EARN THE RIGHT
Hi everyone,
Before you start trading huge lotsizes and dream for the big returns…Earn the right to increase position size trough results, just like a graduation.
It prevents you to have to decide what position size you'll take, and take unnecessary risks, predetermine your position size.

Define clear rules and commit to them, they will help you to get consistent and stay disciplined. Here is one of my own rules. For each 100$ use only 0.01lot, if you reach 200$, you can now open 2 positions of 0.01lot, or one position 0.02lot, if you have 1.000$ you can open one 0.10lot, or ten 0.01lots or five 0.02lots. Introduce money management rules to your risk management, for example, don’t open more then 3–4 positions in the same instrument. If you diversify, look for uncorrelated assets/instruments, or hedge one with another.

Earn the right to increase your position size, no matter if a trade looks like a high probability trade. Avoid greed, don’t change your risk. Stay consistent and focus on risk in percentage %, stop looking at the dollar value $.
If your internal speech is driven by greed and making more money, those are all red flags. You will probably change your risk and going to fast and this will change your strategy and emotions. Fear of the higher lotsizes compared to your account size can kick in and despite your winning rate might increase, most start taking profit to soon and end up making less money with a much higher risk, lowering risk reward ratio.
Here is a great podcast interview from Etienne Crete with Michael Toma about management in trading.
http://www.desiretotrade.com/michael-toma/?fref=gc
Join Facebook group http://bit.ly/FBCLHedgeFundGroup and follow my posts and articles on my blog https://medium.com/@CLHedgeFund
