Position Sizing Calculator- Download

 

 

Download: http://www.mediafire.com/?end0smwd3se 

Position Sizing Calculator

I used to spend probably 5 minutes after I found a chart I wanted to get in, just trying to figure out my position. I'd go to 3 different calculator sites to get each bit of info I needed to complete my answer of what my position size should be. It was such a pain and I hated doing. I'd miss a lot of moves while going to these sites.

 

I finally created a calculator with the help of a friend of mine that does the position sizing for me within 5 seconds. I got all the formulas figured out, created the layout and he helped me make it work.

 

I've used this calculator ever since and I can't imagine getting into a trade without first putting in the data and figuring out how much I'll be risking. My entire game plan is completely laid out in front of me before I even put on the trade which has helped a lot and has taken the guess work out of the trade after I'm in. I know when I'll get out if the trade goes against me and I know when I'll get out if it goes on my favor. I shoot for 2% gains from entry but I created 3 different exit points if you're into scaling out of a position, you can quickly see your price target ahead of time.

 

I have a very small account and if I hadn't been using this calculator and managing my money, I easily would of blown my account already.

 

DOWNLOAD: http://tradeswing.blogspot.com/2008/01/position-sizing-calculator-download.html

Risk Management- Revised

I made a post I think about a week ago about risk management and the formula that I like to use. I've been thinking about my trades and I've noticed that I get stopped out on almost every single one. Now, a lot of those stops have saved me from losing even more money but they've also cost me a lot of potential money. For example, getting stopped out just before the stock rallies which has happened to me quite a bit lately.

 

So, what I'm going to do is very simple. Keep my current formula, but set the stop at a point that's out of the way of the action but not so far away where to the point of it being pointless to trade. A point that clearly confirms and tells me, "hey, this trade is definitely wrong" instead of "hey, this trade could be wrong".

 

That point will be based on my current trading methods of using Support/Resistance levels on a Daily chart and incorporating them onto an Intra day. I'll see what the action is like on both charts and pin point a stop loss target that I think confirms that the trade is officially wrong. Depending on how far that stop is from the current price, I'll adjust my position size accordingly to my max risk per trade. If the stop is far away, I'll put on a smaller position, if it's closer to the current price, I'll put on a larger size relative to my risk. Basically it's what I've been doing now but really focusing on what a good stop point is instead of a generic automated stop I use for every single trade.

 

I feel this will help weed out those false stops in which I get stopped before a rally but still keep me relatively safe from potential disaster. Now that I have the plan and what to do, I need to put it into action so it becomes habit.