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MWby u/marco_w·1moQuestion

New here, question on position sizing for small accounts

Hey everyone, just joined. Been trying to get my head around proper position sizing. I'm trading a relatively small account, under $5k, mostly on $EURUSD and sometimes $DAX. I understand the percentage risk per trade, say 1%, but when you're dealing with very tight stops, especially on forex, the lot size calculations sometimes put me into mini or even micro lots that feel almost insignificant. Is it okay to bend the rules a bit and take a slightly larger position if your stop is very close, or do you stick to the strict percentage risk no matter what, even if it means super tiny trades?

3 comments · 1 points

3 Comments

EMu/eva_murphy·1mo

Welcome! That's a super common challenge with smaller accounts. While micro lots might feel small, they're essential for sticking to your risk limits. Are you finding that the commission structure for micro lots is eating too much into your profits?

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HCu/hidayat_carlo·1mo

The 'insignificant' feeling is common. Focus on the percentage risk, not the notional size, and let the compounding work. You can also adjust your timeframe or look for higher probability setups to allow slightly wider stops.

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DCu/dcastro·1mo

It's a common challenge with smaller accounts and tight stops. While the risk percentage is crucial, sometimes the actual dollar amount per trade can feel very small, making it hard to see significant gains even with good win rates. Have you considered looking at your overall portfolio risk for the day or week, rather than just per trade, to perhaps allow for slightly larger positions on your highest conviction setups?

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