The meeting was a brief instructional session on position sizing in trading, covering the calculation and application of lot sizes for risk management.
Three main position sizing strategies were discussed: set lot size, calculated lot size, and full portfolio allocation (the latter discouraged for attendees).
Multiple examples were given using both mobile apps and web-based calculators, including considerations for different asset classes (Forex, S&P 500).
The presenter also detailed their own process and reasoning for adjusting lot size based on risk and market conditions, with strong recommendations for newer traders.
Action Items
None explicitly assigned during this meeting.
Position Sizing Strategies Overview
Three approaches to position sizing:
Set lot size for every trade (recommended for consistency).
Calculated lot size per trade using account balance, risk percentage, and stop loss in pips.
Full portfolio allocation, which was strongly advised against.
Emphasis on only considering the first two strategies for all attendees.
Calculating Lot Size
Recommended use of lot size calculators (e.g., the "Stinu" app for Forex; online calculators for broader assets) to determine lot size based on:
Account size (e.g., $1,000).
Risk percentage (e.g., 1% risk per trade).
Stop loss size in pips.
Demonstrated step-by-step input for common calculators, highlighting the importance of matching the instrument and adjusting for factors like contract size.
For S&P 500 trades, highlighted the need to check the contract size per lot within the brokerage platform (e.g., 10 or 100 units per lot), as this can differ by broker or account type.
Setting and Adjusting Lot Size
Explained personal routine:
Use of average stop loss range to predetermine "set" lot size for efficiency.
Willingness to risk a higher percentage (up to 3%) if the stop loss distance increases, but only due to extensive personal familiarity and experience.
Described three internal risk levels:
Normal risk (set lot size for regular days).
D-risk (reducing lot size by 50% on days with high-impact news or uncertain market conditions).
Confident risk (doubling lot size only in optimal conditions, but strongly discouraged for inexperienced traders).
Stressed the importance of not applying advanced or aggressive sizing methods until consistently profitable.
Key Tips and Reminders
Set stop loss and lot size decision rules specific to each trading pair or asset, as volatility and required stop sizes vary.
Always verify contract size per lot when opening new accounts or using new brokers.
Do not attempt aggressive or "confident" position sizing without a proven, profitable track record.
Practice and gain familiarity with calculators to streamline the trade entry process.
Decisions
Do not use 'full port' (full portfolio risk) strategy — Discouraged as it exposes traders to excessive risk.
Use only set or calculated lot size — To maintain sound risk management as per the examples outlined.
Open Questions / Follow-Ups
None raised; all presented as instructional content.