on an account of $1,000. So I think it's a, an interesting question and my answer goes like this risk is in the eye of the beholder. So.
A 0.4 lot size four for me may be high risk and a point four lot size for a different person with the same account size as me could be seen as low risk. So I always tell my traders to always start on a lot size of 0.01. Especially as a, a novice, you need to understand where, what that trade is and what the repercussions of that trade is on your, on your account.
So if you, and the only way to do that is to place a trade, then you can understand your emotions and how you deal with that lot size or that risk or the drawdown of that trade. So you place a trade of 0.01 and, and the trade goes against you. And normally as a novice trader when you see red, you start to panic or you start to like freak out because you don't understand what that really means and you think you could be losing money. And as a novice trade, I can totally understand that, that it looks like you're losing money, but you've only lost money if you close the trade.
Now when you place a trade on a real account, your, your emotions are very different to placing a trade.
On a demo account because there's no emotion attached to that trade. So I highly recommend that you do start on a live account as soon as possible so that you can start mitigating the risk, start understanding the risk and start understanding your emotions behind that trade. So that's how I would deal with that question. So I hope that you enjoyed this video. Please subscribe to my video. It helps. The YouTube algorithm also helps my channel to get more subscribers, so helps other traders that need this information. If more people watch this, then it comes up in the, in the YouTube feed. So like this video, comment on this video. If you got any questions and you want to ask me something, you can comment in the comment section and I'll help you answer some of your questions and then I'll see you on my next video.
Double bottom forming - Gold ready for $4000 #trading #technicalanalysis #xauusd
