As traders we should understand and practice good Money Management techniques. These are not only essential to our trading success but also ensure longevity within your chosen career. Quite often we find traders who are caught up in their success and start to change the lot sizes of their particular trades and find themselves outside the scope of their Trading Plan.
We emphasize rigorous testing of your trading methodology to provide statistical data on each market and timeframe you choose to trade. This ensures that we have the knowledge to position ourselves correctly in the markets and within the tolerances of our account size. If however, we choose to start changing the lot sizes in any given trading session then we are essentially making our prior statistical data redundant.
We will not be able to assess our performance as easily as well as engender a feeling of distrust when placing future trades. Your confidence as a professional trader will diminish and could ultimately lead to the complete erosion of your account. It is therefore essential that you remain consistent in your trading and use only the lot size determined not only by our account size; but also the size that was used throughout the strategy testing phase. Once the account has grown over a pre-determined period of time then it is possible to change the lots size in accordance with the growth that the account has achieved.
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