Money management system #3 (Lot size management)

I really have a point here, this strategy is what 90% of traders do, if you don't believe me, go and check your demo account and check how much leverage are you using. if you are using more than 10 times your leverage, then, this is the strategy you are using without knowing it. Traders can lose their account in few trades b/c they use high leverage.

In this current strategy, the author is using high leverage without knowing it. When you lose in the trade, the available funds are more less, and the margin is far less and he or she still manage to take the same position which is just how we, the traders do it when we over leverage our accounts.
This strategy is a wake up call to all of us.

Happy trading
H Akbour

Very good point, it is good practise to decrease lot size after each loosing trade

Yep, "Martingale Strategy" is the term I was looking for to describe what this sounds like. I'm convinced you don't want this.

@User on May 25, 2010 - 14:51. "I turned $1200 into $11,000. But then here's the disaster."
Just for grins, how long did it take you to bust when you traded options with this method? Some of us want to last years.

And please, "You know when certain trades are going to be good ones". If that were true, you should bet your entire account when "YOU KNOW". However, the fact is that you DO NOT KNOW when certain trades are going to be good.

Conclusion: Stay away from this method!!!

Am really impresse with this site. Ed u re doing wonders. Let me share my own lot size management here. #1 acc. With less than 2000 USD shd trade 0.1 lot, 2k - 3k 0.2, 3k-4k 0.3 lot and so on. 10k 1.0. Use a SL =30pip n use d cci n PSAR describe by Edward as exit. Locate a gud entry system. D idea is if u have 500 Usd in ur acc wit 0.1 lot size it will take 33 straight loss trade 2 wipe ur equity which is nt possible wit gud trading system. Also, i prefer 1:500 leverage bt don't b tempted 2 increase ur lot above ur equit as i hv described above. Hapi trading. Fx executioner.

This is terrible . I'm only a begginer but i can say it's terrbile... this system is like an anchor it's like u throw an anchor u pull it up a little than he drags u 10ft , than u pull him up a little , and again he draggs u back until u hit bottom ( 0.00$) ... and another thing "...you are now betting at 6 lots (3 losses by 2 lots); ..." from when does forex is betting ?

It doesn't seems to be good strategy...always trade with 2-5% of your account balance and keep lot size based on pip cost( depends on the currency pair).

Worst one i ever heard..Go to hell with your blown account