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How Time Frames Affect Position Size
12/28/2011 8:00 am EST
While some traders prefer a standard lot size, trader Jeff White discusses the notion that the intended time frame for the trade should ultimately influence the position size.
Equally important to locating entries and exits is the matter of sizing your positions. Too much and you can’t stick with the trade plan, aborting in favor of diminishing emotions (whether greed or fear).
Too little and you don’t maximize the use of your capital.
While some traders prefer a standard lot size, in the below video, I’ll discuss the notion that your time frame for the trade should influence your position size.
Yes, the chart itself will help determine your exits, but that’s also a function of how long you’ll expect to be in the trade.
Check out the video for a quick, five-minute explanation and you’ll see exactly what I mean.
By Jeff White of TheStockBandit.com
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